MUMBAI : The Japan International Cooperation Agency (JICA) has signed a loan agreement with the government to extend 1,16,520 million yen or around Rs 7,517 crore to the Western leg of the dedicated freight railway project. The agency on Thursday said the soft loan is being extended under the government of Japan’s official development assistance window. The second phase involves building a new 550-km freight line connecting Dadri to Rewari and Vadodara to Mumbai.
The project will help create the largest industrial belt in the Delhi-Mumbai industrial corridor area by linking the industrial parks and harbors of these states between Delhi and Mumbai.
The objective of the project is to cope with increase in freight transport demand by constructing a new dedicated freight railway system between New Delhi and Mumbai, thereby promoting comprehensive regional economic development along the corridor as the backbone of Delhi-Mumbai industrial corridor development plan.
The project includes areas where outstanding economic and industrial development have occurred recently, including both Delhi and Mumbai metropolitan areas, which have witnessed massive population growth, the statement said.
The loan agreement was signed between Rajat Kumar Mishra, an additional secretary in the finance ministry, and Saito Mitsunori, the chief representative of JICA India.
Speaking on this occasion, Mitsunori said the Western dedicated freight corridor runs between Delhi and Mumbai and covers the areas where significant commercial and industrial development is already seen.
The project is an important part of the Delhi-Mumbai industrial corridor, which is part of the Indo-Japanese collaborative project aimed at comprehensive regional development.
Dedicated Freight Corridor Corporation of India is the executing agency of the project and JICA has committed to providing continued financial support to strengthen the transport capacity through its projects and initiatives in the country.
Established, by a specific law as an incorporated administrative institution under the government of Japan, the JICA promotes international cooperation, as the sole Japanese governmental agency in charge of ODA implementation.
Being the world’s largest bilateral donor agency, JICA works as a bridge between Japan and emerging countries, and provides assistance in the form of loans, grants and technical cooperation.