New Delhi, Sep 17 - The cabinet Thursday approved a proposal to avail Japanese assistance to create the western arm of a dedicated freight corridor costing Rs.26,124 crore.

In the first phase, Japan will provide a soft loan of Rs.17,700 crore to cover the Rewari-Vadodara section, Information and Broadcasting Minister Ambika Soni told reporters here after a cabinet meeting chaired by Prime Minister Manmohan Singh.