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Freight Corridor Corp to award USD2.2 Billion contracts in FY17

downloadDedicated Freight Corridor Corporation (DFCC), the Indian Railways’ arm implementing the ambitious freight corridor project, will award contracts worth Rs 14,000 crore (USD2.2 Billion) in the current financial year (2016-17) in a bid to quickly wrap up work and meet the 2019 deadline for commissioning the Rs 82,000-crore project.

“By July 2016, we are going to place orders worth Rs 10,000 crore. The balance – around Rs 4,000 crore worth of contracts – will be placed in the rest of the current financial year itself. After this, work will be progressing in every section of DFCC,” said a senior executive.

He added the company has so far placed 76 per cent of the contracts for civil works and 63 per cent of electrical contracts, apart from 48 per cent of the total signalling contracts.

For the construction of the Eastern Dedicated Freight Corridor, contracts worth Rs 4,000 crore were awarded in 2013 followed by another Rs 5,000 crore contracts in 2014. Last year, the DFCC placed around five contracts for signalling and telecommunication, electrification and civil construction. Similarly, nine contracts were placed for Western Dedicated Freight Corridor.

The executive said the government-owned firm placed contracts worth Rs 24,000 crore in 2015-16 for various works on the freight corridor. “This is compared to Rs 13,000 crore worth of contracts placed in previous six years (2009-14),” he said. DFCC’s capex in FY16 stood at Rs 8,600 crore, compared to Rs 2,800 crore in FY15, a three-fold increase. In 2016-17, the company plans an expenditure of Rs 12,500 crore, including Rs 3,500 crore earmarked for land acquisition and the balance Rs 9,000 crore for contractual payments. The DFCC is constructing the 3,350-km-long freight corridor project, including the 1,800 km of its eastern arm between Ludhiana and Dankuni in West Bengal. The Western DFC will come up between Dadri in Uttar Pradesh to Jawaharlal Nehru Port in Mumbai.

www.business-standard.com

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