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Turn around in execution of Dedicated Freight Corridor project

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TypeCommercial Circular
Topicfreight
CurrencyCurrency not verified

Summary

resolution of long pending issues which significantly improved the progress of works.

Text of the circular

कि मा cor in execution of
Dedicated Freight Corridor Project

रेल मंत्रालय “¥ Ministry of Railways

भारत सरकार SO Government of India

Dedicated Freight Corridor (DFC) 
 
The Indian Railways' quadrilateral linking the four metropolitan cities of Delhi, Mumbai, 
Chennai and Howrah, commonly known as the Golden Quadrilateral; and its two 
diagonals (Delhi-Chennai and Mumbai-Howrah), adding up to a total route length of 
10,122 km comprising of 16% of the route carried more than 52% of the passenger traffic 
and 58% of revenue earning freight traffic of IR. The existing trunk routes of Howrah-
Delhi on the Eastern Corridor and Mumbai-Delhi on the Western Corridor were highly 
saturated, line capacity utilization varying from 115% to 150%. Railways lost the share 
in freight traffic from 83% in 1950-51 to 35% in 2011-12. Dedicated Freight Corridor 
(DFC) project was conceived in 2005 and two DFCs, namely Eastern DFC (EDFC) and 
Western DFC (WDFC) were approved by Cabinet in 2008. 
 
Need for the Reform 
In initial years, project was impaired due to delays in land acquisition and financing 
arrangements, which led to delays in finalisation of contracts. From 2007 to 2014, only 
88% of the total land was acquired. Remaining land patches were held up due to land 
disputes, arbitration & court cases. As a result, even after 9 years after announcement, 
not even single patch was completed. Project was going at very slow pace and Railways 
continued to lose more and more traffic to road. This has indirect effect of increasing 
logistics cost, thereby making our trade less competitive. With running of coaching and 
freight trains on same tracks, freight traffic was not witnessing major increase.  
 
Approach and Present Impact  
After 2014, the project was put on fast track mode with allocation of sufficient funds 
and periodic review and monitoring in Pragati by the Hon’ble PM. Regular review 
meetings by the Minister of Railways ensured that many long pending issues were 
resolved. 
 
Award of contracts & CAPEX 
also witnessed quantum jump. 
Contracts worth Rs 42,989 Crs 
have been awarded since 2014 
till now, a massive increase of 
over 237% as compared to the 
previous period from 2007-14, 
and all the contracts are now in 
place with progress in full 
swing.

Progress of work started 
picking up after 2014. Capital 
expenditure (excluding land) 
jumped 997% to Rs 45,616 Crs 
in 2014-21 as compared to Rs 
4,158 
Crs 
from 
2007-14 
period. Capital expenditure 
(excluding land) in the first 
10 months is Rs.8,000 Crs and 
is likely to reach Rs.13,500 
Crs. in this financial year. 
 
Works on DFC were severely affected during April-May due to COVID-19 related 
lockdown. Under the guidance of the Hon'ble Minister of Railways, DFC requested 
various State Governments for relaxation of certain lockdown norms and resumed the 
construction activities by following all COVID related protocols. Work was proactively 
started with 20,000 workers at more than 500 sites in 57 districts.  
 
The Hon'ble Minister of Railways started weekly review of the DFC project from August 
2020 and since then 22 review meetings have been held till date including with 
concerned 
Chief 
Secretaries 
and 
Contracting 
agencies/Project 
Management 
consultants.  This has given a big boost to the progress of the project and resolution of 
issues with State Governments. 
 
Expediting the progress 
Regular monitoring of the project has resulted in expeditious decision making and 
resolution of long pending issues which significantly improved the progress of works. 
The executing 
agencies were 
also sensitized 
and target for 
commissioning 
of the project 
by 
June’22 
and they have 
mobilised 
additional 
resources 
accordingly.

Development of dashboard  
For real time & effective monitoring of the project progress DFCCIL has developed a 
user friendly dashboard to monitor the physical and financial progress of the various 
sections of the project in real time ba

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