SYNOPSIS
A study found that India's Dedicated Freight Corridors (DFCs) are projected to contribute ₹16,000 crore to the nation's GDP. The launch of the Western DFC (WDFC) has already reduced freight costs and travel times, lowering commodity prices by up to 0.5%. From FY 2018-19 to FY 2022-23, DFCs contributed 2.94% to Indian Railways' revenue growth, handling over 10% of the country’s rail freight.
In its latest World Economic Outlook report, the International Monetary Fund (IMF) has emphasized a substantial shift in global manufacturing towards emerging markets such as India and China, driven by a decline in competitiveness among advanced economies.
India’s existing Dedicated Freight Corridors (DFCs) are set to contribute ₹16,000 crore to the country’s gross domestic product, according to a recent study. A statement from the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) highlighted that the operationalization of the Western DFC (WDFC) has led to reductions in freight costs and travel times, contributing to lower commodity prices by up to 0.5%.
Additionally, the study found that DFCs contributed 2.94% to the revenue growth achieved by Indian Railways between FY 2018-19 and FY 2022-23. Currently, over 10% of the freight handled by Indian Railways is managed through the DFCs.
The 2,843-kilometre (km) Dedicated Freight Corridor (DFC) project spans 56 districts across seven states and is 96.4% complete as of October 2024. This includes the 1,337 km Eastern DFC (EDFC), which runs from Ludhiana to Sonnagar, and the 1,506 km Western DFC (WDFC), connecting Dadri to Mumbai.
According to the Dedicated Freight Corridor Corporation of India Limited (DFCCIL), the Eastern DFC (EDFC) is fully operational and complete, featuring feeder routes to various coal mines and thermal power plants. The Western DFC (WDFC) is 93.2% complete and includes feeder routes servicing multiple cement plants as well as major ports in Gujarat, such as Mundra, Kandla, Pipavav, and Hazira.
Currently, an average of 325 trains are operating daily on the freight corridors, reflecting a 60% increase compared to last year.
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