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DFCC, an arm of the rail ministry, is executing the project under which 1,504 kilometres of freight-specific rail line on double tracks is being constructed between Dadri in Uttar Pradesh to Jawaharlal Nehru Port (JNPT) near Mumbai. The project, along with its eastern arm, is likely to be commissioned in 2018.
JICA's latest assistance covers the third tranche of the loan for Phase-I of the project. "The main feature of the project is the construction of new double track electrified railway lines for the sole use of high speed freight cargo trains as the backbone of Delhi-Mumbai Industrial Corridor (DMIC) development plan," JICA said in a statement today.
The lender added that the rail ministry has confirmed the funds currently available under the second tranche of the Phase-I and are likely to be exhausted in the coming fiscal year (2016-17) based on the latest disbursement projection of the project, making further mobilisation of funds essential.
"This loan will support to cope with the huge and rapid increase of freight transport demand in India by constructing new dedicated freight railway system. It will help to promote comprehensive regional economic development along the freight corridor, DMIC, through improvement and modernization of inter-modal logistic system handling considerable freight traffic," Chief Representative at JICA India Takema Sakamoto said.
Under Phase-I of the project, DFCC is laying a 950-km freight line between Rewari and Vadodara connecting major cities in Gujarat, Rajasthan, and Haryana. The line will operate with high-quality and high speed freight locomotives. JICA said, the project will become the backbone of DMIC initiative and aims at promoting direct investment by Indian and Japanese companies.
