Railways to get Rs.200 bn loan from JapanFebruary 13th, 2009 - 6:15 pm ICT by IANS
New Delhi, Feb 13 (IANS) Indian Railways will likely get Rs.200 billion (Rs.20,000 crore/$4 billion) from Japan for their rail freight corridor project, Railways Minister Lalu Prasad said here Friday.
The Japan International Cooperation Agency (JICA) will release the funds by the end of 2009, Lalu Prasad told reporters after presenting the interim railway budget.
The minister had last month visited Japan to smoothen out the formalities for receiving the soft loan for the dedicated freight corridor project.
The first phase of the corridor will link New Delhi and Mumbai.
JICA has agreed in principle to give the loan, but the Japanese are demanding that 30 percent of the work, including technical assistance, be provided by Japanese companies.
The dedicated freight corridor is aimed at reducing the pressure on existing railway lines, easing congestion, reducing delivery times and improving overall efficiency and productivity.
“Work will start this month,” on both the eastern and western corridors, Lalu Prasad said.