Infra major Larsen and Toubro (L&T) along with Japanese major Sojitz Corporation may bag a large dedicated rail freight corridor contract valued at about Rs 6,700 crore.
This will be the country’s single largest railway contract and involves civil and track construction of 640-km stretch between Rewari in Haryana and Palanpur in Gujarat. The stretch is a part of the 1,483-km Western dedicated rail freight corridor to be built between Dadri near Delhi and JN Port near Mumbai.
“L&T and Sojitz consortium have emerged as the lowest bidders for the Rewari-Palanpur contract. The consortium has submitted a price bid of about Rs 6,700 crore,” sources told Business Line. The competing bidder – Ircon-Mitsui-Leighton consortium – has submitted a price bid of about Rs 11,000 crore.
None of the sources wanted to be named as the tender is yet to go through the approval processes. A final decision is expected next month. There were only two qualified bidders for the contract, as the conditions required tie-up with a Japanese firm. The Western freight corridor is being built with low-cost funds of Japanese International Cooperation Agency (JICA). The loan condition requires about 30 per cent of project value to be given to Japanese firms.
JICA has offered a low-cost loan of 136 billion yen for construction of freight corridor between Dadri and JN Port, at an interest rate of 0.2 per cent, to be repaid over 40 years.
For the Indian Railways’ dedicated freight corridor, this will be the second tender to be awarded during the year.
Earlier this year, a consortium of Tata Projects and Spanish firm Aldesa bagged a Rs 3,300-crore civil works contract to build a rail track between Bhaupur and Khurja in Uttar Pradesh, a 343-km segment of the dedicated Eastern freight corridor.
The consortium beat nine bidders. The Eastern freight corridor project is funded by the World Bank.
This will be the country’s single largest railway contract and involves civil and track construction of 640-km stretch between Rewari in Haryana and Palanpur in Gujarat