Asian Development Bank (ADB) has signed a deal with the Indian government agreeing a $150 million loan for the first tranche of the Railway Sector Investment Program.
The investment will see more than 840km of rail track routes doubled, 640km of track electrified and the installation of a new signalling system.
The deal was signed by Venu Rajamony, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance, Satish Agnihotri, managing director, Rail Vikas Nigam Limited, and Hun Kim, country director for India, ADB.
The total cost of the Railway Sector Investment Program is $1,144.6 million, out of which ADB will provide $500 million loan assistance in four tranches and the Indian government will fund $644.6 million.
Rajamony said: “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.”
Hun Kim said: “Our goal is to get people and goods moving more quickly and easily throughout India.
“Better railways not only help promote environmentally sustainable growth, they build better links between states and open opportunities to more people.”
ADB will also provide program linked technical assistance worth $300,000 to promote sustainable transport modes by monitoring carbon emission reductions from shifting bulk goods from road to rail. It will also support accounting reforms to improve operational and financial efficiency at Indian Railways.
