India gives go-ahead to $7.16b freight corridor

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

29 Nov 2007

The Indian government gave an in-principle approval for a dedicated freight corridor in the eastern and western sectors, at an estimated total cost of US$7.16 billion.In-principle approval has been given to the dedicated multi-modal high axle load freight corridor on the eastern corridor and western corridor, the Union finance minister, P Chidambaram said. While the eastern corridor would involve an estimated expenditure of $3.02 billion, the western corridor would cost about $4.22 billion, Chidambaram said. The entire corridor will have a computerised train control system. On the eastern side the corridor will stretch from Ludhiana to Sonnagarand and on the western side the corridor will connect JawaharlalNehru Port near Mumbai to Tughlakabad and Dadrinear in Delhi. The project is expected to immensely benefit ports, exporters, importers, shipping lines and container operators from the western corridor. Coal companies, steel plants and thermal power stations would be aided by the eastern one. The eastern corridor, as approved by the Cabinet Committee on Economic Affairson 21 February 2006, would begin at Ludhiana and terminate at Sonnagarvia Ambala, Saharanpur, Khurja and Allahabad.However, following a representation from the West Bengal government and also considering the possibility of an increase in freight traffic on account of the proposed deep-sea port, the eastern corridor may be extended up to the proposed port in the Kolkata zone.RITES is conducting a pre-feasibility study of the Sonnagar-Kolkata portion of the eastern corridor and the Cabinet Committee would be approached for approval of the extension project after completion of the study.