World Bank Gave a Loan of $245 Million to the Railways

The World Bank has approved a loan of $245 million for the modernization of the Freight and Logistics Infrastructure of the Indian Railways. With this step, Rail Logistics Project will help the country to transfer more traffic through rail instead of the road. The main objective of this project is to make the transportation of both goods and passengers more efficient and reduce carbon emissions by millions of tonnes every year.

The capacity constraints of the Indian Railways have reduced the speed and reliability of loading, limiting the volume of cargo carried, a statement said. Due to these reasons, transportation of goods through trucks is becoming more and the share of Indian Railways in total loading has come down to 32% during 2017-18 from 52% a decade ago.

World Bank Operations Manager and Acting Country Director Hideki Mori said that the project will benefit millions of passengers by reducing carbon emissions as there is a separate corridor for freight trains. This will reduce the congestion on railway lines. Due to this, the time of the passengers will be saved as well as they will also have convenience in commuting.