DFCCIL – Dedicated Freight Corporation of India Limited

DFCCIL – Dedicated Freight Corporation of India Limited

 

Source: https://dfccil.com/

·         DFCCIL (SPV – Special Purpose Vehicle) is wholly owned company of Ministry of Railways registered under Company Act 1956 and was incorporated on 30th October, 2006.

·          Target for completion of the Project – December, 2019 (It may be extended)

·         Estimated Project Cost - Rs. 82,000 Crores (Approx)

·         The Eastern & western dedicated freight corridors entail an investment of 12 billion dollars,

·         Eastern Corridor - World Bank Loan of 1.86 Billion dollars

·         Western Corridor - JICA loan of 5.2 Billion Dollars

·         The balance between Project Cost and Loan is bear by Govt of India through Equity.

Need of DFC

·         Eastern  Corridor  ( E D F C ) f ro m Lu d h ia n a ( S a h n ewa l ) t o Dankuni (Near Kolkata)

·         Western Corridor (WDFC) from Jawaharlal Nehru Port,  Mumbai to Dadri near Delhi.

·         The Delhi-Mumbai rail route and the Delhi –Howrah rail route are highly congested at present.

·          IR has lost a significant portion of its Freight business to the Road sector and has planned to recover the market share through DFC.

 

Beginning:

·          Golden quadrilateral connecting 4 Metropolitan cities of Delhi, Mumbai, Chennai and Kolkata and its  diagonals  1. Delhi to Chennai and 2. Mumbai to Kolkata – Total route length of 10,000 Kms –

 

                                                   Share of Golden quadrilateral at present

Route	Passenger traffic	Freight traffic
16 %	52 %	58 %

 

·         Line capacity varying between 120 % to 150 % in Eastern Corridor (Delhi to Kolkata) and in Western Corridor (Delhi to Mumbai) – Highly saturated

·          IR lost its share in freight traffic from 83 % in 1950-51 to 30 % in 2018-19

·         To meet the growth of Indian Economy in recent decades and to garner the share of Freight transport, the Govt mooted the conception of Dedicated Freight Corridors

·         Beginning step in the above direction is the Presentation of Railway Budget in 2005-06.

·         Feasibility study report – October, 2017

·         2006 – A SPV (Special Purpose Vehicle) named Dedicated Freight Corridor Corporation of India limited was incorporated as a company under the Companies Act, 1956.

Mission:

·         To build a Corridor with appropriate technology

·         To regain market share of Freight transport

·         To set up Multimodal logistic parks along the DFC to provide complete solution to customers

·         To adopt the Railways as the most environmental friendly transport mode 

Salient Features

·         Chairman : De facto Chairman, Railway Board

·         Hqrs: New Delhi

·         Total route length : 3600 kms

·         Western Corridor  : 1504 Kms  From Dadri (UP) to JNPT Port (Mumbai)

·         Eastern Corridor    : 2096 Kms From Ludhiana to Dankuni (West Bengal)

·         The Railway’s share expected to go up from present level 30 % to 45% in the Total transport sector

·         It is exclusively for Freight trains.  So it should be possible to run timeb-tabled trains with guaranteed transit time.

·         Last mile connectivity – by tying up with truck operators. So that offered door to door services to the Customers.

·         Setting up of Multimodal logistics parks along the Corridor to facilitate al kinds of value addition from packaging. Retailing, labelling, pelletizing etc.

·         Design-Build Lump-sum Contract strategy – Construction of DFC. Being a design build contract bidder is supposed to quote lump-sum contract price for the total work including design, construction, testing, commissioning and liability during defect liability period. It is akin to EPC  Projects. Click for Article on EPC in the blog.

·         Western corridor will cater double stack containers on electrified traction, which is first in the world

·         RO-RO – Roll On Roll Off traffic – Western Corridor  - to attract non bulk traffic particularly at short lead to avoid cost of transhipment

 

Relationship with Indian Railways:

·         Concessioner is Indian Railways and Concessionaire is DFCCIL

·         Period is 30 years (from commencement of operations)

·         Accept freight trains on its track on payment of user charge called TAC – Track Access Charge by Indian Railways and other Private Train operators.

·         Land will be acquired by IR under Railway Amendment Act, 2008 and leased to DFCCIL

·         Financing the Project: Loan from External bilateral/ Multilateral funds recd via Ministry of Railways and equity contribution from Ministry of Railways.

·         Main source of Revenue to DFCCIL is TAC – Track Access Charge

·         TAC consists of Fixed and Variable components. Variable component based on volume of traffic in terms of 000 GTKMs

·         Cost of construction of Double Line electrified Track – Rs. 18  Crores (in IR , it is Rs.12 Crores).  The reasons for increasing cost are

 

A.      Electric traction of 2 x25 KV, 58hz single phase AC

B.      Double line automatic signalling

C.      Standard of loading of 32.5 Tonnes Axle Load

D.      Will have grade separation from IR Existing lines in the form of fly overs to ensure free flow of trains on both the systems.

Advantages:

1.       Bring about paradigm shift in Freight operations

2.       Reduction in unit cost of transportation.

3.       Higher speeds

4.       Better turnaround of Wagons

5.       Act as Catalyst for the Development of Industry and areas along the Corridor.

6.       Increased payload to tare ratio (by higher axle load wagons)

7.       Improved SEC

8.       Ultimate objective is to reduce the O & M Costs (Operation & Maintenance)

 

·         Coming up Freight Corridors are

 

A.      East-West Corridor (Kolkata-Mumbai) – 1856 Kms.

B.      North-South Corridor (Delhi-Chennai) - 2173 Kms

C.      East Coast Corridor (Kharagpur-Vijaywada) 1100 Kms.

D.      Southern Corridor (Chennai-Goa) - 899 Kms.

Latest update on May 2022

• To be completed by June 2023 (90 % of DFC). That is 2750 RKM (Route Kilo Meters) of the Eastern DFC and Western DFC.  

 

• The initial plan was to make both DFCs operational by June 2022-end, but the COVID-19 pandemic and subsequent slowing down of work at sites have resulted in the deadlines being pushed ahead.

 

• Once completed, Coal, Food grain, and Export-Import Freight movement are expected to get a boost. 

 

• Managing Director of DFCCIL - Shri Ravindra Kumar Jain 

 

• Presently - 100 trains running on WDFC and 60 trains on EDFC.  Once completed the entire project, it may increase to 150 trains and 100 trains respectively.  

  

• The biggest gain is that the freight movement from ports in Gujarat to New Delhi has been cut down by a day.  

• EDFC  - 1875 RKM  From Ludhiana (Punjab) to Dankuni (West Bengal) covering Punjab, Haryana, UP, Bihar, and Jharkhand, West Bengal. 

 

• WDFC - 1506 RKM.  From Dadri (UP) to Jawaharlal Nehru Port (Mumbai) covering UP, Haryana, Rajasthan, Gujarat, and Maharashtra. 

 

• Average speed - EDFC - 65 km per hour

 

• Average speed - WDFC - 41 km per hour 

• Estimated Cost - 1,24,000 Crores. 

 

• Cumulative CAPEX (up to 31.03.2022) - Rs. 89,342 Cr 

Key points for MCQ

1. DFCCIL stands for Dedicated Freight Corridor Corporation of India Limited

2. Western DFC - From Dadri (UP) to JN Port (Mumbai) 

3. EDFC - From Ludhiana (Punjab) to Dankuni (West Bengal) 

4. WDFC - 1506 RKM

5. EDFC - 1875 RKM

6. RKM stands for Route Kilo Meters 

7. DFCCIL Hqrs - New Delhi

8. Total Cost - Rs. 1,24,000 Crores 

*****

 

DSC & DEC

DSC - Digital signing Certificate

·         Computer generated digital key - which contains the complete identity of the owner of the certificate.

·         Issued by Licensed CA - Certification Authority

·         List of CAs available  - www.cca.gov.in

·         Examples of CAs - NIC, IDRBT, TCS, MTNL etc

·         Validity - 1 or 2 years

·         Purpose: Used to digitally sign an electronic document for calling tenders through e tendering.

·         Issued to Official by name (not Designation)

·         Purchased as Consumable (not T & P)

·         Device Driver required to use DSC

·         Not to be handed over to any one on superannuation of the official in whose name it was purchased.

·         Get it revoked, if not required further.

·         Safe custody of DSC - Responsibility of Official in whose name it was purchased.

DSC - Classes

Class	Valid email	Email verified against trusted & Pre verified data base	Personal verification (Present in person in front of RA - Registration Authority)
I	ü	X	X
II	ü	ü	X
III	ü	ü	ü

Advantages:

1.       Helps authentication - Identity is established by the CA database

2.       Helps non repudiation of Document

DEC - Digital Encryption Certificate

·         Purchased in the name of Official of the unit.

·         Functions similar to DSC

·         Purpose: To encrypt the Document

·         Every Railway Dept should have one DEC

·         It is not the property of the official in whose name it was purchased.

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NFR - Non Fare Revenue

NFR  - Non Fare Revenue

 

·         Part of Sundry Earnings

 

·         NFR consists of

 

1.       Advertisement on Trains, Railway Bridges & other Assets

2.       Setting up of ATM and other stalls at Railway Stations

3.       Digital Content on Trains and Platforms

4.       NINFRS (see below for detailed article)

 

·         Concept – 2010-11 year

 

·         NFR Directorate – 2014 year

 

·         NFR policy switched from Centralized governance (Railway Board) to Decentralizing (Divisions) in the year 2018

 

·         Earnings contracts period is reduced from 5 to 10 years to 3 to 5 years

 

·         NFR Target for 10 years (from 2010-11) is Rs.15000 Crores (Rs. 1500 Crores per year)

 

·         But 2018-19 year NFR is Rs. 33 Crores (against target of Rs. 1200 Crores)

 

·         Share of Sundry Earnings

 

	Indian Railways	World wide
Sundry Earnings share	8 %	15 to 20 %

 

 

Simplification of Earnings Contracts (except Parcels & Catering)

Tender Amount	Tender Committee
Up to Rs. 50 Lakhs	No T C. Direct Acceptance by SG/JAG/Sr.Scale  (Independent charge) – subject to conditions
Rs. 50 Lakhs to Rs. 2 Crores	2 Member TC ( Comml & Finance)
Rs. 2 Crores and above	3 Member TC (Comml, Finance & User dept)

 

 

Contract Amount	TAA – Tender Acceptance Authority
Up to Rs. 5 Crores	Sr.DCM
Rs. 5 to Rs. 10 Crores	ADRM
Rs. 10 Crores to Rs.100 Crores	DRM
Rs. 100 Crores and above	PCCM

 

Extension of Contract	By
6 Months (2 spells of 3 months each)	Sr.DCM
Above 6 Months (Concurrence required)	DRM/CCM/PCCM

 

Direct Acceptance – Earnings Contracts

Railway Board letter - Direct Acceptance

ü    Constituting the Tender Committee is not required for awarding of the Earning Contracts up to Rs. 50 Lakhs by SG or JAG or Sr.Scale (Independent charge)

 

ü  Earning contracts are finalized expeditiously without prolonged Tender Committee Proceedings thereby avoiding loss of Revenue to Railways.

 

Requisites of Direct Acceptance of Tenders

 

ü  By SG or JAG or Sr.Scale Officers(Independent charge)

ü  Up to value Rs. 50 Lakhs

ü  Tender Committee not required

ü  Tendering through E-Tender and Open Tender mode only

ü  Minimum Notice Period – 21 days

ü  H 1 cannot be bypassed

ü  Negotiations if any, with H 1 only

ü  Reasonable Speaking Order by TAA – Tender Accepting Authority (about Tender evaluation & Acceptance)

ü  LOA  - Letter Of Award/Acceptance should be vetted by Finance (Object is to comply the above requisites or not)

 

NINFRIS  - New, Innovative Non Fare Revenue Ideas Scheme

·         New scheme - to increase Non Fare Revenue

 

·         Announced by Ministry of Railways in 2018. 

 

 

·         Object:  Promote new ideas and concepts for enhancement of NFR (Non Fare Revenue) and improve passenger convenience on IR

 

·         To classify an idea/concept as innovative - a similar proposal should not have been implemented on the concerned Division before. 

 

·         Replication - Divisions are encouraged to report success of such ideas and give wide publicity for possible replication across Indian Railways. 

Salient features:

ü  At Divisional level

ü  DRM – Divisional Railway manager -Full powers.

ü  Nodal Officer – Branch officer of Commercial Dept (Sr.DCM / DCM)

ü  Committee of Branch Officers of Commercial Dept, Finance Dept and Dept holding the assets to be used scrutinizes the proposals received and recommended to DRM for approval.

ü  Terms & conditions of the Agreement are accepted by the such committee with the approval of DRM

ü   Savings in expenditure if any, is added notionally as “deemed earnings” for the purpose of evaluation of project.

ü  Token non Refundable application fees Rs. 1000 – should be accompanied to each proposal.  Object of levying such fees is to avoid non serious ideas/concepts.

ü  Based on the importance  of the proposal, DRMs are authorize to decide the EMD – Earnest Money Deposit of not less than Rupees 10,000 /-

ü  Projects may be executed directly by the Divisions using their own manpower or through any Railway PSU or outside agencies such as NGO – Non Governmental Organisation, SHG – Self Help Group, Cooperative society etc.

ü  Period – One year or part there of.   Can be extended beyond one year with the approval of DRM. If Extended, Licence fees for extended period may be decided depending on the realization of the earnings of the Project.

Safeguards/Precautions

·         Should not be political or religious in nature.

 

·         No permanent structure should be constructed

 

·         Not violating the norms of aesthetics, environmental concerns, decongestion, safety and security, free movement of passengers, sanitation standards, temporary structures, fire, safety etc as prescribed under Railway rules.

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