ADB to extend $750-millon loan to push railways' electrification drive

The ADB debt financing is likely to be structured as a standard secured project finance loan for a tenor of 20 years

The Indian Railways will raise a $750-million loan from the Asian Development Bank (ADB) through Indian Railway Finance Corporation (IRFC) to finance part of its electrification drive. 

The national transporter has lined up an electrification drive covering 28,000 km in the next three financial years — 7,000 km in 2019-20 and 10,500 km each in 2020-21 and 2021-22, respectively. 

This will entail an expenditure of $6-7 billion. The ADB loan will be used for electrifying around 3,378 km, involving at least 16 sub-projects in 13 states. 

The national transporter has approached the Election Commission to get the clearance on this. “In a week