Rishikesh-Karnaprayag railway project, India

The Swedish Export Credit Agency (EKN) is considering providing guarantees for the supply of equipment to the Rishikesh-Karnaprayag railway project in India.

The project includes the construction of a new 126 km long new rail link between Rishikesh and Karnaprayag, as well as 12 new railway stations, in the state of Uttarakhand in northern India (https://www.rvnl.org/en/Pages/rishikeshkarnaprayagproject.aspx). The main purpose of the project is to improve connectivity and boost the economy and tourism in the state.

EKN conducts an Environmental and Social (E&S) due diligence based on the project’s Environmental and Social Impact Assessment.

The railway project has a preliminary classification as Category A since large-scale infrastructure projects may pose large risks to the environment and people.

Each transaction considered by EKN for providing guarantees is below the OECD threshold for disclosing Category A projects. Nevertheless, the transactions are cumulatively above the threshold and therefore EKN choses to disclose the railway project. Due to the size of the individual transactions, together with circumstances where the equipment will be supplied to different contractors (not directly to the project proponent), EKN is not in a position to disclose the project’s Environmental and Social Impact Assessment (ESIA). 

The information was published on EKN´s website www.ekn.se on September 14th, 2020. Comments on the project can be made within at least 30 days. This procedure is in accordance with the OECD Recommendation on Common Approaches for Export Credit Agencies (ECAs).

Web page last updated 21 Sep 2020