EXPRESSION OF INTEREST FOR FORMATION OF JOINT VENTURE
      COMPANY AS SPECIAL PURPOSE VEHICLE (SPV)

1   BACKGROUND:

   ...
3   OBJECTIVE:

    In order to complete this mammoth work DFCCIL intends to invite tenders in
    various packages in bot...
Expression of Interest for Formation of Joint Venture Company
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Expression of Interest for Formation of Joint Venture Company

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Expression of Interest for Formation of Joint Venture Company

  1. 1. EXPRESSION OF INTEREST FOR FORMATION OF JOINT VENTURE COMPANY AS SPECIAL PURPOSE VEHICLE (SPV) 1 BACKGROUND: Ministry of Railways have planned to construct a new Dedicated Freight Corridor (DFC) covering about 2762 route kms on two corridors, Eastern Corridor from Ludhiana to Sone Nagar and Western Corridor from Jawahar Lal Nehru Port Mumbai to Tughlakabad/Dadri along with interlinking of two corridors at Khurja. Upgradation of transportation technology, increase in productivity and reduction in unit transportation cost are the focus areas for the project. “Dedicated Freight Corridor Corporation of India Limited (DFCC)” is a special purpose vehicle created to undertake planning & development, mobilization of financial resources and construction, maintenance and operation of the Dedicated Freight Corridors. DFCC has been registered as a company under the Companies Act 1956 on 30th October 2006. 2 SALIENT FEATURES: o A dedicated freight corridor exclusively for running freight trains at a maximum permissible speed of 100 Kmph. o Primarily Double Line corridor (except where Single Line is justified on traffic considerations) running parallel to the existing corridors, so as to maximize the usage of available railway land; and transfer trains from the existing corridor to the DFC and vice versa through predetermined Junction arrangement, equipped with grade separators to facilitate smooth transfer of trains between the two networks. o The track sub structure like formation, bridges etc are to be fit for 32.5-ton axle load but the track super structure like track, sleepers, ballast etc are to be fit for 25-ton axle load. o The loop length on the proposed corridor to be 1500 meters long to facilitate running of long haul trains. o Provision of grade separators, i.e., ROB/RUBs at important Level Crossing Gates to avoid any detention to either road or rail traffic. o Crossing stations on the Double Line to be provided at an average distance of 40 Km and 10 Km on the Single Line stretch. o Higher Schedule of Dimensions (SODs) and Maximum Moving Dimensions (MMDs) in order to run wider stock, double stack containers and newly designed wagons so as to have improved payload to tare ratio. o Infrastructure provided should be fit for heavy/long haul operation up to trailing load of 15000 tonnes. o Advanced Signaling System facilitating better and efficient operation of trains.
  2. 2. 3 OBJECTIVE: In order to complete this mammoth work DFCCIL intends to invite tenders in various packages in both the corridors. Each package tender may consist of value in the range of 2500 Crores to 3000 Crores. Considering the value of each package it is considered prudent to join hands with the companies having core strength in Civil Engg. And Telecom & Signaling works together. These projects will be of high value and of short contract duration. In this context Ircon International Limited having registered office at Plot C-4, District Centre, Saket, New Delhi intends to form a Joint Venture Company with two or more agencies. As first member with a company pioneer in civil works and the second company as expert in signaling & telecommunication work. 4 ROLE OF SPV: The SPV shall participate in the tenders invited by the DFCCIL (if considered viable) SPV members shall not participate separately as individual or as partner with any other company for the work to be taken up by DFCCIL. Ircon International Limited intends to take up the work of Track, Electrical including ballast supply (proposed). The other two members proposed in the SPV are for (i) Civil works and (ii) Signalling & Telecommunication works. 5 LIMITATION ON THE NUMBER OF MEMBER FOR SPV: The members shall be preferably limited to 3 (three) only. One for Civil works, Ircon for Track, Electrical work and third for Signalling & Telecommunication work. 6 WORKING MODALITY: Being Railway work Ircon International Limited shall be the Lead Partner. Detailed modality of operation of SPV shall be decided mutually. 7 SELECTION CRITERIA The factors to be considered for selection of firm are as follows: 1) General bidding requirements such as past experience I credentials relating to works executed, turnover, cash accruals, net worth etc. such hat the consolidated strength of IRCON and the potential business partner meets the total requirement. 2) Synergy in operations. 3) Specialized knowledge / experience 4) Current financial health 5) Works executed in the past 6) Experience in the relevant sector e.g. already executed I executing a BOT project solely I as a partner. 7) Experience in achieving financial closure 8) Past experience with IRCON 9) Any other factor as deemed fit.

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