New Delhi: Japan International Cooperation Agency (JICA) signed loan agreement with the Government of India to provide Japanese Official Development Assistance (ODA) loan amounting to JPY 116,520 million (approximately INR 7517 crore) for the construction of Western dedicated freight railway system under Dedicated Freight Corridor Project (Phase 2) (III).
The objective of the project is to cope up with increase in freight transport demand in India by constructing new dedicated freight railway system between Delhi and Mumbai, thereby promoting comprehensive regional economic development along the freight corridor as the backbone of Delhi-Mumbai Industrial corridor (DMIC) development plan. The project includes areas where outstanding economic and industrial development has occurred recently, including both Delhi and Mumbai Metropolitan Areas, which have witnessed massive population growth.
The loan agreement was signed between Mr. Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance, Government of India and Mr. Saito Mitsunori, Chief Representative, JICA India.
Speaking on this occasion, Mr. Saito Mitsunori, Chief Representative, JICA India said, “The Western Dedicated Freight Corridor being developed by the project runs between Delhi and Mumbai and covers the areas where significant commercial and industrial development is seen. The Western DFC Project is an important part of the “Delhi-Mumbai Industrial Corridor (DMIC) initiative”, which is part of the Japanese-Indian collaborative Project aimed at comprehensive regional development. It will help to promote comprehensive regional economic development along the freight corridor in DMIC area.”
In this project phase 2, a new 550 km freight line (“Dadri to Rewari and “Vadodara to Mumbai”) connecting major cities of Gujarat and Maharashtra states etc has being constructed. The project will help in creating India’s largest industrial belt in DMIC area by linking the industrial parks and harbors of the states between Delhi and Mumbai in order to promote foreign export and direct investment.
Dedicated Freight Corridor Corporation of India Limited (DFCCIL) is the Executing Agency of the Project. JICA commits to provide continued support for the strengthening of the transport capacity through its projects and initiatives in India.
About JICA
Established, by a specific law, as an incorporated administrative institution under the Government of Japan, the Japan International Cooperation Agency (JICA) aims to contribute to the promotion of international cooperation, as a sole Japanese governmental agency in charge of ODA implementation. JICA is the world’s largest bilateral donor agency. JICA works as a bridge between Japan and emerging countries, and provides assistance in forms of loan, grant and technical cooperation so that the emerging countries can strengthen their capabilities.