The plan to redevelop stations through commercial exploitation of vacant land and space rights over station buildings is a positive announcement as it may involve modernization of the stations to generate additional revenues, says Sanjay Dutt, Managing Director-India, Cushman & Wakefield
“The railway minister presented a growth-oriented budget with focus on passengers and non-freight revenue generation. With the Indian Railways being one of the largest land holders in the country, the plan to monetize land tracts would not only benefit the Railways, but also give a boost to other involved sectors. The plan to redevelop stations through commercial exploitation of vacant land and space rights over station buildings is a positive announcement as it may involve modernization of the stations to generate additional revenues. However, there was no announcement on Transit-Oriented Development (TOD), which was much desired by the real estate sector in order to address challenges such as congestion and pollution by connecting through a mass-transport system and minimize the dependence on private modes of transport. The budget’s focus on 3 new dedicated freight corridors would provide opportunities for logistics sector and warehousing.
Freight corridors, development of stations to boost realty. Indian Railways could efficiently monetise land parcels, particularly in cities with higher densities; says other Industry experts from Realty Sector
Dedicated freight corridors and redevelopment of 400 railway stations would foster the transit oriented development and boost the real estate market, property consultants have said.
However, they said successful funding mechanism and timely implementation of these projects would be the key.
“The railway minister Suresh Prabhu’s announcement today on redevelopment of 400 stations through the private-public partnership (PPP) model is a very progressive and welcome move. This project will foster a plethora of large transit-oriented developments across the country, said Anuj Puri, Chairman & Country Head, JLL India.
Indian Railways could efficiently monetise their land parcels, particularly in cities with higher densities, by commercially exploiting existing railway stations through sale of space rights over them, he added.
Commenting on the Rail budget, CBRE South Asia CMD Anshuman Magazine said: “From a real estate and infrastructure perspective the budget had some key announcements focusing on infrastructure such as dedicated freight corridors including three new freight corridors and transit development.” These initiatives if implemented successfully would benefit the Industrial and logistics real estate segment, he added.
“However, successful funding mechanisms coupled with timely implementation of all these announcements are necessary to strengthen India s urban infrastructure,” Magazine said.
Railway Minister announced India’s first rail auto hub in Chennai and creation of dedicated north-south, east-west and east coast freight corridors by 2019.