The Asian Development Bank (ADB) on Thursday said it has signed an agreement to provide $750-million loan to Indian Railway Finance Corporation (IRFC). This would be the largest single non-sovereign loan ever committed by ADB and would fund the Railways Track Electrification Project.
“IRFC, an entity owned by the Government of India, will use the proceeds from the loan to install electric traction equipment along approximately 3,378 kilometers of existing railway lines, which will enable the migration of passenger and freight traffic from diesel to electric traction,” ADB said in a press release.
The electrification assets will be leased to Indian Railways under a long-term lease agreement. “This is a flagship project demonstrating ADB’s strategy of supporting key state-owned enterprises in strategic sectors,” Read More