Cabinet approves policy on long-term leasing of Railways land

09 Sep 2022 CW Team

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Ministry of Railway’s proposal to revise the railways’ land policy to implement PM Gati Shakti framework.

The revised railways’ land policy will enable integrated development of infrastructure and more cargo terminals. It provides for long-term leasing of railway land for cargo-related activities for a period up to 35 years @ 1.5% of the market value of land per annum. The existing entities using railway land for cargo terminals will have the option to switch to the new policy regime after a transparent and competitive bidding process. 300 PM Gati Shakti Cargo Terminals would be developed over the next five years. The policy also encourages the development of social infrastructure on railway land at a nominal annual fee of Rs 1 per sqm. per annum.

This will help in attracting more cargo to railways, and increase railways’ modal share in freight transportation thereby reducing the logistics cost of the industry and bringing more revenue to railways. It will simplify approvals for utilities as envisaged in PM Gati Shakti Programme. This will help in the development of public utilities in an integrated manner.

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