New Delhi has given the go-ahead to a US$7 billion plan to create rail freight corridors that will link eastern and western India to accelerate the movement of cargo.
The current overlap of passenger and cargo lines results in long delays, high costs and poor safety.
The federal rail ministry has created a special purpose vehicle called the Dedicated Freight Corridor India to co-ordinate the corridor plan.
The government says it hopes to build 2,700 km of corridors with fully computerised train control systems within five years.
But it faces some tricky problems, such as politically sensitive land acquisition, final routing and technological hurdles. Many observers reckon the project will take at least 10 years.
The eastern corridor will link West Bengal and Punjab via New Delhi, while the western corridor will connect Mumbai to the national capital.
A north-south phase will connect southern industrial city of Chennai to Kolkata and Delhi.
'The project will benefit ports, exporters, importers, shipping lines and container operators in the western corridor and coal companies, steel plants and thermal power stations in the eastern corridor,' a government statement said. 'The project will provide much-need rail infrastructure for growth of the economy and export-import trade.'
Domestic and international players have been eyeing the project for some time.
The US$22 billion Tata Group has reportedly been in talks on a tie-up with Japan's Mitsubishi Corp to provide rail wagons, engines and related infrastructure.
Japanese government, construction and finance companies are looking to be associated with the project, especially the Mumbai-Delhi belt that will cover industry.
Japan is expected to provide up to US$30 billion of loans and investments to support the plan, in what would be one of its biggest financial contributions to a single foreign project.
The Japan International Cooperation Agency recently submitted a final report on dedicated freight corridors to the railway ministry.
Others seeking to be involved with the plan include India's Larsen & Toubro, Canada's Bombardier, Germany's Siemens, Japan's Itochu Corp, America's GE and France's Alstom.
The current overlap of passenger and cargo lines results in long delays, high costs and poor safety.
The federal rail ministry has created a special purpose vehicle called the Dedicated Freight Corridor India to co-ordinate the corridor plan.
The government says it hopes to build 2,700 km of corridors with fully computerised train control systems within five years.
But it faces some tricky problems, such as politically sensitive land acquisition, final routing and technological hurdles. Many observers reckon the project will take at least 10 years.
The eastern corridor will link West Bengal and Punjab via New Delhi, while the western corridor will connect Mumbai to the national capital.
A north-south phase will connect southern industrial city of Chennai to Kolkata and Delhi.
'The project will benefit ports, exporters, importers, shipping lines and container operators in the western corridor and coal companies, steel plants and thermal power stations in the eastern corridor,' a government statement said. 'The project will provide much-need rail infrastructure for growth of the economy and export-import trade.'
Domestic and international players have been eyeing the project for some time.
The US$22 billion Tata Group has reportedly been in talks on a tie-up with Japan's Mitsubishi Corp to provide rail wagons, engines and related infrastructure.
Japanese government, construction and finance companies are looking to be associated with the project, especially the Mumbai-Delhi belt that will cover industry.
Japan is expected to provide up to US$30 billion of loans and investments to support the plan, in what would be one of its biggest financial contributions to a single foreign project.
The Japan International Cooperation Agency recently submitted a final report on dedicated freight corridors to the railway ministry.
Others seeking to be involved with the plan include India's Larsen & Toubro, Canada's Bombardier, Germany's Siemens, Japan's Itochu Corp, America's GE and France's Alstom.