jica: The 2nd phase of the dedicated freight corridor obtains a loan of Rs 7,517 cr Jica

The Japan International Cooperation Agency (Jica) has signed a loan agreement with the government to provide 1,16,520 million yen or about 7,517 crore rupees to the western branch of the dedicated freight railway project. The agency said on Thursday that the concessional loan was being extended under the Japanese government’s official development assistance window. The second phase is to build a new 550 km freight line linking 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 ports of these states between Delhi and Mumbai.

The objective of the project is to meet the increasing demand for freight transport by constructing a new dedicated freight rail system between New Delhi and Mumbai, thereby promoting comprehensive regional economic development along the corridor as a column backbone of the Delhi-Mumbai industrial corridor development plan.

The project includes areas where outstanding economic and industrial development has occurred recently, including the metropolitan areas of Delhi and Mumbai, which have seen massive population growth, the statement said.

The loan agreement was signed between Rajat Kumar Mishra, an additional secretary in the Ministry of Finance, and Saito Mitsunori, the main representative of Jica India.

Speaking on the occasion, Mitsunori said the Western Dedicated Freight Corridor connects Delhi and Mumbai and covers areas where significant commercial and industrial development is already witnessed.

The project is an important part of the Delhi-Mumbai industrial corridor, which is part of the India-Japan collaborative project aimed at comprehensive regional development.

Dedicated Freight Corridor Corporation of India is the executing agency for the project and Jica is committed to providing continued financial support to build transport capacity through its projects and initiatives in the country.

Established, by specific law, as an administrative institution incorporated under the government of Japan, Jica promotes international cooperation, as the sole Japanese government agency responsible for implementing ODA.

As the largest bilateral donor agency in the world, Jica works as a bridge between Japan and emerging countries, and provides assistance in the form of loans, grants, and technical cooperation.

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