DFCCIL Cancels Tata Projects Contract For Western DFC; The Project Will Be Delayed By 2 Years

DFCCIL Cancels Tata Projects Contract For Western DFC; The Project Will Be Delayed By 2 Years

November 14, 2022: The cancellation of the contract will push back the completion of the formerly delayed Western DFC connecting Dadri in Uttar Pradesh to the Jawaharlal Nehru Port in Maharashtra by at least two times to 2026.

Tata systems has sought a court stay on DFCCIL’s cancellation order. Citing” intolerable” detention in track placing, the Dedicated Freight Corridor Corporation of India ( DFCCIL) has terminated the deal rewarded to Tata systems for the construction of the 102- km- lengthy last afar expansion of the Western Dedicated Freight Corridor ( DFC).

Jawaharlal Nehru Port from Vaitarna in Maharashtra. The cancellation of the contract will push back the completion of the already delayed Western DFC connecting Dadri in Uttar Pradesh to the Jawaharlal Nehru Port in Maharashtra by at least two years to 2026.

DFCCIL had estimated the completion date of the project to be 2024. Also, as per the terms of the tender, Tata Projects and consortium partners will now be barred from future tenders of DFCCIL and other government bodies for a period of two years.

DFCCIL had in October this year rejected Tata Projects’ loan request to complete the contract for the 102-km-long stretch of the 1,506-km-long Western DFC project.

Ministry of Railways-run DFCCIL awarded the contract for civil and track work between Jawaharlal Nehru Port in Maharashtra and Makarpur near Vadodara in Gujarat to an express freight consortium led by Japan’s Mitsui & Company Ltd and including state-run IRCON International Ltd. and Tata projects in 2016 and 2017.

As part of the agreement with the consortium, the 422-km-long stretch was divided among the partner companies, with Tata Projects to complete the 134-km stretch from Makarpura to Sachin in Gujarat. ,

IRCON International won the 186-km long section from Sachin in Gujarat to Waitrana in Maharashtra and Tata Projects won the 102-km long section from Waitrana in Maharashtra to JLN Port from DFC.

IRCON and Tata Projects were to jointly work on the civil engineering work and track out. Mitsui & Company is the Project Management Consultant (PMC) for the entire 422-km section.

DFCCIL has commissioned only half of the entire 1,506-km Western DFC so far, and hopes to commission the remaining stretch up to Vaitarna by 2023.

However, DFC’s most problematic stretch—from Waitarana to JLN Port—is now expected. Completed by 2026.

Tata Projects has sought a court stay on the termination order by DFFCIL. A Tata Projects Ltd spokesperson told the Economic Times in October that the company had completed 39% of the work and the delay was due to land acquisition and site encroachment concerns.

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