Indian Railways remains one of the largest owners of land in the country along with the defence services and the port trusts.
New Delhi: Aiming to increase revenue, Railways has firmed up plans to generate Rs 8000 crores through commercial development of rail land across the country.
There are many areas near railway stations, workshops, colonies which are lying unused and as per plan, these sites would be commercially developed, said a senior Railway Ministry official.
Railways has formed Rail Land Development Authority (RLDA) to commercially exploit these sites.
Currently, 49 sites measuring 497.21 hectares have been entrusted to Rail Land Development Authority (RLDA) for commercial development, the official said.
He said the extent of revenue likley to be earned from these sites will be Rs 7000 crore to Rs 8000 crore.
Besides these 49 sites, some more sites have also been identified for commercial use subject to their amenability for commercial development.
RLDA selects the developers through transparent and competitive bidding has been selected. At present developer for only one site, Vishakhapatnam has been selected. This site will earn revenue of Rs 12.10 cr for a lease period of 30 years.
Railways has no policy regarding provision for hospitals and hotel facilities near all busy and major railway junctions. However, at some locations where it is feasible and due to the demand, multi-functional complexes are being constructed which also have the provision of hotel.
Railways will redevelop stations by leveraging the commercial development on rail land and air space for which 28 major stations have been identified as on date.
It may be noteworthy to mention here that realty firm Parsvnath Developers earlier paid Rs 500.86 crore installment to the Rail Land Development Authority (RLDA) against the 38 acres of rail land that it had bought for Rs 1,651 crore located at Sarai Rohilla- Kishanganj in the national capital, from RLDA in 2010 through an auction. In May last year, a development agreement was executed between RLDA and Parsvnath Rail Land Project, a special purpose vehicle (SPV) incorporated for implementing this project wherein the company will develop luxury apartments, commercial/ shopping areas, railway housing, railway service building & common facilities, Hospital/School and other amenities.
Parsvnath has appointed Callison LLC of USA as architect for the project in co-ordination with architect Sikka & Associates and the company will develop this project in partnership with private equity firm Red Fort Capital.