The World Bank has extended a loan of $975m to the Indian Government to build the eastern dedicated freight corridor-I which will facilitate faster transport of goods between the Northern and Eastern parts of the country.
The project is part of India's first dedicated freight corridor (DFC) plan which is being built on two main routes the Western and the Eastern corridors.
The World Bank loan will fund 1,130 kilometres of 1,839 kilometres freight corridor which is planned to be implemented in three phases.
The first phase of the project will be of 343 kilometre spanning from Khurja and Kanpur and expected to increase the capacity of the freight-only lines by increasing the axle load from 22.9 to 25 tons, as well as allowing trains to run at a speed of 100 km/hr.
The Eastern Dedicated Freight Corridor Project (EDFC) will also ease congestion and reduce travel-time for passenger trains on the densely populated Ludhiana-Delhi-Mughal Sarai railway route.
The existing rail network runs on a combination of diesel and electrical locomotives while the proposed freight corridor will operate on electric locomotives.