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India and ADB Signed USD 120 Million Loan Agreement for Improving Rail Infrastructure
India and ADB Signed USD 120 Million Loan Agreement for Improving Rail Infrastructure- Details, Loan Term, Purpose
India and the Asian Development Bank (ADB) signed a USD 120 Million loan agreement on 16th March 2018, in New Delhi for improving the Rail infrastructure of Indian Railways.
The loan agreement is a 3rd part of the USD 500 Million multi-tranche, financing facility for Railway Sector Investment Programme (RSIP) approved by the ADB Board in the year 2011.
The ADB sectioned loan, has a 20-year term, including a grace period of 5 years, an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility.
The loan agreement amount will be utilized for the completion of the ongoing working of Rail Infrastructure and for increasing & enhancing the operational efficiency of Indian railways by double-tracking on key routes and electrification of tracks along high-density corridors.
The loan agreement further will be used for busy freight and passenger routes in Chhattisgarh, Odisha, Maharashtra, Karnataka and Andhra Pradesh, including “Golden Quadrilateral” corridor that connects Chennai, Kolkata, Mumbai and New Delhi.
