Press Information Bureau

Government of India
Ministry of Finance
18-February-2014 15:13 IST
India and ADB Sign $130 Million Loan for Railway Sector Investment Program -
Tranche-II to Improve Rail Infrastructure along Key Routes
The Government of India and Asian Development Bank (ADB) signed here yesterday a
$130 million loan to help India improve rail services along some of its busiest and most
critical freight and passenger transport routes. The second tranche loan is part of the $500
million Railway Sector Investment Program approved by ADB in 2011, and will finance
track components for 840 kilometers of additional tracks along existing railway lines.
The signatories to the loan were Mr. Nilaya Mitash, J oint Secretary (Multilateral
Institutions), Department of Economic Affairs, Ministry of Finance, on behalf of the
Government of India; and Ms. M. Teresa Kho, Country Director (INRM), on behalf of
ADB. The project agreement was signed by Mr. Satish Agnihotri, CMD, RVNL.
Mr. Mitash said the investment program targets busy freight and passenger routes in the
states of Chhattisgarh, Orissa, Maharashtra, Karnataka and Andhra Pradesh, including the
critical Golden Quadrilateral corridor that connects Chennai with Mumbai. Many of the
lines traverse through impoverished rural areas and carry large number of passengers and
huge quantities of minerals and other economically important freight.
M. Teresa Kho, Country Director of ADBs India Resident Mission said that the
improvements in rail infrastructure will help deliver more energy efficient, safe, reliable,
and environmentally-friendly rail services along key high-density routes. This will result in
direct and indirect economic opportunities for about 21 million people in program areas
who will benefit from faster travel times, lower costs, and improved links to markets,
production centers, and social service facilities.
The second tranche from the ordinary capital resources of ADB has a 25-year term
including a grace period of 5 years, commitment charge of 0.15% per year (on un-drawn
balance), Maturity Premium of 0.10% (by straight line method)and interest rate to be
determined in accordance with ADBs LIBOR-based lending facility. The Government of
India will provide counterpart finance of more than $97.2 million to cover the balance of
the costs of the second tranche which is estimated at more than $227.2 million. The
Ministry of Railways carries out the program which is due for completion by December
2018.
******
DSM/MJ PS/KA
Print Release http://pib.nic.in/newsite/PrintRelease.aspx
1 of 1 18-02-2014 21:33