Indian Railways : Lease 3,700 Acre land in next 3 years, Earn Rs. 5,500


 Indian Railways plans to lease land parcels spread above 3,700 acre (1,500 hectare) in the next 2 to 3 years to earn more than Rs. 5,500 crore.

 Mr. A.K Gupta, Member of real estate & urban planning, RLDA (Rail Land Development Authority) said, "We have identified About 50 cities where railways has surplus land parcels that can be leased out to boost non-tariff revenues"

The move comes shortly after the Mr. Vijay Kelkar panel on fiscal consolidation recommended that various government entities should monetise surplus land parcels.

The RLDA, set up by the ministry of railways for undertaking commercial development of surplus land, has identified about 135 sites across the country covering nearly 1,500 hectare, which is not required for operational purpose in the near future.

Of these, the RLDA is likely to invite bids for about  50 land parcels soon based on the feasibility studies and potential assessment that is being undertaken. These plots are spread over cities including Bangalore, Chennai, Raipur, Siliguri, Visakhapatnam & Vijaywada.

The RLDA has so far fixed developers for 5 sites, including one each in Bangalore, Gwalior, Gaya, Sarai Rohilla in Delhi and Vijaywada in Andhra Pradesh, and it is expected to generate revenue of Rs. 1,714 crore through this. The land is leased for a period of 30 to 45 years, except for the Sarai Rohilla site, which has been leased for 90 years for residential development.

The authority has been following a lease premium model, under which the premium is paid by the selected developer either upfront or / spread over a period of time. It is now also looking at revenue sharing model for future projects if the returns through this model look more favourable. 
Share:

No comments:

Post a Comment

Popular Posts

Blog Archive

Recent Posts

Featured Post

Coverton Insurance Broking - a one-stop solution for businesses and individuals seeking expert risk management

Coverton Insurance Broking Launches Comprehensive Insurance Broking Services to Simplify and Enhance Risk Management for Businesses and In...