DFCCIL

Karan Meisheri
(F035)

Abhishek Shah
(D048)

Abhishek Gupta
(C019)

Dhrubak Banerjee
(D007)

cated Freight Corridor Corporation of India Limited (DFCCIL)

About DFCCIL
DFCCIL is a special purpose vehicle created for construction
operation and maintenance of dedicated freight corridors. It
was incorporated as company under the companies act 1956
on 30th October 2006. Current scope of the project includes
Western and Eastern dedicated freight corridors

Scale

Differentiation

Benefits

Financing

10,667 Hectare Land

Covering 13 States

Improved Rail
Transport
Increased Efficiency
DMIC Contribution

Growth

Infrastructure

Ownership

Proposed: Shared
Actual: Indian
Railway

Dedicated High
Speed and High
Capacity Line for
Freight

EPC & PPP model

Foreign Funding

Current Status
Partially Operational
Delayed because of
land acquisition
issues

Need for DFCCIL

Golden Quadrilateral 55% Freight Revenue

Railway Economic Development Story of India
Key stakeholders of railway transportation
including MOR, MOS, PC and various others
commodity specific ministries and user industries
felt that the economic development story of India
would be better facilitated through investments in
rail transport capacity

High Density
Golden
Quadrilateral
Corridor

Railway Energy efficient than Roads

The energy efficiency of rail over road
and carbon impact clearly pointed in
the direction of promoting increased
share of rail transport

Railway vs Roads Decreasing Share

Need

Consists of
16% of the
total route Km
Carries 58% of
revenue
earning freight
traffic
Carries 55% of
passenger
traffic

Over Capacity Utilization & Slower Speed

88
3

86

Road
Rail
73

64

63
39

33

The existing trunk routes of Mumbai-Delhi

on the western corridor and Howrah-Delhi
on the eastern corridor were highly
saturated with line capacity utilization
varying
between
150%
and
115%.
Additional trade Growth from ports in
Mumbai and Gujrat put additional pressures
on the existing capacity. Currently the

DFCCIL Offerings

Timeline
Approvals

2005- 08

CCEA approved
Eastern & Western DFC
Corridors and
authorised to incur
expenditure
Sept 2009 - Cabinet
approved JICA loan for
WDFC along with STEP
loan conditionality

Mega project for

increasing capacity

Japanese Involvement

Conceptualized in
2005
Incorporated in 2006
Started in 2008

2010-14
Section

2008-09

Timelines

EDFC

Funding

Railway Budget 05-06

Cooperation for a
feasibility study of
DFCs Start
Actual

2014 - Onwards

Mar10 JICA Loan for 90

Billion JPY for Western
Corridor Phase I
Oct11 World Bank Loan
for USD 975 million for EDFC
-1
Mar14 JICA Loan for
WDFC Phase II: 1st Tranche of
JPY 136 billion
April14 World Bank loan
of USD 1100million (EDFC-2)
approved

BHAUPUR-KHURJA: 342 km

March'18

BHAUPUR-MUGHALSARAI: 402 km.

Dec'18

DADRI-KHURJA-LUDHIANA: 450 km.

Dec'19

MUGHALSARAI-SONNAGAR: 123 km Dec'17

WDFC
REWARI-IQBALGARH (625 km)

Dec'18

IQBALGARH-VADODARA (325 km)

Dec'19

VADODARA-JNPT (425 km)

Dec'19

REWARI-DADRI (127 km)

Dec'19

Proposed Projects for DFCCIL

East West
Dedicated
Freight Corridor

2000 Km

Delhi

Kolkata to
Mumbai
Kolkata
Kharagpur

East Coast
Dedicated
Freight Corridor

Mumbai

Bangalore

Vijayawada
Chennai

1100 Km
Kharagpur to

Vijayawada

Western
Dedicated
Freight
Corridor
1483 Km
Dadri to
JNPT
Eastern
Dedicated
Freight
Corridor
1839 Km
Ludhiana to
Dankuni

North South
Dedicated
Freight Corridor
2173 Km

Delhi to
Chennai

South West
Dedicated
Freight Corridor
890 Km
Chennai to
Bangalore

Eastern and Western Dedicated Freight Corridor

Both the
phases
will be
funded
via a step
loan from
JICA

950
Km

Phase 1
552 Km

Phase 2
WDF
CEDFC

Khurja Bhaupur
Bhaupur
Mughals
arai
Ludhiana Khurja
Sonnagar Dankuni
7

Mughalsarai -

Rewari Vadodara
Vadodara JNPT
Dadri - Rewari

342
Km

Phase 1
391
Km

Phase 2
400
Km
Phase

534
Km

Phase 4
123
Km

Phase 1a

Phase 1-3
funded by
the World
Bank via
Adaptable
Programm
e Loan
Funded via
PPP Mode
IR will fund
this Phase

Western Dedicated Freight Corridor

It will mostly cater to container traffic between various ports
on western coast and Northern Indian hinterland
Of the total land requirement of 6203 hectares, 5568
hectares has been acquired
Logistics Parks will be set up at various locations via the PPP
model
26 Major Bridges out of the total 54 have been constructed
Funded via Japanese STEP (Special Terms of Economic
Partnership) Loan with following conditions

1. Mandatory requirement of Prime contractor being a Japanese

company
2. Not less than 30% of total amount of contract (Excluding
consulting service) financed by the STEP loan must be accounted
for by Japanese goods & services
3. In case of consulting services, consultant will be either Japanese

Eastern Dedicated Freight Corridor

It will mostly cater to coal and steel movement from Eastern
to
Northern India
Of the total land requirement of 5494 hectares, 4339
hectares has been acquired
94% of work on Mughal Sarai Sonnagar section has been
completed
Phase 1- 3 to be funded by World Bank, Phase 4 via PPP and
Phase 1a via Indian Railway (Rail Budget)
World Bank loan is an adaptable APL loan in which loans for
subsequent sections will be sanctioned based on
achievement of certain milestones

1. 3 phases of APL, each phase corresponds to one implementation

phase from 1-3
2. The World Bank Board has already approved USD975mn loan for
the Khurja-Kanpur section having maturity period of 22 years
including a 7 year grace period
3. There will be another two tranches of USD1.05bn and USD700mn.

Future Projections
Traffic projections

Commodities projections
WDFC
2016-17

WDFC

Existing Traffic 55MT

Proposed Traffic (202122) 160.9MT

Proposed Traffic (202122) 153.2 MT

Source : RITES Report

2016-17

2021-22

EDFC

Major Constituent
Container, Fertilizer,
Imported coal,
Petroleum Products,
Automobile, Cement
Existing Traffic 50MT

10

2021-22

EDFC

Major Constituent
Coal, Iron ore, Steel,
Cement, Food grain and
RO-RO traffic

Commodities in million tonnes/year

Proposed Revenue and Funding Plan

Revenue Model
Track Access
Charge (TAC)

Multimodal
Logistics Park &
Private freight
terminals
11

Fixed
Component

03

01

Irrespective of the
traffic

04

Funding

02
Variable
Component
Based on volume of
the traffic in 000

Particula
rs

Eastern
Corridor

Western
Corridor

Total

Equity from
MoR

13,049

7,996

21,045

Loan from
JICA

38,722

38,722

Loan from
World Bank

13,625

13,625

Total
funding
without
Land

26,674

46,718

73,392

MoR (Land)

3,684

4,383

8,067

Total
Funding
with Land

30,358

51,101

81,459

External funding: MoR is 2:1

All Figures in INR

Crores

Major Contracts in Focus

Design and Construction of Bridges on Vasai-Baruch section (WDFC)

54 Bridges spread between Vaitarna to Uttran in a stretch of 200 Km

Awarded to M/s Soma Enterprise Pvt. Ltd. at a total cost of Rs. 605.15 Crore
Present progress of work is 57.17% at revised cost of 667.81 Cr.
Funded by Equity from MoR

Project Management Consultancy (PMC) for WDFC phase-1 (Rewari-Vadodara)

EOI was called from interested consultants and on successful completion of EOI process
RFP was issued to shortlisted consultants
Evaluation of proposals was completed and the PMC contract was awarded to a
consortium led by Nippon Koei, Japan
a total cost of JPY 274.47 crores + INR 388.42 crores funded by JICA

Design and Construction Contract for Bhaupur- Khurja section (APL-1)

12

for Double line Railway formation on Design- Build Lump sum basis
Awarded in three contract packages for total cost of 3267.89
Awarded to TATA-ALDESA(JV) in a two stage bidding process
Funded by loan from World Bank

Tender and Bidding Process

Tender/ Contract Process
EDFC

Bidding

WDFC

Eligibility and qualification based

on the Prequalification document
guidelines of the World Bank and
FIDIC Yellow Book

Eligibility and qualification based

on the STEP guidelines of JICA

Technical Proposal

01

Guidelines are generally based on following

Bid document containing details

of materials, equipment &
services offered.
List of Sub contractors

Actual Bidding

Historical
Contract
Performan
ce

This proposal contains the lump

sum bid price along with the
price breakdown, bid currency
and the type of bid

Financia
l
Conditio
n

02

Award of Contract
Experien
ce
13

Nationalit
y - JICA

03

Technically qualified & lowest

offered bid selected. Signing
contract within stipulated time
Furnishing performance
guarantee in the form of a bond

PPP Mode between Dankuni and Sonnagar

14

Particulars

Phase I Dankuni Gomoh

Section (282.22 KM)

Phase II Gomoh Sonnagar

Section (260.74 KM)

Total Land
Requirement

547.71 Ha

454.56 Ha

20A Completed

547.71 Ha (100%)

264.81 Ha (58%)

20E Completed

416.02 Ha (76%)

195 Ha (43%)

20F Completed

205.82 Ha (38%)

145 Ha (32%)

Traffic Study
Completed
Financial Modelling
Completed
PPPAC for in principle
approval sent to MoR
Yard Plans 5 out of 8
plans finalized

Traffic Study under

progress
Detailed estimates
finalized
DPR Finalized
Protests in Singur Ph I
and Gaya Ph - II

sfdb

Project Completion Status

Project Status
As on Dec 2014

WDFC

EDFC

25
%

83
%

23
%

21%

33%

Khurja Bhaupur
EDFC-1

Karwandiya
- Durgawati

Mughal
Sarai Sonnagar

Rewari Iqbalgarh

Total

342 KM

15

66 KM

56 KM

625 KM

1089 KM

Conclusion
DFCCIL was conceptualized way back in
2006
IR is the sole owner of DFCCIL

Operation
al
Efficiency

Private Players in
Equity

Projected costs have increased from

28000 Cr. to 81000 Cr. (approx.)
Land Acquisition is a perpetual issue
Risk of litigation with Lump Sum based
approach

16

cated Freight Corridor Corporation of India Limited (DFCCIL)

Appendix

17

cated Freight Corridor Corporation of India Limited (DFCCIL)

Objectives
Introduce time-tabled
freight services and
guaranteed transit time
to ensure better service

Reduce unit cost of

transportation by speeding
up freight train operations
and achieving higher
productivity
Increase rail share
in freight market by
providing
customised logistic
services
18

Segregate freight
infrastructure for
focused approach on
passenger and freight
business of IR

Create additional rail

infrastructure to cater to
high levels of transport
demand

Introduce high-end
technology and IT
packing of freight
services

Thank You!