The document discusses the current challenges facing the Dedicated Freight Corridor project in India. It was originally envisioned to be completed by 2011 but the detailed project report was only finalized in 2014, with the current estimated completion date being the end of 2020. Some challenges include implications of the design parameters, traffic projections, development of feeder routes and industrial corridors, delays to the project timeline, issues with land acquisition, and ensuring market access. The paper examines the original scope of the project versus its current status to identify these challenges.
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1. THE FIRST QUANTUM BUILDING
THE FIRST QUANTUM BUILDING
BLOCK ON THE INHERITED
LEGACY OF RAILWAY NETWORK
IN INDIA
2. Indian Railways – The Growth Story
At Independence in 2013
Total Route Kms 53,596 64,600
Electrified Route Kms 388 20,275
Work force (in thousands) 914 1,306
Originating Passengers
(no. in millions)
1,284 8,224
(no. in millions)
Passenger Kms. (in millions) 66,517 1,046,522
Freight (originating)
(in million tonnes)
93.0 975.16
Freight NTKM (in millions) 44,117 668,618
Average Lead (in Kms.) 470 686
Average Speed (in Kmph) 22 25
Capacity augmentation with incremental approach
3. Falling market share (90% to 30%)
Capacity constraints on high density network.
Differential speed of trains : 60-100 kmph.
Areas Of Concern
Differential speed of trains : 60-100 kmph.
Connectivity to Ports/Mines.
Limitations for long/heavy haul trains
affecting throughput/turnaround.
4. Incremental Approach
Upgrading the existing network
Quantum Approach
Future Course
Quantum Approach
Creation of a new Dedicated Freight Corridors
Creation of a High Speed Passenger Corridors
Speed upgradation on existing network
Dedicated High Speed Corridors
5.
6. RAJASTHAN
RAJASTHAN
RAJASTHAN
RAJASTHAN
UTTAR PRADESH
UTTAR PRADESH
UTTAR PRADESH
UTTAR PRADESH
TIBET
TIBET
TIBET
TIBET
NEPAL
NEPAL
NEPAL
NEPAL
HARYANA
HARYANA
HARYANA
HARYANA
UTTARAKHAND
UTTARAKHAND
UTTARAKHAND
UTTARAKHAND
PUNJAB
PUNJAB
PUNJAB
PUNJAB
LUDHIANA
AMBALA
SAHARANPUR
MEERUT
HAPUR
KHURJA
ALIGARH
HATHRAS
TUNDLA
EXISTING LINE
DFC LINE (PARALLEL)
(EXISTING STNS.
LEGEND
LEGEND
LEGEND
LEGEND
Dedicated Freight Corridor - Eastern Corridor
MADHYA PRADESH
MADHYA PRADESH
MADHYA PRADESH
MADHYA PRADESH
RAJASTHAN
RAJASTHAN
RAJASTHAN
RAJASTHAN
CHHATISGARH
CHHATISGARH
CHHATISGARH
CHHATISGARH
JHARKHAND
JHARKHAND
JHARKHAND
JHARKHAND
WEST BENGAL
WEST BENGAL
WEST BENGAL
WEST BENGAL
BIHAR
BIHAR
BIHAR
BIHAR
BANGLADESH
BANGLADESH
BANGLADESH
BANGLADESH
NEW GANJKHWAJA
ETAWAH BHAUPUR
KANPUR
PREMPUR
ALLAHABAD
MUGHALSARAI
SONNAGAR
NEW KARWANDIYA
DANKUNI
7. UTTAR PRADESH
UTTAR PRADESH
UTTAR PRADESH
UTTAR PRADESH
HARYANA
HARYANA
HARYANA
HARYANA
RAJASTHAN
RAJASTHAN
RAJASTHAN
RAJASTHAN
PAKISTAN
PAKISTAN
PAKISTAN
PAKISTAN
PALANPUR
MARWAR
PHULERA
REWARI PIRTHALA
REWARI
NIM KA THANA
RINGAS
PHULERA
AJMER
SENDRA
MARWAR
SIROHI
ABU RD.
PALANPUR
Dedicated Freight Corridor - Western Corridor
DADRI
MAHARASHTRA
MAHARASHTRA
MAHARASHTRA
MAHARASHTRA
MADHYA PRADESH
MADHYA PRADESH
MADHYA PRADESH
MADHYA PRADESH
GUJARAT
GUJARAT
GUJARAT
GUJARAT
ARABIAN SEA
ARABIAN SEA
ARABIAN SEA
ARABIAN SEA
VASAI
GOTHANGAM
MAKARPURA
SANAD
MAHESANA
JNPT
MAHESANA
AHMADABAD
VADODRA
BHARUCH
SANJALI
SURAT
VALSAD
SANJAN
DAHANU
PANVEL
VASAI
EXISTING LINE
DFC LINE (PARALLEL)
DFC LINE(DETOUR)
DFC JUNCTION STNS.
EXISTING STNS.
LEGEND
LEGEND
LEGEND
LEGEND
7
8. OBJECTIVES
Matching transport
demands for growth
Competitive rail
tariff
IT enabled
customer services
Increase rail freight share
Objectives Of The Project
OBJECTIVES
tariff
Seamless transport
solution
Dedicated Freight Network
Leveraging PPP for new
rail freight customers
12. DELHI
KOLKATA
LUDHIANA
DELHI
LUDHIANA
DELHI
DEDICATED FREIGHT CORRIDOR NETWORK
MUMBAI
CHENNAI
KOLKATA
VIJAYAWADA
VASCO
MUMBAI Sanctioned projects
Unsanctioned projects
•High Density Corridor
(Golden Quadrilateral +
Diagonals) 16% of route Km
carries 52% of passenger &
58 % of freight 12
13. Future Freight Corridors
East – West Corridor 2000 Kms.
(Kolkata–Mumbai)
North-South Corridor 2173 Kms.
(Delhi-Chennai)
East Coast Corridor 1100 Kms.
East Coast Corridor 1100 Kms.
(Kharagpur-Vijayawada)
Southern Corridor 890 Kms.
(Chennai-Goa)
Project Investigation and PDD under preparation.
14. Height
Width
4.265 m 7.1 m
3200 mm 3660 mm
5.1m
Western Corridor Eastern Corridor
Moving Dimensions
Container Stack
Indian Railway DFC Routes
System Design Parameters
700 m 700/ 1500 m
5,000 Ton 15,000 Ton
Container Stack
Train Length
Train Load
Western Corridor Eastern Corridor
15. Heavier Axle Loads
Axle Load
Track Loading density
22.9 t / 25 t 32.5t/25 t
Indian Railway DFC Routes
System Design Paramters (Contd.)
8.67 t/m 12 t/m
75 Kmph 100 Kmph
Maximum Speed
Grade Upto 1 in 100 1 in 200
16. Traction Electric Electric
(25 KV) (2x25 KV)
Station Spacing 7-10 Km 40 Km (Approx.)
Indian Railway DFC Routes
System Design Parameters (Contd.)
Signalling System Absolute /Automatic Automatic
with 1 Km spacing with 2 Km spacing
Communication Emergency Sockets/ Mobile Train Radio
Mobile Train Radio
17. Freight – Global Trends
Railways Axle Load Trailing Load Speed
BHP Biliton,
Australia
38 t 36000 t
(Trial upto 99732 t)
75 k/h
Canadian Pacific
Railways
33 t 13320 t 80 k/h
Russian Railways 23.5 t 6000-18000 t NA
Russian Railways 23.5 t 6000-18000 t
(Trial upto 43500 t)
NA
Norfolk Southern 33 to 36 t 18000-23000 t NA
Chinese Railways
(Planned
upgradations)
25 t Ordinary- 4000 t
Exp. Freight- 1500 t
High Capacity- 10000 t
90-100
120
75-85
k/h
DFCCIL (India) 25/32.5 t 6500/13000 t 100 k/h
17
18. Heavy and long haul with up to 1500 m train length
and 13,000 T trailing loads.
Faster movement (Average speed – 70 Kmph).
Guaranteed transit time (freight trains to Time Table).
DFC – Freight System
Traffic catchment spread over entire territory.
Traffic mix to include containers; covered wagons –
fertilizers, food grain, etc.; bulk materials – coal, ores,
etc.
Convergence of Technologies in vogue in World
Freight Transport.
19. Quantum jump of Transport Capacity
Double the present average speed
Time tabled freight movement
Impact
Customized Services (Automobile, RO-RO, etc.)
Optimal Asset Utilization
Unit cost of transport
Low Carbon Transportation
20. Eastern Corridor
(1975 Billion Tonne-Km)
Western Corridor
(3241 Billion Tonne-Km)
Cumulative GHG emissions over 30 years
116
466
Environmental
Carbon Footprints of Dedicated Freight Corridor
Impact (Contd.)
- 2.5 x - 6 x
47.5
77
Source: Report on ‘Green House Gas Emission Reduction Analysis for DFC’ by Ernst & Young
20
Green DFC - to save 457 million-tonne CO2 over 30 years period.
22. Funding Plan- Eastern DFC
Debt Equity Estimate Remarks
MGS-LDH 13,625 11,468 25,093 World Bank
funded
APL- 1
(343km.)
4,875 2,357 7,232 USD 975 mill.
signed
APL- 2 5,250 4,219 9,469 Project Appraisal
(All figs. in INR Crores)
APL- 2
(393 km.)
5,250 4,219 9,469 Project Appraisal
this month
APL-3
(447 km.)
3,500 4,892 8,392 Appraisal after
APL-2
Sonnagar-
Mugalsarai
(118 km)
0 3,991 3,991 Funded by Equity
Sonnagar-Dankuni (540 km.) to be constructed through PPP.
Estimated Cost Rs. 12,218 crore
23. Western DFC Debt Equity Total Remarks
JICA Funded 38,722 11,234 49,956 Tied Loan with
STEP condition
Phase I
(912 km.)
20,379 8,089 28,468 Loan Agreement
finalized
(All figs. in INR Crores)
Funding Plan- Western DFC
Phase II
(587 km.)
18,343 3,145 21,488 Loan Agreement
signed in March
2013
Debt Equity Estimated
Cost
Remarks
54 Major Bridges
(4400 meters)
0 604 604 Funded by
Equity
24. Assumptions :-
- Project life : 35 YEARS
- Price level : 06-07
- Operating efficiency : 35%
- Av. Speed on DFC: 60 KMPH
Financial and Economic Appraisal
• EIRR
• FIRR
• Long term and stable low interest financing is required to secure
financial durability of the project
WESTERN DFC 14.09%
EASTERN DFC 15.26%
WESTERN DFC 9.08%
EASTERN DFC 15.59%
25. • Focus on development in 300
km stretch along DFC
alignment
• Project to impact 14% area
and 17% (178 million)
Haryana Dadri
Rajasthan
Gujarat
Madhya
Haryana
Uttar
Pradesh
Delhi – Mumbai Industrial Corridor (DMIC)
– An Added Feature
Delhi – Mumbai Industrial Corridor (DMIC)
– An Added Feature
and 17% (178 million)
population of the Country
• 70.56 Mn workers in the
project influence area.
(As per Census-2001)
DFC Alignment
End Terminal
J.N.Port
Maharashtra
Madhya
Pradesh
25
28. 2 G Raghuram, Apoorva Verma/ Transportation Research Procedia 00 (2018) 000–000
2. Genesis of DFC
Indian Railway network, 67,368 km long, carried 1109.6 million-ton (mt) freight in 2016-17 [Indian Railways,
2017]. The share of Indian Railways in carrying freight traffic of the country dropped from 83% in 1950-51 to 31%
in 2016-17 [WRI India, 2017]. The 10,122 km long Golden Quadrilateral, connecting the four metropolitan cities of
Delhi, Mumbai, Chennai and Kolkata, along with its two diagonals (Delhi-Chennai and Mumbai-Kolkata) constitutes
16% of the Indian Railway (IR) network. It carried 52% of the passenger traffic and 58% of the freight traffic. Kolkata-
Delhi and Mumbai-Delhi routes were highly saturated with line capacity utilization varying between 115% to 150%
[DFCCIL, Background]. The Indian economy, growing rapidly, had put a great pressure on the existing rail
infrastructure.
Indian economy is highly dependent on a few core sectors, namely, coal mining, power, steel, fertilizer, cement
production and petroleum. These, in turn, have a greater dependence on railways. Keeping in line the importance of
railways in supporting these core sectors, a target of 1850 mt freight traffic was envisaged in the Indian Railways 2020
vision document [Saxena, 2012].
Elasticity of rail demand in India is expected to be 1.2 times the GDP growth. However, in the past it has been
limited, between 0.8 to 1, due to capacity constraints. This need for capacity led to the conception of DFC on the
western and eastern high-density corridors. The project was announced in the Railway Budget for 2005-06. Ministry
of Railway (MoR) appointed Rail India Technical and Economic Services Ltd. (RITES) in July 2005 to conduct a
‘Feasibility study’ and a ‘Preliminary Engineering Cum Traffic Survey (PETS)’ for both the corridors. Government
of Japan was requested to provide technical cooperation in feasibility assessment of the project [CAG, 2015].
MoR approached the Cabinet Committee on Economic Affairs (CCEA) for approval based on the RITES
Feasibility Report with an estimated cost of Rs 21,140 crore (cr). CCEA gave ‘In Principle Approval’ for execution
of the project in February 2006 [CAG, 2015].
A Special Purpose Vehicle (SPV), “Dedicated Freight Corridor Corporation of India Limited (DFCCIL), to
undertake planning and development, mobilization of financial resources and construction, maintenance and
operation of the dedicated freight corridors was incorporated as a company under the Companies Act 1956, on 30th
October 2006†.” The DFCCIL was set up as a public sector company under the MoR.
After submission of the PETS Report, MoR approached CCEA in February 2007 with an updated cost estimate of
Rs 28,181 cr. In November 2007, CCEA gave in-principle approval [DFCCIL, Background] and directed MoR to
undertake preliminary works and formulate comprehensive cost estimates and financing plans [CAG, 2015].
In consultation with Ministry of Finance (MoF), MoR prepared a financing plan based on the Feasibility Report by
Japan International Cooperation Agency (JICA) and approached CCEA again in 2008 with a cost estimate of Rs
43,293 cr. However, CCEA approved the project at the earlier estimated cost of Rs 28,181 cr [CAG, 2015].
During 2010 and 2011, loan agreements with JICA (first tranche) for JPY 90 billion (b) (Rs 5100 cr) for WDFC
Phase-I (Rewari-Vadodara) and World Bank for USD 975 million (m) (Rs 5850 cr) for EDFC Adaptable Program
Loan (APL)-1 (Khurja-Bhaupur) were signed respectively. The first contracts were awarded for EDFC APL-1 in
January 2013 and for WDFC Phase-I in June 2013. A loan agreement with JICA (first tranche) for JPY 136 b (Rs
7750 cr) was signed for WDFC Phase-II (Vadodara-JNPT and Dadri-Rewari) in March 2013. Loan agreements for
USD 1100 m for EDFC APL-2 (Bhaupur-Mughalsarai) and USD 650 m for EDFC APL-3 (Ludhiana-Khurja and
Dadri-Khurja) were signed in December 2014 and June 2015 respectively [DFCCIL, Background]. The JICA funding
†
Definition of DFCCIL is taken as is from [DFCCIL, Home]
29. G Raghuram, Apoorva Verma/ Transportation Research Procedia 00 (2018) 000–000 3
for WDFC was stepped up to Rs 38,722 cr [DFCCIL, Project Status]. The total loan from JICA and the World Bank
would provide for Rs 52,347 cr [CCEA, 2015]. Phase wise cost estimates are given in Table 1.
Table 1. Phase wise cost estimates.
DFC Phase Section Kilometres Original Loan
Amount
Final Loan Amount Financier Cost of the Project
WDFC
Phase-I Rewari-Vadodara 947 JPY 90 b JPY 550 b
(Rs 38,722 cr)
JICA Rs 51,101 cr
Phase-II Vadodara-JNPT 430 JPY 136 b
Phase-II Dadri-Rewari 127
Total WDFC 1504
EDFC
APL-1 Khurja-Bhaupur 343 USD 975 m USD 2.725 b
(Rs 13,625 cr)
World
Bank
Rs 26,679 cr
APL-2 Bhaupur-
Mughalsarai
402 USD 1100 m
APL-3 Ludhiana-Khurja 401 USD 650 m
APL-3 Dadri-Khurja 46
Railway
Funded
Mughalsarai-
Sonnagar
126 MoR Rs 3679 cr
Total 1318
PPP Sonnagar-
Dankuni
538 Rs 12,218 cr
Total EDFC 1856
Grand Total Rs 52,347 Rs 81,459 cr
(excluding PPP)
[DFCCIL, Project Funding, Ministry of Railways, 2018 and DFCCIL, Project Phasing]
The Mughalsarai-Sonnagar section was to be funded fully by MoR. The 538 km Sonnagar-Dankuni section, added
later, was to be awarded on a Public-Private Partnership (PPP) basis [DFCCIL, Project Status].
In the meantime, a Concession Agreement (CA) was signed between DFCCIL and MoR in February 2014. The
CCEA approved the revised cost estimates of Rs 81,459 cr in June 2015 [CAG, 2015]. The Debt-Equity ratio for the
project was originally envisaged at 2:1 [CAG, 2015] but was later made 3:1 [DFCCIL, Project Status].
3. Scope of DFC
The DFCs were launched to:
• “Reduce unit cost of transportation by speeding up freight train operations & higher productivity
• Increase rail share in freight market by providing customized logistic services
• Segregate freight infrastructure for focused approach on both passenger and freight business of Railways
• Create additional rail infrastructure to cater high levels of transport demand
• Introduce of high-end technology & IT packing of Freight Services
• Introduce time tabled freight services & guaranteed transit time‡”
WDFC shall begin from Dadri in Uttar Pradesh and terminate in JNPT in Maharashtra, passing through Haryana,
Rajasthan and Gujarat on the way [DFCCIL, Western Corridor]. The WDFC would have feeder routes serving the
large Gujarat ports of Mundra, Kandla, Pipavav, Dahej and Hazira. EDFC shall run from Ludhiana in Punjab to
Dankuni in West Bengal, passing through Haryana, Uttar Pradesh, Bihar and Jharkhand [DFCCIL, Eastern Corridor].
A route from Dadri would join the EDFC at Khurja. The EDFC would have feeder routes to different coal mines and
thermal power plants.
‡
Objectives are taken as is from [DFCCIL. Objectives]
30. 4 G Raghuram, Apoorva Verma/ Transportation Research Procedia 00 (2018) 000–000
Out of the 3360 km of the two DFCs, 2959 km would be double track, but for the 401 km Ludhiana-Khurja section
[DFCCIL, Corporate Plan]. The entire DFC would be run on electric traction. Of the 1504 km of WDFC, 1077 km
would be adjacent to the IR network and 427 km as detours [DFCCIL, Western Corridor]. The additional land
acquisition requirement for WDFC, primarily driven by the detours, would be 6000 hectares (ha) [DFCCIL, Project
Status]. Of the non-PPP 1318 km of EDFC, 1111 km would be adjacent to the IR network and 207 km as detours
[DFCCIL, Eastern Corridor]. The additional land acquisition requirement for EDFC, primarily driven by the detours,
would be 4601 ha. The PPP portion would require 1118 ha [DFCCIL, Project Status].
In addition, future DFCs were announced in the Budget of 2016. These included Kolkata-Mumbai (2328 km),
Delhi-Chennai (2327 km), Kharagpur-Vijayawada (1114 km) and Chennai-Goa (892 km) [DFCCIL, Corporate Plan].
A map of the consolidated DFC is given in Fig. 1.
31. G Raghuram, Apoorva Verma/ Transportation Research Procedia 00 (2018) 000–000 5
Fig. 1. DFC Route map
[Qazi and Tahilramani, 2017]
32. 6 G Raghuram, Apoorva Verma/ Transportation Research Procedia 00 (2018) 000–000
3.1 Traffic projections
The PETS Report by RITES had an assessment of traffic on the DFCs for 2021-22.
The primary traffic on the WDFC would comprise of “ISO containers from JNPT and Mumbai Port in Maharashtra
and ports of Pipavav, Mundra and Kandla in Gujarat. Besides containers, other commodities moving on the WDFC
would be POL, Fertilizers, Food grains, Salt, Coal, Iron & Steel and Cement.Ӥ The WDFC shall cater 85.5 mt of
traffic in 2021-22 [DFCCIL, Western Corridor], which will increase to 284 mt in 2036-37 [CCEA, 2015]. The
expected traffic in both directions is given in Table 2.
Table 2. Traffic projections for WDFC based on RITES PETS Report (mt)
Dadri-JNPT
Commodity 2016-17 2021-22
Food grains, Fertilizer 1.2 1.8
POL 0.3 0.5
Cement, Salt,
Miscellaneous
0.4 0.8
Container (mTEUs) 1.9 2.7
Sub-Total (excluding container) 1.9 3.1
JNPT-Dadri
Commodity 2016-17 2021-22
Coal, Cement, Iron & Steel 6.3 9.4
Fertilizer, Food grains, Salt 1.6 2.6
POL 1.0 1.5
Containers (mTEUs) 1.9 2.6
Sub-Total (excluding containers) 8.9 13.5
Total WDFC
Excluding containers 10.8 16.6
Containers (mTEUs) 3.8 5.3
Containers (at 13 t/TEU) 49.4 68.9
Total 60.2 85.5
[DFCCIL, Western Corridor]
The EDFC is expected to handle “coal for the power plants in the northern region of UP, Delhi, Haryana, Punjab
and parts of Rajasthan from the Eastern coal fields, finished steel, food grains, cement, fertilizers, lime stone from
Rajasthan to steel plants in the east and general goods.”** As per the RITES PETS Report, EDFC would cater 91.3
mt of traffic in 2021-22 [DFCCIL, Eastern Corridor], which shall increase to 251 mt in 2036-37 [CCEA, 2015]. The
expected traffic in both directions is given in Table 3. It is interesting to note that the traffic projections for EDFC do
not explicitly include container traffic though there is a mention of traffic from Logistics Parks.
§
Traffic sources have been taken as is from [DFCCIL, Western Corridor]
**Traffic sources have been taken as is from [DFCCIL, Eastern Corridor]
33. G Raghuram, Apoorva Verma/ Transportation Research Procedia 00 (2018) 000–000 7
Table 3. Traffic Projections for EDFC based on RITES PETS Report (mt)
Ludhiana/Dadri-Dankuni
Commodity 2016-17 2021-22
Fertilizer 0.2 0.4
Cement 0.8 1.5
Limestone for Steel
Plants
5.0 5.0
Salt 0.7 1.0
Others 1.6 3.0
Logistics Parks 1.2 2.4
Sub-Total 9.5 13.3
Dankuni- Ludhiana/Dadri
Commodity 2016-17 2021-22
Power House Coal 54.5 62.0
Public Coal 0.6 1.0
Steel 8.2 9.7
Others 1.6 3.0
Logistics Parks 1.2 2.4
Sub-Total 66.1 78.0
Total EDFC
Total 75.6 91.3
[DFCCIL, Eastern Corridor]
Delhi Mumbai Industrial Corridor (DMIC) was planned to be developed along the WDFC (Fig. 2.). This would
include the development of 24 Special Investment Regions across six states, namely, Uttar Pradesh (UP), Haryana,
Rajasthan, Madhya Pradesh, Gujarat and Maharashtra [Ministry of Commerce & Industry, 2018]. Also, Logistics
Parks were proposed to be set up in Delhi NCR, Rajasthan, Gujarat and Maharashtra. Increased level of
industrialization is expected to generate traffic for the WDFC [DFCCIL, Western Corridor]. Similarly, Amritsar
Kolkata Industrial Corridor (AKIC) would be developed along EDFC [DIPP, Annexure-III]. Together, these industrial
corridors would provide additional traffic to WDFC and EDFC.
The traffic projections envisage a modal shift from roads to DFCs. This is expected to reduce the CO2 emission by
457 mt in a period of 30 years [CCEA, 2015].
34. 8 G Raghuram, Apoorva Verma/ Transportation Research Procedia 00 (2018) 000–000
Fig. 2. DMIC along WDFC
[DIPP, Delhi Mumbai Industrial Corridor]
3.2 Design Features
In terms of technical design features, DFCs would have significant improvements over the existing railway
standards to help withstand heavier loads and achieve higher speeds. Fig. 3. provides a comparison of the existing
design features and standards on Indian Railways and those proposed for DFCs.
The axle loading which is currently at 22.9 tons universally and 25 tons for a few routes will become 32.5 tons on
the DFCs. However, initially, the axle loading on the DFCs would be 25 tons, since the early rolling stock would only
permit that. Maximum speeds which are currently at 75 kilometer per hour (kmph) would go up to 100 kmph.
35. G Raghuram, Apoorva Verma/ Transportation Research Procedia 00 (2018) 000–000 9
Fig. 3. Upgraded Design Features of DFC
[DFCCIL, Salient Features]
Given the streamlined flow of traffic, the average speed shall increase from 26 kmph to 70 kmph [Jain, 2018]. The
length of a train would increase from the current 700 meters to 1500 meters. As a consequence, a train on the DFC
can carry 13,000 tons compared to a maximum 5,000 tons carried on the existing railway tracks.
36. 10 G Raghuram, Apoorva Verma/ Transportation Research Procedia 00 (2018) 000–000
In terms of organizational design, the DFCCIL SPV was under the MoR. There had been debate as to whether it
should be independent of the MoR with ownership from other stakeholders. The MoR overruled this. Further, the SPV
was structured in a manner that IR would be its sole customer. DFCCIL would essentially be a construction,
maintenance and operating company, while IR would have the sole access to the market.
4. Status as of December 2018
4.1 Land acquisition
Up to December 2018, 98.5% of the land has been acquired for both the corridors. In the WDFC, 99.4% of the land
has been acquired. In the EDFC, 97.3% of the land has been acquired for the Ludhiana-Sonnagar section and 67.8%
land has been acquired for the Sonnagar-Dankuni section [DFCCIL, Project Status].
4.2 Award of contracts
97.8% contracts have been awarded. For WDFC and EDFC, all the Civil contracts have been awarded. Contracts
worth Rs 52, 387 cr have been awarded for both the corridors [DFCCIL, Project Status].
4.3 Section wise progress
The section wise progress as of December 2018 is given in Table 4. The combined physical and financial progress
of both corridors is 55.8% and 53.5% respectively [DFCCIL, Project Status]. As of January 2018, the figures for
physical and financial progress of both corridors were 40.3% and 42.8% respectively. Details related to section wise
completion targets is given in Table 5. Both WDFC and EDFC are targeted to be completed in phases by 2020
[DFCCIL, Project Status]. The first freight train was flagged off on August 15, 2018 from Ateli in Haryana. The
locomotive took 3 hours 52 minutes to cover 190 km long stretch, attaining a speed of 100 kmph [Jain, 2018].
Table 4. Section wise progress as of December 2018
Section/Packages Kilometres Land available
(%)
Affected
patch/km
Physical Progress
(%)
Financial Progress
(%)
WDFC
Dadri-Rewari CTP-14 127.0 98.1 1/1.247 22.0 16.0
Rewari-Iqbalgarh CTP-1&2 639.0 99.9 0/0 Civil-83.0 74.5
System-47.0 40.5
Iqbalgarh-Vadodara CTP3 (R) 308.0 99.0 1/1.3 34.0 23.0
Vadodara-Sachin CTP-13 133.0 99.5 0/0 Civil-27.0 17.3
System-19.0 16.0
Sachin-Vaitarna CTP-12 186.0 92.8 12/4.9 23.0 11.0
Vaitarna-JNPT CTP-11 102.0 89.2 9/12.5 11.0 6.0
EDFC
Ludhiana-Pilkhani 179.0 100.0 0/0 31.4 27.5
Pilkhani-Khurja 222.0 91.1 2/11 9.8 5.5
Dadri- Khurja EDFC-1 46.0 87.2 6/5.03 29.0 25.5
Khurja-Bhaupur EDFC-1 343.0 99.3 3/0.21 Civil-91.0 82.2
System-63.8 60.5
Bhaupur-Mughalsarai EDFC-2 402.0 99.7 2/2.95 Civil-48.0 43.9
System-26.5 17.0
Durgawati-Sasaram 56.0 100.0 Ready for commissioning
Balance portion of
Mughalsarai-Sonnagar
70.0 95.5 14/9.985 50.5 44.0
[DFCCIL, Project Status]
37. G Raghuram, Apoorva Verma/ Transportation Research Procedia 00 (2018) 000–000 11
Successful trial runs have also been conducted on 194 km long Bhadan-Khurja section of EDFC on November 30,
2018 and 306 km long Madar-Kishangarh section of WDFC on December 30, 2018. This 306 km route is inclusive
of the already operational 190 km Ateli-Phulera section [IANS, 2018].
4.4 Cost
Total estimated cost of the project is Rs 81,459 cr, Rs 30,358 cr for EDFC and Rs 51,101 cr for WDFC [Ministry
of Railways, 2018]. Of this, Rs 43, 607 cr has been incurred till December 2018 [DFCCIL, Project Status].
Table 5. Section wise targets
WDFC
S No. Section Target
Sections planned to be completed by December 2019
1 Ateli-Phulera (190 km) August 2018
2 Rewari-Marwar (432 km) December 2018
3 Marwar-Palanpur (207 km) September 2019
Sections planned to be completed by 2020
4 Palanpur-Makarpura (308 km) 2020
5 Makarpura-Vaitarna (313 km) 2020
6 Vaitarna-JNPT (117 km) 2020
7 Dadri- Rewari (127 km) 2020
EDFC
S No. Section Target
Sections planned to be completed by December 2019
1 Khurja-Bhaupur (343 km) November 2018
2 Bhaupur-Mughalsarai (402 km) August 2019
3 Mughalsarai -Sonnagar (126 km) October 2019
4 Dadri- Khurja (46 km) December 2019
Sections planned to be completed by 2020
5 Sahnewal -Pilkhani (179 km) 2020
6 Pilkhani- Khurja (222 km) 2020
[DFCCIL, Project Phasing]
5. Issues
We examine the challenges of the DFC in two broad categories, with respect to scope and status.
5.1 Scope
5.1.1 Diesel vs electric traction
WDFC was initially proposed to use a diesel traction system, later it was converted to an electrified traction system
after the JICA study concluded that it was more economical in the long term. However, this increased the cost as
electrified traction system required a larger initial investment [JICA, 2007].
5.1.2 Double stack vs single stack
The project has adopted different technical standards for WDFC and EDFC. WDFC would have moving
dimensions made for double stacked containers (7.1 meters). Moving dimensions for EDFC are being made for single
stack container operations (5.1 meters) [Agrawalla and Raghuram, 2013]. This makes seamless movement of double
stack trains from WDFC to EDFC impossible. Commenting on this, [Agrawalla and Raghuram, 2013] state “This
appears to be a very short-sighted policy, since it would be extremely difficult to anticipate future traffic flows beyond
even ten years. One can also argue that the current hinterland container flows were more significant from the western
38. 12 G Raghuram, Apoorva Verma/ Transportation Research Procedia 00 (2018) 000–000
sea board, reaching even into UP and Bihar, but it is not a desirable situation. This was due to bottlenecks in Haldia
and Kolkata ports, which would increasingly get released with new large port projects being conceptualized near the
mouth of the river Hooghly. Container traffic from the eastern seaboard is bound to grow and serve the Northern
Indian hinterland. This matter needs to be examined so that we do not bind ourselves for the future…
… Also, if moving dimension for EDFC permitted double stack container movement, it would have provided two
important flexibilities:
• double stack container trains from the western sea board could have moved seamlessly from the WDFC
into the EDFC, if the destinations are beyond Dadri (being the current terminus of the WDFC and junction
with the EDFC).
• there would have been greater throughput should any low-density bulk cargo move.”
5.1.3 Renewable resources vs coal
With an inclination towards using renewable resources in future, viability of the EDFC could be a concern since
the majority of the traffic was expected to be coal for power plants in northern India from the coal fields in the east.
5.1.4 Double line vs twin single lines on feeder routes
The feeder route from Mundra Port to Palanpur, passing via Gandhidham, is part of the doubling works of the
existing railway line. Though there would be a double line route, only one of them is up to the DFC standard. Hence,
this route cannot be operated as a streamlined double line, but only as two single lines. This may be true on many of
the other feeder routes.
5.1.5 Industrial corridors
The progress for both Logistics Parks and DMIC has been very slow. DMIC was approved in 2007 by the Union
Cabinet. Eleven years after the approval, the DMIC is progressing at a slow pace. AKIC, was to be developed along
the alignment of EDFC, in a band of 150-200 km. It was approved by GoI in 2014 [PTI, 2014], however, even after
four years, the progress has been only up to preparing the ‘Perspective Plan’ [DIPP, Annexure-III].
5.1.6 Ownership of SPV: Timeline
Committee on Infrastructure had constituted a Task Force in May 2005. The Task Force was of the view that the
SPV should have a joint ownership between MoR and the “users of bulk freight services like port operators, shipping
companies, commodity-based companies in the oil, coal, iron ore, steel and power sectors, largely in the public
sector.††” It would have ensured an adequate equity base, which could be used to leverage market borrowings to raise
capital for investment in the DFCs. Department of Economics Affairs (DEA) and Planning Commission shared the
same view. However, MoR argued that it was important to put DFCs in place by 2010-11 to maintain an 8 to 8.5 %
growth rate of GDP. It also argued that other PSUs should avoid entering into business activities that were outside
their core competence. In August 2006, formation of DFCCIL was approved by Cabinet (incorporated in October
2006) under the administrative control of MoR. The purpose of formation of SPV under MoR’s control could not
achieve the timelines envisaged [CAG, 2015]. Given the current expected completion by the end of 2020, the project
is at least 9 years delayed.
5.1.7 Ownership of SPV: Land acquisition
†† Users of freight services have been taken as is from [Agarwalla and Raghuram, 2013]
39. G Raghuram, Apoorva Verma/ Transportation Research Procedia 00 (2018) 000–000 13
[Agarwalla and Raghuram, 2013] stated that “It is interesting that the task force did not consider the option of a
non-IR owned entity, presumably based on the premise that synergy on various dimensions (such as access to the
existing network and land acquisition, construction and operations expertise and market development) could be
leveraged only through IR.” Given the difficulties of land acquisition in India, the fact that 1077 km out of 1504 km
of WDFC and 1111 km out of 1318 km of the non-PPP EDFC are adjacent to the existing IR network has been a
positive for DFCCIL.
5.1.8 Market access
IR being the sole customer of DFCCIL, all other freight customers/qualified operators would be routed though IR.
IR would be paying DFCCIL Track Access Charges (TAC) starting from 2020-21, whether it utilizes the path or not.
Consequently, there is no revenue risk for DFCCIL, which could have a bearing on their service levels [Kumar, 2018].
5.1.9 Cost
Initially the Debt-Equity Ratio for the project was envisaged to be 2:1. However, now it is 3:1. When cost estimates
were revised to 81,459 cr, the liability of IR towards equity increased to 27,153 cr from Rs 9,393 cr [CAG, 2015].
5.1.10 Funding and cost of procurement
Commenting on the funding of the WDFC, [Agarwalla and Raghuram, 2013] state, “The conditions of JICA loan
for WDFC (constituting 80% of WDFC costs) required that 30% of the JICA funding be used for import of equipment
and goods from Japan and that all contracts for WDFC must have a Japanese firm as the lead partner. Assuming
equipment cost is 40% of the project cost, over 60% of the equipment and goods may have to be sourced from Japan
which would significantly narrow the scope of competition. Further, the restriction that only a Japanese firm can be
a lead partner in works contracts also reduced competition in procurement of works. The obvious consequence is that
procurement may not be at the least possible cost.”
5.2 Status
5.2.1 Project target
The project, which was conceptualized and given a final go ahead with the setting up of DFCCIL in 2006, was
expected to be completed by 2011. The final location survey/Detailed Project Report (DPR) and freezing of alignment
was done in 2014, eight years after getting the ‘In Principle Approval’ [CAG, 2015]. The target completion was first
shifted to 2016-17, then again to 2017-18 [PTI, 2018] and now to 2020.
5.2.2 Planning and execution
Planning has been an issue since the conception of the project.
• MoR approached CCEA with an estimated cost of Rs 21,140 cr based solely on the Feasibility Report by
RITES. They approached CCEA in November 2007 with revised figures of Rs 28,181 cr based on PETS
Report by RITES. They again approached CCEA in February 2008 with a cost estimate of Rs 43,293 cr
based on Feasibilty Report by JICA. It took MoR another six years (February 2008 to March 2014) to
finalize the DPR and cost estimates. Based on the DPR, the project cost was put at Rs 81,459 cr excluding
the PPP portion. Approaching CCEA without credible estimates and a sound financing plan was a
premature move. Further, MoR approached CCEA with cost estimates based on JICA Feasibility Report
without firming up a financing plan for EDFC or a CA between MoR and SPV. The latter was finalized
in 2014 [CAG, 2015].
40. 14 G Raghuram, Apoorva Verma/ Transportation Research Procedia 00 (2018) 000–000
• MoR did not give due weightage to the timeline for completion of the project. This is evident from the
fact that in all Cabinet Notes, MoR mentioned the completion period to be five years, without specifying
the ‘zero’ date for commencement of the same [CAG, 2015].
5.2.3 Land acquisition
As of December 2018, DFCCIL has acquired 98.5% of the required land. Though only 1.5% remains (presumably
due to difficulties in land acquisition), these have higher number of affected patches per kilometer. It can pose a
problem in construction of the DFC and can further delay the timeline for completion of the project. The details of
affected patch per kilometer is given in Table 4. For instance, In the Sachin-Vaitarna section in WDFC, there are
twelve affected land patches in 4.9 km. Similarly, in Dadri-Khurja EDFC-1 section, there are six affected land patches
in 5.03 km. The number of affected land patches per kilometer is higher in EDFC.
5.2.4 Traffic projection
For the year 2021-22, the PETS Report by RITES projected a traffic of 85.5 mt for WDFC and 91.3 mt for EDFC.
For the year 2021-22, the DFCCIL Corporate Plan projected a traffic of 167.1 mt for WDFC and 219.6 mt for EDFC
for WDFC is 167.1 mt for 2021-22. Traffic projections based on DFCCIL Corporate Plan 2017-22 are given in Table
6 and Table 7. The figures are more optimistic in the Corporate Plan for all the commodities. The maximum increase
in the projection has been for the coal movement. The traffic projected for coal in the RITES PETS Report for EDFC
was 62.9 mt, while it has increased to 119.5 mt in the Corporate Plan. The RITES Report did not consider the container
traffic for EDFC. However, as per the Corporate Plan, there would be container traffic of 8.5 mt.
Table 6: Traffic projections for WDFC based on DFCCIL Corporate Plan 2017-22 (mt)
WDFC
Commodity 2018 2019 2020 2021 2022
Container 45.6 49.8 54.3 59.2 64.6
Coal 21.5 22.4 23.3 24.2 25.2
Food grains 8.1 8.4 8.6 8.8 9.1
Fertilizer 11.5 11.9 12.4 12.9 13.4
Cement 6.3 6.8 7.3 7.9 8.5
Steel 1.6 1.7 1.9 2.0 2.2
POL 6.7 6.9 7.0 7.2 7.3
MISC 6.6 6.8 7.0 7.2 7.4
Total 108.0 114.6 121.8 129.4 137.7
Modal shift from
Road
12.7 13.3 14.0 14.7 15.4
DMIC Traffic 4.6 6.1 8.0 10.6 14.0
Grand Total 125.3 134.1 143.8 154.8 167.1
CAGR (%) 11.2 11.4 11.7 12.0 7.5
41. G Raghuram, Apoorva Verma/ Transportation Research Procedia 00 (2018) 000–000 15
Table 7: Traffic projections for EDFC based on DFCCIL Corporate Plan 2017-22 (mt)
EDFC
Commodity 2018 2019 2020 2021 2022
Container 6.2 6.7 7.2 7.8 8.5
Coal 102.2 106.2 110.5 114.9 119.5
Food grains 13.8 14.2 14.6 15.0 15.4
Fertilizer 5.2 5.4 5.6 5.9 6.1
Cement 9.3 10.0 10.8 11.7 12.6
Steel 11.8 12.7 13.7 14.8 15.9
POL 4.1 4.1 4.2 4.3 4.4
MISC 21.3 21.9 22.6 23.3 24.0
Total 173.8 181.3 189.3 197.6 206.3
Modal shift from
Road
10.9 11.4 12.0 12.6 13.2
AKIC Traffic 0.0 0.0 0.0 0.0 0.0
Grand Total 184.6 192.8 201.3 210.2 219.6
CAGR (%) 6.5 6.3 6.2 6.1 4.4
[DFCCIL, Corporate Plan]
6. Conclusion
DFCs present a significant opportunity for freight logistics in India. What is important is to see how the increasingly
optimistic traffic projections will be realized. That depends upon the industrial and trade growth in India, and the
development of industrial corridors and the feeder network. In order to leverage the full efficiency of the DFC, we
will also need rolling stock that can take advantage of the increased axle loading capability. On the EDFC, the
dependence on coal traffic would be a concern since there could be disruptive changes on the sources of energy in the
long run. Further, the prospect of increasing container traffic could be affected adversely since the EDFC would permit
single stacking only. Another important concern would be the sole intermediary role played by the Indian Railways,
which has to bring in the end users. Indian Railways has not always been known for its customer centricity.
Overall, the DFCs have the potential to be a game changer for the Indian economy.
References
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44. 2
Executive Summary 3
Advantage India 4
Market Overview 6
Growth Drivers 13
Key Industry Contacts 23
Appendix 25
Table of Contents
45. 3
Executive summary
5
4
3
2
1
3. Growing private sector
involvement
• In FY22, investments worth Rs. 30,000 crore (US$ 4.08
billion) are expected from the private sector.
• As on December 2019, 824 projects were recommended
for development by Public Private Partnership (PPP)
Appraisal Committee.
• Investment of US$ 31 billion for national highways is
expected in PPP by the end of 2020.
1. One of the largest road
networks in the world
• India has the second-largest road
network in the world, spanning over 5.8
million kms. Over 64.5% of all goods in
the country are transported through
roads, while 90% of the total passenger
traffic uses road network to commute.
2. Rising budget allocation
of road sector
• Under the Union Budget 2021-22, the
Government of India has allocated Rs.
108,230 crore (US$ 14.85 billion) to the
Ministry of Road Transport and Highways.
• The Government of India has allocated
Rs. 111 lakh crore (US$ 13.14 billion)
under the National Infrastructure Pipeline
for FY 2019-25. The Roads sector is
expected to account for 18% capital
expenditure over FY 2019-25.
5. Overseas investment for
infrastructure development
• Indian Government and Asian Development
Bank signed US$ 500 million loan
agreement to build the longest bridge across
river Ganga, in Bihar. The bridge is expected
to be ready by December 2021.
• In January 2021, the Government of India
and New Development Bank (NDB) signed
two loan agreements for US$ 646 million for
upgrading the state highway network and
district road network in Andhra Pradesh.
4. Rapid growth in national
highways
• NHAI is planning to raise Rs. 40,000 crore
(US$ 5.72 billion) to monetise its highway
assets through Infrastructure Investment
Trust (InvIT).
• National highways under the Bharatmala Pariyojana
programme aim to optimize the productivity of freight and
passenger movement by filling the critical infrastructure
gaps. It will also work to increase the number of districts
with national highway linkages from 300 to 550.
• In December 2020, the MoRTH proposed to develop
additional 60,000 kms of national highways (in the next five
years). The ministry also intends to improve connectivity
for 100 tourist destinations and construct bypasses for 45
towns/cities.
• In May 2021, the Ministry of Road Transport and Highways
constructed 1,470 kms of national highways compared
with 847 kms in May 2020.
47. 5
Advantage India
Growing participation of PPP.
Under the Union Budget 2021-22,
the Government of India has
allocated Rs. 108,230 crore (US$
14.85 billion) to the Ministry of
Road Transport and Highways.
Transfer to National Investment
Fund (NIF) was estimated at Rs.
6,070 crore (US$ 868.51 million)
for 2019-20.
3. POLICY SUPPORT
Financial institutions received Government approval to raise
money through tax-free bonds.
100% FDI is allowed under automatic route subject to applicable
laws and regulations.
The Finance Bill 2019 made certain changes in the Central Roads
and Infrastructure Fund Act. The central Government will now be
responsible for formulating criteria for any state road project.
2. ATTRACTIVE OPPORTUNITIES
India has joined the league of 15 of global alliance
which will work towards the ethical use of smart city
technologies.
The Government aims to construct 65,000 kms of
national highways at a cost of Rs. 5.35 lakh crore (US$
741.51 billion) by 2022.
The government also aims to construct 23 new national
highways by 2025.
Road building in India is second least expensive in
Asia.
Production of commercial
vehicles increased to 752,022 in
FY20 from FY16 at a CAGR of
2.42% commands stronger road
network in India.
In FY21, 13,298 kms of highway
was constructed across India.
In November 2020, passenger
vehicle wholesale expanded by
9%, compared with the same
month last year, due to
increased demand in the festive
season.
1. ROBUST DEMAND
4. HIGHER INVESTMENT
1
2 3
4
49. 7
Road network in India is sub-divided into three categories
ROADS
SH
NH National highways
Total length: 136,440 kms
Share: 2% of the total roads in India
Other roads
Total length: 5,902,539 kms
Share: 95% of the total roads in India
State highways
Total length: 176,818 kms
Share: 3% of the total roads in India
Roads
(Total length: 6,215,797 kms)
Note: Data as of December 2020
50. 8
Date Description
June
2021
The Ministry of Road Transport and Highways
constructed 1,470 kms of national highways until
May 2021. In April 2021, 853 kms of the highway
was completed.
May
2021
The Minister for Road Transport & Highways and
Micro, Small and Medium Enterprises, Mr. Nitin
Gadkari, is targeting to construct 40 kms per day in
FY22.
April
2021
As per the Ministry of Road Transport and Highways,
national highway construction hit an all-time high of
37 km per day in FY 2020-21.
March 2021
As per the Ministry of Road Transport and Highways,
the construction of National Highways clocked a
record speed of 29.81 km per day in 2020-21.
February 2021
The Minister for MSMEs and Road Transport &
Highways Mr. Nitin Gadkari approved construction of
the 158-kms ring road worth Rs 10,000 crore (US$
1.36) in Telangana.
December
2020
The Union Minister of Road Transport and Highways,
Mr. Nitin Gadkari, laid the foundation for 15 National
Highways projects (266 kms) worth Rs. 4,127 crore
(US$ 560.88 million) in Nagaland.
November
2020
.The Standing Finance Committee approved 6
projects (258.19 kms) for a total cost of Rs. 5,305.13
crore (US$ 723.95 million).
6,061
8,231
9,829
10,855
10,237
13,298
1,470
FY16 FY17 FY18 FY19 FY20 FY21 FY22*
Strong momentum in expansion of roadways
Source: Ministry of External Affairs, Economic Survey-2019-20, MoRTH, News Articles
Note: E - Estimate, Figures are as per latest data available
Highway Construction in India (kms)
51. 9
52,500
49,700
42,600
47889
48883
66613
78,109
98,204
110,815
-
20,000
40,000
60,000
80,000
100,000
120,000
2011 2012 2013 2014 2015 2016 2017 2018 2022F
Source: NBM & CW, Mahindra Website, Indian Construction Manufacturers’ Association
Note: F - Forecast,
With infrastructure investment set to go up, demand for construction
equipment will rise further.
By 2022F, construction equipment sales are forecast to reach
110,815 units.
The Government’s move to cut GST rate on construction equipment
from 28% to 18% is supposed to give boost to the industry.
Key players:
• Universal Construction Machinery & Equipment
• Mahindra Construction Equipment (MCE)
• Volvo Construction Equipment India
• ACE Construction Equipment
• L&T Construction Equipment
• Triton Valves
Robust Indian construction equipment's
Total number of construction equipment units sold
52. 10
Special accelerated road development programme for the
northeast region
Source: NHAI, MoRTH Annual Report 2019-20, PPP in India
The Special Accelerated Road Development Programme for the Northeast region (SARDP-NE) is aimed at developing road connectivity between
remote areas in the northeast with state capitals and district headquarters.
Implementation of the road development programme would facilitate connectivity of 88 district headquarters across states in the Northeast to their
nearest national highway.
The Government of India had estimated to invest Rs. 1.45 lakh crore (US$ 22.40 billion) towards road infrastructure in Northeast by end-2020.
Under Phase-I of Bharatmala Pariyojana, the Ministry has approved implementation of 34,800 km of national highways in 5 years with an outlay of
Rs. 5,35,000 crore (US$ 76.55 billion). Under this scheme, 22 greenfield projects (8,000 kms length) are being constructed; this is worth Rs. 3.26
lakh crore (US$ 43.94 billion).
In December 2017, the Prime Minister of India announced investment worth Rs. 60,000 crore (US$ 9.33 billion) under SARDP between 2018-
2020.
In March 2021, the Mizoram-Myanmar road project, which was launched under SARDP-NE, completed 92% work and is scheduled to be
completed by June 2021.
The details of various development and maintenance works undertaken in Northeast region is mentioned below:
Project description Total length (kms)
Length under NHDP Phase - III 110
Length of National Highways, State Roads under SARDP-NE are divided in 2 phases:
(i) Phase A 4,099
(ii) Phase B (approved for DPR preparation only) 3,723
Arunachal Pradesh Package of Roads and Highways 2,319
Note: data is expected to be updated by June 2019 from Ministry of Road Transport and Highways Annual Report FY19
53. 11
55.2%
44.8%
Roads Others
Source: MoRTH, Department of Economic Affairs, News Articles
873
422
209
505
0
100
200
300
400
500
600
700
800
900
1000
FY16
FY17
FY18
FY19
In FY21, there were 125 PPP projects worth US$ 23.25 billion in India.
Projects awarded under build-operate-transfer (BOT) was 37.62% of the total awarded projects as of December 2019.
In August 2020, the Government of India revised the Model Concession Agreement for BOT projects to plug delays by imposing a deadline on the
NHAI and incentivising timely work by concessionaires. According to revised norms, the NHAI will have to hand over 90% of the project land
(vacant and ready to build) to private developers, thus creating a more market-friendly sector and attracting more private players.
In November 2020, L&T Construction bagged a contract to build India's longest river bridge, across Brahmaputra river connecting Dhubri in Assam
to Phulbari in Meghalaya, valued Rs. 2,500–5,000 crore (US$ 339.76–679.53 million).
Note: PPP - Public-private partnership, BOT - Build-operate-transfer
Growth in private participation
Total PPP Projects in India (FY21) Projects awarded to BOT private players (in kms)
54. 12
Source: Sutherland Research
Major
private
sector
players
Until 2005, the road construction market was dominated by public sector companies.
With the emergence of private players over the last decade, the road construction market has become fragmented and competitive. Players
bidding for projects also vary in terms of size.
Notes: NH - National Highway
Major projects: Mumbai-Pune BOT Project, Pune-Nashik BOT Project, Bharuch-Surat BOT Project,
Thane-Bhiwandi by-pass 4 Lane Project, Thane Ghodbunder BOT Project, Ahmedabad-Baroda NH-
8, 6 laning of Agra - Etawah bypass.
Major projects: North Karnataka Expressway, West Gujarat Expressway, Noida Toll Bridge,
Ahmedabad - Mehsana Toll Road, East Coast Road, Kotakatta Kurnool Road Project, East Coast
Road, Hazaribagh Ranchi Expressway Ltd, Karnataka Toll Bridges.
Major projects: NH6 Dhankuni to Kharagpur, Sambalpur Baragarh, NH4 Belgaum Dharwad, NH-3
Pimpalgaon - Nashik - Gonde Road (JV with L&T), Jaora - Nayagaon Road, Chennai Outer Ring
Road, Modhul - Nippani Road, Indore Edalabad Road, Wainganga Bridge, Ahmednagar Aurangabad
Road.
Major projects: Bandra-Worli Sea Link, Badarpur Elevated Highway Project, Delhi Faridabad
Elevated Expressway, Breakwater construction for new port at Ennore, Chennai, New Railway Line
Project from Jiribam - Tupul.
Major projects: Tuni-Ankapalli Highway, Tambaram-Tindivanam Highway, Ambala-Chandigarh
Highway.
Private players gaining traction in the roads sector
56. 14
Strong demand and policy support driving investment
Source: Make in India
Rise in two and four wheelers
Increasing freight traffic
Strong trade and tourist flows
between states
Growing demand
Greater Government focus on
infrastructure
Standardised processes for
bidding and tolling, and clear policy
framework
Tax sops, FDI, FII encouragement
Policy support
In 2019-20, Rs. 36,691 crore
(US$ 5.24 billion) was allocated
to NHAI.
For FY20, transfer from Central
Road and Infrastructure Fund
(CRIF) is estimated at Rs.
54,539 crore (US$ 7.80) from the
revised estimates of Rs. 51,679
(US$ 7.39 billion) in FY19.
The Ministry allocated Rs. 3,150
crore (US$ 0.45 billion) for
maintenance of roads and
highways in FY20 and Rs. 280
crore (US$ 40 million) for road
transport and safety.
Increasing investment
Inviting
Resulting
in
57. 15
Source: Society of Indian Automobile Manufacturers (SIAM)
Rising trade, vehicular production
Growing domestic trade flows have led to rise in commercial
vehicles and freight movement; supported by rise in production of
commercial vehicles.
In May 2021, manufacturing of automobiles (passenger, three-
wheelers, two-wheeler vehicles and quadricycle ) stood at 806,755
units.
Higher individual discretionary spending has led to increased
spending on cars, motorbikes and scooters.
• In FY21, domestic automobile sales (passenger, three-wheeler
and two-wheeler vehicles) stood at 18.61 million.
Note: ^- Only Oct-March 2016 data is available for 2015-16, *till May 2021
24.02
25.33
29.07
30.92
26.36
22.65
2.68
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
FY16 FY17 FY18 FY19 FY20 FY21 FY22*
Number of Automobiles Manufactured in India (in million)
CAGR 2.36%
58. 16
Government’s initiatives
5. International tie-ups
• In December 2020, the Ministry of
Road Transport and Highways signed
an MoU with the Federal Ministry of
Climate Action, Environment, Energy,
Mobility, Innovation and Technology
of the Republic of Austria on
technology cooperation in the road
infrastructure sector.
4. Taxes and other sops
• Companies enjoy 100% tax exemption
in road projects for 5 years and 30%
relief over the next 5 years.
• Companies have been granted a
capital of up to 40% of the total project
cost to enhance viability.
6. Encouragement of
infrastructure debt funds (IDFs)
• Government of India has set up the India
Infrastructure Finance Company (IIFCL)
to provide long-term funding for
infrastructure projects.
• Interest payment on external commercial
borrowings for infrastructure are now
subject to a lower withholding tax of 5%
vis-a-vis 20% earlier.
• IDF income is exempt from income tax.
5
4
1 6
3
2
2. Improve safety standards
• In October 2020, a memorandum of
understanding (MoU) has been
signed with the National Highways
Authority of India (NHAI) by Guru
Nanak Dev University (GNDU) to
conduct advanced research on
various aspects, including highway
architecture, protection and
revitalisation. The GNDU will
undertake studies on ~137 km length
of the National Highways passing
through Pathankot, Gurdaspur and
Amritsar districts.
3. Portfolios in the roads &
highways sector
• In October 2020, the National Investment and Infrastructure Fund
(NIIF) is making progress towards integrating its road and highway
portfolio. The NIIF has acquired Essel Devanahalli Tollway and Essel
Dichpally Tollway through the NIIF master fund. These road infra-
projects will be supported by Athaang Infrastructure, NIIF's
proprietary road network, assisted by a team of established
professionals with diverse domain expertise in the transport field.
1. Rural development
• Under the Union Budget 2020-21, the Government of India
has allocated Rs. 19,500 crore (US$ 2.79 billion) for Pradhan
Mantri Gram Sadak Yojana (PMGSY).
• As per the Union Budget 2019-20, 30,000 km of PMGSY
roads were built using green technology, waste plastic and
cold mix technology, thereby reducing carbon footprint.
59. 17
Policy initiatives in the right direction
7. Motor Vehicle Aggregator
Guidelines 2020
In November 2020, the Ministry of Road Transport
and Highways issued the ‘Motor Vehicle Aggregator
Guidelines 2020’ to regulate shared mobility and
reduce traffic congestion and pollution.
6. Bharatmala Pariyojana
Project
A total length of 34,800 kms in road
projects have been proposed to be
constructed with an estimated outlay
of Rs. 5.35 trillion (US$ 74.15 billion)
under Bharatmala Pariyojana Phase-I.
NHAI will consider only those projects
that require minimal land acquisition
worth Rs. 3 trillion (US$ 42.92 billion)
under Bharatmala Pariyojana scheme.
A total of 65,000 kms of roads and
highways are to be constructed under
Bharatmala Pariyojana.
5. Investment in roads and
other infrastructure
Under the Union Budget 2021-22, the
Government of India has allocated Rs.
108,230 crore (US$ 14.85 billion) to the
Ministry of Road Transport and Highways.
4. Goods and Services Tax (GST)
The GST on construction equipment has been
reduced to 18% from 28%, which is expected to give
a boost to infrastructure development in the country.
1. Bhoomi Rashi
The portal accelerates the process of
publication of notifications for land acquisition.
It has been useful in reducing the time taken
for providing notification regarding approval
and publication of land acquisition.
2. Bidder Information
Management System (BIMS)
BIMS is a database that provides
information about bidders’ basic details,
civil works experience, cash accruals
and network, annual turnover, etc.
This portal will enable objective and
transparent evaluation which will
accelerate project implementation.
3. Central Road Fund (CRF)
In 2019-20, the transfer from CRIF was
estimated at Rs. 54,539 crore (US$ 7.80
billion), which was 6% increment from
the revised estimates of Rs. 51,679
crore (US$ 7.39 billion) in 2018-19.
2
5
1
4
3
6
7
60. 18
Budgetary outlay for roads…(1/2)
Source: Respective Union Budgets, News Articles
Roads have been the key focus area for budget allocations over the
years.
Under the Union Budget 2021-22, the Government of India has
allocated Rs. 108,230 crore (US$ 14.85 billion) to the Ministry of
Road Transport and Highways.
Between FY16 and FY21, budget outlay for road transport and
highways increased at a robust CAGR of 13.10%.
Huge investment have been made in the sector with total investment
increasing more than three times from Rs. 51,914 crore (US$ 7.43
billion) in 2014-15 to Rs. 158,839 crore (US$ 22.73 billion) in 2018-
19.
On October 12, 2020, the government announced that it has
constructed 2,921 kms of highways under the Bharatmala Pariyojna.
The government envisages building 34,800 kms of highways at a
cost of about Rs. 5.35 trillion (US$ 74.15 billion) under the ambitious
Bharatmala Pariyojna.
7.10
17.03
12.90
14.22
15.48
13.14
14.85
0
2
4
6
8
10
12
14
16
18
FY16 FY17 FY18 FY19 FY20 FY21 FY22
CAGR 13.09%
Outlay for roads under the respective Union Budgets
(US$ billion)
61. 19
Budgetary outlay for roads…(2/2)
Source: Respective Union Budgets, News Articles
In November 2020, the Union Minister of Road Transport and Highways, Mr. Nitin Gadkari, announced a large financial relief package of Rs. 8,000
crore (US$ 1.08 billion) to meet the working capital requirements of contractors.
In January 2021, the Ministry of Road Transport and Highways (MoRTH) announced that it has sought a budgetary allocation of Rs. 1.4 trillion for
the next fiscal year (FY22)—about 40% higher than the FY21 allocation.
62. 20
Future prospects remain bright for the road sector…(1/2)
The Ministry of Road Transport and Highways is expected to award
road projects with a total length of around 4,500 kms worth Rs.
50,000 crore (US$ 7.15 billion) in 2020.
In November 2020, the Government of India and the New
Development Bank signed a loan agreement for US$ 500 million for
the ‘Delhi-Ghaziabad-Meerut Regional Rapid Transit System Project’
to provide fast, reliable, safe and comfortable public transport system
in the National Capital Region.
In December 2020, the Ministry of Road Transport and Highways
(MoRTH) announced that the Government of India and the Word
Bank have inked a pact for a US$ 500-million project to build green
national highway corridors in Rajasthan, Himachal Pradesh, Uttar
Pradesh and Andhra Pradesh.
In December 2020, the MoRTH proposed to develop additional
60,000 kms of national highways (in the next five years), of which
2,500 kms are expressways/access-controlled highways, 9,000 kms
are economic corridors, 2,000 kms are for coastal and port
connectivity highways and 2,000 kms are border road/strategic
highways. The ministry also intends to improve connectivity for 100
tourist destinations and construct bypasses for 45 towns/cities.
5,000
6,397
4,335
7,400
6,000
8,948
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
FY15 FY16 FY17 FY18 FY19 FY20
Source: NHAI, MoRTH Annual Report 2018-19, Crisil Research
Projects awarded (in kms)
63. 21
Future prospects remain bright for the road sector…(2/2)
In January 2021, the MoRTH announced that it has constructed 8,169 kms of national highways between April 2020 and January 2021 and aims to
complete 11,000 kms of national highways by end-FY21.
In January 2021, the Government of India approved Rs. 8,528 crore for national highway projects in Maharashtra.
The NHAI awarded highway projects (extending 1,330 kms) in the first half of FY21. This was 1.6x of the total awards in FY20 and 3.5x of the
FY19-levels. NHAI, the nodal authority for building highways across the country, has set a target of awarding projects (up to 4,500 kms) in FY21.
In April 2021, the NHAI has decided to deploy Network Survey Vehicle (NSV) to enhance quality of the national highways. Carrying out road
condition survey using NSV on the national highways was made mandatory for certifying completion of the project and every six months thereafter.
Source: NHAI, MoRTH Annual Report 2018-19, Crisil Research
64. 22
Encouragement private funding to reduce finance constraints
Source: DPIIT, Asian Development Bank (ADB)
Cumulative FDI inflow in construction development^ stood at US$
25.93 billion between April 2000 and December 2020.
Maif 2 Investments India Pvt. Ltd. became the first-largest foreign
investment in Indian roads sector under toll-operate-transfer (TOT)
mode worth Rs. 9,681.5 crore (US$ 1.50 billion).
In October 2020, the Asian Development Bank (ADB) and the
Government of India signed a US$ 177 million loan to upgrade 450
kms of state highways and major district roads in Maharashtra.
In January 2021, the Government of India and New Development
Bank (NDB) signed two loan agreements for US$ 646 million for
upgrading the state highway and district road networks in Andhra
Pradesh.
Note: ^ - FDI in construction development Includes: Townships, housing, built-up infrastructure and construction-development projects, * - until December 2020
2.25
10.65
1.23
0.76 0.12 0.10
0.54 0.22
0.27
9.18
0.61 25.93
5
8
11
14
17
20
23
26
FY01-11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21*
FY01-21
FDI^ Inflow (US$ billion)
66. 24
Key industry contacts
Agency Contact Information
Ministry of Roads Transport and Highways
Transport Bhavan
1, Parliament Street
New Delhi -110001
Phone: 91-11-23719097, 23719955
E-mail: ifcmost@nic.in
Website: https://morth.nic.in/
National Highway Authority of India
G 5 and 6, Sector 10, Dwarka
New Delhi - 110 075
Phone: 91-11-25074100, 25074200
Fax: 91-11-25093507, 25093514
Website: https://nhai.gov.in/
Indian Roads Congress
Sector 6, (Near RBI Quarters), RK Puram, New Delhi
- 110022
Phone: 91-11-26185303
Secretariat: 91-11-26716778, 26183669, 26185273,
26185315, 26185319
Fax: 91-11-26183669
E-mail: secretarygen@irc.org.in
Website: http://www.irc.nic.in/
Central Road Research Institute
Delhi-Mathura Road,
New Delhi - 110 025
Phone: 91-11-26848917, 26832173
Fax: 91-11-26845943
E-mail: director.crri@nic.in
Website: https://www.crridom.gov.in/
68. 26
Glossary
BOT: Build Operate Transfer
CAGR: Compound Annual Growth Rate
EPC: Engineering, Procurement and Construction
FDI: Foreign Direct Investment
FY: Indian Financial Year (April to March) - So FY10 implies April 2009 to March 2010
GOI: Government of India
Rs.: Indian Rupee
LCV: Light Commercial Vehicles
MoRTH: Ministry of Roads Transport and Highways
NH: National Highway
NHAI: National Highway Authority of India
NHDP: National Highway Development Project
US$ : US Dollar
69. 27
Exchange rates
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year Rs. Equivalent of one US$
2004-05 44.95
2005-06 44.28
2006-07 45.29
2007-08 40.24
2008-09 45.91
2009-10 47.42
2010-11 45.58
2011-12 47.95
2012-13 54.45
2013-14 60.50
2014-15 61.15
2015-16 65.46
2016-17 67.09
2017-18 64.45
2018-19 69.89
2019-20 70.49
2020-21 73.20
Source: Reserve Bank of India, Average for the year
Note: As of June 2021
Year Rs. Equivalent of one US$
2005 44.11
2006 45.33
2007 41.29
2008 43.42
2009 48.35
2010 45.74
2011 46.67
2012 53.49
2013 58.63
2014 61.03
2015 64.15
2016 67.21
2017 65.12
2018 68.36
2019 69.89
2020 74.18
2021* 72.68
70. 28
Disclaimer
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71. Dedicated Freight Corridor Corporation of India Ltd (DFCCIL)
A Govt. of India (Ministry of Railways) Enterprise
72. 1
CONTENTS
CHAPTER PAGE
1. Introduction 03 - 13
2. Asset Design Parameters 14 - 17
3. Business Plan for DFCC 18 - 28
4. Organization Structure & Training 29 - 36
5. Construction Planning 37 - 41
6. Information Technology 42 - 43
7. Risk Management 44 - 49
8. Social and Environmental Management 50 - 56
9. Other Initiatives 57 - 59
Glossary 60– 61
73. 2
PREFACE
Dedicated Freight Corridor Corporation of India Ltd. (DFCCIL) has been
given a mandate to construct, maintain and operate Dedicated Rail Freight
Corridors across the country. To begin with, the Government of India has
entrusted DFCCIL with construction, maintenance and operation of
Eastern Corridor between Sanehwal near Ludhiana to Dankuni in West
Bengal and Western Corridor connecting Dadri in Uttar Pradesh to
Jawaharlal Nehru Port (JNPT) in Mumbai.
The Corporate Plan, akin to the construction of DFCs, is a “work-in-
progress”. It includes the business plan, which itself is in dynamic state and
therefore, subject to constant updation and modification, as DFCCIL
undertakes the challenge of building one of the largest rail transport
infrastructure initiatives post-independence. While the role and scope of
DFCCIL is clear. The rules of engagement between Ministry of Railways
and DFCCIL are detailed in the concession agreement.
The Corporate Plan is an effort to pin point our sense of direction so that
there is organizational alignment and focus and clarity about the job at
hand.
74. 3
CHAPTER - I
INTRODUCTION
1.0 Indian Railway is a life line of Indian economy, traversing length and breadth of country
with total route length of approx. 66680 Kms.
The Indian Railways carried a whopping 1108.79 million tonnes in 2016-17. What Indian
Railways achieved from 1950-51 to 2000-01 from 73.2 million tonnes to 473.5 million
tonnes, a net increase of 400 million tonnes. Greater achievement was accomplished in
next 17 years from 2000-01 to 2016-2017 from 473.5 million tonnes to 1108.79 million
tonnes, an increase of 635.29 million tonnes. Going forward, Railways has an ambitious
plan of achieving the freight volumes to the tune of 2165 million tonnes by 2020. This is
achievable as given elasticity of the rail transport demand with GDP growth rates being
in the vicinity of 1.1 to 1.2.
However, there are serious challenges and constraints. Many of the key arteries and
routes of Indian Railways, particularly those on the Golden Quadrilateral are now
bursting at their seams and operating far in excess of their capacity. Today the Indian
Railways have mixed corridor where both Mail/Express/Passenger trains share the same
track with the freight trains and although, it is the freight traffic which is the bread and
butter, the Mail/Express/Passenger trains invariably takes precedence over the freight
trains. As a result, the average speed of freight trains is relatively low. The average speed
of the freight trains on Indian Railways is approx. 23.8 Kmph, and this has an adverse
impact on Indian Railway’s performance and competitiveness. It is a fact that freight
tariff on the Indian Railway is also one of the highest in the world. This translates into
higher supply chain costs which in turn results in loss of competitiveness of Railway in
the market. Therefore, it is imperative to augment rail capacity so that increased demand
for freight transport with growth in economy is met. Indian Railways considered
following three options:
Augment the existing network by laying quadrupled lines
Create a separate Dedicated Passenger Corridor
Create a separate Dedicated Freight Corridor
The large scale augmentation of capacity of the existing network was not considered
practical as it would have led to large scale dislocation to the running traffic, as well as
land acquisition issues, particularly in and around urban centres. More so, it would have
remained a mixed corridor with track structure unsuitable for carriage of higher axle load
traffic and also restricted schedule of dimensions of the fixed structures like Road Over
Bridges and others. It was not considered prudent to go in for a new Dedicated Passenger
Corridor on account of the fact that it would have been prohibitively expensive because
it had to pass through the urban/city centres to cater to the passenger need and would
have required grade separation in terms of longer and higher flyovers due to paucity of
space, not only from the existing rail network but also through the congested road
network in the urban/city centres. Passenger tariff, being relatively low in India, would
have made the proposal financially unviable. Moreover, the limitation of lower axle load
and restrictions on account of schedule of dimensions of fixed infrastructure would have
remained with the freight operation.
Taking above factors into consideration and recognizing the need for a quantum leap in
the Railways’ transportation capacity to meet transport requirement for sustainable
growth in the national economy, the Ministry of Railways has embarked upon a long-
75. 4
term strategic plan to construct high-capacity, high-speed Dedicated Freight Corridors
along the golden quadrilateral and its diagonals. It will not be out of place to mention that
the Golden Quadrilateral and its diagonals constituting 10122 Km is, in fact, back bone
of the Indian Railways total Kms because this is contributing more than 60 % of the
freight traffic and 52 % of the passenger traffic carried by IR. These routes serve the core
sectors of the Indian economy by carrying raw materials to the plants and finished
products to centres of consumption, manufacturing and trade. If this DFC is not made
then the achieving of the projected GDP growth would not be possible.
In order to implement the Dedicated Freight Corridor project and thereafter to operate
and maintain the Dedicated Freight Corridors (DFCs), the Ministry of Railways decided
to set up a SPV and accordingly the Dedicated Freight Corridor Corporation of India Ltd.
(DFCCIL), a fully owned company of Ministry of Railways under the Companies Act,
1956 has been set up on 30th
Oct 2006. The Dedicated Freight Corridor is the most
ambitious and biggest project ever undertaken in the railway infrastructure sector in the
country.
With the Dedicated Freight Corridors, the Indian Railways aim to bring about a paradigm
shift in freight operation with prime objective of reduction in unit cost of transportation
with higher speed of freight trains, better turnaround of wagons and thereby much
improved wagon productivity in terms of improved ton-km per wagon day, increased
payload to tare ratio by introduction of higher axle load wagons on the rail network,
improved locomotive utilization and improved specific fuel consumption. The ultimate
objective is to reduce the Operation and Maintenance Cost (O&M Cost) significantly and
in penultimate analysis; the benefit is passed on to the customer in the form of lower
transport Logistics Cost.
Why Eastern and Western Corridor?
The existing trunk routes of Howrah-Delhi on the Eastern Corridor and Mumbai-Delhi
on the Western Corridor are highly saturated, line capacity utilization varying
between115% to150%, and is also primarily passenger service dominated routes. These
also represent high demand freight traffic corridors between the Eastern coal belt of
Sonnagar-Garhwa Road-Patratu area with the existing and upcoming Thermal Power
Houses in the northern region of Uttar Pradesh, Haryana, Punjab and Rajasthan; and the
ports of Maharastra and Gujarat like Jawaharlal Nehru Port, Mumbai Port, Kandla,
Mundra, Pipavav etc. the container hubs at one end and the NCR of Delhi, Haryana and
Punjab in the northern region on the other.
1.1 DEDICATED FREIGHT CORRIDOR:
Vision
To create a partnership with IR for retaining and expanding the market share of rail
through efficient and reliable service with customer focus.
Mission
As the dedicated agency to make the vision into reality, DFCCIL’s mission is
i. To build a corridor with appropriate technology that enables Indian Railways to
regain its market share of freight transport by creating additional capacity and
guaranteeing efficient, reliable, safe and cheaper options for mobility to its
customers.
ii. To support the Government’s initiatives toward ecological sustainability by
encouraging users to adopt Railways as the most environment friendly mode for their
transport requirements.
76. 5
Motto
Sincerity, Speed and Success
Objectives
The main objectives of DFCCIL are:
(a) Project Delivery: To construct the dedicated freight corridor network to the
highest quality standards, within the budgeted timelines and costs.
(b) Operation and Maintenance
(i) Additional line Capacity: To make additional line capacity available to IR
for running freight trains and assure safe and reliable train operations.
(ii) Reduction in cost of operations: Achieve significant reduction in the cost
of operations by adopting international best practices including long
haul/heavy haul operations.
1.2 Concession Agreement and Track Access Agreement
DFCCIL is a special purpose vehicle established by the MOR as a Non-Government
Railway to implement the Project and operate and maintain the New Railway consistent
with the Project Objectives and is a railway administration under the Railway Act, 1989.
The Concession Agreement has been signed between Ministry of Railway (MOR)
and DFCCIL on 28/2/2014 after necessary reviews from Railway Board, duly
incorporating the suggestions of DEA and points emanating from joint discussions
with Planning Commission with the approvals from DFCCIL BOD. The Track Access
Agreement is a part of the Concession agreement and has been signed as Annexure
A of the Concession agreement itself. The concession Agreement mainly covers
the general representations, warranties, undertakings and obligations by the
Concessionaire (DFCCIL) and the Concessioning Authority ( MOR) and the areas
of services, design, delivery, construction, subcontracting, variation, completion
timelines, operation and maintenance, Access arrangements, Blocks, intellectual
property, risks, insurance, accounting, reporting, termination, handover, etc.
With the timely signing of this agreement , DFCCIL has now been fully
empowered to go ahead with the Project construction, operation & Maintenance
in a clear legal and rightful manner defining the obligations of the Concessionaire,
DFCCIL, and that of the Concessioning Authority, the Ministry of Railway (MOR)
and actions to be taken for the success of the DFCCIL project ahead.
One of the basic condition under Schedule 1 of the Concession Agreement was
the “Condition Precedent” to the Concession agreement which was to be
mandatorily fulfilled prior to the execution of this Agreement. The same has
been successfully fulfilled on 25.6.2014 to the satisfaction of MOR and with this
fulfilment of the “Condition Precedent“ , the Concession Agreement is fully
operational .
Following are the salient features of Concession Agreement:
(1) MOR grants to DFCCIL for the Concession Period the right to implement the
Project. MOR and DFCCIL shall, at the end of each period of 5 years of the
Concession Period, review the performance of DFCCIL of its rights and obligations
under the Project Documents having regard to the Project Objectives and any other
matters as agreed between MOR and DFCCIL.
(2) MOR shall grant MOR License in respect of all land required for the Project and
associated Railway Infrastructure, as agreed by the MOR and DFCCIL, and at the
time required to comply with the Construction Programme.
77. 6
(3) MOR will assist DFCCIL to obtain financing on attractive terms from external
credit providers (including multilateral agencies) to facilitate the funding of the
Project including obtaining relevant Tax exemptions and waivers.
(4) MOR acknowledges and agrees that DFCCIL shall have autonomy and
independence from MOR in relation to its management of the implementation of
the Project and the performance of its obligations and exercise of its rights under
the Project Documents.
(5) The MOR accepts certain risks and obligations, including in relation to:
(a) A delay in its funding of the MOR Loans and other funding to be made
available by it to DFCCIL and any corresponding rise in costs;
(b) A delay in giving, or a failure to give, within a reasonable period any
Approval required from MOR (subject to DFCCIL having complied with all
applicable conditions for the grant of such Approvals);
(c) Failure to grant MOR License for all the land required for the Project at the
time such land is required to comply with the Construction Programme;
(d) Pre-Existing Contamination and MOR Subsequent Contamination;
(e) Damage to the New Railway caused by defective trains run by Authorised
Rail Users; (the protocol for establishing the cause/cost of damage, etc. shall
be unambiguously stated in the disaster management manual or appropriate
manual issued by DFCCIL with the approval of MOR);
(f) Loss of traffic or inability to carry traffic as a result of corresponding MOR
Improvements not being completed as planned.
(6) MOR shall utilize the DFCCIL network and in return shall pay Track Access
Charge (TAC) as per Track Access Agreement. TAC so paid shall be deposited in
an Escrow Account to be opened by DFCCIL. TAC Liability shall be worked out
by MOR and provisions shall be made under demand under separate Head.
(7) Subject to fulfilment of DFCCIL’s obligations by DFCCIL, MOR will transfer at
least 70% of Traffic Due on to the New Railway in each of the years of the
Concession Period.
(8) To the extent reasonable and permissible under the Laws, the MOR shall make all
Reasonable endeavours to ensure that any third parties in relation to whom it has
the authority or a contractual right to request or direct (in connection with the
Project), provide reasonable assistance to, cooperate with, and do not unnecessarily
or unreasonably prevent, hinder, disrupt, delay or otherwise interfere with DFCCIL
and its Associates in undertaking the Project as contemplated by this Agreement.
MOR shall ensure that each Zonal Railway with geographical jurisdiction adjacent
to with the terms of mutually agreed program.
(9) MOR and DFCCIL acknowledge and agree that at present it is intended that
DFCCIL shall not own any rolling stock for the purpose of the implementation of
the Project and that all such rolling stock used on the New Railway shall be owned
or leased by the Authorised Rail Users (with the exception of rolling stock used for
construction or maintenance or restoration related purposes).
1.3 Western Corridor:
Western Corridor comprising of 1504 km of a double line electrified track from JNPT to
Dadri via Vadodara-Sanand-Palanpur-Phulera-Rewari. Alignment has been generally
kept parallel to existing lines except provision of detours and entirely on a new alignment
from Rewari to Dadri and also from Sanand to Vadodara. This new line portion of DFC
is designed to connect with existing New Delhi - Mathura line at Asaoti railway station
from Pirthala station of DFC. Moreover, the Western DFC is proposed to join Eastern
78. 7
Corridor near Dadri.
Western DFC (1504 KMs)
Haryana 191
Rajasthan 561
Gujarat 552
Maharashtra 183
Uttar Pradesh 17
Total 1504
The traffic on the Western Corridor mainly comprises of ISO containers from JNPT and
Mumbai Port in Maharashtra and ports of Pipavav, Mundra and Kandla in Gujarat
destined for ICDs located in northern India, especially at Tughlakabad, Dadri and
Dandharikalan. Besides Containers, other commodities moving on the Western DFC are
POL, Fertilizers, Foodgrains, Salt, Coal, Iron & Steel and Cement. Further, owing to its
faster growth as compared to other commodities, the share of container traffic is expected
to progressively increase and reach a level of about 59.2 million tonne in 2021-22. The
maximum number of trains in the section is projected as 180 trains (both in UP and DN)
trains each way in Ajmer-Palanpur section.
Network diagram of Western Corridor is given below: -
80. 9
1.4 Eastern Corridor:
The Eastern Corridor with a route length of 1861 km, consist of the following distinct segments:
i. An electrified single line segment of 401 km between Ludhiana and Khurja.
ii. An electrified double line segment of 46km between Khurja and Dadri.
iii. An electrified double line segment of 351 km between Khurja and Kanpur
iv. An electrified double line segment of 402 km between Kanpur and Mughalsarai
v. An electrified double line segment of 126 km between Mughalsarai and Sonnagar.
vi. An electrified double line segment of 535km between Sonnagar to Dankuni.
Due to non-availability of space along the existing corridor particularly near important
city centres and industrial townships, the alignment of the corridor will take detour at
several locations. Since the origin and destination of sizable volume of traffic do not
necessarily fall on the DFC, a number of junction arrangements have been planned to
transfer traffic from the existing Indian Railway corridor to the DFC and vice versa. The
junctions on the Eastern Corridor are planned at Chawapail, Sirhind, Sambhu, Kalanaur,
Pilkhani, Boraki, Khurja, Dadri(E), Daudkhan, Tundla, Bhaupur, Bhimsen, Kanpur,
Karchchna, Ahraura Road, Mughalsarai, Ganjkhwaja, Sonnagar, Chiraillapatu, Gomoh,
Andal(W), Andal, Andal(E), Khana and Dankuni. For phase-I opening of the section,
temporary junctions are planned at Karwandiya, Sasaram and Durgawati.
Eastern DFC (1861 KMs)
States KMs
Punjab 88
Haryana 72
Uttar Pradesh 1063
Bihar 239
Jharkhand 196
West Bengal 203
Total 1861
The traffic on the Eastern Corridor mainly comprises of coal for the power plants in the
northern region of U.P, Delhi, Haryana, Punjab and parts of Rajasthan from the coal
fields situated in Eastern part of the country, finished steel, food grains, cement,
fertilizers, lime stone to steel plants and general goods. The total traffic in UP direction
is projected to go up to 111 million tonnes and in DN direction, the traffic level has been
projected to increase to 86 million tonnes in 2021-22. The number of trains with 25 tonne
axle load works out to a maximum of about 132 trains in both UP and DN direction in
Sonnagar-Mughalsarai section of the Eastern Corridor.
Network diagram of Eastern Corridor is given below: -
82. 11
1.5 FUTURE DEDICATED FREIGHT CORRIDOR
Hon’ble MR has announced in his speech Budget in 2016 to take over the three new Dedicated
Freight Corridors. These are: -
1. East –West Corridor (Kolkata – Mumbai) approx. 2328 Km.
2. North – South Corridor (Delhi – Chennai) approx. 2327Km.
3. East Coast Corridor (Kharagpur – Vijayawada) approx. 1114 Km
and
4. Apart of above three Corridors, one more Freight Corridor i.e. Southern Corridor from
Chennai to Madgaon (Goa), approx. 892 Km, is in the pipeline.
Preliminary Engineering cum Traffic Survey of these Dedicated Freight Corridors have been
done by M/s RITES and these reports are with Railway Board for Cabinet approval. Main
features of these Corridors are as under: -
1.4.1 East –West Corridor (Kolkata – Mumbai)
The proposed East – West DFC between Kolkata (Andal/Dankuni) – Mumbai (Palghar), with
an approximate length of 2328.02 Km. passes through five states of the Union of India namely
West Bengal, Jharkhand, Orissa, Chhattisgarh and Maharashtra. It also traverses Four Zonal
Railways namely Eastern Railway, South Eastern Railway, South East Central Railway and
Central Railway.
Alignment
It starts from Palghar station of Western DFC and after taking off, the proposed alignment takes
detour and moves towards Nasik. From Palghar to Odha (227.38 Km.) it is a new alignment
and is on detour. From Odha onward it runs along to existing IR track via Manmad-Bhusawal-
Wardha-Nagpur-Durg-Raipur-Bilaspur-Jharsuguda-Chakradharpur up to Rajkharsawan. After
Rajkharsawan East West DFC has two legs, one towards Andal and the other toward via
Kharagpur (to connect the East Coast Corridor with East-West DFC at Hijli near Kharagpur)
and ends at Kamarkundu (near Howrah).
Connectivity with other DFCs
This Corridor is proposed to construct by connecting the Western DFC at New Palghar Jn.
and the Eastern DFC at two points Andal and Kamarkundu with Rajkharsawan as Junction
point between the two legs leading to Andal and Kamarkundu. It has been planned to connect
East-West DFC with East Coast DFC at New Hijli Jn. near Kharagpur.
1.4.2 North –South Corridor (Delhi – Chennai)
The approximate length of proposed North – South Dedicated Freight Corridor (North-South
DFC) is 2327.64 Km. This corridor passes through seven states of India (Haryana, Uttar
Pradesh, Rajasthan, Maddhya Predesh, Maharastra, Andhra Pradesh and Tamilnadu), 6
Railway Zones (Northern Railway, North Central Railway, West Central Railway, Central
Railway, South Central Railway and South Railway) and 8 divisions (Delhi, Agra, Jhansi,
Bhopal, Nagpur, Secunderabadand, Guntur, and Chennai).
Alignment
The alignment starts from Palwal (near Delhi) and runs parallel to existing IR line via Agra-
Jhansi-Bhopal-Nagpur-Warangal-Kazipet-Vijayawada-Guntur-Salvayapuram and proposed
IR BG line Gundalakamma-Venkatagiri and from Venkatagiri it again runs parallel to existing
main line via Venkatagiri-Renigunta ends at Arakkonam.
83. 12
End Terminals
Both Delhi and Chennai, the end points of the North-South DFC, have highly developed and
prosperous hinterland commanding a very high level of rail traffic, surrounding by
industrialized area and also congested cities. The end locations requires large tract of land
which is not possible near these metropolis. After surveying these cities and discussion with
railway officials, M/s RITES have proposed suitable locations near Palwal as North Terminal
and near Arakkonam Junction as South Terminal.
Connectivity with other DFCs -
A. With Western DFC – New Palwal Jn. is proposed as north terminal of this corridor which
is the most suitable location to connect the N-S Corridor with Western DFC. A New
Prithala Yard West has been proposed with seamless connections through Rail flyovers
with North-South DFC. Connectivity with New Prithala Jn. (Western DFC) has also been
provided. Traffic terminating at Delhi division, to power houses at Bikaner, Ambala and
Firozpur Divisions via Jhakhal, will be served by this terminal.
B. With Eastern DFC – A seamless connection with Eastern DFC has been proposed from
New Agra Jn. (North-South DFC) to New Tundla Jn. (E-DFC) for exchange of traffic
between these two DFCs.
C. With East-West DFC – Connections have been planned from New Sindi South Jn. to
(North-South DFC) to New Sindi Jn. and New Sindi West Jn. (East-West DFC) near
Wardha for exchange of traffic between these two corridors seamlessly.
D. With East Coast DFC – The connection between these two DFCs has been proposed near
Vijayawada. Seamless connections have been planned to connect New Vijayawada Central
(East Coast DFC) with New Vijayawada North (East-West DFC) for exchange of traffic.
1.4.3 East Coast Corridor (Kharagpur - Vijayawada)
The proposed East Coast Corridor (Kharagpur – Vijayawada) has an approximate length of
1114 Km and passing through three states of Union of India namely West Bengal, Orissa and
Andhra Pradesh. It also traverses over 3 Zonal Railways (SER, ECoR and SCR) and 4 divisions
(Kharagpur, Khurda Road, Waltair and Vijayawada).
Alignment
The proposed East Coast Corridor starts near Hijli station of IR near Kharagpur and ends near
north of Vijayawada Station of IR. The DFC alignment has been planned considering to avoid
infringement with existing passenger facilities of IR which are mostly on east side of exiting
track and to avoid sea side. This route connects the ports of Paradeep, Vishakhapatanam,
Dharma and Gangavaram.
Terminals
The ECDFC will not have full-fledged terminals as the locations where this DFC is joining the
East-West DFC and North – South DFC. The terminal in the north (New Hijli) is proposed
south of Kharagpur and that in the south (New Vijayawada Central) near Vijayawada, and these
are so located as to interchange traffic seamlessly with the other two DFCs for both directions
i.e. towards Kolkatta and Tatanagar in case of EWDFC and towards Chennai and Delhi in case
of NSDFC.
Connectivity with East-West DFC
New Hijli Jn. Station has been planned as combined yard for East-West and East-Coast DFCs
both. Provisions of traffic interchange among East Coast DFC, East West DFC and IR with
seamless connections to Nimpura and Hijli stations of IR have been proposed.
84. 13
Connectivity with North-South DFC
EC DFC meets NSDFC at Vijayawada New Vijayawada Central yard will function as the south
terminal of ECDFC, where its traffic will merge into NSDFC. In addition to exchanging traffic
between the two DFCs, New Vijayawada Central will also facilitate interchange of traffic
between the DFCs and S C Railway.
1.4.4 Southern DFC (Chennai-Goa)
The proposed Chennai-Goa Corridor has length of about 892.96 km. It passes through the
States of Tamil Nadu, Andhra Pradesh, Karnataka and Goa which are richly endowed with iron
ore and other mineral resources and are industrially developed, catering to a number of steel
(including sponge iron), cement and power plants. This route also carries food grains, fertilizers
and other general goods, including containers.
This corridor passes through the four Railway Zones (SR-134.8 KM, SCR- 357.2 Km, SWR-
410 Km and Konkan-90 Km) and four divisions (Chennai, Guntakal, Hubli,and Karwar). This
corridor connects the ports of Goa (Western coast) and Chennai/Ennore (Eastern coast) of the
country.
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