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Dedicated Freight Corridor Project (Phase 1) (II)

1. Background and Necessity

Following economic reforms enacted after 1991, India achieved an annual economic growth rate of 5% to 8%; and as a BRIC country, it has held center stage due to its remarkable economic growth. In conjunction with this rapid economic growth, freight transportation volume has grown about 15% annually, and the transport capacity of existing freight railways is reaching its saturation limit. Thus, developing and strengthening the freight railway system is an urgent issue for the country's further economic development. In view of these circumstances, there are plans to expand railway system to allow large volume transport using trunk lines, to introduce high-speed freight cars, and to improve access to port facilities in the Indian government's 10th and 11th Five-year Plan.

2. Objective and Summary

In this project, of the western corridor that runs between Delhi and Mumbai, a new 950km freight line (Rewari to Vadodara) connecting the major cities in Gujarat, Rajasthan, and Haryana states will be constructed, and large-capacity, high-speed freight locomotive will be introduced. Through this project, the purpose is to address the increasing cargo transport demand stemming from anticipated future rapid economic growth and to contribute to dynamic economic development.

This project will be the first STEP [1] loan to be applied for India; and it is a project that intends to promote Japanese technology. The total loan amount is about 450 billion yen and it is the largest loan ever granted to any one project.

This project will become the foundation of the Delhi-Mumbai Industrial Corridor (DMIC) Conceptual Outline, an integrated industry development project to build the country's largest industrial area between Delhi and Mumbai, aimed at promoting direct investments by Indian and Japanese companies. As this project begins to concretely move forward, it is anticipated to become the first step forward to realizing the various projects currently in the planning and conceptual stages.
Presently, surrounding the Delhi-Mumbai western corridor, there are more than 250 Japanese companies based there [2]. Improving the transport infrastructure that is currently the bottleneck of the project will contribute to the economic development of both Japan and India. It is anticipated to become a project symbolizing Japan-India cooperation and to be very beneficial to Japan related parties.

The loan will be appropriated for the construction of railway corridor, procurement of locomotives, Traction & Power supply system, Signaling & Telecommunication System and consulting services, etc. (bid tendering, supervision of works, safety control, etc.).

3. Executing Agency

Ministry of Railway
Address: Rail Bhawan, New Delhi-110001, India
Tel: +91-11-23389101
and
Dedicated Freight Corridor Corporation of India Limited (DFCCIL)
Address: Pragati Maidan Metro Station Building Complex New Delhi-110001
Tel:+91-11-23454780

4. Planned Implementation Schedule

(i) Scheduled project completion: June 2019
(project is completed when all the railway car procurement has been completed)
(ii) Consultant Services (supervision of works, etc.), tentative period for sending out letters of invitation:January 2011
(iii) First tender announcement of procurement package based on competitive bidding for this project works. Procurement package name: Civil Works & Track Works, scheduled period: November 2010

5. JICA Information Service

For information about the procurement schedule, please contact the party and address listed below.

Contact Point for Transport Sector, JICA INDIA Office
Address: 2nd Floor, Dr. Gopal Das Bhawan, 28 Barakhamba Road, New Delhi 110001, India
Tel: +91-11-4768-5500, Fax: +91-11-4768-5555

  • [1] Abbreviation for Special Terms for Economic Partnership. It is a loan condition created to promote Japan’s “invisible assistance” by providing technology transfer using Japan’s outstanding technology and know-how.
  • [2] As of March 2010.

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