India, World Bank signed a 650-Million US dollar loan agreement.

India on 21 October 2016 signed a 650-million US dollar loan agreement with the World Bank for the Eastern Dedicated Freight Corridor-III (EDFC-III) Project. The project will benefit industries of Northern and Eastern India, which rely on railway network for transportation of material inputs and exports.

These industries also depend on railway network for transportation for the distribution of bulk processed and semi-processed commodities and consumer goods. Railway passengers will also be benefitted through decongestion of the existing passenger lines.

The project is being developed by Dedicated Freight Corridor Corporation of India Ltd. (DFCCIL). It would also help in creating jobs in the northern and eastern regions of the country.


  • The EDFC-III Project is to augment rail transport capacity, improve service quality and enhance freight carriage throughput on the 401 km Ludhiana-Khurja section of the Eastern Dedicated Freight Corridor
  • It seeks to develop institutional capacity of DFCCIL to build, maintain and operate the entire DFC network.

The third loan agreement that the World Bank has signed for the Eastern Corridor, which is about 1840 km long and extends from Ludhiana to Kolkata. EDFC is going to be a broad gauge corridor. This will have double line and will be electrified. The corridor will also pass through Dadri (The origin point of Western Dedicated Freight Corridor) which will serve as a junction.

This project is in continuation of Phase-I and II of the EDFC Projects being implemented by the DFCCIL with the World Bank loan of US$ 975 million and US$ 1100 million respectively on the Dadri-Khurja-Kanpur; and Kanpur-Mughal Sarai stretches of the Eastern Rail Corridor (Ludhiana-Delhi-Kolkata).


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