India, ADB sign $ 120 million loan agreement to improve rail infra

Speed Post News Network

New Delhi : Government of India and the Asian Development Bank (ADB) on March 16, 2018, signed a $120 million loan agreement for completion of works for double-tracking and electrification of railways tracks along high-density corridors to improve operational efficiency of Indian railways.

The tranche 3 loan is part of the $500 million multi-tranche financing facility for Railway Sector Investment Programme approved by the ADB Board in 2011. The loan amount will be used to complete the ongoing works commenced under earlier tranches.

Sameer Kumar Khare, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance, signed the loan for the Government of India, and Kenichi Yokoyama, Country Director of ADB’s India Resident Mission, signed on behalf of ADB.

“The project is aimed at enhancing the efficiency of the rail infrastructure through electrification, introduction of modern signaling system, and doubling rail tracks on key routes in the country.  The Programme will help develop an energy-efficient, safe, and reliable railway system that will result in reduced travel time along project rail routes and improved operational and financial efficiency,” said Khare after signing the agreement, according to a PIB released.

“Funding for tranche 3 loan will contribute towards achieving the overall programme outputs of double-tracking about 840 km of rail routes and electrification of 640 km of tracks along high density corridors,” said Yokoyama. The programme is also helping implement new accounting systems and provide additional safety measures including collision avoidance equipment.

The investment programme is targeting busy freight and passenger routes in the states of Chhattisgarh, Odisha, Maharashtra, Karnataka and Andhra Pradesh including the “Golden Quadrilateral” corridor that connects Chennai, Kolkata, Mumbai and New Delh. The doubling of rail sections is being implemented along Daund-Titlagarh section, Sambalpur-Titlagarh section, Raipur-Titlagarh Section and Hospet-Tinaighat section while electrification is being undertaken along the 641 km Pune-Wadi Guntakal section. The ADB loan has a 20-year term including a grace period of 5 years,