12-13-2006, 10:48 PM
Exclusive for Laloo's Fanclub
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Rlys freight corridor cost escalates 60% to Rs 35,000 cr </b>
SURABHI
Posted online: Wednesday, December 13, 2006 at 0205 hours IST
NEW DELHI, DEC 12: The estimated cost of constructing the railways ; dedicated freight corridor has jumped a dramatic 60% from the original projection.
In an interim draft report by RITES, an Indian Railways undertaking, the construction cost of the east and west corridors has gone up a whopping Rs 13,000 crore to Rs 35,000 crore, from the earlier estimate of Rs 22,000 crore.
The report estimated the eastern corridor to cost around Rs 15,200 crore, and the western corridor Rs 19,500 crore.
Government sources said the report was bound to put the railway ministry on the back foot, particularly when the project was taken up with the finance ministry. The railways had argued its case for being the main financer of the corridor, given the financial turnaround.
The sources said the main reasons for the escalation included larger land requirements and new technology. About 500 km of the corridors will be built on a completely new alignment, for which the railways would have to acquire land.
According to the draft report, the eastern corridor would cover 1,280 km, of which 280 km would be on a new alignment. Similarly, the western corridor will cover 1,483 km, of which 276 km will be diverted. The report awaits ministry comments.
The journey so far
 Feb: Railway Budget announces work on freight corridor to start with an estimated cost of Rs 22k cr
 Jun: Approaches Cabinet, but differs with finmin over financing plan; GoM formed
 Aug: Cabinet approves proposal, with railways to go in for EPC & PPP
 Nov: Railways forms SPV to construct the freight corridors
<!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Rlys freight corridor cost escalates 60% to Rs 35,000 cr </b>
SURABHI
Posted online: Wednesday, December 13, 2006 at 0205 hours IST
NEW DELHI, DEC 12: The estimated cost of constructing the railways ; dedicated freight corridor has jumped a dramatic 60% from the original projection.
In an interim draft report by RITES, an Indian Railways undertaking, the construction cost of the east and west corridors has gone up a whopping Rs 13,000 crore to Rs 35,000 crore, from the earlier estimate of Rs 22,000 crore.
The report estimated the eastern corridor to cost around Rs 15,200 crore, and the western corridor Rs 19,500 crore.
Government sources said the report was bound to put the railway ministry on the back foot, particularly when the project was taken up with the finance ministry. The railways had argued its case for being the main financer of the corridor, given the financial turnaround.
The sources said the main reasons for the escalation included larger land requirements and new technology. About 500 km of the corridors will be built on a completely new alignment, for which the railways would have to acquire land.
According to the draft report, the eastern corridor would cover 1,280 km, of which 280 km would be on a new alignment. Similarly, the western corridor will cover 1,483 km, of which 276 km will be diverted. The report awaits ministry comments.
The journey so far
 Feb: Railway Budget announces work on freight corridor to start with an estimated cost of Rs 22k cr
 Jun: Approaches Cabinet, but differs with finmin over financing plan; GoM formed
 Aug: Cabinet approves proposal, with railways to go in for EPC & PPP
 Nov: Railways forms SPV to construct the freight corridors
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