PM Modi inaugurates New Bhaupur-New Khurja stretch of Eastern Dedicated Freight Corridor

• Dedicated Freight Corridor is a high-speed and high-capacity railway corridor dedicated exclusively for freight (goods and commodity) movement.

• Dedicated Freight Corridor Corporation of India (DFCCIL), a Special Purpose Vehicle under Ministry of Railways, is tasked with planning & development, mobilizing financial resources, construction, maintenance and operation of DFCs.

DFCCIL is developing two DFCs:

• Western DFC from Dadri (UP) to Jawaharlal Nehru Port (Mumbai).

• Eastern DFC from Dankuni (West Bengal) to Ludhiana (Punjab).

Significance of DFC:

• Reduce unit cost of transportation by speeding up freight train operations & higher productivity.

• At present the logistic cost is about 14% GDP which is 30-40% higher than global benchmarked logistics cost.

• Segregate freight infrastructure for focused approach as around 70% of the freight trains are slated to shift to DFCs, leaving paths open for more passenger trains.

• Will improve carrying capacity by adopting state-of-the-art technology, improvement in tracks design to withstand heavier loads at higher speeds.

• Increase rail share in freight market lost to private road transport over the years.

• Will facilitate fresh industrial activity and multi-modal value-addition services hubs along corridors.

• Eastern DFC will provide coal for power plants in northern region from coalfields in Bihar, Jharkhand and Bengal.

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Mains Paper 3: Economy

Prelims level: Dedicated Freight Corridor

Mains level: Significance of DFC

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