When fully commissioned, the two DFCs will reduce unit costs of bulk transportation, create rail infrastructure to carry higher throughput per train, offer railways customers guaranteed faster transit at cost effective tariffs, increase railways’ share in freight traffic, and improve overall transport efficiency of national rail network. The rail based transportation is eco friendly and over six times cheaper than the roadways.

In addition, the two DFCs are intended to serve bulk transportation needs of mega industrial regions of Dadri-Noida-Ghaziabad (Uttar Pradesh), Manesar-Bawal Region (Haryana), Khushkhera-Bhiwadi-Neemrana (Rajasthan), Bharuch-Dahej (Gujarat), Igatpuri-Nasik-Sinnar (Maharashtra), and Pitampura-Dhar-Mhow (Madhya Pradesh) and other industrial regions of Meerut-Muzaffarnagar (Uttar Pradesh), Faridabad-Palwal (Haryana), Jaipur-Dausa (Rajasthan), Vadodara-Ankleshwar (Gujarat), Dighi Port (Maharashtra) and Neemuchh-Nayagaon (Madhya Pradesh). Besides, several industrial and residential townships are expected to come up in the hinterlands of the two DFCs with an all round potential for massive employment and prosperity in the country. According to the Planning Commission, the economic spin-off on account of the two DFCs will be immense with a potential for increasing the country’s GDPs by more than 20 per cent.

Meanwhile, the infrastructural and transportation consultancy arms of the Government of India, the RITES (Rail India Technical and Economic Services Ltd0 has been assigned to work out feasibility reports of four additional DFCs, comprising 2000 kilometres long East-West Corridor (Kolkata-Mumbai) route, 2173 kilometres long North-South) (Delhi-Chennai) Corridor, 1100 kilometres long East Coast (Kharagpur-Vijaywada) Corridor and 890 kilometres Southern Corridor (Chennai-Goa). The DFC projects are also intended to cover the other legs of the Golden Quadrilateral routes connecting the four Metros and its diagonals to complete the processes in the long run.

To give effect to the two DFCs, now underway, the density of traffic is saturated by 115 to 150 per cent on routes along it. The existing routes along the two DFCs are carrying over 55 per cent of the total traffic on the railways.

The initial DFC project costs estimated at Rs.30, 000 crores at 2006 price is expected to increase manifold in view of the ever-increasing high input costs. A special purpose vehicle called Dedicated Freight Corridor Corporation of India Limited (DFCCIL) has been established under the Ministry of Railways to plan, oversee and execute the fructification and operation of the two DFCs and proposed DFCs. As for the funding of the projects, a source in the Ministry of Railways, said that resouces are being mobilized from various avenues of bilateral, multilateral and other agencies and sources like World Bank and Japan International Cooperation Agency. So far, funding of Western Corridor Phase 1 to the tune of Rs.4500 crores has been arranged from the Japanese agency and remaining amount of Rs.11500 crores for the rest of the Western Corridor is underway. For the rest, arrangement is underway. Besides, DFCCIL has been infused with a paid up capital of Rs.500 millions and authorized capital of Rs.40, 000 millions, to be increased based on futuristic requirements. Current target for completion of the two DFCs is December 31, 2016 and for the first phase March 31, 2016.

The Chief Executive Officer of DFCCIL, known in official parlance as its Managing Director, R.K.Gupta is following in the footsteps of his two distinguished senior colleagues in Indian Railways, B.Rajaram and E.Sreedharan, who oversaw, planned and executed the fructification of the 760 kilometres long Konkan Railway along the Western Ghat to accelerate the engine of growth and prosperity in its hinterland and to increase mobility of people, goods and services in this part of India. One hopes Mr. Gupta will even better the records of the two legends to carve a niche for himself in the glorious history of Indian Railways. The Konkan Railway is famous for its engineering marvels and technological feat of India in the 20th century.

The DFCs were conceptualized and visualized by Nitish Kumar as the Union Minister of Railways during the NDA Government and shaped up by his successor Lalu Prasad during the UPA-1 Gvernment.