Delhi - Mumbai Freight Corridor

India’s most ambitious infrastructure project is facing aftershocks of Japan’s earthquake and tsunami as Japanese companies, whose participation is mandatory in the Tokyo-funded Delhi-Mumbai freight corridor, are reluctant to bid for the Rs. 6,000-crore project. With Japanese firms preoccupied with the reconstruction in their homeland, at least 30 Indian firms were unable to bid for the project as they couldn’t find partners from Japan to qualify for the tender for civil works for the Haryana-Gujarat leg of the project for which construction will start next March. Only Mitsui, Sumitomo and Solitz from Japan in partnership with Indian companies such as Larsen & Toubro, Gammon and Ircon have responded to the tender issued by the Dedicated Freight Corridor Corp of India (DFCCIL), a company promoted by the Indian Railways. The tender, which will be awarded by the end of this year, had initially attracted 36 Indian firms. The Rs 77,000-crore Dedicated Freight Corridor project will build new tracks to transport containers and commodities at maximum speeds of 100 km an hour, reducing travel time by a third and would create an opportunity to create one of the world’s largest freight operations by adopting international technologies. Earlier, DFCCIL had invited bids by May 31 in which 36 Indian and six Japanese companies had shown interest. The dates had been postponed to June 15 as certain modalities had to be worked out. It wants to implement the project on schedule and has already acquired land for 90% of the stretch. DFFCIL officials ruled out any extension for submission of pre-qualification bids or any changes in the clause that have been laid down in the loan agreement. “There is no possibility of any extension for the bids. Three bids is a good number for an overseas contract,” said PN Shukla, directoroperations & business development, DFCCIL said. The official said that roping in Japanese companies would help in timely execution of the project. The selected Japanese firm would have a 51% stake and would be responsible for the execution of the contract. The deferment of the project by even a year can lead to losses to the tune of Rs 3,500 crore, officials said. “International funding is important because domestic borrowing is expensive,” Mr Shukla said. He reiterated on the reliability of Japanese technology in locomotives and signaling. The contract mandates 30% of material requirements to be sourced from Japan.