ADB LOAN FOR NATIONAL RAIL VIKAS YOJANA

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The Asian Development Bank (ADB) has approved a loan of US dollar 313.6 million for funding of rail projects identified under the initiative of strengthening of the Golden Quadrilateral and its diagonals.

Four Projects have been approved under this scheme called National Rail Vikas Yojana (NRVY), to be executed by Rail Vikas Nigam Ltd., a special purpose company set up by the Government. These are doubling of Gooty-Pullampeta line at a cost of US dollar 66.6 million, Keonjhar-Tomka at Daitari-Banspani new rail link at a cost of US dollar 37.7 million, Mahanadi second bridge at a coast of US dollar 18 million and Bhatapara-Urkura of Bilaspur-Urkura third line at a cost of US dollar 30.9 million.

More projects will be posed to ADB for funding under this loan.

The work relating to four projects has already been taken up and papers for pre-qualification tenders processed.

The ADB loan will be available in keeping with the provisions of an approved loan agreement with ADB entered into by the Ministry of Finance. It has the loan covenants relating to the loan, use of proceeds of the loan, particular covenants, suspension, cancellation, acceleration of maturity, loan effectiveness and delegation of authority. These conditions have been worked out between the Ministry of Finance, Ministry of Railways and the ADB.