Japan has committed Rs 130 crore for the engineering services loan for the Phase I of the freight corridor project to the government-owned Dedicated Freight Corridor Corp of India (DFCCIL).
Japanese ambassador Hideaki Domichi and Kumar Sanjay Krishna, joint secretary, finance ministry, inked the pact on Tuesday.
Phase I of the freight corridor project, a part of the 1,484 km Western Corridor connecting Jawaharlal Nehru Port in Mumbai and Tughlakabad in Delhi, is a 920 km stretch between Haryana and Vadodara.
The government is looking at a Rs 17,700 crore loan from Japanese Overseas Development Assistance at 0.2%. The Rs 130 crore engineering service loan is the first step towards the funding.
“Engineering service means preparing the project for contracting. This entails carrying out socio-economic impact, setting up of design parameters, preparing the bidding documents,” said a DFCCIL official, adding that the procedure for preparation of documents will be completed in around a year.
DFCCIL is also planning to tie up a loan of Rs 12,000 crore from Japan for the balance 563 km in the Western Corridor.
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