Lok Sabha Question No. 243 (STARRED), answered on 2020-03-11
Subject: Dedicated Freight Corridor Corporation of India Limited
Ministry: RAILWAYS
Asked by: Supriya Sadanand Sule, Subhash Ramrao Bhamre

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA

## STARRED QUESTION NO. 243

## TO BE ANSWERED ON 11.03.2020

## DEDICATED FREIGHT CORRIDOR CORPORATION OF INDIA LIMITED

*243. SHRIMATI SUPRIYA SULE: DR. SUBHASH RAMRAO BHAMRE:

Will the Minister of RAILWAYS be pleased to state:

- (a)  the  present  status  of  the  eastern  and  western  freight  corridors being developed by the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) along with the original and revised costs thereof and the names of funding agencies;
- (b)  whether  DFCCIL  has  entered  into  an  agreement  with  Indian Railways  which  will  allow  DFCCIL  to  run  freight  trains  and  also increase speed of such trains and if so,  details thereof;
- (c)  whether  e-commerce  companies  have  shown  interest  in  carrying their  consignment  through  trains  once  the  dedicated  freight  corridor project is complete and if so, the response and  steps taken by DFCCIL in this regard;
- (d)  whether  the  cost  of  carrying  freight  on  DFCCIL  will  be  less  as against that on Indian Railways network and if so, details thereof; and
- (e) whether the Government has any plans to open up freight corridor project to e-commerce and automobile sector and if so, the targeted freight movement for these sectors?

## ANSWER

MINISTER OF RAILWAYS AND COMMERCE & INDUSTRY (SHRI PIYUSH GOYAL)

- (a) to (e) A Statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF STARRED QUESTION  NO.  243  BY  SHRIMATI  SUPRIYA  SULE  AND    DR.    SUBHASH RAMRAO  BHAMRE  TO  BE  ANSWERED  IN  LOK  SABHA  ON  11.03.2020 REGARDING  DEDICATED  FREIGHT  CORRIDOR  CORPORATION  OF  INDIA LIMITED

(a) Presently, Ministry of Railways is implementing two Dedicated Freight Corridors (DFC) namely, Eastern Dedicated Freight Corridor from Ludhiana to Dankuni (1856 Km.) and Western Dedicated Freight Corridor from Dadri to Jawaharlal Nehru Port Trust (1504 km.). Currently, the overall physical and financial progress is 70% and 68% respectively.

Government of India had approved the initial estimated cost of ₹ 28,181 crore (excluding the cost of Sonnagar-Dankuni section of Eastern DFC which is envisaged to be implemented through PPP) of Eastern and Western Dedicated Freight Corridor in February, 2008. Subsequently, the cost estimate has been revised to ₹ 81, 459 crore in June, 2015 which has been  approved  by the Government.  The  revision  was  necessitated primarily due  to  increase in land cost, escalation of costs during construction, increase in scope and specification and soft costs such as Interest during Construction and taxes.  The progress of implementation of DFC project before 2014 was very slow due to land acquisition related delays resulting in cost escalation during construction.  The pace of work has  improved  tremendously  after  2014.  As  against  the  total  award  of contracts of ₹ 12,749 crore between 2009-2014, contracts worth ₹ 39,638 crore awarded in 2014-2019. Similarly, track linking also increased from 'Nil' to 2423 kms during above period.

World  Bank  is  partly  funding  the  Eastern  DFC  (EDFC)  through  a  loan  of ₹ 13,625  crore  out  of  the  project  cost  of ₹ 30,358  crore.    Western  DFC (WDFC) is being partly funded through a loan of ₹ 38,722 crore from Japan International   Cooperation  Agency  (JICA)  out  of   the   project cost  of

- ₹ 51,101 crore. Balance cost of EDFC and WDFC is being funded through Gross Budgetary Support from Government of India as equity contribution. The land cost is being borne 100% by Government of India. (b)  A  Concession  Agreement  has  been  signed  between  Ministry  of Railways  (MOR)  and  Dedicated  Freight  Corridor  Corporation  of  India Limited (DFCCIL) on 28th February 2014 stipulating the modalities   to run Indian Railways freight trains on DFC network. DFC has been designed to run freight trains with an axle load of 25 tonnes upto maximum speed of 100 kmph. (c)  So  far,  no  specific  proposal  has  been  received  from  e-commerce companies for carrying their consignments by trains on Dedicated Freight Corridors.  However,  these  companies  can  move  their  consignments through the Indian Railways or through container train operators. DFCCIL is in the process of finalising its Business Development Plan which interalia includes Development of Multi Modal Logistic Parks and Market driven freight incentive measures to attract additional freight on DFC network. (d)  DFCCIL  is  expected  to  have  better  operational  and  man-power efficiency  as  compared  to  existing  set  up  of  Indian  Railways,  due  to modern  technology,  faster  speed  and  latest  communication  system, leading to reduced cost of carrying freight. Moreover, enhanced capacity with higher speed on DFCCIL is expected to offer assured transit time to customers and consequently substantial reduction in total logistic cost. including e-commerce and automobile sectors. The Business Development Plan of DFCCIL is being firmed up on the basis of market demand and caters to all
- (e) Dedicated Freight Corridors are open to all sectors sectors including above sectors.

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