Railways eyes Rs 5,521 crore in lease rentals from 52 sites

To commercially exploit the vast railway land lying vacant in many parts of the country, the Railway Ministry has identified 52 sites which are likely to fetch around Rs 5,521 crore as lease premium, a senior official said here today.

The Rail Land Development Authority (RLDA), set up by the Railways to undertake commercial development of its land, has identified 52 sites that can be given on lease.

“The ministry has entrusted 136 sites ad measuring 1,504 hectares across the country which are not required for operational purpose in the near future.

“Based on the studies undertaken by us, 52 sites have been identified for commercial development which can fetch around Rs 5,521 as lease premium,” RLDA member (real estate and urban planning) AK Gupta told a Ficci-organised realty event here.

He said the sites have been undertaken for feasibility and potential assessment by the RLDA through empanelled consultants for development through transparent and open bidding process.

The authority has so far fixed developers for five sites each in Gwalior, Bangalore, Gaya, Rohilla and Vijayawada and it is expected to generate revenue of Rs 1,714 crore. The land is leased for a period of 30-45 years, except for the Rohilla site which has been leased for 90 years for residential development.

The authority, which has been following a lease premium model, in which the premium is paid by the selected developer either upfront or spread over a period of time, is also looking at revenue sharing model for future projects if the return from that model is more favourable, Gupta said.

He further said bids for sites in Chennai, Aurangabad, Jammu, Mumbai, Jamnagar, Amritsar and Visakhapatanam will be invited very soon for selecting the developer.

http://articles.economictimes.indiatimes.com/2012-11-01/news/34857484_1_rlda-railways-eyes-sites

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