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The operational cost of Dedicated Freight Corridor Corporation of India (DFCCIL) will be 40 per cent cheaper than Indian Railways, thus adding to the profitability of Railways, Adesh Sharma, Managing Director, DFCCIL, said.
The extent to which the lower costs will be passed to customers as reduced tariffs will be determined by the Railways. Of these, contracts of about ₹ 4,800 crore will be awarded in February.
Speaking at a conference here, he said by using mechanised laying of track machines, DFCCIL is able to lay 50-60 km of tracks a month. “We have a target to lay 100 km of track a month.” he added. There has been a three-fold increase in utilisation of funds compared to last year. “An amount of ₹ 8,400 crore is planned to be utilised in 2015-16 compared to only ₹ 2,690 crore during 2014-15,” said Sharma.
“The Eastern and Western dedicated freight corridor project will be awarded by October, with a cumulative cost of about ₹ 53,000-54,000 crore,” said MK Mittal, Director-Finance, DFCCIL.
Meanwhile, to bring down the logistics cost, DFCCIL is also planning to set up multimodal logistics parks (MMLPs) along the freight corridors. These MMLPs will cost about ₹ 600-700 crore for 300-acre size projects, said HD Gujarati, Director-Operations, DFCCIL.
For these projects, various models are being worked out, including tie-up with State governments where they bring in the land portion, with DFC putting in some funds, or the parks being run by firms in logistics space.
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