Amid ongoing criticism regarding frequent derailments, the Indian Railways has received praise for its dedicated freight corridors.
A study by the University of New South Wales highlights the social-equalising impact of these corridors on states with lower income levels.
It concludes, "The dedicated freight corridors of the Indian Railways have had a social-equalizing effect, with states that have a lower per-capita GDP experiencing significant benefits. This indicates that the corridors are helping bridge the economic gap and promote more equitable growth across the country."
Published in the Elsevier Journal, the study focused on the Western Dedicated Freight Corridor (WDFC) for the financial year 2019-20. And its experts have noted that these corridors benefit various industries and consumers, significantly boosting the Indian economy.
The study has also found that while all regions see financial advantages, those nearer to the corridors benefit the most due to substantial reductions in freight costs, stated a report by The New Indian Express.
"The model indicates a universal decrease in freight costs, with GDP growth observed in regions experiencing the most significant cost reductions," the study stated. It also noted that the operationalisation of the dedicated freight corridor has lowered commodity prices by up to 0.5 percent.
Furthermore, the dedicated freight corridor accounted for 2.94 per cent of revenue growth for Indian Railways from FY 2018-19 to FY 2022-23.
The study has stated out that the DFC contributes to national economic benefits, particularly in western regions close to the corridor, while regions farther away also gain from reduced transportation costs, according to the Dedicated Freight Corridor Corporation of India (DFCCIL).
The DFCCIL explained that the study utilised a computable general equilibrium model initiated by the Ministry of Road Transport and Highways to evaluate the effects of infrastructure on regional and national economic growth.
The findings underscored a 'social-equalising effect,' benefiting states with lower per-capita GDP and suggesting the DFC aids in bridging economic disparities.
Overall, the DFCCIL emphasizes the dedicated freight corridor's significant role in lowering freight costs nationwide, which drives GDP growth and fosters equitable economic progress.
Notably, the 2,843-km dedicated freight corridor projects comprise the Eastern Dedicated Freight Corridor (EDFC) and the WDFC-traverse 56 districts across seven states and are 96.4 percent complete.
The EDFC spans 1,337 km from Ludhiana to Sonnagar in Bihar, while the WDFC connects Dadri in Uttar Pradesh to Mumbai. Currently, averages of 325 freight trains operate daily, marking a 60 percent increase from last year. Trains on the DFC are faster, heavier, and safer.
