New Delhi, Oct 27 The Government of Japan has committed an amount of 2,606 million yen for the Engineering Services Loan under Dedicated Freight Corridor Project (Phase-I).

The objective of the project is to cope with the increase of freight transport demand in India by constructing new dedicated freight railway system, thereby promoting comprehensive regional economic development along the freight corridor, through improvement and modernization of inter-modal logistic system handling considerable freight.

The notes to this effect were exchanged between Kumar Sanjay Krishna, Joint Secretary, Ministry of Finance and Hideaki Domichi, Ambassador of Japan to India, here today.

India and Japan have had a long and fruitful history of bilateral development cooperation since 1958.

In the last few years relations between India and Japan have steadily progressed based on India-Japan Global Partnership.

The visits of the Indian Prime Minister to Japan in 2006 and 2008 and the visit of Japanese Prime Minister to India in 2007 have further strengthened the India-Japan Global Partnership by adding greater substance to the bilateral relations based on India-Japan Global Partnership. (ANI)