USD 650 million World Bank loan for Rail Eastern DFC

The government today signed USD 650 million agreement with the World Bank towards the third loan for the Eastern Dedicated Freight Corridor (EDFC) that will help faster and more efficient movement of raw materials and finished goods between northern and eastern parts of India.
The project was approved by the World Bank Board on June 30, 2015, according to a release.
The loan and guarantee agreement for EDFC Project was signed by Finance Ministry, Dedicated Freight Corridor Corporation and World Bank.
EDFC is 1,840-km-long and extends from Ludhiana in Punjab to Kolkata in West Bengal, with the World Bank supporting it as a series of projects in which the three sections with a total route length of 1,193 km will be delivered sequentially.

The project envisages the construction of 401 km Ludhiana-Khurja section which goes through Punjab, Haryana and Uttar Pradesh. The project will help increase the capacity of these freight-only lines by raising the axle-load limit from 22.9 to 25 ton axle-load (upgradable to 32.5 ton axle loads) and enable speeds of up to 100 km/hr.
The DFC lines are being built to carry bulk freight trains of 6,000 to 12,000 gross tons. The project is also developing the institutional capacity of the DFCCIL to build and maintain the DFC infrastructure network.
The objective of the EDFC project is to augment railway freight carrying capacity along the Railway Corridor between Ludhiana and Kolkata. The project will benefit industries of northern and eastern India, which rely on railway network for transportation of material inputs and exports that would accelerate creation of jobs in those regions.