1. Presentation on Coal Market in India 2012 2 th Annual Conference 10.07.2012 P N Shukla Director (Operations and Business Development) DFCCIL, New Delhi 1

2. DFCC PROJECT AN OVERVIEW

3.  Transport Sector : Present Scenario  Indian Railways :  Overview  Areas of Concern  Possible Solutions  Dedicated Freight Corridor  Overview  Traffic Projections  Funding Arrangements  Opportunities  DMIC – An Added Feature  Impact on Urbanization  Social & Environmental Issues on DFC  Carbon Footprints of Dedicated Freight Corridor Scope of Presentation

4. Transport Sector – Present Scenario ONE OF THE LARGEST IN THE WORLD SERVES A LAND MASS OF 3.3 MILLION M 2 AND POPULATION OF OVER ONE BILLION ENORMOUS GROWTH OF TRANSPORT SECTOR IN THE LAST 50 YEARS – VOLUME OF RAILWAY FREIGHT INCREASED TEN FOLDS. – LENGTH OF SURFACED ROADS INCREASED NINE FOLDS – TONNAGE HANDLED BY INDIA’S MAJOR/MINOR PORTS INCREASED SIXTEEN FOLDS – AIR FREIGHT TONNAGE INCREASED 30 FOLDS Source:- India Vision 2020

5. “Clogged Rail Lines Slow India’s Development” New York Times June 15, 2010 “Clogged Rail Lines Slow India’s Development” New York Times June 15, 2010 Distance Travel Time (Freight) Singapore – Mumbai Port 2400 Nautical Miles 4 – 5 days Mumbai Port - Delhi870 Miles More than 1 Weeks

6. Indian Railways – An Overview

7. AN INCREASE OF 400.3 MT OVER 50 YEARS

8. Indian Railways – An Overview

9. Railways Vision 2020 Enhance gross revenue from 1.2% to 3% of GDP by 2020 Annual growth of 10% for next ten years Network expansion by 25,000 Kms. by 2020 Segregation of passenger and freight lines on high- density network routes Maximum speed of passenger trains to be raised from 110 / 130 Kmph at present to 160 / 200 Kmph on segregated routes by 2020 Increase the speed of freight trains from 75 to 100 Kmph Gauge conversion programme to be completed Electrification of 33,000 Kms. of routes Making railway operations free of accidents

10. COMMODITY (MT) (UP+DN) 2011-122016-172021-22 Container1.402.183.28 COAL55.0276.8097.61 Foodgrains1.751.922.12 Fertilizers2.883.414.01 Cement4.937.2810.54 Salt0.520.570.62 I&S6.729.0812.78 POL1.531.942.40 Misc.5.847.108.65 Empties0.00 RORO0.008.4011.22 TOTAL80.59118.68153.23 Traffic Projections On DFC Route On Eastern Corridor Source: Business Plan of DFC

11. CAPACITY BUILDING IN THE RAILWAYS ONLY TWO POSSIBILITIES _ _ _ _ _ UPGRADING THE EXISTING NETWORK. CREATION OF A NEW DEDICATED FREIGHT CORRIDOR.

12. GOLDEN QUADRILATERAL & ITS DIAGONALS ARE BUSIEST ROUTES OF IR High Density Corridor (Golden Quadrilateral + Diagonals) 16% of route Km carries 52% of passenger & 58 % of freight DELHI MUMBAI KOLKATTA CHENNAI

13. 13 CONCEPT PLAN OF DEDICATED FREIGHT CORRIDOR NETWORK MUMBAI DELHI CHENNAI KOLKATA LUDHIANA VIJAYAWADA Sanctioned projects Unsanctioned projects VASCO DELHI LUDHIANA MUMBAI DELHI

14. Dankuni Ludhiana

15. Feeder Routes – Eastern Corridor

16. Rewari J N PORT

17. Feeder Routes of Western Corridor

18. State-wise Kms. (approx.)StateKms. West-Bengal221 Jharkhand319 Bihar93 Gujarat588 Haryana274 Maharashtra166 Punjab102 Rajasthan553 U.P.1002 Total3318

19. CORRIDOR Route Length (Km) Basic Const. Cost (Cr.) Eastern Corridor- Dadri – Khurja - Sonnagar – Dankuni (D/L) 1422 Kms Khurja - Ludhiana (S/L) 413 Kms 1835 23605 Western Corridor- from JNPT (Near Mumbai) to Dadri via Palanpur – Ajmer – Phulera – Ringus – Rewari 148322956 Total * Cost at 2009 prices 331846561* Length & Cost of Corridors

20. Completion Cost as Per Business Plan Eastern CorridorRs 39127 Crs Western CorridorRs 38503 Crs TOTALRs 77630 Crs  The additional costs are on account of inflation and soft costs such as Insurance, Taxes, Contingency and Interest during construction.  The Project Completion is 31/3/2017.

21. FUNDING ARRANGEMENT  Eastern Corridor : Mughalsarai – Khurja 732 Kms (D/L) World Bank Khurja – Ludhiana 413 Kms (S/L)World Bank Sonnagar-Mughalsarai 122 Kms (D/L)GOI Sonnagar-Dankuni 534 Kms (D/L)On PPP Mode  Western Corridor : Rewari – Vadodara 920 Kms (D/L) JICA (Ph.I) Dadri-Rewari & 605 Kms (D/L) JICA (Ph.II) Vadodara - JNPT

22. Importance of DFCC Dedicated Freight Corridor enlisted as one of the iconic/ Flagship project of India. The Progress of DFCC is being monitored by:  Cabinet Committee on Infrastructure (CCI) chaired by PM, High Power Committee under the Chairmanship of Principal Secy. to PM, Standing High Power Committee of Railway Board, Committee of Additional member & Advisor of Railway Board  Considering its importance of the Project MOR has been asked to submit monthly progress report to Planning Commission.

23. Traffic Growth with DFC on Busy Sectors of EDFC & WDFC (Number of Trains per day both ways) Eastern Corridor 2016-172021-222026-272031-32 Sonnagar - Mughalsarai 155183214244 Mughalsarai – Allahabad - Khurja 124149180226 Western Corridor 2016-172021-222026-272031-32 Palanpur - Rewari 181252321377 JNPT - Palanpur 125172263307 Traffic nearly doubles after 15 years

24. DFCCIL & ITS MANDATE

25. BRIEF PROFILE OF THE COMPANY DFCCIL registered as Schedule ‘A’ Company under the Companies Act 1956 on 30th Oct, 2006 100% Ownership of GOI-to begin with. Authorized Capital 4000 Crores. Paid Up Capital 1165 Crores. Debt : Equity 2: 1 100% Equity of Ministry of Railways.

26. Mandate for DFC as per Cabinet Decision DFC project to be implemented through SPV. SPV entrusted with planning, construction, maintenance and operation of DFC infrastructure. SPV to be independent in decision making and should be able to function with market focus and business orientation during Construction maintenance & operation. SPV to have status of railway administration under Indian Railways Act, 1989. The relationship with Railways and DFCC to be governed by Concession Agreement. All contracts would be based on Design & Build lump sum with time bound completion.

27. MILESTONE ACHIEVED April 2005 MR announced in the Parliament the need and planning for the project. August 2005 PM announced development of DFC in his I-Day Speech. August 2006 CCEA approved formation of a SPV (DFCCIL) for execution of the project. October 2006 DFCCIL incorporated as a Company. February 2007 CCEA approved the PETS reports by RITES at a cost of 28000 crores. February 2008MR’s commitment in Parliament to start work on Both Corridors during 2008-09. March 2010JICA Loan Agreement signed for Western Corridor. March 2011World Bank loan for Phase-I Eastern Corridor finalized May 2011WB sanctioned loan for Khurja – Kanpur March 2012Kanpur-Khurja bids opened. Contract likely to be awarded by Sept 12. 27

28. 28 Basic Design Features Height Width 4.265 m 7.1 m 3200 mm 3660 mm 700 m 700/ 1500 m 4,000 Ton 15,000 Ton 5.1m Western CorridorEastern Corridor Moving Dimensions Container Stack Train Length Train Load Indian Railway DFC Routes Western CorridorEastern Corridor

29. 29 Heavier Axle Loads Axle Load Track Loading density 22.9 t / 25 t 32.5t/25 t 8.67 t/m 12 t/m 75 Kmph 100 Kmph Basic Design Features (Contd) Indian Railway DFC Routes Maximum Speed Grade Upto 1 in 1001 in 200

30. Operating Aspects of DFCC DFCC to manage train operation on DFC. DFCC to have stations and control centres. There will be Junction points at every 100-150 kms for interchange of traffic between DFC and IR. The rolling stock to be provided by IR. Maintenance facilities for rolling stock to be provided by IR. 896 Level Crossings on Eastern and Western Corridors to be replaced with ROBs/ROB’s 30

31. 31 Timelines for DFC Construction Eastern Corridor Commissioning of Eastern Corridor 31 December 2016 Western Corridor Phase – I Commissioning of Rewari – Vadodara 31 st December 2016 Phase – II Full Commissioning of J.N. Port - Dadri 31 st March 2017

32. Future of Coal Transportation by DFC  Induction of 25T axle load wagon.  Change in CC of trains from 4000 T to 6500 T.  Introduction of bottom discharge wagons.  Time guarantee for train movement.  Reduction in transit time to half.  Economy & Reliability in coal movement.  Unit cost of transport in DFC to come down by 40 %.  Power & Coal companies may have freedom of special wagons.  Transit Guraantee Agreement with Power & Coal companies for coal movement.

33. Carbon Footprints of Dedicated Freight Corridor - 2.5 x- 6 x Eastern Corridor (1975 Billion Tonne-Km) Western Corridor (3241 Billion Tonne-Km) Cumulative GHG emissions over 30 years 116 47.5 466 77 Source: Report on ‘Green House Gas Emission Reduction Analysis for DFC’ by Ernst & Young

34. FUTURE 4 CORRIDORS MR announced study of other four corridors in her Budget Speech in February 2010.  East – West Corridor (Kolkata–Mumbai) 2000 Kms.  North-South Corridor (Delhi-Chennai) 2173 Kms.  East Coast Corridor (Kharagpur-Vijayawada) 1100 Kms.  Southern Corridor (Chennai-Goa) 890 Kms. DFCCIL has assigned this study to RITES which will take about 2 years.

35. DELHI – MUMBAI INDUSTRIAL CORRIDOR (DMIC) – AN ADDED ADVANTAGE FOR DFC Focus is on ensuring high impact developments within 150km distance on either side of alignment of DFC Area under Project Influence is 14% and population is 17% of the Country Total Population in the Project Influence Area : 178Mn Total Workers in the Project Influence Area: 70.56Mn As per Census-2001 DFC Alignment End Terminal Haryana Dadri J.N.Port Rajasthan Maharashtra Gujarat Madhya Pradesh Haryana Uttar Pradesh