DFCCIL seeks Rs. 3,700cr WB funds
In order to complete the 430-km stretch in the Ludhiana-Khurja section under the eastern freight corridor, the Dedicated Freight Corridor Corporation of India (DFCCIL) has reportedly sought about Rs. 3,700 crore funds from the multilateral lending body, the World Bank. On completion, the stretch with a total length of 1,806 km called the eastern arm of the corridor will connect Ludhiana in Punjab to Dankuni in West Bengal.
As per available reports the construction of the stretch was supposed to be financed by the Asian Development Bank. But the ADB has extended a loan of Rs. 2,320 crore to the railways for developing projects that are currently being executed by the Rail Vikas Nigam Limited (RVNL). The ADB expressed its intention at redistributing the amount to include within its ambit the project for constructing the Ludhiana Khurja segment. But the suggestion did not find favor with the government and instead decided to approach the World Bank for additional funds.
Official sources said that a technical mission team from the WB is on its way to examine the features including feasibility report, environmental impact assessment and alignment reports and will give a firm response after the detailed evaluation. The World Bank has already committed $1.8 billion to $2 billion for developing 730 km stretch between Mughalsarai and Khurja, the loan agreement for which is expected to be signed very shortly. Prior estimates indicated that the entire stretch of the eastern freight corridor is likely to entail a total investment of Rs 24,000 crore, they added.
As per available reports the construction of the stretch was supposed to be financed by the Asian Development Bank. But the ADB has extended a loan of Rs. 2,320 crore to the railways for developing projects that are currently being executed by the Rail Vikas Nigam Limited (RVNL). The ADB expressed its intention at redistributing the amount to include within its ambit the project for constructing the Ludhiana Khurja segment. But the suggestion did not find favor with the government and instead decided to approach the World Bank for additional funds.
Official sources said that a technical mission team from the WB is on its way to examine the features including feasibility report, environmental impact assessment and alignment reports and will give a firm response after the detailed evaluation. The World Bank has already committed $1.8 billion to $2 billion for developing 730 km stretch between Mughalsarai and Khurja, the loan agreement for which is expected to be signed very shortly. Prior estimates indicated that the entire stretch of the eastern freight corridor is likely to entail a total investment of Rs 24,000 crore, they added.
| < Prev | Next > |
|---|
