Updated By: LatestGKGS Desk
ADB Financing Indian Railways Track Electrification Project
ADB Financing Indian Railways Track Electrification Project: Details, Purpose, Significance, Highlights
The Asian Development Bank (ADB) has signed a loan agreement to electrify railway tracks in India under Railways Track Electrification Project.
As per the loan agreement, ADB will provide $750 million (equivalent in Indian Rupee) long-term financing to Indian Railway Finance Corporation (IRFC).
It is the largest single non-sovereign loan ever committed by ADB to a member country.
The proceeds of the loan amount will be utilized by Indian Railway Finance Corporation (IRFC) to fund the Railways Track Electrification Project.
About Railways Track Electrification Project
Railways Track Electrification Project was launched as part of Railways broad modernization program which will help India’s railway sector to shift from dependence on fossil fuels towards electric power.
The electrification assets will be leased to Indian Railways (country’s national railway system) under a long-term lease agreement.
IRFC will use the loan amount to install electric traction equipment along 3,378 km of existing railway lines, so as to enable migration of passenger and freight traffic from diesel to electric traction.
This is a flagship project to demonstrate ADB’s strategy of supporting the key state-owned enterprises in strategic sectors and also reflects a major push by ADB’s private sector operations into transport infrastructure, and particularly railways.
About Indian Railway Finance Corporation (IRFC)
IRFC is financing arm of Indian Railways that was set up in 1986.
IRFC work toward mobilizing funds from domestic and international capital markets.
IRFC is a complete government-owned entity and is registered as Non-Banking Finance Company (NBFC).
ADB
Established: 1966
Headquarters: Manila, Philippines
President: Takehiko Nakao
Members: 67 (48 regional members)
