New Bhandu-New Sanand Section of Western Dedicated Freight Corridor

Prime Minister Narendra Modi recently inaugurated the 77-kilometre New Bhandu-New Sanand section of the Western Dedicated Freight Corridor. 

• This new section has significantly improved connectivity between major ports in Gujarat, such as Pipavav, Porbandar, and Jamnagar, with Eastern and Northern India. As a result, the movement of Exim traffic has become faster and transit times have been reduced. 
• Additionally, this development has also enhanced connectivity to freight terminals of Viramgam, Jakhwada, Detroj, Linch, and freight loading centers in the Jamnagar area.

About Dedicated Freight Corridor

• (DFC) project was conceptualized in 2005 and subsequently, two Dedicated Freight Corridors (DFCs) - Eastern DFC (EDFC) and Western DFC (WDFC) were approved by the Cabinet in 2008. 
• The combined length of the two routes is 3,260 kilometres. 
• The Eastern Dedicated Freight Corridor spans from Ludhiana, Punjab, to Dankuni, West Bengal, while the Western Dedicated Freight Corridor runs from Jawaharlal Nehru Port in Mumbai, Maharashtra to Dadri in Uttar Pradesh.

Background 

• The Minister for Railways announced the creation of DFCs during the presentation of the Railway Budget for 2005-06 on the floor of the House in the Parliament. 
• The Project was discussed at the Japan-India Summit Meeting in 2005. The Hon'ble Prime Ministers of India and Japan signed a declaration of cooperation for a feasibility study and possible funding of the dedicated rail freight corridors by the Japanese Government. 
• The Ministry initiated action to establish a Special Purpose Vehicle responsible for the construction, operation, and maintenance of the dedicated freight corridors. 
• This led to the incorporation of Dedicated Freight Corridor Corporation of India Limited (DFCCIL) on 30th October 2006, as a schedule A company under the Company's Act 1956. 
  • DFCCIL is responsible for the planning & development, mobilization of financial resources, construction, operation & maintenance, and business development of the dedicated freight corridors.

Funding

• The Project cost will be financed through debt from bilateral/multilateral agencies, equity from the Ministry of Railways, and Public Private Partnership. 
• In October 2007, the Japan International Cooperation Agency (JICA) finished a feasibility study on the Project and agreed to fund the WDFC. 

The Ministry of Railways requested funding for the EDFC from the World Bank in 2008. In May 2011, the World Bank approved the funds for a 1,183 km section of the EDFC that connects Ludhiana with Mughalsarai.