Paving the way for the speedy delivery of goods across the country, the Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the revised cost estimate of Rs. 81,459 crore for the Eastern and Western Dedicated Freight Corridor (DFC) Project.
While announcing the Cabinet’s decision, Information and Technology Minister Ravi Shankar Prasad said that the revised estimate includes Rs. 73,392 crore of construction cost and Rs. 8,067 crore of acquisition cost.
Freight corridor will cut cost
The Eastern and Western Dedicated Freight Corridor (DFC) Project will significantly reduce transportation cost and benefit power plants, mines, ports, and boost trade and industry.
The Eastern DFC is expected to carry around 153 million tonnes of cargo by 2021-22. This is set to increase to 251 million tonnes by 2036-37. The Western DFC is projected to carry 161 million tonnes by 2021 and 284 million tonnes by 2036.
The Western DFC starts from JNPT Mumbai and passes through Maharashtra, Gujarat, Rajasthan, Haryana, and terminates at Dadri in Uttar Pradesh. The total length will be about 1,500 km. The Eastern DFC starts from Sahnewal near Ludhiana in Punjab and passes through Haryana, Uttar Pradesh, Bihar and Jharkhand and terminates at Dankuni in West Bengal. The total length is about 1,856 km.
The Cabinet had in February 2008 approved the construction of the freight corridor.
According to the website of the Dedicated Freight Corridor Corporation of India (DFCCI), the Western DFC has secured a loan of 645.173 billion yen (around Rs.45,434 crore) from the Japan International Cooperation Agency. The Eastern DFC has secured a loan of $2.725 billion (around Rs.17,327 crore) from the World Bank, according to the website. It shows that 75 per cent of the 4,807 hectares of land needed for the Eastern DFC has already been acquired, while 85 per cent of the 5,860 hectares needed for the Western DFC has been acquired so far.
