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MANILA, PHILIPPINES - India's railway network, already one of the world's largest, is expected to become even larger with the South Asian nation considering an ambitious project that could cost more than $800 million and include the doubling of existing rail tracks along some of the country's busiest transport corridors.
To combat inadequate infrastructure that has constrained economic growth, the Government of India and the Asian Development Bank (ADB) are preparing an investment program designed to increase the capacity and enhance the efficiency of India's railway sector.
The Japan Special Fund is providing a grant of up to $1 million for the preparation of the Railway Sector Investment Program, and India will provide $250,000 in logistical support. The Government of India asked the Asian Development Bank (ADB) to prepare the Railway Sector Investment Program for possible ADB financing of the railway expansion project, which could involve an ADB loan of $500 million and a total project cost of more than $800 million.
The Investment Program will include plans to double the existing rail tracks in cities on critical routes traversing the states of Maharashtra, Karnataka, Andhra Pradesh, Orissa, and Chhattisgarh, and to enhance the capacity and efficiency of state-owned Indian Railways, which operates the nation's rail network. The Program also will include electrifying other lines passing through the states of Maharashtra, Karnataka, and Andhra Pradesh.
Railways are a significant component of India's transport sector. In 2006, railways carried 5.73 billion passengers and 666.51 million metric tons of freight, up 6.5% and 10.7%, respectively, from a year earlier.
"Doubling rail tracks on critical routes would increase the physical infrastructure, while the use of modern signaling systems that can raise the capacity of the existing tracks would improve efficiency," said Prodyut Dutt, Senior Transport Specialist of ADB's India Resident Mission.
The Indian economy has become a leading global performer in recent years. However, poverty remains high, and faster economic development to promote broad-based economic growth and reduce poverty is needed. Transport infrastructure development programs are high priorities for the government, making ADB's strategy of reducing poverty through infrastructure-led growth especially relevant.