A Guarantee Agreement for World Bank (IBRD) lending of US $ 1100 million to the Dedicated Freight Corridor Corporation India Ltd (DFCCIL) for Eastern Dedicated Freight Corridor-II Project (EDFC-II) has been signed between the Government of India and the World Bank here yesterday.
Tarun Bajaj, Joint Secretary (MI), Department of Economic Affairs, Ministry of Finance signed the Agreement on behalf of Government of India and Mr. Onno Ruhl, Country Director, World Bank, signed the same on behalf of the World Bank.
The objective of the EDFC-II Project is to augment rail transport capacity, improve service quality and enhance freight carriage throughout on the 393 km Kanpur-Mughal Sarai secton of the Eastern Dedicated Freight Corridor; and develop institutional capacity of DFCCIL to build, maintain and operate the entire DFC network.
This project is in continuation to the Phase-I of the EDFC Project presently being implemented by the DFCCIL with the World Bank loan of US$ 975 million on the Khurja-Kanpur stretch of the Eastern rail corridor (Ludhiana-Delhi-Kolkata). The project will directly benefit the power and heavy manufacturing industries of northern and eastern India, which rely on railway network for transportation of their material inputs and also for the distribution of bulk processed and semi-processed commodities and consumer goods. Railway passengers will also be benefitted through decongestion of the existing passenger lines.