Choosing the Appropriate Project Management Structure, Project Financing, Land Acquisition and Contractual Process for Indian Railway Mega-Projects: A Case Study of the Dedicated Freight Corridor Project

Abstract

A large number of railway mega-projects are planned or are under implementation for capacity augmentation, for serving the needs of trade, specific regions or industry sectors. Since transport capacity is one of the main levers of economic progress, it is essential that augmentation of transport capacity is not held up. It is therefore essential to choose the appropriate project management structure, project financing, land acquisition and contractual process to ensure design, construction and commissioning of projects without cost and time overruns. These choices have to be made keeping in view the context of the organisational technical capacity, financial capability, contractor capacity, and industry and trade growth pattern. This paper examines the various project management structures, methods of project financing, land acquisition and contractual processes along with their advantages and disadvantages. The paper takes the specific case of the Dedicated Freight Corridor project to examine the appropriateness of options.

Keywords: railway; organisation; contracts; financing; land acquisition; India

JEL Classification: O22, L92, N75, K12