India and ADB sign $120 million loan to improve rail infrastructure
The Government of India and the Asian Development Bank (ADB) have signed a $120 million loan agreement for completion of works for double-tracking and electrification of railways tracks along high-density corridors to improve operational efficiency of Indian railways. The tranche 3 loan is part of the $500 million multi-tranche financing facility for Railway Sector Investment Program approved by the ADB Board in 2011. The loan amount will be used to complete the ongoing works commenced under earlier tranches.
The investment program is targeting busy freight and passenger routes in the states of Chhattisgarh, Odisha, Maharashtra, Karnataka and Andhra Pradesh, including the “Golden Quadrilateral” corridor that connects Chennai, Kolkata, Mumbai and New Delh. The doubling of rail sections is being implemented along Daund-Titlagarh section, the Sambalpur-Titlagarh section, the Raipur-Titlagarh Section and the Hospet-Tinaighat section while electrification is being undertaken along the 641-kilometer Pune-Wadi Guntakal section.
ADB loan has a 20-year term, including a grace period of 5 years, an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, and a commitment charge of 0.15% per year.
@EPC World Media