DFCCIL to award 7000 Crore contract on Western Corridor this month

NEW DELHI: Dedicated Freight Corridor Corporation of India is looking to award by month-end its second major contract of about Rs 7,000 crore for construction of 640 km double track line between Rewari in Haryana and Palanpur in Gujarat.

The contract, part of 1,483 km long Western Dedicated Freight Corridor (DFC), will be country’s single largest railway contract. The Western DFC is coming up between Dadri (near Delhi) and Jawaharlal Nehru Port (near Mumbai).

“We had awarded first contract in January, that was on the Eastern Corridor. The second contract of 640 km length, which is on the Western Corridor, will be awarded by the end of this month. The contract value is in the range of Rs 7,000 crore,” the Managing Director of Dedicated Freight Corridor Corporation of India Ltd (DFCCIL), R K Gupta, told PTI.

Two consortia — Larsen and ToubroBSE 0.32 % and Sojitz Corporation of Japan and Mitsui, IRCON, and Leighton Contractors — were declared qualified earlier by the DFCCIL for the project.

According to Gupta, DFCCIL is looking to award 60 per cent (about 2,000 kms) of the contracts of the first two corridors — Eastern and Western with a total length of 3,322 kms– for laying double track lines and civil works by this year.

“We have kept a target of awarding contracts for 1,500 km this year but we hope to award much more than this, about 2,000 km. That means 60 per cent of the contracts will get awarded. We will definitely better the target,” Gupta said.

He further said that each contract, to be awarded by the Corporation, is worth Rs 1,000 crore or more and the to be awarded-640-km contract on Western DFC is the largest.

The work on the Dedicated Freight Corridors has picked up since January this year, when DFCCIL had awarded its first major project, worth Rs 3,300 crore, for laying 343-km double track line between Khurja and Kanpur on the Eastern Corridor.

The contract was awarded to a joint venture of Tata Projects and Aldesa of Spain. The JV commenced work on the stretch in March.

DFCCIL, a special purpose vehicle of Indian Railways, has got the mandate to set up dedicated freight corridors (DFC) across the country. In the first phase, the Corporation is executing two DFCs — Eastern and Western– at an investment of about Rs 1 lakh crore.

Of this, Eastern DFC is being funded by World Bank, involving loans worth USD 2.75 billion.

The Western DFC is being built with low-cost loans from Japanese International Cooperation Agency (JICA). DFCCIL will be taking loans worth 677 billion yen from JICA for developing the Western DFC.

For the two freight corridors, the DFCCIL has acquired 90 per cent of the land and hopes to acquire remaining land within next six months. It has also secured requisite environment, forest and wild life clearances for the project.