World Bank nod to $1,100 million loan for rail corridor

The World Bank has sanctioned a loan of $1,100 million for construction of 393 km long double line between Mughalsarai-Bhaupur section of Eastern Dedicated Freight Corridor project.

The World Bank Board in a meeting held at Washington on April 22 sanctioned the second phase loan of $1,100 million for construction of electrified double line between Mughalsarai-Bhaupur section of Eastern DFC after completion of the process of project appraisal and loan negotiations, said a senior DFCC official.

The loan agreement for the second phase is expected to be signed in June 2014.

World Bank has agreed in principle to partly finance the Eastern Corridor project from Mughalsarai to Ludhiana, which has been divided into 3 phases.

The total loan commitment is $2.725 billion, out of which the loan for the first phase was to the tune of $975 million. It was sanctioned in May, 2011 and the loan agreement was signed in October, 2011.

Dedicated Freight Corridor Corporation, a special purpose vehicle (SPV), is engaged in planning, construction, operation and maintenance of the dedicated freight corridors and in the first phase, the two corridors, namely, Eastern Corridor from Ludhiana to Dankuni (1839 kms) and the Western Corridor from Dadri to Jawaharlal Nehru Port (JNPT) (1499 kms) are being constructed.

The entire Western Corridor is being funded by Japan International Cooperation Agency (JICA), while the Eastern Corridor from Mughalsarai to Ludhiana is being funded by the World Bank.