DFCCIL eyes bidding for freight corridors by Dec

Dedicated Freight Corridor Corporation of India Ltd (DFCCIL) is set to initiate the bidding process for developing the eastern and western freight corridors by December.

“Our funding arrangements are taking shape. Land acquisition process is on track. Request for qualification (RFQ) for the eastern corridor will be issued in May. Bidding process for the western corridor will be initiated by December,” a senior official at DFCCIL said.

Construction will begin by the middle of next year, officials say.

The corporation has issued two notifications stating that it wants to acquire 11,800 hectares of land under section 20A of the Land Acquisition Act. The total area required for developing both the corridors is approximately 11,180 hectares.

 

Meanwhile, DFCCIL has signed a loan agreement with the Japanese International Cooperation Agency (Jica) for an overseas development assistance of Rs 17,700 crore at an interest rate of 0.2 per cent to develop a 920-km stretch between Rewari and Vadodara on the western corridor.

The agreement had been initiated with an engineering services loan of Rs 130 crore. The funding will be utilised to appoint a consultant, who will be entrusted to re-confirm the alignment for the project. The consultant will also be responsible for carrying out an environmental impact assessment on Dadri-Rewari and Vadodara-JNPT (Jawaharlal Nehru Port Trust) sections of the western corridor.

The official added, since the resources extended by Jica were in the form of a tied loan, the consultant would advise the railway ministry on the equipment to be procured from Japan in accordance with the agreement.

As regards the eastern corridor, the World Bank has committed about Rs 10,000 crore for developing the 730-km-long stretch between Mughalsarai and Khurja. DFFCIL is negotiating with the bank for a loan of another Rs 4,000 crore to construct the 430-km Ludhiana-Khurja section.

As part of the World Bank funding, DFCCIL has appointed a consortium of consultants, including Parsons Brinckerhoff India, Halcrow Consulting India, Lea Associates South Asia Ltd and Wilbursmith Associates Ltd for system design, finalisation of bid documents and supervision of construction of the 300-km Kanpur-Khurja section under the eastern corridor.

Till date, only two contracts for 300 km (out of a total length of 3,300 km of both the corridors) have been awarded using funds made available by the railways.

“At current prices, the total cost of constructing the eastern and western freight corridors is estimated at Rs 42,231 crore, excluding statutory taxes and levies which would add 8-10 per cent. The cost on completion would be about Rs 60,000 crore,” DFCCIL Managing Director V K Kaul said.