The Union Government has signed $650 million loan agreement with the World Bank for construction of the Eastern Dedicated Freight Corridor Eastern Dedicated Freight Corridor (EDFC)-III project.
The agreement was signed between International Bank for Reconstruction and Development (IRBD), part of World Bank Group to lend $650 million, third tranche for construction EDFC to Dedicated Freight Corridor Corporation of India (DFCCIL).
Features of EDFC-III project
The project aims to enhance rail transport capacity, improve service quality and boost freight carriage on the 401-km- long Ludhiana-Khurja section of the EDFC.
On completion it will directly benefit the power and heavy manufacturing industries located in the Northern and Eastern parts of India.
This project will provide these industries smooth railway network for efficient transportation of their raw materials along with distribution processed and consumer goods.
In addition, railway passengers will also be benefitted as the existing passengers lines would get decongested.
Background
The first two phases of the Eastern Dedicated Freight Corridor are already being implemented by the DFCCIL with the help of financial assistance provided by the World Bank.
The IRDB had provided loans worth $975 million and $1,100 million for the Dadri-Khurja-Kanpur and and Kanpur-Mughal Sarai stretches respectively of the Eastern Rail Corridor.
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