Announcement of IDA Provides One Hundred and Ten Million Dollars for Railways to India on August 21, 1975

.world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA News Release No. 75/60 August 21, 1975 IDA PROVIDES $110 MILLION FOR RAILWAYS TO INDIA The International Development Associ&tion, an affiliate of the World Bank, is providing $110 million for a railways project in India. The project, which is a part of the Indian Railways' five-year (1974/1975-1978/79) investment program, will involve an investment of $1,010 million including $154.2 million in foreign exchange over the period 1975/76 and 1976/77. This is the thirteenth railways project supported by the Bank Group in India. It consists of new and ongoing works which are required to meet projected increases in demand for freight and passenger services and to continue with cost reduction measures, including modernization of equipment. The main elements of the project • include procurement of equipment, materials and components essential to the manufacture of 350 locomotives, about 300 electric multiple units, about 1,500 coaches and about 20,000 wagons (four-wheeler equivalent), and for electrical, track and other works. It also includes necessary spare parts for maintenance of locomotives and rolling stock. The Indian Railways is one of the largest rail systems in the world. It has 60,000 route-kilometers, employs about 1.7 million people and owns three modern factories which manufacture all its diesel and electric locomotives, and most of its passenger vehicles. The Bank Group has long been closely associated with the Indian Railways and, including this credit, the Bank Group has provided a total of $896.5 million to Indian Railways. Previous lending operations have assisted it to triple the volume of freight ce.::cried and to more than double its passenger traffic between 1951 and 1974. The IDA credit to India will be for a term of 50 years, including a 10 year grace period~ It will be free of interest but will carry a service charge of 3/4 of 1% per annum, which will cover IDA's administrative expenses. Note: Money figures are expressed in US dollar equivalents • • l'lWJECT~ T E C II N I C A L D A T A Thirteenth Railways Project • COUNTRY: India TOTAL COST; $1,010 million IDA FINANCING: $110 million, 50 years including 10 years of grace, interest free, 3/4 of 1% service charge to meet IDA's administrative expenses. OTHER FINANCING: Indian Railways , Government of India, bilateral loans/credits already available and $20 million of IDA credit for Railways XII Project. IMPLEMENTING ORGANIZATION: Indian Railway Board, Hew Delhi, India. New Delhi, India PRnJECT DESCRIPTION: The project is the investment program of the Indian Railways for two years 1975/76 and 1976/77. • The project consists of new and ongoing works which are required to meet projected increases in demand for freight and passenger services and to continue with cost reduction measures, including modernization of equipment. The main elements of the project include procurement of equipment, materials and components essential to the manufacture of 350 locomotives, about 300 electric multiple units, about 1,500 coaches and about 20,000 wagons (four-wheeler equivalent), and for elec~rical, track and other works. It also includes necessary spare parts for maintenance of locomotives and rolling stock PROCUREMENT: Through international competitive bidding except for $20 million for purposes of standarization, and orders for $50,000 or less which will be purchased in accordance with usual business practice. The total for the latter is expected to be less than $4 milliono ESTIMATED COMPLErION DATE: 1977 •