The move is expected to add value to several railway plots in the city and also give an impetus to the move by IRSDC to redevelop some of the major stations in the city by leveraging money gained from such land development
MUMBAI: In a major policy shift, the railway ministry and the Rail Land Development Authority (RLDA) have decided to allot a 43,000-sq.m Bandra plot for commercial development on a lease period of 80 years. The previous land lease period of 45 years had put a dampener on the realtors and had led to the lease tenders of this land failing four times since May 2014.
The move is expected to add value to several railway plots in the city and also give an impetus to the move by Indian Railway Stations Development Corporation Ltd (IRSDC)—a joint venture company of IRCON International Ltd (Ministry of Railways PSU) and Rail Land Development Authority (RLDA)—to redevelop some of the major stations in the city by leveraging money gained from such land development.
The financing of the Bandra-Virar elevated corridor which the government and the railway ministry want to build under the Private-Public Partnership (PPP) also depends heavily on the leveraging of vacant land.
As per the latest RLDA directive, bidders have been invited for the ‘grant of lease for commercial development for 80 years’ of the Bandra plot. The pre-bid meeting will take place on February 2 and the bids will be opened on March 22.
The money that will come in from the sale-lease of the Bandra plot will be used in three parts – one for a railway project in Mumbai, the other for a rail project in the state and the third part for a rail project anywhere in India.
With ticket revenues and advertisements unable to bring in the desired revenue, land development is the big idea that Railways believes will bring in the much needed funds.