PROJECT FORMULATION WITH CASE STUDY

CASE STUDY: Project Formulation of a Railway

PRESENTED BY

Name: KARTHICK S

Roll no: 24BP1240003

Dep: SEACM (CIVIL)

CONTENT

• Introduction

• Project overview

• Project Formulation Process

• Inference And Conclusion

Railway projects play a critical role in enhancing connectivity, boosting economic growth, and
improving access to transportation. This case study focuses on the formulation of the Dedicated
Freight Corridor (DFC), a key railway infrastructure project in India aimed at improving the
transportation of goods across the country. The DFC consists of two major corridors: the Western
Dedicated Freight Corridor (WDFC) and the Eastern Dedicated Freight Corridor (EDFC). This case
study focuses on the formulation, design, and execution of the project.
 Project Overview

Project Overview

Project Name: Dedicated Freight Corridor (DFC)

Length: 3,360 kilometers (WDFC and EDFC combined)

Location: Western and Eastern India

Type: Electrified, double-track freight railway

Estimated Cost: ₹81,459 crore (as of 2022)

Project Duration: 2007 – 2027 (estimated completion)

Objective: To improve freight movement, reduce travel times, and boost industrial development by creating
dedicated rail corridors for goods transportation.
 Project Formulation Process

1. Feasibility Study

The formulation of the Dedicated Freight Corridor began with a comprehensive feasibility study conducted
by the Indian Ministry of Railways in partnership with global consultants. Key aspects of the feasibility study
included:

• Freight Traffic Forecasting:

A detailed traffic study was conducted to estimate the growing demand for freight transportation between
major industrial hubs. It was found that the existing railway infrastructure could not meet the increasing
needs of freight movement due to congestion from mixed-use (passenger and goods) trains.

• Economic Feasibility:

The economic analysis projected that dedicated freight corridors would lead to substantial savings in fuel
costs, reduce travel times for goods, and improve the efficiency of supply chains across India. The freight
corridors were designed to cater to high-demand sectors, including steel, cement, and agricultural products.
2. Detailed Project Report (DPR) and Design

Based on the feasibility study, a Detailed Project Report (DPR) was prepared to outline the technical,
financial, and operational details of the DFC. Major design considerations included:

• Railway Track Design:

The DFC was designed as an electrified, double-track corridor capable of supporting trains with speeds up to
100 km/h. This design allows for heavier and longer freight trains to operate, with some freight trains carrying
over 13,000 tons of goods.

• Intermodal Terminals:

To improve efficiency, intermodal terminals were designed at key locations to facilitate seamless transfer of
goods between rail, road, and sea. Major industrial hubs along the route, such as Vadodara and Kanpur,
were selected for terminal development.

automatic train protection (ATP) to ensure safe and efficient operation of trains.
3. Land Acquisition and Resettlement

Land acquisition was one of the most critical and challenging aspects of the DFC project formulation.
It involved acquiring land in densely populated regions and industrial areas. Key elements of the land
acquisition process included:

• Land Identification and Compensation:

The Indian Railways identified approximately 11,000 hectares of land required for the DFC, with
compensation provided to landowners based on market rates. Transparent compensation procedures
helped avoid disputes and expedite the acquisition process.

• Relocation and Resettlement:

Several communities and villages were displaced during the land acquisition process. A resettlement
plan was developed to provide new housing, infrastructure, and livelihood opportunities for affected
families.
4. Environmental and Social Impact Assessment (ESIA)

A detailed Environmental and Social Impact Assessment (ESIA) was conducted as part of the project
formulation to identify potential environmental and social impacts.

• Environmental Impact:

The construction of the DFC involved the removal of vegetation, excavation, and land clearing. To
mitigate these impacts, the project incorporated reforestation measures, soil conservation practices,
and the development of biodiversity zones along the route.

• Social Impact:

The project affected thousands of households along the corridor, many of whom were dependent on
agriculture. Social impact assessments focused on minimizing disruption to livelihoods by providing
alternative employment opportunities, including jobs related to the construction of the DFC.
5. Financial Structuring and Funding

The financial structuring of the DFC project was a major aspect of the project formulation. The
estimated project cost of ₹81,459 crore was funded through a combination of government funding,
loans, and international investments.

● World Bank and JICA Funding:

The Eastern Dedicated Freight Corridor (EDFC) was primarily financed by a loan from the World
Bank, while the Western Dedicated Freight Corridor (WDFC) was funded by the Japan International
Cooperation Agency (JICA). These international financial institutions provided long-term, low-interest
loans for the project.

● Government of India Funding:

The Indian government contributed a significant portion of the funding for the project through
budgetary allocations. The Dedicated Freight Corridor Corporation of India Ltd. (DFCCIL) was
established as the nodal agency for executing the project.
6. Risk Assessment and Mitigation

Several risks were identified during the project formulation, including:

● Land Acquisition Delays:

Land acquisition posed a major risk to the timely execution of the project. To mitigate this, the Indian Railways
worked with local governments to expedite the land acquisition process and address any disputes.

● Environmental and Legal Risks:

Environmental activists raised concerns about the project’s impact on local ecosystems. To mitigate legal and
environmental risks, the DFCCIL implemented sustainable construction practices and ensured that the project
complied with environmental regulations.
7. Stakeholder Engagement

Engaging with stakeholders was a key component of the DFC project formulation. Key stakeholders included:

● Local Communities:

Public consultations were conducted in villages and towns along the DFC route to inform communities about the
project’s benefits and address concerns related to land acquisition and resettlement.

● Industrial Stakeholders:

Industries and logistics companies were involved in discussions about how the DFC could improve supply chains
and reduce transportation costs. These stakeholders played a crucial role in shaping the project’s operational and
technical features.
 INFERENCE AND CONCLUSION

The Dedicated Freight Corridor (DFC) project represents a significant advancement in India’s railway infrastructure,
aimed at improving freight transportation and reducing congestion on existing rail lines. The project formulation
process involved careful planning, stakeholder engagement, and financial structuring to ensure the success of the
project.

The DFC will have a transformative impact on India’s economy, reducing logistics costs, improving the efficiency of
goods movement, and boosting industrial development along the corridors. This case study highlights the
importance of comprehensive feasibility studies, environmental and social assessments, risk management, and
stakeholder collaboration in the successful formulation of large-scale railway projects.

The DFC project is a model for future infrastructure development, showcasing how dedicated rail corridors can
improve transportation efficiency and contribute to national economic growth.