Sojitz Corporation (“Sojitz”), together with Indian company Larsen & Toubro Ltd. (“L&T”), has received an additional contract (JPY 12 billion) for signal and telecommunications work on the Western Dedicated Freight Corridor (“Western DFC”). The contract comes from Dedicated Freight Corridor Corporation of India, the Indian government’s special purpose vehicle overseeing the project. Combined with previously received contracts for civil/track works and electrification, this contract brings Sojitz’s total contractual amount for the Western DFC to JPY 282 billion.

This contract covers signal and telecommunications work for a 422km segment of track of the Western DFC’s total 1,500km length, between Vadodara, Gujarat and Jawaharlal Nehru Port (JNPT) in Maharashtra. Construction is scheduled to begin within the 2016 fiscal year.

As consortium leader, Sojitz oversees the entirety of the project and is primary contractor alongside L&T, who will handle the project’s overall planning, construction, and management. The project is being developed with a yen-based loan under Japan’s STEP (Special Terms for Economic Partnership)* program, meaning that roughly 40% of the project’s money must be used to procure Japanese-made products. Sojitz will provide the signaling equipment, traffic control system, a signaling system to control train lines, and a telecommunications system to connect all of these, thereby contributing to the safety and efficiency of train operations along the Western DFC. With this contract, Sojitz is now responsible for core railway construction on the Western DFC, including civil/track works, electrification, signaling, and communications work.

By being heavily involved in the construction of the Western DFC and contributing to the modernization of India’s infrastructure, Sojitz will help raise India’s presence on the global stage. Sojitz will utilize its wide-ranging experience in railway construction to further expand work on infrastructure businesses in India and in other countries around the world.

[Segment Targeted for Signal and Telecommunications Work]

Related Information:

Larsen & Toubro Ltd. – Company Overview

Company Name	Larson & Toubro Ltd. （Listed on the Bombay Stock Exchange and National Stock Exchange of India）
Head Office	Mumbai, India
Overview	Founded in 1938, L&T is India’s largest general contracting and engineering company. They are developing a wide range of diverse businesses around the world, starting with their primary services: construction, electrification works, and engineering. They have a wealth of experience in constructing roads, railways, bridges, ports, airports, water treatment, buildings, and factories. Total sales: approx. JPY 1.6 trillion.

 

Dedicated Freight Corridor Corporation of India Ltd. – Company Overview

Head Office	Delhi, India
Overview	Public company established by the Indian Ministry of Railways in 2006 to construct, maintain, and manage dedicated freight railways in India.

（＊）Special Terms for Economic Partnership (STEP) refers to a yen-based loan system where the financing includes conditions requiring that a certain ratio of the materials procured for the project be made in Japan, In order to make full use of Japan’s high-quality technology and knowhow, as well as encourage Japan to provide overt aid through technology transfer to emerging nations.

Overview of Sojitz’s Contracts for the Western DFC

Project	Received	Description	Track Segment	Partner	Finish	Amount
Civil & Track Works Package 1&2	June ‘13	Civil and track works and accompanying construction, construction of freight stations and bridges, etc.	Rewari, Haryana to Ikbalgarh, Gujarat (626km)	L&T	Summer ‘17	Approx. JPY 110 billion
Electrificat -ion Works Package 4	Nov. ‘14	Construction of 16 traction substations, installation of overhead electric wires, etc.	Rewari, Haryana to Vadodara, Gujarat (915km)	L&T	Spring ‘19	Approx. JPY 50 billion
Electrificat -ion Works Package 16	Jan. ‘16	Construction of 7 traction substations, installation of overhead electric wires, etc.	Vadodara, Gujarat to Jawaharlal Nehru Port, Maharashtra (JNPT) (422km)	L&T	Fall ‘19	Approx. JPY 20 billion
Civil & Track Works Package 3R	Feb. ‘16	Civil and track works and accompanying construction, construction of freight stations and bridges, etc.	Ikbalgarh, Gujarat to Vadodara, Gujarat (289km)	L&T GP	Spring ‘20	Approx. JPY 90 billion
Signal & Telecommunications Work Package 17	May ‘16	Traffic signals, signaling system, railway traffic control system, etc.	Vadodara, Gujarat to Jawaharlal Nehru Port, Maharashtra (JNPT) (422km)	L&T	July ‘24	Approx. JPY 12 billion
Total		Approx. JPY 282 billion