BackDedicated freight corridor bids may be called by Sep
Dedicated freight corridor bids may be called by Sep
PremiumIndian railway workers load cargo onto a cart at a railway station in Hyderabad . AFP
New Delhi: After several fits and starts, a key government project—the dedicated freight corridor—is likely to bid contracts out to the tune of Rs8,000-9,000 crore by September.
This was independently confirmed by three government officials with direct knowledge of the matter. They declined to be named.
The 3,278km dedicated freight corridor was conceived by the government in 2005. Cleared by the Union cabinet in September 2009, it is being managed by Dedicated Freight Corridor Corp. of India Ltd (DFCCIL).
It was decided in 2009 that the Japan International Cooperation Agency (Jica), a Japanese government-controlled funding agency, will fund the western leg of the corridor, while the World Bank will fund the eastern leg.
Mint reported in July about a move seeking more autonomy for DFCCIL ahead of big project awards including the Kanpur-Khurja one that is currently being bid out.
The contracts being investigated by CVC were the award of a consultancy contract for the eastern corridor in September 2008 among others. Mint first reported this on 14 July 2010.
In February, the Prime Minister’s Office (PMO) decided to monitor the project.
One of the three officials cited above said bids for contracts for the
Kanpur-Khurja stretch of the eastern wing of the freight corridor are likely to be opened as soon as the end of March. This official said 14 companies including railways-controlled Ircon International Ltd had bid for the project.
This official added that another long stretch between Rewari in Haryana and Palanpur in Gujarat, on the western corridor, is likely to come up for bidding by July. “Together, both these stretches will see contracting to the tune of Rs8,000-9,000 crore," this official said
He, however, said DFCCIL, the agency tasked with building the freight corridors, was hindered by two important national parks—the Sanjay Gandhi National Park near Mumbai and the Jessore Sloth Bear Sanctuary near Palanpur.
This official said the clearances for the above were pending with the environment ministry. “Apart from this, things are in order," this official said.
The second of the three officials said these were among the largest projects to come up for bidding after DFCCIL changed management.
An analyst with a private consultancy, who did not want to be identified, said that inflationary cost overruns have ensured that the total project cost is likely to cross Rs1 trillion. The original estimate was in the range of Rs27,000-28,000 crore.
Contracts awarded will be for civil construction projects to lay tracks and for other projects including bridge construction, this person said. DFCCIL has set itself a completion deadline of 2016-17.
When complete, the project is expected to cut travel time for goods trains between Delhi and Mumbai to 14-15 hours from as much as three-five days they now take on average.
“There should be an integrated roll-out plan," said R. Sivadasan, a former financial commissioner of the railways. He said there may be areas in which land acquisition would be a problem.
He said DFCCIL “continued to work in silos", something “that will result in confusion".
rahul.c@livemint.com
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