A consortium of Japanese conglomerate Sojitz Corp. and domestic infrastructure major Larsen and Toubro has won a contract to develop the first phase of India’s long-planned rail freight corridor between Delhi and Mumbai.
The project, worth approximately $1.2 billion, is part of Indian Railways’ Western Dedicated Freight Corridor, which aims to remove supply chain bottlenecks and improve the country’s existing rail infrastructure to help increase freight capacity.
The rail route is designed to connect Dadri, a major hinterland cargo hub near Delhi, with Jawaharlal Nehru port (Nhava Sheva). Nehru handles almost 60 percent of India’s total containerized traffic.
“The contract calls for construction of a 389-mile double-track corridor from Rewari in Haryana to Iqbalgarh in Gujarat, via Rajasthan, spanning three states. This is the country’s largest project awarded so far in rail sector and the first-of-its-kind in India,” L&T said in a statement.
Work is expected to start later this year and is scheduled for completion in 2017.