ADB extends $500 million loan to Indian Railways [August 2012]

The Asian Development Bank (ADB) has approved loans of up to $500 million to the Indian Railways to improve services along some of the busiest freight and passenger routes. Aimed at improving rail freight services and passenger transport routes; the multi tranche railway sector investment program is meant to finance additional lines and electrification of long stretches of the existing track network, along with installation of signalling systems. The bank will also support the Indian Railways in accounting reforms to improve operational and financial efficiency.
The total cost of the investment programme is estimated at over $ 1,144.6 million out of which loan assistance from ADB is $ 500 million in four tranches and the Indian Government to fund $644 million.

ADB will also provide a program linked technical assistance of US$ 300,000 to promote sustainable transport modes by monitoring carbon emission reductions from shifting bulk goods from road to rail.

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