ADB to provide loan to fund railway track electrification in India

The Asian Development Bank (ADB) has signed an agreement to provide $750 million equivalent in Indian Rupees in long-term financing—the largest single nonsovereign loan ever committed by ADB—to Indian Railway Finance Corporation (IRFC) to fund the Railways Track Electrification Project, as part of a broad modernization program that will help India’s railway sector transition to electric power and away from dependence on fossil fuels.

“This is a flagship project demonstrating ADB’s strategy of supporting key state-owned enterprises in strategic sectors,” said ADB Vice-President for Private Sector Operations and Public-Private Partnerships Mr. Diwakar Gupta. “It also reflects a major push by the private sector operations of ADB into transport infrastructure, and particularly railways, a sub-sector in which traditionally such operations have not contributed a great deal.”

The Government of India has placed significant emphasis on investing in infrastructure and has developed a 5-year, $132 billion capital expenditure program for the modernization of Indian Railways. The program comprises network expansion and decongestion; enhancement of safety and passenger amenities; development of dedicated freight corridors; station redevelopment; and procurement of rolling stock and other related assets. The electrification of railway tracks is part of this master plan, which is critical for the movement of goods and people within the country.

Original source: ADB
Published on 22 May 2019