The Integrated Bank for Reconstruction Development (IBRD) is considering an investment of $1 billion in manufacturing clusters being developed on either side of the Eastern Dedicated Freight Corridor.

Economic opportunities are also being explored along the freight corridor, IBRD said in a statement, after signing of a $650-million loan agreement between the India and the World Bank here on Friday. The loan has a seven-year grace period, and a maturity of 22 years, stated a release.

Friday’s agreement is towards the third loan for the Eastern Dedicated Freight Corridor that will help faster and more efficient movement of raw materials and finished goods between the Northern and Eastern parts of India. The project was approved by the World Bank Board on June 30, 2015.

“The Indian Railways urgently needs to add freight routes to meet the growing freight traffic in India, which is projected to increase more than 7 per cent annually….At completion, it will be able to more than double its capacity to carry freight, with faster transit times, being more reliable and at lower cost,” stated Ben LJ Eijbergen,Program Leader, Economic Integration and the Task Team Leader for the Project.

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