Union Government Signs Loan Treaty with World Bank for Eastern Freight Corridor (Download PDF)


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The Union Government and World Bank have signed $650 million loan agreement for the development of the Eastern Dedicated Freight Corridor (EDFC)-III project.  International Bank for Reconstruction and Development (IRBD), part of World Bank Group will lend $650 million, for construction of EDFC to Dedicated Freight Corridor Corporation of India (DFCCIL).

EDFC-III Project

  • Enhance rail transport capacity
  • Improve service quality
  • Boost freight carriage on the 401-km- long Ludhiana-Khurja section of the EDFC.
  • Beneficial for the Northern and Eastern India’s power and heavy manufacturing industries providing flat railway network for effectual transportation and distribution of raw materials and consumer goods.
  • Existing passengers’ lines would also get decongested.


  • World Bank also gave financial assistance for first two phases of the EDFC, which are already implemented by the DFCCIL.
  • The IRDB provided loans worth $975 million for the Dadri-Khurja-Kanpur and $1,100 million for Kanpur-Mughal Sarai stretches of the Eastern Rail Corridor.

What is Eastern Dedicated Freight Corridor (EDFC)?

  • EDFC is 1,840 km long freight corridor of Indian Railways extending from Ludhiana in Punjab to Kolkata in West Bengal.
  • The goal of EDFC is to expand railway freight carrying capacity with the railway corridor between Ludhiana and Kolkata.
  • Beneficial for the northern and eastern industries of India, which depend on railway network for transportation of material inputs and processed goods.
  • Reduce greenhouse gases (GHGs) emissions, as trains plying on this dedicated freight corridor will operate entirely on electricity.
Location of Eastern Dedicated Freight Corridor (EDFC)

Location of Eastern Dedicated Freight Corridor (EDFC)

Location of Eastern Dedicated Freight Corridor (EDFC)


  • The Dedicated Freight Corridor Corporation of India Limited (DFCCIL) is a corporation run by the Ministry of Railways (India) to undertake planning, development, finance, construction, maintenance, and operation of the Dedicated Freight Corridors.
  • DFCC is founded under the Companies Act 1956 on 30th October 2006.

- Published/Last Modified on: October 22, 2016


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