The capacity constraints of Indian Railways have limited the volumes and reduced the speed and reliability of shipments which is why 71% of India's freight is still being transported by road and only 17% by rail. Road freight accounts for about 95% of emissions in the freight sector making it the largest contributor to GHG emissions. Rail emits about one-fifth of trucks’ GHG emissions while also mitigating the risk of road accidents and, with plans to become a net-zero carbon emitter by 2030, it has the potential to eliminate 7.5 million tonnes of carbon dioxide and other GHG each year!

The loan has a maturity of 22 years, including a grace period of seven years. This project will also support the institutional capacity strengthening of the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) and aid it in providing multimodal logistics services.