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DFCCIL Overview

DFCCIL Website About us:


Need of Dedicated Freight Corridors (DFC):

The Indian Railways' Golden quadrilateral linking the four metropolitan cities of Delhi, Mumbai, Chennai and Howrah, and its two diagonals (Delhi-Chennai and Mumbai-Howrah) comprises of 16% of the route but carry more than 52% of the passenger traffic and 58% of revenue earning freight traffic of IR. This trunk route is highly saturated with line capacity utilization varying between 115% to 150%.
Over the year, Railways lost the share in freight traffic from 88% in 1950-51 to 26% in 2021-22. Not only this, the National highways along these corridors comprising 0.5% of the road network carried almost 40% of the road freight.

The surging domestic economy, booming infrastructure construction and growing international trade led to the conception of the Dedicated Freight Corridors along the Eastern and Western arms of Golden Quadrilateral.

Brief History:

Minister for Railways, made the historic announcement of creation of DFCs on the floor of the House in the Parliament while presenting the Railway Budget for 2005-06. In April 2005, the Project was discussed at the Japan-India Summit Meeting. It was included in the declaration of co-operation signed between the Hon'ble Prime Ministers of India and Japan for a feasibility study and possible funding of the dedicated rail freight corridors by Japanese Government. The feasibility study report was submitted to Ministry of Railways in October 2007. In the meanwhile, Ministry of Railways initiated action to establish a Special Purpose Vehicle for construction, operation, and maintenance of the dedicated freight corridors. This led to the establishment of Dedicated Freight Corridor Corporation of India Limited (DFCCIL), to undertake planning & development, mobilization of financial resources, construction, operation & maintenance, and business development of the dedicated freight corridors. DFCCIL was incorporated as a schedule A company under the Company’s Act 1956 on 30th October 2006.


Vision:

To create a partnership with Indian Railway for retaining and expanding the market share of railways through efficient and reliable service with customer focus

  1. To build a corridor with appropriate technology that enables Indian Railways to regain its market share of freight transport by creating additional capacity and guaranteeing efficient, reliable, safe, and cheaper options for mobility to its customers
  2. To set up Multimodal logistic parks along the DFC to provide complete transport solution to customers.
  3. To support the government's initiatives toward ecological sustainability by encouraging users to adopt railways as the most environment friendly mode for their transport requirements.
Project Funding for Corridors

The cost estimate of Rs, 81,459 Crs. for Eastern & Western DFC including land cost has been approved by the Cabinet Committee on Economic Affairs in June, 2015. This comprises of construction cost of Rs. 73,392 Crs. (including Soft Cost of Rs. 19,390 Crs) and land cost of Rs. 8067 Crs. The cost for the project will be funded by a combination of debt from bilateral/multilateral agencies (JICA & World Bank) and equity from Ministry of Railways. The capital structure of DFCCIL will entail a debt equity ratio of 3:1.




Green Impact:

DFCCIL will decongest already saturated road network & promote shifting of freight transport to more efficient rail transport. This shift is expected to offer significant reduction of Green House Gas (GHG) emissions in transport sector in India. It is expected that DFC will save more than 450 million ton of CO2 in first 30 years of operation (Assessment based on Ernst & Young study).