The Asian Development Bank (ADB) said Thursday it has approved loans of up to 500 million dollars to boost India's railway services. The Manila-based ADB said the loans would finance additional lines and the electrification of hundreds of kilometres of tracks, as well as the installation of a new signalling system. "This programme will help deliver more energy efficient, safe, reliable, and environmentally friendly rail services along key high-density routes," said Hiroaki Yamaguchi, ADB principal transport specialist.
"This in turn will result in direct and indirect economic opportunities for about 21 million people in programme areas who will benefit from faster travel times, lower costs and improved links to markets, production centres and social service facilities," he added.
The bank said that railways are at the heart of India's transport sector, and carried over 7 billion passengers and more than 800 million tons of freight in the fiscal year to March 2010. The ADB said the funds would be released in several tranches, with an initial loan of 150 million dollars from the bank's ordinary capital resources which has a 25-year-term and a grace period of five years.