New Delhi, India (Urban Transport News): Japan International Cooperation Agency (JICA) signed a Loan Agreement with the Government of India to provide Japanese Official Development Assistance (ODA) loan amounting to JPY 116,520 million (approximately Rs 7,517 crore) for the construction of Western Dedicated Freight Railway System under Dedicated Freight Corridor Project (Phase 2/III).
The objective of the Project is to cope with the increase in freight transport demand in India by constructing a new dedicated freight railway system between Delhi and Mumbai, thereby promoting comprehensive regional economic development along the freight corridor as the backbone of the Delhi-Mumbai Industrial Corridor (DMIC) development plan. The project includes areas where outstanding economic and industrial development has occurred recently, including both Delhi and Mumbai Metropolitan Areas, which have witnessed massive population growth.
The loan agreement was signed between Mr. Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, and SAITO Mitsunori, Chief Representative, JICA India on March 31, 2022, in New Delhi, India.
Speaking on this occasion, SAITO Mitsunori, Chief Representative, JICA India said,
The Western Dedicated Freight Corridor being developed by the project runs between Delhi and Mumbai and covers the areas where significant commercial and industrial development is seen. The Western DFC Project is an important part of the "Delhi-Mumbai Industrial Corridor (DMIC) initiative", which is part of the Japanese-Indian collaborative Project aimed at comprehensive regional development. It will help to promote comprehensive regional economic development along the freight corridor in DMIC area.
In this project phase 2, a new 550 km freight line ("Dadri to Rewari" and "Vadodara to Mumbai") connecting the major cities in Gujarat and Maharashtra states, etc has been constructed. The Project will help in creating India's largest industrial belt in the DMIC area by linking the industrial parks and harbors of the states between Delhi and Mumbai in order to promote foreign export and direct investment.
Dedicated Freight Corridor Corporation of India Limited (DFCCIL) is the Executing Agency of the Project. JICA commits to provide continued support for the strengthening of the transport capacity through its projects and initiatives in India.
(Exchange Rate: INR 1/-=JPY 1.55/-)