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Activities in India


Dedicated Freight Corridor (DFC) Project

Loan Agreement Date:October 27, 2009 : Phase 1 (I)
March 31, 2010 : Phase 1 (II)
July 26, 2010 : Phase 2 (I)
Loan Amount:2.6 billion yen : Phase 1 (I)
90.3 billion yen : Phase 1 (II)
1.6 billion yen : Phase 2 (I)
Interest(%):0.01%* : Phase 1 (I)
0.20%** : Phase 1 (II)
0.01%* : Phase 2 (I)
Repayment/Deferment Period (Years):40/10**
Executing Agency:Ministry of Railway/
Dedicated Freight Corridor Corporation of India Limited (DFCCIL)
State:Haryana, Rajasthan and Gujarat (Phase 1) /
Uttar Pradesh, Haryana, Gujarat and Maharashtra (Phase 2)

*The loan under this tranche will be allocated to engineering services for preparing and drawing up designs of the Project and also for preparing bid documents.
(Interest rate 0.01% / year, maturity 40 years, grace period 10 years)

**The Special Terms for Economic Partnership (STEP) loans in Japan's technical projects used to transfer Japan's unique technology and know-how has been applied.
(Interest rate 0.20% / year, maturity 40 years, grace period 10 years)


Under the Dedicated Freight Corridor (DFC) Project, freight rail lines will be constructed along the Western Corridor between Delhi and Mumbai and the Eastern Corridor between Ludhiana, Delhi and Sonnagar. The Japanese ODA loan project (the Project) will focus on constructing approximately 1500 kilometers track of the Western Corridor between Delhi and Mumbai, connecting major cities in the states of Maharashtra, Gujarat, Rajasthan and Haryana, as well as introducing electric locomotives capable of high-speed, high-capacity transportation. By meeting the high rate of growth expected in freight transportation and optimizing distribution networks, the Project will make a far-reaching contribution towards India's economic development.

The DFC Project is an important part of "Delhi-Mumbai Industrial Corridor (DMIC) initiative", which is a Japanese-Indian collaborative project for comprehensive infrastructure development to create India's largest industrial belt zone by linking the industrial parks and harbors of the six states between Delhi and Mumbai in order to promote foreign export and direct investment, particularly those in Japan. Under the DMIC initiative, plans are also being implemented to create industrial parks and logistics bases with well-developed infrastructures in the area 150 kilometers to either side of the Western Corridor.