ADB in US$ 500 million India rail loan

The Asian Development bank (ADB) loaned US$ 500 million to the Indian Ministry of Railways to help improve the rail services of India's most popular transport routes.

The Indian government will also provide US$ 644 million, bringing the total cost of the project to over US$ 1.1 billion.

The ADB Board of Directors approved the loan for India's Railway Sector Investment program. The loan will be used to finance new lines and the electrification of existing track. ADB is also supporting accounting reforms to improve the operation of the Indian railways, targeting busy freight and passenger trains.

Sultan Hafeez Rahman, director general of ADB's South Asia Department said, "A further important hallmark in the program is its support for climate change mitigation by providing support for monitoring carbon emission."

The program is scheduled for completion by December 2018.