Title - India gets $150mn ADB loan for rail development

Asian Development Bank (ADB) has granted a loan of US $150m to India as first tranche of Railway Sector Investment Program, which also include government’s share of $193.4m, to improve passenger transport routes and rail freight services. India will utilise the loan to lay double-track line for about 840km of rail routes and electrify about 640km to help improve its rail services along some of its busiest freight and passenger transport routes. Out of the total cost of $1.14bn for the program, ADB will provide $500m in four tranches while the Government of India will contribute $644.6m. The objective of the program is to reduce both fuel consumption and pollution, enhance safety, increase the line capacity, and incorporate innovating financing modalities by pursuing carbon credits under UNFCCC. Ministry of Finance Department of Economic Affairs Joint Secretary (Multilateral Institutions) Venu Rajamony although railways make up a significant part of India’s transport sector, constraints on high density railway routes present a chronic challenge. “This program should improve energy efficiency, safety, reliability, affordability, and environmental sustainability along key railway routes with heavy traffic,” Rajamony said. The program will be executed by Ministry of Railways, while Rail Vikas Nigam Limited will act as the implementing agency.  A technical assistance of $300,000 linked to the program will also be provided by ADB to promote sustainable transport modes by monitoring carbon emission reductions from shifting bulk goods from road to rail.