JICA Signs Loan Agreement For Dedicated Freight Corridor Project With India
The Japan International Cooperation Agency (JICA) has inked a significant loan agreement amounting to JPY 40,000 million (approximately Rs 2,254 crores) with the Government of India for the Dedicated Freight Corridor Project (Phase 1) (V). The project aims to address the escalating demand for freight transport in India by establishing a new dedicated freight railway system between Delhi and Mumbai.
The primary objective of the project is to bolster India's freight transportation infrastructure, thereby catalysing comprehensive regional economic development along the freight corridor, which serves as the backbone of the Delhi-Mumbai Industrial Corridor (DMIC) development plan.
The project encompasses areas that have witnessed substantial economic and industrial growth, including the Delhi and Mumbai Metropolitan Areas, which have experienced significant population surges in recent years.
Moreover, the Dedicated Freight Corridor Project is poised to play a pivotal role in mitigating greenhouse gas (GHG) emissions, with estimated reductions of approximately 12.79 million metric tonnes of CO2 equivalent per year across Phase 1 and Phase 2.
The loan agreement for the project was formalised between Vikas Sheel, Additional Secretary of the Department of Economic Affairs, Ministry of Finance, and SAITO Mitsunori, Chief Representative of JICA India.
Speaking on the occasion, SAITO Mitsunori highlighted the strategic significance of the Western Dedicated Freight Corridor, which spans the crucial stretch between Delhi and Mumbai, encompassing areas of substantial commercial and industrial development.
He emphasised the project's alignment with the overarching goals of the "Delhi-Mumbai Industrial Corridor (DMIC) initiative," a collaborative endeavour between Japan and India aimed at fostering comprehensive regional development. The Western DFC Project is integral to this initiative, fostering economic growth and connectivity along the freight corridor in the DMIC area.
In Phase 1 of the project, a new 915 km freight line linking the major cities of Haryana, Rajasthan, and Gujarat states, from Rewari to Vadodara, has been constructed. This development is expected to facilitate the creation of India's largest industrial belt within the DMIC area, by seamlessly connecting industrial parks and harbours between Delhi and Mumbai, thereby stimulating foreign export and direct investment.
The signing of the loan agreement signifies a significant milestone in India's efforts to enhance its freight infrastructure and promote sustainable economic development, with the support of Japan's expertise and collaboration through JICA.
