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  Indian Railways, DFCCIL, to sign concession pact soon
Tuesday, February 08, 2011

Indian Railways and Dedicated Freight Corridor Corporation of India (DFCCIL) will finalise the concession agreement in the next few weeks specifying the track access charges that the Railways will pay to DFCCIL for using the rail freight corridor. The concession agreement is a pre-requisite to get funding from the World Bank. The track access charge will have a fixed component and a variable component. The fixed charge will cover the financing cost, depreciation, and basic operation and maintenance cost. The variable charge will take into account the level of traffic carried and the traction in use.

The Railway Ministry has been in talks with World Bank to get funds of at least US$2.4 billion to part finance the eastern freight corridor. The ministry was also trying to get an additional US$1.1-billion from the World Bank for the same.

The Indian Railways was also trying to finalise the structure of model for the Sonnagar-Dankuni section of Eastern freight corridor - which has to be taken up on public private partnership (PPP) basis. The project cost of this link is about Rs 9,000 crore.

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