The government on Tuesday approved the dedicated multi-modal high axle load freight corridor in the Eastern and Western corridors at an estimated cost of Rs 28,181 crore.
“The Cabinet committee on economic affairs (CCEA) gave its in-principle approval to the dedicated multi-modal high axle load freight corridor on Eastern and Western corridor at an estimated cost of Rs 28,181 crore,” finance minister P Chidambaram told reporters here.
The Eastern corridor would entail an estimated expenditure of Rs 11,859 crore and the Western corridor would cost about Rs 16,592 crore, he said. “On Eastern side the corridor will be from Ludhiana and Sonnagar and on the Western side the corridor will connect Jawaharlal Nehru Port near Mumbai to Tughlakabad and Dadri near Delhi,” the finance minister said.
The Eastern corridor, as approved by the CCEA on February 21 last year, would begin at Ludhiana and terminate at Sonnagar via Ambala, Saharanpur, Khurja and Allahabad. The project is expected to be completed in five years.
The proposed extension of the Eastern corridor would help railways garner more freight traffic, especially from the iron ore rich regions of the state. Railways would also get a pie of the Exim trade transport business, which is set to increase significantly in the future given the magnitude of the country’s foreign trade. In fact to get more freight transport business from the ports, the ministry is already drawing up plans to construct four more freight corridors to connect port cities on the east and west coast.
“The project will provide the much-needed rail infrastructure for growth of Indian economy and Exim trade. The project will also generate indirect employment during construction phase,” Chidambaram added
“However, in view of the representation from the West Bengal Government and also considering the possibility of increase in freight traffic on account of proposed deep sea port, Eastern corridor will be extended up to the proposed deep sea port in the Kolkata area,” Chidambaram said.
The CCEA has also approved the Rs 817.62 crore Krishna drinking water supply project phase II, which is expected to be completed by this month. The project will be implemented under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
“The expenditure incurred up to March 2006 on the project is Rs 211.12 crore. Therefore, the cost for reimbursement under JNNURM will be Rs 606.50 crore,” he added.
The finance minister said the CCEA approved release of an additional central assistance to the extent of Rs 212.27 crore as the Centre’s share. The project would augment an additional 90 mgd of treated water to Hyderabad and its surrounding municipalities to bridge the gap between demand and supply, Chidambaram added.
The CCEA also approved implementation of the Integrated Handlooms Development Scheme (IHDS) at a cost of Rs 790 crore which will help weavers in developing new designs and provide market support to improve their socio-economic conditions.
Of the total funds , Rs 120 crore would be spent this fiscal, Rs 145 crore next fiscal, and Rs 160 crore would be utilised in the fiscal 2009-10, Chidambaram added. The finance minister said Rs 175 crore would be spent in 2010-11 and Rs 190 crore would be utilised in the terminal year of the 11th Plan period.