The Japan International Cooperation Agency (JICA) has signed a loan agreement with the central government to extend around Rs 7,517 crore to the Western part of the dedicated freight railway project.

JICA said that the soft loan is being extended under the government of Japan's official development assistance window. The Phase II of the project involves developing a new 550 km freight line connecting Dadri-Rewari and Vadodara-Mumbai.

The railway project will create the largest industrial belt in Delhi-Mumbai industrial corridor by connecting the industrial parks and harbours between Delhi and Mumbai.

The project aims to increase freight transport demand by developing a new dedicated freight railway system between New Delhi and Mumbai, promoting comprehensive regional economic development along the corridor area as the backbone of the Delhi-Mumbai industrial corridor development plan.

According to a statement, the project covers areas where outstanding economic and industrial development has occurred, including Delhi and Mumbai metropolitan areas, with massive population growth.

The additional secretary in the Ministry of Finance (MoF), Rajat Kumar Mishra, and the chief representative of JICA India, Saito Mitsunori, signed the loan agreement.

Mitsunori said the Western dedicated freight corridor runs between Delhi and Mumbai and covers the areas where significant commercial and industrial development is present.

The project is a crucial part of the Delhi-Mumbai industrial corridor, a part of the Indo-Japanese collaborative project, which aims at comprehensive regional development.

The Dedicated Freight Corridor Corporation of India is the executing agency of this project. JICA is committed to providing continued financial support to strengthen the transport capacity through its projects and initiatives in India.

The project incorporated an administrative institution under the Japanese government. JICA promotes international cooperation as the sole Japanese governmental agency is responsible for official development assistance (ODA) implementation.

JICA is the world's largest bilateral donor agency, which works as a bridge between Japan and emerging countries and assists in loans, grants and technical cooperation.

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