JICA grants Rs 11,033-cr ODA loan for Freight Corridor, Mumbai Metro

Japan International Cooperation Agency (JICA) has signed an agreement with the Government of India to provide an Official Development Assistance (ODA) loan worth Rs 11,033 crore for two projects—the Dedicated Freight Corridor and the Mumbai Metro.

Under the ODA loan granted, the Dedicated Freight Corridor (DFC) Project (Phase 1-IV) has been given a Rs 8,553 crore-loan, while Mumbai Metro Line-3 Project (III) has been extended the balance Rs 2,480 crore.

Japanese ODA loans are long-term low interest rate loans advanced to the developing countries.

The objective of the DFC project is to cope up with increase in freight transport demand in India by constructing new dedicated freight railway system between Delhi and Mumbai, thereby promoting comprehensive regional economic development along the freight corridor as the backbone of Delhi-Mumbai Industrial corridor (DMIC) development plan.

In phase-1 of this project, a new 950-km freight line (Rewari to Vadodara) connecting the major cities in Gujarat, Rajasthan, and Haryana states has being constructed.

The objective of the Mumbai Metro project is to cope with the increase in traffic demand in that city by expanding the mass rapid transportation system, thereby promoting regional economic development and improving the urban environment through mitigation of traffic jams and decrease of pollution caused by increasing motor vehicles.

With a total of 33.7 km, entailing 26 stations, Line 3 (Colaba-Bandra-SEEPZ) is planned to connect southern Mumbai with the major activity areas like Bandra Kurla Complex (BKC), Airport (Domestic and International), Maharashtra Industrial Development Corporation (MIDC) area, SEEPZ (Industrial Hub) and area along Jogeshwari–Vikhroli Link Road (JVLR), which has got tremendous potential for new developments. The project is scheduled to be completed by 2021.