IRSDC signs MoU with State Bank of India for Project Financing

NEW DELHI: Indian Railway Stations Development Corporation Limited (IRSDC), a Joint Venture Public Limited Company of IRCON International Limited (IRCON) and Rail Land Development Authority (RLDA) has today signed a Memorandum of Understanding (MoU) with State Bank of India (SBI), country’s largest Public Sector Bank and SBI Capital Markets Limited (SBICAP), India’s leading Investment Bank and Project Advisor, for financing of the project cost towards redevelopment/ development of some identified stations.

Mr. Vishwesh Choubey, Chairman – IRSDC & Member Engineering – Railway Board, Mr. O P Singh, Principle Executive Director  – Station Development – Ministry of Railways, Mr. Sanjeev Kumar Lohia, MD & CEO -IRSDC, Mr. Arjit Basu, MD – SBI, Mr. Prabodh Parikh, CGM – SBI, Mr. Mukul Modi, SVP, PA& SF – SBICAP and other dignitaries were present during the MoU signing ceremony.

Station redevelopment and commercial exploitation of airspace above stations and surrounding railway land has a potential of generating very high revenue surplus besides transforming the customer experience. This is a mammoth programme requiring initial capital investments to the tune of Rs 1,00,000 crore and extensive involvement of all stakeholders i.e. Railway Passengers, Engineers, Urban Planners, Architects and other professionals besides the Contractors and Developers.

IRSDC, the nodal agency for redevelopment/ development of railway stations in India, plans to execute the work in a phased manner and proposes to initially develop approximately 50 stations, part funding for which is proposed to be raised in form of term loans. Accordingly, IRSDC, SBI and SBICAP have agreed to enter into a MoU. SBICAP would act as the Advisor cum Arranger for tying up the Facility. Under the MoU, IRSDC, SBI and SBICAP will cooperate for achieving the following objectives:

  • To arrive at a broad understanding for the funding transaction on the basis of identified stations and commercial development of adjoining land parcels.
  • To achieve a funding mechanism which is optimal to the needs of both IRSDC and SBI.
  • To tie up fund requirement towards the redevelopment/ development of stations.

IRSDC has been entrusted all stations by Ministry of Railways for undertaking Techno-economic feasibility studies, master plans and business plans to undertake development/redevelopment of the stations. The Company is undertaking the work of development/re-development of the existing /new railway station(s) which will consist of upgrading the level of passenger amenities by new constructions/renovations including re-development of the station buildings, platform surfaces, circulating area, etc., to better standards so as to serve the need of the passengers. It will also undertake project for development of real estate on Railway/Government land and its commercial utilization as may be required in connection with development of railway stations.