World Bank to provide $245 mn loan to assist Indian Railways
RAILWAYS & METRO RAIL

World Bank to provide $245 mn loan to assist Indian Railways

The board of executive directors of the World Bank has approved a loan of $245 million to help India's efforts to update its logistics and rail freight infrastructure.

The Rail Logistics project would assist India in diverting more traffic from the road to the rail, improving the efficiency of both freight and passenger transportation while lowering annual GHG emissions by millions of tonnes.

The World Bank told the media that the project would facilitate more private sector investment in the railway industry.

With 1.2 billion tonnes of freight moved during the fiscal year (FY) that ended in March 2020, Indian Railways (IR) is the fourth-largest rail network in the world. However, just 17% of India's freight is transported by rail and 71% by road.

Volumes have been constrained, and shipping speeds and reliability have suffered due to IR capacity restrictions. Since trucks have been gaining market share throughout the years, IR has been losing market share; in 2017–18, its market share was 32%, down from 52% a decade earlier.

Road freight accounts for about 95% of the freight sector's emissions, making it the biggest source of GHG emissions. Approximately 12.3% of road accidents and 15.8% of all deaths involving road transport in 2018 were due to trucks.

With IR expecting to become a net-zero carbon emitter by 2030, rail can reduce 7.5 million tonnes (mt) of carbon dioxide and other greenhouse gases annually. Rail emits about one-fifth of the GHG emissions from trucks.

By enhancing rail connections with ports and inland gateways and constructing first- and last-mile connectivity to railroads, the Rail Logistics project would improve India's multimodal transport hubs and terminals.

The new Eastern Dedicated Freight Corridor-3 (EFDC), also funded by the World Bank, has made it easier and quicker to transport completed goods and raw materials between northern and eastern India.

The initiative will put a lot of effort into harnessing commercial financing by working with the business sector and creating customer-centred strategies. The Dedicated Freight Corridor Corporation of India Limited (DFCCIL) would be better equipped to offer multimodal logistics services as a result of the project's support for institutional capacity enhancement.

The project would assist ongoing community awareness campaigns on gender-based violence and place a special emphasis on ending it.

Additionally, it would carry out initiatives to systematically better women's entry and transition into the railways' sector, such as increasing the representation of women in technical job roles, developing safe work environments for both contracted women employees and unpaid women workers, and giving unpaid women workers on construction sites priority for childcare.

The International Bank for Reconstruction and Development's (IBRD) $245 million loan has a 22-year term with a 7-year grace period.

Image Source

Also read: Govt flags off Bharat Gaurav trains linking India-Nepal

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

The board of executive directors of the World Bank has approved a loan of $245 million to help India's efforts to update its logistics and rail freight infrastructure. The Rail Logistics project would assist India in diverting more traffic from the road to the rail, improving the efficiency of both freight and passenger transportation while lowering annual GHG emissions by millions of tonnes. The World Bank told the media that the project would facilitate more private sector investment in the railway industry. With 1.2 billion tonnes of freight moved during the fiscal year (FY) that ended in March 2020, Indian Railways (IR) is the fourth-largest rail network in the world. However, just 17% of India's freight is transported by rail and 71% by road. Volumes have been constrained, and shipping speeds and reliability have suffered due to IR capacity restrictions. Since trucks have been gaining market share throughout the years, IR has been losing market share; in 2017–18, its market share was 32%, down from 52% a decade earlier. Road freight accounts for about 95% of the freight sector's emissions, making it the biggest source of GHG emissions. Approximately 12.3% of road accidents and 15.8% of all deaths involving road transport in 2018 were due to trucks. With IR expecting to become a net-zero carbon emitter by 2030, rail can reduce 7.5 million tonnes (mt) of carbon dioxide and other greenhouse gases annually. Rail emits about one-fifth of the GHG emissions from trucks. By enhancing rail connections with ports and inland gateways and constructing first- and last-mile connectivity to railroads, the Rail Logistics project would improve India's multimodal transport hubs and terminals. The new Eastern Dedicated Freight Corridor-3 (EFDC), also funded by the World Bank, has made it easier and quicker to transport completed goods and raw materials between northern and eastern India. The initiative will put a lot of effort into harnessing commercial financing by working with the business sector and creating customer-centred strategies. The Dedicated Freight Corridor Corporation of India Limited (DFCCIL) would be better equipped to offer multimodal logistics services as a result of the project's support for institutional capacity enhancement. The project would assist ongoing community awareness campaigns on gender-based violence and place a special emphasis on ending it. Additionally, it would carry out initiatives to systematically better women's entry and transition into the railways' sector, such as increasing the representation of women in technical job roles, developing safe work environments for both contracted women employees and unpaid women workers, and giving unpaid women workers on construction sites priority for childcare. The International Bank for Reconstruction and Development's (IBRD) $245 million loan has a 22-year term with a 7-year grace period. Image Source Also read: Govt flags off Bharat Gaurav trains linking India-Nepal

Next Story
Infrastructure Urban

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Next Story
Infrastructure Urban

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Next Story
Infrastructure Transport

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement