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Source: This post on Dedicated Freight Corridors (DFCs) has been created based on the article “On the growth track: How Dedicated Freight Corridors are adding to GDP, boosting Rail revenues” published in The Hindu on 6th November 2024.
Why in news?
Recently, a study by Australia’s University of New South Wales states that Dedicated Freight Corridors are boosting India’s GDP and significantly increasing Indian Railways’ revenue.
About Dedicated Freight Corridors (DFCs)
1. DFCs are special railway routes dedicated to freight transportation. They enable faster transit, allow double-stacked containers, and carry heavy haul trains, increasing capacity and efficiency.
2. Purpose of DFCs: The need for DFCs arose due to the overutilization of the Railways’ golden quadrilateral (Delhi, Mumbai, Chennai, Howrah), which carried over half of the Railways’ freight traffic.
– The Railways sought to increase its share in freight traffic, aiming for 45% by 2030, as outlined in the National Rail Plan.
3. Establishment and Development: It was announced in the Railway Budget for FY 2005-06, with foundation stones laid in 2006 by then Prime Minister Dr. Manmohan Singh.
4. Two main DFCs constructed:
Eastern DFC (EDFC): 1,337 km from Sonnagar (Bihar) to Sahnewal (Punjab).
Western DFC (WDFC): 1,506 km from Jawaharlal Nehru Port (Mumbai) to Dadri (Uttar Pradesh).
5. DFCCIL (Dedicated Freight Corridor Corporation of India Limited) was formed as a special purpose vehicle for the project’s construction and maintenance.
6. Operational Impact and Current Performance: On average, 325 DFC trains run daily, a 60% increase from last year. DFCs have carried over 232 billion Gross Tonne Kilometres (GTKMs) and 122 billion Net Ton Kilometers (NTKMs). Over 10% of Indian Railways’ freight operations are now managed by DFCs.
7. Economic Contribution: DFCs reduced freight costs and travel times, leading to up to a 0.5% decrease in commodity prices. They contributed to a 2.94% revenue increase in Indian Railways from FY 2018-19 to FY 2022-23. The Western DFC has significantly reduced freight costs, benefiting both industries and consumers in economically weaker states.
8. Future Corridors in Development: Four additional DFCs are proposed:
| Corridor | Distance |
| East Coast Corridor | Kharagpur to Vijayawada (1,115 km) |
| East-West Sub-corridor I | Palghar to Dankuni (2,073 km) |
| East-West Sub-corridor II | Rajkharsawan to Andal (195 km) |
| North-South Corridor | Vijayawada to Itarsi (975 km) |
9. DFCs are anticipated to have long-term benefits for India’s logistics, industry, and social equality across regions with varying GDPs.
UPSC Syllabus: Indian economy
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