Rail Bhawan to unlock prime land
Indian Railways have decided to auction its 40,000 hectares of surplus land in major cities including Delhi, Mumbai, Kolkata, Bangalore and Chennai.
By Rajat Guha & Mayur Shekhar Jha, TNN |
NEW DELHI: Indian Railways have decided to auction its 40,000 hectares of surplus land in major cities including Delhi, Mumbai, Kolkata, Bangalore and Chennai. The land will be used for developing malls, cineplexes and shopping arcades. The public sector landlord is weighing options of long-term lease or joint development of land under public-private partnership (PPP).
A decision in this regard is expected in the Railway Budget, an official told ET. Sources in the Rail Bhawan said that some land could be given to private developers on lease while balance properties could be developed under the PPP model. Its special purpose vehicle (SPV), Rail Land Development Authority (RLDA), has been entrusted the task of managing the surplus land. According to industry sources, the value of surplus land is estimated at Rs 1,00,000 crore.
Railways have huge surplus land in prime locations. Land prices in some locations are very high. For instance, railway land in and around Delhi stations is valued at Rs 10-15 crore per acre. In Mumbai, market price of land around the Churchgate area is estimated at Rs 22-24 crore per acre.
Realty developers are eyeing prime railway properties. ���It would be premature to comment on the issue till the time a concrete policy on the matter is announced. Nonetheless, it seems to be another truly reformist move by the department. Railways are sitting on prime land, which if opened up for commercial use, will lead to a win-win situation for all involved parties,��� TDI MD Kamal Taneja said.
According to Aerens Goldsouk director Ashish Gupta, commercial development on land stretches to be released by railways is ideally suited for developments through the PPP route. ���This will help in maintaining reasonably lesser rentals, incentivising mass brands to take up space,��� he said.
With profits of over Rs 11,000 crore, the railways��� proposal to ring in extra bucks through unlocking land bank will not face Centre���s red signal. The ministry���s priority is striking realty deals in New Delhi.
A decision in this regard is expected in the Railway Budget, an official told ET. Sources in the Rail Bhawan said that some land could be given to private developers on lease while balance properties could be developed under the PPP model. Its special purpose vehicle (SPV), Rail Land Development Authority (RLDA), has been entrusted the task of managing the surplus land. According to industry sources, the value of surplus land is estimated at Rs 1,00,000 crore.
Railways have huge surplus land in prime locations. Land prices in some locations are very high. For instance, railway land in and around Delhi stations is valued at Rs 10-15 crore per acre. In Mumbai, market price of land around the Churchgate area is estimated at Rs 22-24 crore per acre.
Realty developers are eyeing prime railway properties. ���It would be premature to comment on the issue till the time a concrete policy on the matter is announced. Nonetheless, it seems to be another truly reformist move by the department. Railways are sitting on prime land, which if opened up for commercial use, will lead to a win-win situation for all involved parties,��� TDI MD Kamal Taneja said.
According to Aerens Goldsouk director Ashish Gupta, commercial development on land stretches to be released by railways is ideally suited for developments through the PPP route. ���This will help in maintaining reasonably lesser rentals, incentivising mass brands to take up space,��� he said.
With profits of over Rs 11,000 crore, the railways��� proposal to ring in extra bucks through unlocking land bank will not face Centre���s red signal. The ministry���s priority is striking realty deals in New Delhi.
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