+
Railways to release vast land for commercial development
RAILWAYS & METRO RAIL

Railways to release vast land for commercial development

The Indian Railways plans to release for commercial development out of the 43,000 hectares of surplus land, about 60% of Delhi city's size.

The possible bidders include Arabian Construction Company, Adani Railways Transport, Kalpataru Power Transmission. GMR Highways and Omave.

The project will be stored by the Railway Special Purpose Vehicle (SPV), the Rail Land Development Authority (RLDA). A statement from the company announcing the bidders' names noted it should be its flagship project with a projected expenditure of around Rs 5,000 crore.

The Railways’ plan is the largest piece of comparable asset monetisation of government land taking place in India.

The Delhi Development Authority (DDA) is contesting 19,943 cases. While not comparable in its short history of 13 years, the RLDA has already run up 13 such cases, including one arbitration case with a potential liability of over Rs 100 crore.

Under the design-build-finance operate transfer (DBFOT) model, the successful bidder will run the station for 60 years, handing over the management back to the department after that.

The challenge comes from the carte blanche on revenue stream RLDA is offering to the bidder. Under the scheme, the bidder will spend Rs 4,925 crore to redevelop the station, with the necessary road connections through flyovers, relocate railway offices and buildings. The bidder shall get the rights to develop all permissible commercial developments such as retail, hotels, offices and serviced apartments in and around the station on Railways land.

It could have learnt from the Ministry of Roads and Surface Transport's asset monetisation plan. The National Highways Authority of India (NHAI) has hawked five sets of properties to foreign and domestic companies such as Macquarie and Cube but retains the upside.

Image Source


Also read: RFPs invited for Raj railway land lease

Also read: Bids invited for lease of railway land

The Indian Railways plans to release for commercial development out of the 43,000 hectares of surplus land, about 60% of Delhi city's size. The possible bidders include Arabian Construction Company, Adani Railways Transport, Kalpataru Power Transmission. GMR Highways and Omave. The project will be stored by the Railway Special Purpose Vehicle (SPV), the Rail Land Development Authority (RLDA). A statement from the company announcing the bidders' names noted it should be its flagship project with a projected expenditure of around Rs 5,000 crore. The Railways’ plan is the largest piece of comparable asset monetisation of government land taking place in India. The Delhi Development Authority (DDA) is contesting 19,943 cases. While not comparable in its short history of 13 years, the RLDA has already run up 13 such cases, including one arbitration case with a potential liability of over Rs 100 crore. Under the design-build-finance operate transfer (DBFOT) model, the successful bidder will run the station for 60 years, handing over the management back to the department after that. The challenge comes from the carte blanche on revenue stream RLDA is offering to the bidder. Under the scheme, the bidder will spend Rs 4,925 crore to redevelop the station, with the necessary road connections through flyovers, relocate railway offices and buildings. The bidder shall get the rights to develop all permissible commercial developments such as retail, hotels, offices and serviced apartments in and around the station on Railways land. It could have learnt from the Ministry of Roads and Surface Transport's asset monetisation plan. The National Highways Authority of India (NHAI) has hawked five sets of properties to foreign and domestic companies such as Macquarie and Cube but retains the upside. Image Source Also read: RFPs invited for Raj railway land lease Also read: Bids invited for lease of railway land

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train’s Surat-Vapi Section Set for 2027

The first section of the Mumbai-Ahmedabad Bullet Train corridor, linking Surat and Vapi, is targeted to begin services in 2027. Construction is expected to be completed by December 2026, while Railway Minister Ashwini Vaishnaw has indicated that an inauguration could take place around the middle of 2027. The National High Speed Rail Corporation (NHSRCL) said the train being manufactured in India is expected to reach the tracks around April or May 2027. The train will undergo extensive testing before the section is opened for passenger services. The project began construction in 2021 and includ..

Next Story
Infrastructure Transport

Indian Railways Approves Four Projects Worth Rs. 7.36 bn Across Four States

Indian Railways has approved four projects with a combined value of Rs. 7.36 bn across Uttar Pradesh, Maharashtra, Andhra Pradesh and Gujarat. The programme covers train protection, signalling, electric traction supply and a road overbridge, with each project assigned to a different railway zone. In Uttar Pradesh, Rs. 2.52 bn has been approved to extend the Kavach 4.0 automatic train protection system across 607.7 km in the Lucknow Division of North Eastern Railway. The system monitors train movements and can apply the brakes if a driver fails to observe a signal or exceeds a safe speed. The w..

Next Story
Infrastructure Urban

Chandru Raheja Sells 1.49% Stake in Mindspace REIT for Rs. 5 bn

Billionaire Chandru Lachmandas Raheja has sold a 1.49 per cent holding in Mindspace Business Parks REIT for Rs. 5 bn through a bulk deal on the BSE. The transaction involved 9.9 mn units and was executed at an average price of Rs. 505 per unit, according to exchange data. Following the sale, units of Mindspace Business Parks REIT were trading 0.18 per cent lower at Rs. 504.05 on Tuesday. Exchange data did not identify the buyers involved in the transaction. Raheja is the chairman of real estate company K Raheja Corp. The sale involved 99,00,990 units, representing 1.49 per cent of the Mumbai-b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code