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The Bharuch Dahej Railway Company Limited (BDRCL) is a Special Purpose Vehicle (SPV) set up with the objective of the Gauge Conversion of the existing 63 kilometre Narrow Gauge Railway Line between Bharuch and the Port of Dahej in Gujarat to Broad Gauge. The project is significant in view of the developments taking place at Dahej where additional privately managed jetties are being constructed for import of coal and fertilizer and the Government of India has identified Dahej as a Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) where development has already begun. This is in addition to the petrochemical, copper, fertilizer and steel pipe industries already based in the area. The area is in the next few years likely to become a major industrial hub along Delhi Mumbai industrial Corridor which will generate significant volumes of rail borne freight traffic. The Railway Line shall also be an important Feeder Route to the Western Dedicated Freight Corridor currently under construction.
The Project has been identified as an important Port Connectivity and Gauge Conversion Project under the National Rail Vikas Yojana (NRVY) launched in December 2002. NRVY had been conceived primarily as a non-budgetary investment initiative for the augmentation of rail infrastructure in the country with focus on the three key areas of Gauge Conversion, port connectivity and multimodal corridors to the hinterland. The Gauge Conversion of the line is being under taken by the Rail Vikas Nigam Limited (RVNL), a special purpose vehicle set up by the Government of India for execution of bankable Projects under the National Rail Vikas Yojana (NRVY). The Company shall enter into a Construction Agreement for this purpose with RVNL.
The Company under a Concession Agreement entered into with the Ministry of Railways has already been granted concession of the project line. The Company is required to undertake the financing and development during the construction phase. Thereafter it shall manage the project line and enter into an Operation & Maintenance Agreement with Western Railway for a period of 30 years or until the NPV payback benchmark of 14% is attained, whichever, is earlier.