$ 500 Million Loan approved by Asian Development Bank to help India Improve Rail Services
Published: November 5, 2011
To help India improve its rail services Asian Development Bank (ADB) approved $ 500 million loan.
A financing facility for the Railway Sector Investment Program (RSIP) approved.
Ministry of Railways carries out the RSIP and it will end by December 2018.
The loan will be used to develop freight and passenger routes in Chhattisgarh, Odisha, Maharashtra, Karnataka and Andhra Pradesh, including the critical Golden Quadrilateral corridor connecting Chennai, Kolkata, Mumbai and New Delhi.
The loan will be used for laying down additional lines and the electrification of hundreds of kilometers of existing track, along with installing new signaling.
The loan will have a term of 25years, with a grace period of five years.
To cover the costs of the total program, which is estimated at over 110 crore US dollars, the Centre will provide counterpart finance of over 64 crore US dollars.