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DEDICATED FREIGHT
CORRIDOR
Shashank Namdeo
2015CET2152

2
DEDICATED FREIGHT CORRIDOR
 Under the 11th Five Year Plan of India (2007–12),
Ministry of Railways is constructing a Dedicated Freight
Corridor (DFC).
 A project of Railways having high-tech construction
techniques, fully electrified rail line, modern signal
system and zero unmanned crossing.
 A connectivity between hinterland-port and industries-
mines.
 The entire project is being undertaken on engineering
procurement contract basis with funding from Japan
International Cooperation Agency (JICA) and World
Bank(IBRD).

3
Necessity
 Over the last 2 to 3 years, the railway freight traffic has
grown by 8 to 11%.
 Existing routes are highly saturated, line capacity
utilization varying between 115% to 150%.
 New passenger trains can be run on existing routes
without delay.
 Freight traffic have high return as compare to
passenger which increase our GDP to 7.5% to 9%.
 Freight movement is not reliable and not efficient
 Not so good hinterland connectivity from major sea
ports like JNPT which causes slow import-export.
Source- DFCCIL

4
Necessity
 As per a 30 year greenhouse gas (GHS) emission
forecast, if there were no dedicated freight corridors,
the GHG emissions would be 582 million ton CO2,
while the emissions with the two DFCs in service would
be less than one-fourth at 124.5 million ton CO2.
 Demand of goods is increasing but our transportation
system are currently not equipped to respond to this
demand.
Source- Press Information bureau, Govt of India -

5
Necessity
Source-Morgan Stanley Research, 2015

6
Necessity
Source-Morgan Stanley Research, 2015

8
Timeline
April 2005
• PM
Manmohan
Singh and
Mr. Lalu
Prasad
Yadav
announced
a DFC
project
May 2005
• Committee
on
Infrastructur
e (COI)
constituted
a Task
Force
• To suggest
a new
organization
al structure
Jan 2006
• Cabinet
approved
the report of
the Task
Force of the
COI
• RITES
submitted
the
Feasibility
Study
Report of
corridors to
Railways
October
2006
• On the
recommend
ation of the
Task Force
of COI, a
SPV
• “DFCCIL”
was
incorporate
Nov 2007
• CCEA gave
approval for
preliminary
work
including
land
acquisition
Feb 2008
• CCEA
approved
EDFC &
WDFC
• Authorized
expenditure
up to
Rs.28181
crore

9
Timeline
March
2009
• Cabinet
approved
JICA loan
for WDFC
for Rs.5100
crore for
WDFC-I
Oct 2011
• Loan
agreement
with World
Bank for
Rs.5850
crore for
EDFC-I
Jan 2013
• First civil
contract of
EDFC
awarded
worth
Rs.3267.54
crore
March
2013
• Japan
International
Cooperation
Agency loan
agreement
for WDFC-II
of Rs.7750
crore signs
June
2013
• First Civil
contract for
WDFC
awarded
Dec 2014
• Loan
agreement
with World
Bank
signed for
EDFC-II
• June
2015
• World Bank
sanctioned
for EDFC-III

Dedicated Freight Corridor
Corporation Of India Limited

11
Dedicated Freight Corridor Corporation of
India Limited (DFCCIL)
 DFCC has been registered as a company under the
Companies Act 1956 on 30 October 2006.
 It is a corporation run by the Ministry of Railways
(India) and 100% equity from Ministry of Railways.
 The credit rating of DFCCIL is “AAA”, the highest
Corporate rating by CRISIL.
 The entire cost is financed by Debt and Equity. The
Debt-Equity in 3:1 ratio and debt will be taken from
Japan and World Bank.
 The function of DFCCIL are –
a) To undertake planning & development of DFC
b) Mobilization of financial resources and construction of
DFC
c) Maintenance and operation of DFC
Source- DFCCIL

12
Dedicated Freight Corridor Corporation of
India Limited (DFCCIL)
 DFCCIL has adopted the FIDIC Yellow Book
(Federation Internationale des Ingenieurs - Conseils
(FIDIC) 1999),, for all its contracts, instead of IR’s
General Conditions of Contract.
 The Financial Internal Rate Of Return to DFCCIL is
17% at constant price(not considering inflation of 6%
p.a.) and if construction cost increases by 30%, still the
FIRR is 14% estimated by sensitivity test.
Source- Project Management National Conference, India, sept’15

14
Expected Project Completion
Section Expected Completion
EDFC
1. Bhaupur-Khurja 342km March 2018
2. Bhaupur-Mugalsarai 402Km December 2018
3.Mugalsarai-Sonnagar 123Km December 2017
4.Dadri-Khurja-Ludhiana 450 Km December 2019
WDFC
1. Dadri-Rewari 127 Km Sept 2019
2. Rewari-Iqbalgarh 625Km June 2018
3. Iqbalgarh-Vadodra 325 Km March 2019
4. Vadodra-JNPT 425Km October 2019
Source : DFCCIL

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Status Till June 2016
 Total length of corridor - 3360 Km
 Total estimated cost - Rs. 81,459 Crores
 Total Expenditure
including land till date - Rs. 22,315 Crores
 Overall Financial progress - 27.4%
 Overall Physical progress - 29%
 86% of the 10548 hectares land required has been
acquired.
 Environmental clearances obtained for the projects
passing through nine States and 61 districts.
Source : DFCCIL

16
Status of Award Of Contract
Source : DFCCIL

17
Comparison With Present Condition
Parameters Indian Railways Network Dedicated Freight
Corridor Network
Freight Train Speed Average 25 Kmph Average
75Kmph
Max speed
100 Kmph
Some Vital Stats 700 m
length
58
wagon
5000
tonnes
1500m
length
120
wagon
13000
tonnes
Locomotive Power 4000-5000 HP 12000 HP
Laying of Tracks Manual
100-150 m/day
Mechanised
1.5 Km/day
Time Tabled Freight Trains Will initiate on pilot basis All trains will run as per
time rable
Source- http://www.railnews.co.in/dfc-can-be-a-game-changer-for-indias-
economy/

18
Source : DFCCIL

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 The time require to stop the freight train is 6-7 mins but
after implication of better technology in DFC, train can
stop within 1.5mins.
 Carbon emission-
Source- IIM Ahmedabad case study on low
carbon transport

20
Route of Corridor
 Approved corridors
1. Eastern corridor(EDFC)
2. Western corridor(WDFC)
 Proposed corridors
1. East-West corridor
2. North-South corridor
3. East Coast corridor
4. South-West corridor

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Proposed Corridors
1. East-West corridor
 From Kolkata to Mumbai of length 2000Kms
2. North-South Corridor
 From Delhi to Chennai of length 2173 Kms.
3. East Coast Corridor
 From Kharagpur to Vijaywada of length 1100 Kms
4. South-West Corridor
 From Chennai to Goa of length 890 Kms having
branche at Mangalore
 These freight corridors plan through PPP model as
much as possible as said in Railway Budget 2016-17.

EASTERN DEDICATED
FRIEGHT CORRIDOR

23
Eastern Dedicated Freight Corridor

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Eastern DFC
Section Distance Status
Ludhiana - Khurja 404
Dadri-Khurja 46 GMR Group
Khurja - Bhaupur (near
Kanpur)
343
TATA Projects India-Aldesa
Spain
Bhaupur (near Kanpur) -
Mughalsarai
393 GMR Group
Mughalsarai - Sonnagar 118
C&C Construction Gurgaon
and BSCPL
Sonnagar - Dankuni 538 PPP Model
Total 1839
Source : DFCCIL

25
 EDFC mainly benefits-
1. Coal for power plants in the northern region
from coalfields in Bihar, Jharkhand and Bengal
2. Finished steel and iron from Jharkhand and
Chhattisgarh
3. Food grains and Cement.
4. Connecting Logistic parks at Kanpur and
Ludhiana which is going to be developed
through PPP mode.
Source- Press Information bureau, Govt of India

26
Source : DFCCIL

27
PPP model of Sonnagar-Dankuni
Stretch
 This rail route proposed later by former Honorable Railway
Minister Mamta Banerji in 2009.
 Stuck for over two years due to lack of investor interest,
the Rs.16,000 Crore Son Nagar-Dankuni section of the
eastern freight corridor is to be built on public-private
partnership (PPP).
 This 550 Km stretch based on “Design-build-finance-
operate-transfer” model.
 Construction has been started from 2014(Phase-I) and
2015(Phase-II).
 The concession period shall not be shorter than 20 years or
longer than 30 years.

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Stretch
 The revenue of concessionaire will be in the form of
50% of traffic revenue earned by using that line only.
 In case 80% of total traffic during concession peiod is
not reached on target date(20-30years), for every 4%
shortfall, the concession period shall be extended by 1
year and reverse principle shall apply if actual traffic
exceeds the threshold traffic.

29
Stretch

WESTERN DEDICATED
FREIGHT CORRIDOR

31
Western Dedicated Freight Corridor

32
 From Dadri, Uttar Pradesh to Jawaharlal Nehru Port,
Mumbai.
 Total length 1,468 kms.
 The DFC Project is an important part of “Delhi-
Mumbai Industrial Corridor (DMIC) initiative”, to
create industrial parks and logistics bases with well-
developed infrastructures in the area 150 kms to either
side of the Western Corridor.
 Japan showed interest in WDFC and provide loan in
2006 to India.
 At terminal Dadri, this line further extended to connect
EDFC
 Total land for acquire 6000 Ha and 94.5% land has
been acquired upto June’16.
Source : DFCCIL

33
 WDFC will mainly benefit export-import of
1. Container traffic
2. Petroleum, oils and lubricants
3. Import fertilizers, food grains, cement, salt, and iron
and steel.
 The expected traffic over WDFC in 2021-22 is
expected to be 152.24 million tones.
Source- Press Information bureau, Govt of India

34
Loan Agreement Date:
October 27, 2009 : Phase 1 (I)
March 31, 2010 : Phase 1 (II)`
July 26, 2010 : Phase 2 (I)
Loan Amount:
2.6 billion yen : Phase 1 (I)
90.3 billion yen : Phase 1 (II)
1.6 billion yen : Phase 2 (I)
Interest(%):
0.01%* : Phase 1 (I)
0.20%** : Phase 1 (II)
0.01%* : Phase 2 (I)
Repayment/Deferment Period (Years): 40/10**
Executing Agency:
Ministry of Railway/
Dedicated Freight Corridor Corporation of India
Limited (DFCCIL)
State:
Haryana, Rajasthan and Gujarat (Phase 1) /
Uttar Pradesh, Haryana, Gujarat and Maharashtra
(Phase 2)

35
Western DFC
Section Distance Status
Dadri - Rewari 141 L&T-Sojitz Consortium[3]
Rewari - Iqbalgarh (near
Palanpur)
626 L&T-Sojit z Consortium.
Iqbalgarh (near Palanpur) -
Vadodara
304
L&T,Sojit & Gayatri Projects
Consortium
Vadodara - Sachin(near Surat) 163
Mitsui-IRCON-TATA
Consortium [4]
Sachin-(near Surat) - Jawaharlal
Nehru Port
265
Mitsui-IRCON-Tata
Consortium[5]
Total 1499
Source : DFCCIL

36
Progress of WDFC
Source : DFCCIL

38
Bottlenecks in Project
 DFCCIL formed 10 years back but still 84% contracts
have awarded till May’16.
 9 states, 61 districts, more than 2100 villages, more
than 3 lakh people affected by this project
 Out of more than 7000 arbitration cases and 1500 court
cases pertaining to land acquisition, only 50% of both
have solved yet.
 The Indian Govt. wanted to run double-stacked
containers in WDFC by diesel locomotives but Japan
International Cooperation Agency (JICA), the lender of
WDFC, suggested electric locomotives.
 The JICA norms say that there must be involvement of
Japanese partner as a lead contractor in every contract.
This causes several conflicts and result delay.
Source- http://www.thehindu-businessline.com/news/with-civil-contracts-awarded-freight-
corridor-project-firmly-on-track/article

39
Bottlenecks in Project
 Even after completion of DFC, the challenges land
acquisition for Logistic Parks near corridor and their
completion.
 The WDFC is crossing Sanjay Gandhi National Park(1.1
Km), wildlife clearance is required(under wildlife
protection act 1972), The clearance made it mandatory for
the DFC to build four animal passes to facilitate the safe
passage of wildlife on either side of the rail line. This
causes further delay
 In JNPT-Dahanu corridor, DFCCIL is cutting mangrove
forest and seek Environment clearance(under
Environmental Protection Act 1986). Now, DFCCIL need
to plant 10 tree per one removal every year. Because of this,
the project is further time and cost overrun.
Source- http://www.dnaindia.com/india/report-railway-dedicated-freight-
corridor-now-on-track-2067083

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