FCC

Railways Adopts EPC Model for Eastern Corridor

2023-08-22

After days of uncertainty, the government has ultimately opted to discontinue its pursuit of involving private entities in the public-private partnership (PPP) framework. Instead, it has chosen to independently finance a critical segment of the Eastern Dedicated Freight Corridor (EDFC). The union cabinet granted approval to the Indian Railways' proposition of utilizing the engineering, procurement, and construction (EPC) model to construct the 371-kilometer section connecting Sonnagar and New Andal.

Initially, the comprehensive 538-kilometer stretch between Sonnagar in Bihar and Dankuni in West Bengal was initially planned to be executed using the PPP approach. According to the Dedicated Freight Corridor Corporation of India Limited (DFCCIL), the previous decision mandated the construction of the 538-kilometer Sonnagar-Dankuni section under the PPP framework, prompting DFCCIL to engage in a series of discussions with private enterprises. Nevertheless, tangible proposals failed to materialize, leading the Railways to make the decision to independently lay the railway tracks.

Consequently, instead of pursuing the Sonnagar-Dankuni route, the Railways will proceed with the initial phase of constructing multiple tracks along the 371-kilometer stretch between Sonnagar and New Andal, estimated to cost around Rs 120 billion. This Sonnagar-New Andal section will follow the EPC model and holds significant importance for the transportation of both cargo and passengers, as noted by Railway Minister Ashwini Vaishnaw. Vaishnaw additionally emphasized that there will be integration between the Railways and DFC at 18 points along the routes, allowing freight trains to transition between the Indian Railways rail line and the DFC section.

The EDFC, which spans 1,337 kilometers from Sahnewal near Ludhiana in Punjab, traversing Haryana, Uttar Pradesh, and concluding at Sonnagar in Bihar, is a substantial infrastructure project in India.