Freight corridor SPV to come into existence this week | india | Hindustan Times
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Freight corridor SPV to come into existence this week

With the incorporation of the SPV, actual groundwork will begin on the mammoth project, reports Hemendra S Bartwal.

india Updated: Oct 31, 2006 00:49 IST

The Dedicated Freight Corridor Corporation of India Ltd  (DFCCIL), the Special Purpose Vehicle (SPV) that is being set up to implement the Indian Railways' ambitious Rs 60,000-crore freight corridor project, will come into existence this week.

With the incorporation of the SPV, which will be fully owned by the Railways and have an authorised share capital of Rs 4,000 crore, actual groundwork will begin on the mammoth project that is being taken up to transport freight across the country at a fast speed while decongesting the existing lines for passenger traffic.

With three ex-officio members of the Board of Directors having been appointed, the first meeting of the DFCCIL is scheduled to be held on November 1.

The initial task before them is to form a project commencement group that will set about recruiting personnel for the new organisation, according Indian Railways' Advisor (Infrastructure) Shri Prakash.

He is one of the newly-appointed Board members, the others being Railway Board's Additional Member (Finance) R Ashok and Additional Member (Civil Engineering) Rakesh Chopra. The regular Board of Directors for DFCCIL is expected to be appointed in three to four months time.

Senior officials from the technical, finance and traffic wings of Railways are to be selected for the project commencement group and they will take up the process of recruiting other staff for the organisation.

According to Prakash, detailed project reports from RITES are awaited on the two corridors that are to be built in the first phase of DFC.

After these are received next week, they will be in a position to plan the exact final locations of routes these corridors are to follow.

The actual construction work on these corridors is likely to commence in April next year, the official stated.

Some problems and delays are expected in acquisition of land for building the corridors, not so much in the western corridor as in the eastern, particularly the stretch through UP, Prakash said.

Prime Minister Manmohan Singh formally laid the foundation for the eastern and western corridors of the project recently.

The eastern corridor will link Ludhiana in Punjab to Sonnagar in Bihar via Ambala, Saharanpur, Khurja and Allahabad.

The western corridor will start from Jawaharlal Nehru Port in Mumbai to reach Dadri in UP via Vadodara, Ahmedabad, Palanpur, Jaipur and Rewari.