SPV for dedicated freight corridor to be ready in 2-3 months

New Delhi, Nov 14 (UNI) The special purpose vehicle (SPV) for the construction of the Rs 22,500 crore Dedicated Freight Corridor would be ready in the next two to three months, Railway Board Chairman J P Batra said today.

''A small group has been constituted to identify feeder routes for the two corridors -- Delhi-Howrah and Delhi-Mumbai -- to carry 25 tonne axle load trains and also set up an office,'' Mr Batra said, while addressing the annual Railway General Managers' meeting here.

In July, the Union Cabinet had decided to set up a Group of Ministers (GoM) for finalising the technical and financial composition of the SPV for dedicated rail freight corridors, touted as the most ambitious project of the Indian Railways till date.

Dedicated freight corridors -- tracks exclusively meant for super fast freight trains cruising at a speed of 90-100 km per hour as opposed to the 25 kmph at present -- will facilitate plying of higher axle load wagon and double stack containers.

The Task Force on the Delhi-Mumbai and Delhi-Howrah rail freight corridors, set up at the instance of the Prime Minister-headed Committee on Infrastructure (CoI), had earlier recommended the setting up of a SPV that would construct, operate and maintain the corridors on commercial principles and relying on efficient technology solutions.

The proposed corporate entity would provide the rail infrastructure but would not itself engage in freight business, thus providing non-discriminatory track access on payment of haulage charges by train operators.

The estimated cost of Western and Eastern Corridors is Rs 11,446 crore and Rs 9695 crore respectively. As per the current estimate, work on both the corridors will be completed in about five years after the start of construction of the project.

The Task Force report pointed out that the high-density Delhi-Howrah (Eastern Corridor) and Delhi-Mumbai (Western Corridor) are already saturated in terms of line capacity utilisation and accelerated growth of the economy is only adding to the congestion on these routes.

''A quantum jump in capacity is, therefore, necessary for meeting the rising freight demand on account of robust domestic growth as well as the rapid increase in international trade,'' it said.

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