Private Freight Terminal Policy under Dedicated Freight Corridor of Indian Railways

This slideshow requires JavaScript.

Dated: 29.11.2019

Private Freight Terminal Policy under Dedicated Freight Corridor of Indian Railways

Dedicated Freight Corridors (DFC) presently comprising of Eastern Dedicated Freight Corridor and Western Dedicated Freight Corridor, have been conceived as Railway Freight Expressways whose commissioning will provide a quantum jump in rail capacity for transportation of freight traffic. It will create a paradigm shift in the freight transport logistics and services.

The commissioning of DFC will revolutionise the freight movement scenario facilitating speedier & reliable services, providing impetus for industrial growth, and help diversify logistics options.
DFC will help in shifting traffic predominantly moving by road to rail and in increasing share of railways in the overall transport chain.
This policy will facilitate development of PFTs (Private Freight Terminals). Objectives of the policy:-

Enable rapid development of network of freight handling terminals with the participation of Private Sector.
Improvement in service quality with participation of the logistics service providers with world-class logistics facilities.
Divert traffic so far predominantly moving by road to rail and enhance the share of Railways in transport and logistics business.

Key Highlights of PFT Policy DFC:

a. Group General Manager / General Manager (Business Development) will be the Nodal officer for processing the proposal for PFT rail connectivity with DFC in consultation with concerned branches / departments / agencies.

b. Managing Director will be the Competent Authority (CA) for approving the proposal of rail connectivity for a PFT

Eligibility for Applicants -Terminal Management Company (TMC):

6.1 A Terminal Management Company (TMC) should be :
6.1.1 A company registered in India under the Companies Act, 1956, or Company Act, 2013, or
6.1.2 A public sector entity (PSUs or organizations created under an act of Parliament), or
6.1.3 An entity registered as a Cooperative Society under the Cooperative Societies Act 1912, or
6.1.4 An entity owning an existing Private siding or an Assisted Siding, or
6.1.5 Subsidiary of an entity covered in 6.1.1 or 6.1.2 above, or
6.1.6 A joint venture company or
6.1.7 A consortium.
6.2 In case of more than one application for a PFT at the same location, the applicant with higher experience in the business of logistic service will be preferred. In case of subsidiary company, experience of the holding company may be reckoned for the purpose of experience. In case of joint venture or consortium, experience of lead member or a member, who has at least 26% equity share, may be reckoned for the purpose of experience.

Application Fee

9.1 Applicants of both Greenfield and Brownfield PFT’s will be required to deposit Rs.50 lakhs (nonrefundable) as Application Fee at the time of applying for setting up a PFT. The fee is to be deposited as per the extant procedure prescribed by DFCCIL.
9.2 If an application for a PFT is rejected for any reason whatsoever, 99% of the application money will be refunded to the applicant within 30 days of such decision.

Security Deposit

10.1 A security deposit of Rs. 2 Crores will be deposited by the applicant within three (03) months of granting In Principle Approval (IPA) for rail connectivity of PFT by DFCCIL, failing which the approval shall be withdrawn. The Security Deposit will be accepted in the form of Bank Draft or Bank Guarantee.
10.2 Upon successful completion of the PFT, 99% of the security deposit will be refunded within 30 days of issue of notification of the PFT.

Key Highlights of DFC:

Eastern Dedicated Freight Corridor

Length: 1840 Kms from Ludhiana in Punjab to Dankuni near Kolkata, West Bengal
Stretch between Son Nagar in Bihar to Dankuni to be developed on PPP basis
Project funded by The World Bank

Western Dedicated Freight Corridor

Length: 1499 Kms from Dadri in Uttar Pradesh to JNPT, Mumbai passing through the DMIC (Delhi-Mumbai Industrial Corridor)
Project funded by The Govt. of Japan & JICA (Japan International Cooperative Agency)

Private Freight Terminal Policy under Dedicated Freight Corridor of Indian Railways