JICA extends ODA loan of INR 2,254 crores for Dedicated Freight Corridor Project (Phase 1) (V)

New Delhi, February 20, 2024: Japan International Cooperation Agency (JICA) signed a loan agreement amounting to JPY 40,000 million (approximately INR 2,254 crores) with the Government of India for the Dedicated Freight Corridor Project (Phase 1) (V).

The objective of the Project is to cope up with increase in freight transport demand in India by constructing new dedicated freight railway system between Delhi and Mumbai, thereby promoting comprehensive regional economic development along the freight corridor as the backbone of Delhi-Mumbai Industrial corridor (DMIC) development plan. The project includes areas where outstanding economic and industrial development has occurred recently, including both Delhi and Mumbai Metropolitan Areas, which have witnessed massive population growth. This Project will also contribute to the reduction of greenhouse gas (GHG) emissions, and the total climate change mitigation benefits (estimated GHG emission reductions) of Phase 1 and 2 of the Project are approximately 12.79 million metric tons of CO2 equivalent per year.

The loan agreement for the project was signed between Mr. Vikas Sheel, Additional Secretary, Department of Economic Affairs, Ministry of Finance and Mr. SAITO Mitsunori, Chief Representative, JICA India.

Speaking on this occasion, Mr. SAITO Mitsunori, Chief Representative of JICA India office said, “The Western Dedicated Freight Corridor being developed by the project runs between Delhi and Mumbai and covers the areas where significant commercial and industrial development is seen. The Western DFC Project is an important part of the "Delhi-Mumbai Industrial Corridor (DMIC) initiative", which is part of the Japanese-Indian collaborative Project aimed at comprehensive regional development. It will help to promote comprehensive regional economic development along the freight corridor in DMIC area."

In the phase 1, a new 915 km freight line (Rewari to Vadodara) connecting the major cities in Haryana, Rajasthan, and Gujarat states has been constructed. The Project will help in creating India's largest industrial belt in DMIC area by linking the industrial parks and harbors of the states between Delhi and Mumbai in order to promote foreign export and direct investment.

The figures are calculated with current exchange ratio: INR 1/- = JPY 1.7743700/-

About JICA
Established, by a specific law, as an incorporated administrative, as the sole Japanese governmental agency in charge of ODA implementation. JICA is the world's largest bilateral donor agency. JICA works as a bridge between Japan and emerging countries like India and provides assistance in the form of loans, grants, and technical cooperation so that emerging countries can strengthen their capabilities.

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