JICA’s Cooperation adds Powerful Electric Locomotives for ‘Western Dedicated Freight Corridor’
New Delhi, September 15, 2017: Japan International Cooperation Agency (JICA) signed an agreement with the Government of India to provide Official Development Assistance (ODA) Loan of 108,456 million Japanese Yen (approximately INR 6,000 crores) for procurement of 200 Electric Locomotives for the Western Dedicated Freight Corridor (WDFC) Project. The ODA loan's conditions are very concessional, i.e. JPY LIBOR + 10 basis points interest rate (Japanese Yen London Inter-Bank Offered Rate + 0.1%) for project activities and 30 years of repayment period (including 10 years of grace period). JICA is currently supporting the construction of civil & track works, electrification including signalling & telecommunication system for the WDFC between Delhi and Mumbai.
The JICAassisted WDFC Project aims to cope with the increase of freight transportdemand in India, thereby promoting comprehensive regional economic developmentalong the freight corridor. Inter-modal logistic handling systems are expectedto improve and modernise through WDFC. The new 6-Axles Electric Locomotives of9000 Horse Power(HP) capacity, together with the dedicated railways, willenhance current freight capacity, catering increase in container trafficbetween the international container ports on the western coast and inlanddemand areas. The Loan will also support the construction of a Depot atRewari, Haryana for maintenance of the Locomotives. The supplier of thelocomotives is also expected to provide transfer of technology for indigenization.
TheODA loan agreement was signed between Mr. Takema Sakamoto, ChiefRepresentative, JICA India Office and Mr. S. Selvakumar, Joint Secretary, Department ofEconomic Affairs, Ministry of Finance, Government of India.
Speakingon the occasion, Mr. Takema SAKAMOTO, Chief Representative, JICA IndiaOffice said, “JICA is fully committed towards the construction andcompletion of this initial logistical infrastructure of the DMIC. The DFCproject will enhance freight capacity, making it a revolution for theindustrial corridor. JICA will continue to play an important role in thedevelopment of WDFC and will provide necessary assistance in the near future aswell.”
TheMinistry of Railways (MoR), Government of India would be responsible forprocurement and maintenance of these electric locomotives, while DedicatedFreight Corridor Corporation of India Limited (DFCCIL) would be responsible foroperating them.
JICA has sofar extended concessional ODA loans of 443 billion Japanese Yen (approximatelyINR 26,000 crores) for development of the Western DFC Project in India.
TheProject will focus on constructing approximately 1,500 kms track of the WesternCorridor between Delhi and Mumbai, connecting major cities in the states ofMaharashtra, Gujarat, Rajasthan and Haryana, as well as introducing newelectric locomotives capable of high-speed, high-capacity transportation. Bymeeting the high rate of growth expected in freight transportation andoptimizing distribution networks, the Project will make a far-reachingcontribution towards India’s economic development.