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3 new dedicated freight corridors to see Rs 2.17 lakh crore investment

Feb 02, 2021 12:52 PM IST

The asset monetisation plan includes leasing out the tracks to private players to operate their trains

The three upcoming dedicated freight corridors that the finance minister Nirmala Sitharaman mentioned in her Budget 2021 is expected to see investments of about Rs 2.17 lakh crore, a senior government official told Moneycontrol.

The three projects are East-Coast Corridor, East-West Sub Corridor and North-South Corridor. Sitharaman had said in her Budget speech that the Eastern and Western dedicated freight corridors are expected to be complete by June 2022, while she also proposed its asset monetization after completion of the projects.

How asset monetisation will work in DFC?

The asset monetization plan includes leasing out the tracks to private players to operate their trains and allowing telecom players to use DFCs 2,800-kilometer long optic fibre network. The Dedicated Freight Corridor Corporation (DFCCIL) has already signed a memorandum of understanding with Railtel for the usage of this optic fibre network. The idea was first mooted by a high-powered committee of secretaries in 2020.

Status of existing projects

The total investment in Western DFC project is expected to be around Rs 51,101 crore, out of which Rs 38,722 crore is funded through a loan from Japan International Cooperation Agency (JICA) and the remaining part through gross budgetary support. On the other hand, Western DFC will see an investment of about Rs 30,358 crore, of which the World Bank is giving Rs 13,625 crore.