Dedicated Freight Corridor (DFC) revived after three Japanese infra firms awarded bids

The 1,483-km western Dedicated Freight Corridor (DFC) has been revived after a six-month delay. It was brought back on track after three major Japanese infrastructure companies namely Sojitz, Mitsui and Marubeni placed price bids for the 322-km route connecting Iqbalgarh with Vododara.

Apprehensions raised by Indian Railways unfounded:

Incidentally, the project was postponed many times by the Indian Railways as the three Japanese firms which were proposed to bid for the project back-tracked. Apprehensions were raised by the Indian Railways that this would result in a scenario where there would be no bidders or only a sole bidder. This could have invariably jeopardized the implementation of the project funded by Japan, by one and a half years.

JICA to provide funds for the project:

Japan International Cooperation Agency (JICA) is the funding agency for the Rs.3,500-crore freight corridor. As per the loan contract, it has been stipulated that the lead partner for the project should be from Japan. Besides, it is also required that 30% of materials used for the project should be sourced from Japanese companies.

Contract to be awarded by financial year end:

Expressing optimism on the successful implementation of the project, the managing director of the Dedicated Freight Corridor Corporation (DFCC) stated that the project is very much on track and the contract for the project would be awarded by the end of this financial year. Marubeni, one of the companies that was awarded the contract, stayed away from the bidding process due to the incompatibility with Tata Projects, its Indian partner in the project.

Sojitz to partner L&T for developing western corridor of project:

The western corridor is a part of the prestigious DFC project that India can boast of. It connects Dadri ner New Delhi to Mumbai and also passes through other states like Maharashtra, Gujarat, Rajastan and Haryana. Sojitz, another company that was awarded the contract will partner Larsen & Toubro for developing the 640-km Rewari-Palanpur route, which is part of the western segment.

Loan, land acquisition taken care of:

To facilitate the funding for the western corridor of the project, JICA has promised to extend a low-cost loan of 677 billion yen, to be repaid over a period of 40 years. About 91% of the 11,000 hectares of land required for the completion of the DFC project has already been acquired by the railways. The estimated cost for acquiring the land is about Rs. 90,000 crore.