BUSINESS

World Bank approves $650 m loan for eastern freight corridor

The World Bank has approved an additional loan of $650 million for the Eastern Dedicated Freight Corridor (DFC), which is aimed at the faster delivery of goods between the northern and eastern parts of the country.

This round of loans to the Eastern DFC follows two other loans by the World Bank. The Cabinet last week approved the revised cost estimate of Rs.81,459 crore for the Eastern and Western Dedicated Freight Corridor (DFC) Project.

The third round of World Bank funding, announced on Wednesday, will build the 401 km Ludhiana-Khurja section in Uttar Pradesh, Haryana and Punjab. The project will “help increase the capacity of these freight-only lines by raising the axle-load limit from 22.9 to 25 tonnes and enable speeds of up to 100 km/hr. It will also help develop the institutional capacity of the Dedicated Freight Corridor Corporation of India Ltd (DFCCIL) to build and maintain the DFC infrastructure network,” according to the World Bank.

An analysis of the projected greenhouse gases that are expected to be generated by the Eastern freight corridor project found that it would be 55 per cent lower than the levels of gases released without the project. The Eastern DFC project is expected to release 10.5 million tonnes of greenhouse gas emissions up to 2041-42, compared to a whopping 23.3 million tonnes in the absence of the freight corridor.



The funding will be utilised to build the 401 km Ludhiana-Khurja section in UP, Haryana and Punjab



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