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| Cabinet okays availing Japanese loan for freight corridor |
| Press Trust of India / New Delhi Sep 17, 2009, 15:31 IST |
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The western segment of the ambitious Dedicated Freight Corridor (DFC) is expected to go on fast track with the Union Cabinet today giving approval to availing of loan from Japan for the project that will cost Rs 26,124 crore.
Availing of loan was approved for the first phase of the Japan-aided rail project that will be constructed between Rewari (Haryana) and Vadodara (Gujarat) at the cost of Rs 17,700 crore.
The entire rail project, which will cover Rajasthan, Gujarat and Maharashtra, is expected to be completed by 2017 and would benefit various sectors en route including power, mines, ports, industries and agriculture.
The Japanese Overseas Development Assistance (ODA) loan is a soft loan with very low interest of 0.2 per cent per annum that is to be repaid in 30-40 years with a moratorium of 10 years, Information and Broadcasting Minister Ambika Soni told reporters after the Cabinet meeting chaired by Prime Minister Manmohan Singh.
The terms and conditions specify that the prime contractors must be Japanese firms. Joint ventures with firms incorporated and re-registered in recipient countries are also allowed to be a "prime contractor", provided a Japanese firm is a lead partner. Sub-contractors may be from any country.
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