The estimated cost of constructing railways' dedicated freight corridor (DFC) has jumped 60 per cent from the original projection.

In an interim report by RITES, an Indian Railways undertaking, the construction cost of the east and west corridors has gone up by Rs 13,000 crore to Rs 35,000 crore. The report estimated the eastern corridor to cost around Rs 15,200 crore, and the western corridor Rs 19,500 crore.

Government sources said the report was bound to put the railway ministry on the back foot, particularly when the project was taken up with the finance ministry. The railways had argued its case for being the main financer of the DFC, given the financial turnaround during the last two years.

The sources said reasons for the escalation included larger land needs and new technology. Some 500 km of the corridors will be built on a completely new alignment, for which the railways would have to acquire land.

The report is awaiting the comments of the railway ministry, after which it will be given a final shape and submitted to the railway board.