Under the Eleventh Five Year Plan of India (2007–12), the Ministry of Railways started constructing a new Dedicated Freight Corridor (DFC) in two long routes, namely the Eastern and Western freight corridors. DFCCIL The two routes cover a total length of 3,260 kilometres (2,030 mi), with the Eastern Dedicated Freight Corridor stretching from Ludhiana in Punjab to Dankuni in West Bengal and the Western Dedicated Freight Corridor from Jawaharlal Nehru Port in Mumbai (Maharashtra) to Dadri in Uttar Pradesh. Upgrading of transportation technology, increase in productivity and reduction in unit transportation cost are the focus areas for the project.
DFCCIL has been designated by the Government of India as a 'special purpose vehicle', and has been created to undertake planning & development, mobilisation of financial resources and construction, maintenance and operation of the Dedicated Freight Corridors. DFCCIL has been registered as a company under the Companies Act 1956 on 30 October 2006.
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