Agency reports indicate that the Dedicated Freight Corridor Corporation of India (DFCCI) and the World Bank are holding talks on loan facility for the second phase of the Eastern Corridor project.
DFCCIL is a special purpose vehicle of Indian Railways and is currently constructing two dedicated freight corridors (DFCs) -- 1,839 km Eastern Corridor between Ludhiana in Punjab and Dankuni in West Bengal and 1,483 km Western Corridor between Dadri (UP) and Mumbai (JNPT)-- at an investment of about Rs 1 lakh crore.
Reports also suggest that both the parties may agree on a $1.25 billion loan facility for the second phase of the corridor between Kanpur and Mughalsarai by June.
It may be recalled that the multilateral lending agency provided 975 million loan for the first phase of the project.
The World Bank is funding 725 km of Eastern Freight Corridor between Ludhiana and Mughalsarai with a loan amount of $2.75 billion. It has already sanctioned the loan of $975 million for the first phase between Khurja and Kanpur (343 km).
The loan agreement for the third phase between Khurja and Ludhiana (397 km) may be signed after a year as "the funding arrangement is a sequential process and certain progresses have to be made for loans to be sanctioned, reports indicate. This includes executing the project within the given time frame.