Tata, Adani, L&T, GMR among participants in eastern DFC's stakeholders' meeting
New Delhi: Dedicated Freight Corridor Corporation (DFCCIL) to organise stakeholders meeting on Tuesday for the development of Eastern Dedicated Freight Corridor's 374 km Sonnagar (New Chiraila Pauthu) - New Andal section through Design, Finance, Build, Operate and Maintain and Transfer (DFBOT) mode on PPP (Public Private Partnership) basis.
World Bank and IFC, NIIF, Tata Projects, Adani Group, L&T, GMR Group, GR Infraprojects ltd., Siemens, ABB Power Products, Sojitz-India & Sojitz -Japan, Nippon Koei India Pvt. Ltd, KEC International Ltd. are among the firms and financial institutions that have confirmed their participation.
The estimated cost of this section is approximately Rs 12,000 crore, is expected to serve major powerhouses, industrial corridors and MMLPs in Haryana, Punjab, Delhi and Uttar Pradesh. As per the rail ministry, opportunities available to the concessionaire are Lower risk to the private player due to revenue share vis-a-vis projected traffic, ease of funding with the availability of 100 per cent FDI for the Project.
The stakeholders include Central Coalfields Limited (CCL), State Governments, Steel Manufacturers etc. who can be looked at as potential partners in the project. A major USP of the project is the connectivity between Eastern DFC and Western DFC at Dadri (UP), enabling the smooth flow of traffic from Western ports to Eastern parts of India, the ministry official said.
Further, the increasing trends in finished steel consumption and production would drive the growth of steel traffic on the route. Also, to attract more traffic and achieve a targeted rail share of freight, DFCCIL plans to develop MMLPs (Multi-Modal Logistics Parks), Sidings and Feeder routes for last-mile connectivity along the section
alignment.
The rail ministry reports claimed that the population in the catchment area- are engaged in agriculture with a substantial population being small traders, artisans or employed in industrial or commercial establishments through the Eastern DFC will be socially benefitted.
"The implementation of the project will lead to the generation of new employment opportunities both during construction and post-construction phases," DFCCIL official statement mentioned.
"The cultural and living pattern of the area is expected to change as the proposed PPP section is expected to provide efficient rail connectivity for freight movement which could help in increasing the industrial activity in the region," it added.
The economic benefits of the project are mainly due to the release of capacity from the existing lines by shifting of freight traffic from Indian Railways to Sonnagar (New Chiraila Pauthu) – New Andal section of EDFC and reduction of commercial vehicular traffic on road.
Railway passenger and freight traffic on existing lines will benefit from the increased speed and reduced transit time due to the enhancement of route capacity on the proposed corridor.
"The project will lead to efficient and speedy movement of goods traffic, accruing substantial improvement in turnaround time of rolling stock resulting in saving in inventory cost," the official statement
further said.
