BDRCL was incorporated on 15 November 2006 in New Delhi as a public limited company. Its primary mandate was to convert the existing 61.6 km narrow-gauge railway line between Bharuch and Dahej Port into a broad-gauge corridor, thereby enabling high-capacity freight movement. Later, the project was extended by an additional 5.52 km stretch between Bharuch and Chavaj, bringing the total length to 67.12 km. The scope of the project shall include the performance and execution of all activities relating to the development, financing, design, construction, Rail operation and maintenance of the project railway of BDRCL, in accordance with the provisions of the conversion agreement. The project was identified as a critical Port Connectivity and Gauge Conversion initiative under the NRVY, launched in December 2002. NRVY aimed to augment India’s rail infrastructure through non-budgetary investments, focusing on three pillars: gauge conversion, port connectivity, and multimodal corridors to the hinterland.