JICA signs loan agreement for DFC Phase I

JICA signed an agreement with the central government to provide an ODA loan of Rs 85.53 billion for Phase I of the Dedicated Freight Corridor Project’s Western Corridor on March 27, 2020. The loan has been sanctioned at an annual interest of 0.1 per cent. Besides, the annual interest rate for consulting services is 0.01 per cent and the repayment period for the loan is 30 years along with a grace period of 10 years. The objective is to cope with the increase in freight transport demand and promote comprehensive regional economic development along the freight corridor. The project involves the development of a 1,504 km long heavy-haul freight corridor with double-line electric (2×25 kV) tracks in the states of Haryana, Gujarat and Uttar Pradesh at an investment of Rs 467.18 billion. It is being developed in three phases – Vadodara-Rewari (Phase I), Vadodara-Jawaharlal Nehru Port Trust (JNPT) (Phase II) and Rewari-Dadri (Phase III).