The World Bank has approved $1.1 billion (about ₹6,700 crore) as the second tranche of its loan for construction of the 393-km-long electrified double line between Mughalsarai and Bhaupur sections of the eastern dedicated rail freight corridor.
The loan agreement for the second phase is expected to be signed in June, an official release said.
As a preparatory step, the Dedicated Freight Corridor Corporation Ltd (DFCCIL), the special purpose vehicle responsible for implementing the rail freight corridor project, has already shortlisted bidders for the civil construction contract of this segment. The value of the contract is expected to be ₹3,500-4,000 crore. The bidders include Isolux Corsan-Sadbhav Engineering, Gammon-Yuksel, Posco-PNC Infratech and Continental Engineering Corporation Taiwan-JMC-Brahmaputra Infrastructure, among othersThe World Bank had agreed, in principle, to part finance the eastern corridor project from Mughalsarai to Ludhiana, which has been divided in three phases.
The total in-principle loan commitment is $2.725 billion, of which $975 million for the first phase was sanctioned in May 2011. The loan agreement was signed in October 2011.