Steel Authority of India (SAIL) proposes to invest 8,000 crore INR in Eastern Freight Corridor project of the Indian Railways

12-Dec-2010

Steel Authority of India (SAIL)  

A major development in the history of the Indian Railways, the world’s biggest Railway network, happened when the steel major and the biggest Public Sector company of India SAIL (Steel Authority of India Ltd) lend helping hand to the former with its proposal to invest as much as 8,000 crore INR in the 500 km Sonnagar-Dankuni section of the eastern dedicated freight corridor project of the Indian Railways. Confirming the receipt of representation by SAIL, a senior railway ministry official said a committee would look into the modalities of the SAIL (Steel Authority of India Ltd) funding for the project. Earlier, in a letter to Railway Minister Mamata Banerjee SAIL has proposed that it can bring this investment for the Sonnagar-Dankuni stretch on the eastern arm. Initial estimates of the Dedicated Freight Corridor Corporation of India Ltd (DFCCIL) indicate around 8500 crore INR would be required for completing this segment. The Minister told reporters, “I see this as a major development as it can take care of a major part of the finances required for the Sonnagar-Dankuni stretch.”

The eastern dedicated freight corridor is a 1,839km stretch between Ludhiana in Punjab and Dankuni in West Bengal. For the 1,131 km stretch between Ludhiana and Khurja, the railway ministry is in advanced stage of negotiations with the World Bank. The total investment in the corridor will be to the tune of 23,000 crore INR. The project is targeted for completion in 2016-17. A major portion of this stretch is being funded by the Japan International Co-operation Agency as the Indian Railways had already signed a loan agreement for 17,700 crore INR with Japan International Cooperation Agency (JICA).