Nearly three years after RITES, the consultancy arm of Indian Railways, prepared a preliminary project alignment design for the proposed dedicated freight corridor project, the railways are demanding 42 per cent more land for the project than what was previously envisaged.
Mitsubishi, Itochu, Bombardier, Siemens, GE and Alstom want piece of action.
Work on the much-delayed dedicated railway freight corridor is expected to begin with contracts worth Rs 10,000 crore (Rs 100 billion) to be awarded before the end of the current financial year.
According to senior ministry officials, the loan is expected to be approved within six months. The plan is to construct two rail corridors between Delhi-Mumbai (western corridor) and Delhi-Kolkata (eastern corridor). These would be exclusively for freight trains and run parallel to the national highways connecting the four metros.
Officials say funds and land likely to be tied up by the end of this year.
With work to pick up, finance ministry likely to give around Rs 10,000 crore more for the project.
Indian Railways' ambitious project of developing Dedicated Freight Corridors, conceived to change the face of its freight traffic business, is set to suffer inordinate delays due to troubles in land acquisition and various other issues.
This alternative is being planned as the existing projects continue to be delayed due to land acquisition troubles. The ministry is thinking of adding new track lines to its existing eastern and western DFCs passing major areas in the proposed stretches, senior officials said.
The double-line pilot section will be commissioned with an investment of Rs 1,000 crore.
The Centre has approved a fourth railway line through the strategically important 'Chicken's Neck' corridor, a crucial link for Northeast India. This, along with other infrastructure projects like a double-line underground project and station redevelopment, aims to enhance connectivity, capacity, and passenger services in the region.
India needs to move beyond ease and cost of doing business and focus on the "speed of doing business" as the next leg of reforms to sustain economic growth and private investment, Confederation of Indian Industry (CII) President R Mukundan said.
The 190-km railway line will be between Dadri in Uttar Pradesh and Phulera in Rajasthan, which fall under the Western Dedicated Freight Corridor
The new bridge will come up alongside the existing crossings at Saraighat, where two bridges currently connect the north and south banks of the Brahmaputra -- the iconic road-cum-rail Saraighat Bridge and a separate road bridge.
Mamata appealed to business houses to join hands for building partnership with the Railways.
Experts say Indian Railways must grow its share in the freight market to remain financially sustainable.
The Cabinet Committee on Economic Affairs (CCEA) has approved national highway projects worth approximately 24,249.6 crore across Odisha, Telangana, Madhya Pradesh, and Bihar, aiming to enhance connectivity, reduce travel times, and stimulate economic growth.
Finance Minister Nirmala Sitharaman announced on Monday a record sum of Rs 1.10 lakh crore for the Railways, out of which Rs 1.07 lakh crore is for capital expenditure, and said the national transporter would monetise the dedicated freight corridors after its commissioning. Presenting the Union Budget 2021-22, Sitharaman also applauded the services provided by the Railways to transport essential goods across the country during the coronavirus lockdown.
Enhancing the capacity of rolling stock including gauge conversion, doubling and laying new lines, acquisition of new coaches and wagons are some of the priorities the new ministry is expected to pursue. Keeping the terror threat perception in mind, the upgradation of security system at railway stations in major cities will be a focus area for the new government.
Construction is supposed to begin in 2017, with completion slated for 2023.
The ambitious Rs 50,000 crore (Rs 500 billion), 3,289 km Dedicated Freight Corridors are a case in point. Although the project started under former railway minister Lalu Prasad and was renamed Diamond Rail Corridors by incumbent Mamata Banerjee, not a single project has been awarded yet.
SC agreed that if they were forced to seek clearances from the ministry of environment and forest, their projects will get delayed
Bulk goods should be transported through rail instead of roadways as it would be cost effective and environment friendly, said Pawan Kumar Bansal.
The ministry has also decided to offer station for redevelopment by inviting open bids from companies.
The railways is collaborating with various companies from Germany, South Korea, Japan and China to work out the fine prints.
Samajwadi Party leader Amar Singh, who backed Mamata Banerjee in the Singur agitation, on Friday warned the railway minister against acquiring land in eastern Uttar Pradesh for the corridor project, saying there would be a 'bloodbath' against the move.
The sector is witnessing weak tendering.
Govt has already approached World Bank seeking termination of contract. The progress of the project was just 20 per cent though the contract was awarded in 2016.
According to the target set by the Prime Minister, contracts for the Sonnagar-Dankuni section of the Dedicated Freight Corridor, elevated rail corridor in Mumbai and locomotive factories in Madhepura and Marhowra should be awarded this year.
India's Railways has struggled to expand to keep up with demand
Prime Minister Narendra Modi will visit Uttar Pradesh, Chhattisgarh, Telangana and Rajasthan on July 7 and 8 during which he will inaugurate and lay the foundation stones of about 50 projects worth around Rs 50,000 crore, official sources said Tuesday.
The Confederation of Indian Industry (CII) has called for speedy implementation of key railway projects, such as the Dedicated Freight Corridor, high-speed rail corridors, rolling stock and other capacity enhancement works.
The minister said he was against "blanket privatisation of the railway system but the private sector was being encouraged to participate with the railways in the development of its non-core activities."
Steps to raise funds could include an across-the-board increase in railway fares, senior officials said.
The change in leadership at the railway ministry comes at a time when the national transporter is grappling with low passenger earnings even as it is trying to increase freight loading and open up its doors to private investment. Union Minister Ashwini Vaishnaw took charge from Piyush Goyal who got the railway portfolio in 2017 after Prime Minister Narendra Modii dropped Suresh Prabhu from the Union Cabinet. Completing freight corridors, negotiating land for the bullet train, and speeding up monetisation plans would be some of the major focus areas for Vaishnaw.
Despite public-private partnership projects announced in several rail budgets, the investment since 2000 has been merely Rs 3,000 crore.
"Call it a craze, fever or national interest but HSR is our window to the outside world."
