APR Constructions Limited - Saffron Capital

Dedicated Freight Corridor
As part of its expansion initiatives, Indian Railways have
undertaken Dedicated Freight Corridor (DFC) as one of
their important projects, with the objective of building a
dedicated rail corridor for freight movement on both
western and eastern routes. Through DFC, Indian Railways
intends to create rail infrastructure with the capability of
transporting a substantially higher level of freight traffic.
Total length of the multimodal high axle load network
comprising two corridors is 7,462 km, of which the route
length is 2,793 km and feeder route length is 4,669 kms. Of
the total route length, the eastern DFC and western DFC
constitute 1,278 km and 1,515 km, respectively. The eastern
DFC and western DFC constitute 2,587 km and 2,082 km,
respectively of the total feeder route length. Rs 281 billion
investment in DFC is expected to ease congestion on the railway network and facilitate growth of bulk freight and
container rail movement.
Source:CRISIL Research, Indian Infrastructure Report, November 2009)
Investments
Tenth and eleventh plan outlay comparison
(Source: CMIE and Ministry of railways)
Budget 2010 – 11 had proposed a plan outlay at Rs 414.26 billion, an increase of Rs 11.42 billion over 2009 – 10.
CRISIL Research expects total investment of Rs 3,040 billion during 2009-10 to 2013-14.
(Source:CRISIL Research, Indian Infrastructure Report, November 2009 & www.indiabudget.nic.in)
Funding Sources
In the next 5 years, around 65-70 per cent of
investment in railways is expected to be funded
through budgetary support and extra budgetary
resources. Internal accruals of the railways are
likely to fund the rest.
With increasing cargo containerisation, demand for
container movement by rail has grown rapidly.
This was hitherto a monopoly of the Container
Corporation of India, a PSU entity. In a major
initiative in PPP, container movement has been
thrown open to competition with 15 private sector
entities being licensed for running container trains.
Private sector container trains have commenced
operations; operators would also be expanding
investment into container handling facilities such
as Inland Container Depots, etc.
(Source: Ministry of railways, CRISIL Research, Indian Infrastructure Report, November 2009)
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