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Mamuni Das

New Delhi, Aug 15 The Indian Railways seems to have agreed to Japanese condition of building the Western freight corridor with electric traction. Earlier, it had decided to build the corridor on diesel traction and the Eastern corridor on electric traction.

The Ministry wants to access long-term soft loan from the Japan Bank for International Cooperation (JBIC) for the project. JBIC extends loans for 30-40 years at 0.2 per cent interest. But the borrower has to spend at least 30 per cent of the loan on Japanese firms.

Western corridor, which will primarily serve the export-import container traffic between the Northern hinterland and the Western ports, was envisaged to be on diesel traction to enable double-stack container movement.

World-over, international standard sized double-stack containers are moved only on diesel traction as of now. China moves a mix of higher and lower height containers under electric wire at places.

However, citing environmental requirements of JBIC, Japan International Cooperation Agency (JICA), which is conducting the feasibility study, said funding could be extended only if the Western corridor was electrified.

Thus in July, the Railways conducted the world’s first trial for moving international standard sized double-stack containers in Daitari-Tomka section (Orissa) by placing the overhead electrical contact wire at a higher (than usual) height of 7.45 metres. “Trials have been successful,” said sources.

Even if the Ministry agrees to electrify the Western corridor (Dadri-Jawaharlal Nehru Port), it may not get Japanese loan for the entire stretch. JBIC says it would “first consider” the loan only for the Rewari-Vadodara section of the corridor. The Vadodara-Mumbai section comprises several bridges and accounts for 20-25 per cent of the total cost. The Railway Ministry currently pegs the construction of the entire Western corridor at Rs 23,680 crore.

Funding pattern comprises internal accruals (Rs 6,200 crore), budgetary support (Rs 1,250 crore) and debt (Rs 16,230 crore).

More Stories on : RBI & Other Central Banks | Railways

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