CCEA okays revised cost guess for burden mezzanine project

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New Delhi: The Cabinet Committee on Economic Affairs currently authorized a revised cost guess of Rs 81,459 crore for a Eastern and Western Dedicated Freight Corridor (DFC) Project, including land costs and financing plan.

DFC aims to coax mercantile expansion and is being combined for a disdainful transformation of freight.

Representational image. Agencies.Representational image. Agencies.

Representational image. Agencies.

Cleared by a Prime Minister Narendra Modi-headed CCEA, a revised cost guess comprises construction cost of Rs 73,392 crore.

While a 1,839-km-long Eastern DFC from Ludhiana to Dankuni is estimated to cost Rs 26,674 crore, a construction of a 1,499-km-long Western DFC from Dadri to Jawaharlal Nehru Port will engage an output of Rs 46,178 crore.

Earlier, CCEA in March, 2008, had given a capitulation for doing of a Eastern and Western DFC projects with an output of over Rs 28,181 crore carrying so distant been incurred on a same.

The capitulation for a revised cost guess was essential for pierce with plan doing and entering into commitments.

The land merger cost for a plan will be Rs 8,067 crore. This excludes a cost of a 534-km Sonnagar-Dankuni territory due to be implemented by a Public-Private Partnership (PPP) route.

Of a sum requirement of Rs 81,459 crore for DFC, Rs 76,143 crore is indispensable during plan construction, as seductiveness during construction of Rs 5,316 crore for a Western DFC is indispensable to be paid by rail method to financial method after a duration duration of 10 years.

For DFC, Rs 52,347 crore would upsurge as debt from Japan International Cooperation Agency (JICA) and World Bank. Equity requirement from railway method (including land) for a plan is Rs 23,796 crore.

The whole Western Corridor is being saved by JICA while a Eastern Corridor from Mughalsarai to Ludhiana is being saved by World Bank.

Together, a Eastern and Western DFC would pass by Punjab, Haryana, Uttar Pradesh, Bihar, Jharkhand, West Bengal, Maharashtra, Gujarat and Rajasthan.

The DFC plan will supplement estimable travel capacity, assistance revoke a territory cost of travel and yield fit travel services to advantage energy companies, mines, ports, trade and attention and a enclosure sector.

The DFC plan would also advantage a sourroundings as trade from highway will pierce to rail ensuing in rebate of 457 million tonnes of CO2 glimmer over a 30-year period.

The Eastern DFC is approaching to lift 153 million tonne (MT) of trade in 2021-22, that will boost to 251 MT by 2036-37. Western DFC is approaching to lift 161 million tonnes of trade in 2021-22, that will boost to 284 million tonnes in 2036-37.

For Eastern DFC, a World Bank loan is for $2.725 billion and a loan agreement for $975 million to cover a initial package of 343-km from Khurja to Kanpur was sealed in October, 2011.

For a second package of 402-km from Kanpur to Mughalsarai, a loan of $1,100 million was sealed in
Dec final year. For a third package covering a 447-km Dadri-Khurja-Ludhiana section, negotiations were finalised with World Bank for a loan of $650 million.

The JICA loan is for 550 billion Japanese Yen and a initial tranche loan agreement for 230 billion Japanese Yen for both Phase-I and Phase-II of a Western DFC have been signed.

The plan has achieved poignant swell as over 84 percent of land has been acquired with land remuneration endowment of over Rs 6,900 crore announced according to a supplies of a Railway Amendment Act, 2008.

Civil construction contracts and other contracts for about 1,526-km on a dual corridors and 54 bridges on a Western DFC have been awarded during a sum value of over Rs 20,000 crore.

The contracts are being awarded on design-build lump-sum basis. The works for signalling and foundation packages and a change polite works are also during an modernized theatre of tendering.

The execution of a Eastern and Western DFC is targeted in phases from 2017 to 2019.

PTI

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