Rlys lists 75 spots for multi-functional complexes

The railway department has drawn up a list of 75 more multi-functional complexes (MFCs) on land adjacent to stations and hopes to earn, through private participation, around Rs 1,000 crore this fiscal.

The Rail Land Development Authority (RLDA) initiated the bidding process for the commercial complexes, which would include food stalls, restaurants, book stalls, ATMs and parking lots, said a senior ministry official.

According to the official, Dehradun, Ujjain, Vasai Road, Anand, Somnath, Lokmanya Tilak Terminus, Gulbarga, Vijayawada, Amritsar, Amethi and Chandigarh will have the MFCs.

The RLDA is holding meeting in Hyderabad on Thursday to invite bids for commercial development of the MFCs at eight stations in cities of tourist and religious interest of Andhra Pradesh that include Dharmavaram, Karimnagar, Kurnool Town, Nellore, Nizamabad, Vijayawada, Zahirabad and Kacheguda.


Parsvnath pays Rs 501cr instalment to RLDA for Delhi rail land

Realty firm Parsvnath Developers today said it has paid Rs 500.86 crore instalment to the Rail Land Development Authority (RLDA) against the 38 acres of rail land that it had bought for Rs 1,651 crore.

Parsvnath had bought this land, located at Sarai Rohilla- Kishanganj in the national capital, from RLDA in 2010 through an auction.

“The company has so far made payments of three instalments together with interest aggregating to Rs 1,161.46 crore,” Parsvnath Group Chairman Pradeep Jain said in a statement.

In May this year, a development agreement was executed between RLDA and Parsvnath Rail Land Project, a special purpose vehicle (SPV) incorporated for implementing this project.

The company will develop luxury apartments, commercial/ shopping areas, railway housing, railway service building & common facilities, Hospital/School and other amenities.

Parsvnath has appointed Callison LLC of USA as architect for the project in co-ordination with architect Sikka & Associates.

The company will develop this project in partnership with private equity firm Red Fort Capital.


Parsvnath group ties up with Railways

In a major effort at raising resources and unlocking commercial value of the enormous land at its disposal, the railways have entered into an agreement with Parsvnath group to develop 15.27 hectares (38 acres) of land located at Sarai Rohilla-Kishanganj in Delhi.

After its selection as the developer through a bidding process, Parsvnath Developers Limited executed the formalities with the Rail Land Development Authority (RLDA) and set up a special purpose vehicle – Parsvnath Rail Land Project Private Limited – to execute the project awarded to it.

It had bagged the project for an aggregate value of Rs. 1651 crore of which it has paid Rs. 660.60 crore in two instalments to the RLDA.

The project comprises constructing luxury air-conditioned residential apartments, commercial and shopping areas, railway housing, railway service building and common facilities. Other amenities include hospitals, schools, state of the art club and gymnasium and sport facilities.

Parsvnath group chairman Pradeep Jain promised to develop the area located in the centre of the national capital with a masterpiece of architecture that would provide a spectacular ambience.

The group has appointed M/s. Callison LLC of USA as the architect for the project in coordination with Architect Sikha and Associate.


Railways country’s largest landowner: Survey

The Indian Railway has emerged as the single largest landowner in the country, according to a survey.
A recent comprehensive survey by an international property consultancy firm, Jones Lang LaSalle India, reveals that Indian Railway is the single-largest owner of lands in this country which has approximately 1,06,254 acres of vacant land under its purview.

More importantly, large chunks of the railway land are lying futile especially in urban and suburban areas where there is a shortage of housing, says the study.

According to the study, defence services have approximately 17,00,000 acres of land in its ownership, but it has several departments that control this land. The survey found that the Airports Authority of India owns around 49,420 acres of land. The country’s various port authorities hold a substantial chunk of approximately 2,58,000 acres, out of which approximately 20 per cent is not usable. Santhosh Kumar, CEO — operations, JLL said, “If the Rail Land Development Authority (RLDA) has the objectives to maximise revenues from its assets, then the process followed by the National Textile Corporation for their defunct mill lands would probably be a better route for RLDA.” However, property market expert Sandip Sadh feels otherwise. “It is not the time for railways to press the panic button and go for bidding or commercial exploitation of its land. Let there be a national-level policy for development for such reserved land so that affordability can be considered,” he opined.

When contacted, A.K. Gupta, member of real estate and urban planning division of RLDA said that the process of inviting tenders has already begun. He said, “We are hopeful of embarking upon this process in a phased manner.”


Indian Railways to use vacant land for commercial purpose

Indian Railways has planned utilisation of railway vacant land for commercial use. For this, a statutory body, Rail Land Development Authority (RLDA), has been set up.

Railways network occupies a land area of about 10 lakh acres. About 90% of this land is directly under railway tracks, yards, workshops and allied infrastructure. The vacant land, measuring about 1.13 lakh acres, is mostly in the form of a narrow strip along tracks which railways has been utilising or plans to utilise for its expansion in the form of doubling, third line, quadrupling, gauge conversion, freight corridors, yard remodeling, traffic facility works, workshops, etc and for servicing and maintenance of track and other rail related infrastructure.


Utilisation of Railway Vacant Land for Commercial Development

Indian Railway network occupies a land area measuring about 10.65 lakh acres. Ninety per cent of this land is directly under railway tracks, yards, workshops and allied infrastructure. The vacant land, measuring about 1.13 lakh acres is mostly in the form of a narrow strip along tracks which Railways have been utilizing or plan to utilize for its expansion in the form of doubling, third line, quadrupling, gauge conversion, freight corridors, yard remodeling, traffic facility works, workshops, etc and for servicing and maintenance of track and other rail related infrastructure.

Vacant land not required by Railways for its immediate future operational needs is also proposed to be utilized for commercial development, wherever feasible, for the interim period through a Statutory Authority namely Rail Land Development Authority (RLDA) set up in 2007 through as act of Parliament. As the commercial development is a market driven activity, to be undertaken with the approval of the State Government/local authorities, assessment of revenue generation can only be done when specific schemes are taken up for development.


Rail authority to soon bid for commercial use of land

Having got the Cabinet’s nod to go ahead with leasing land, the Rail Land Development Authority (RLDA) is all set to invite bids over the next few days to garner revenues from commercial use of land.

RLDA will follow three models of commercial utilisation, either directly or through joint ventures.

These are: multi-functional complexes (MFCs) , over 40 of which will be developed with Ircon and RITES, commercial sites and modernisation of five stations.

In the current fiscal, the authority expects to receive Rs 400 crore from commercial use of land.

But, out of this, Rs 330 crore is expected from Parsvnath Developers, from a contract awarded to it, a few years ago.

The Indian Railways’ land lease activities had come to a standstill after a Cabinet circular in 2011 had barred all Ministries from leasing land.

MFCs and commercial sites will be offered to developers on a 45-year lease period. In this model, the developer is required to make available facilities for rail users on at least 200 square metre land within the first nine months. On the remaining land, which could be 1,000-3,000 square metre in size, the developer is free to build shops, restaurants, book stalls and budget hotels.

During the demand survey, retail brands such as Pantaloon, Cafe Coffee Day, The Loot, Woodland, WH Smith (Travel News Services) had evinced interest to set up shops at the MFCs. RLDA has lined up 60 new MFC sites and six stand-alone sites for which the bidding process is being initiated in phases. Some of the MFCs will be bid out in joint venture with RITES and Ircon.

“Commercial sites will be offered at six locations – Katra, Amritsar, Chennai, Visakhapatnam, Vijayawada and Bangalore – with a 45-year lease. In commercial sites, we are not dictating the end-use of the land. For instance, we do not specify whether a hotel should be built or office space should be built,” an RLDA official said.

The authority has also been entrusted by the Rail Ministry for modernising five stations at Chandigarh, Anand Vihar (Delhi), Bijwasan (Delhi), Habibganj (Bhopal) and Shivajinagar (Pune).

These stations are being developed through the Indian Railway Stations Development Corporation, a joint venture company created by Ircon and RLDA in which the former is the majority partner.


Railway stations to rival airports

Five metros, including Bangalore, to get state-of-the-art stations

The Railways on Wednesday floated a new public sector organisation, Railway Station Development Corporation, to modernise stations in the country. In its first phase, the corporation will take up stations in Mumbai, Delhi, Kolkata, Chennai and Bangalore.

Spelling out the concept of modern stations, Railways Minister Dinesh Trivedi said, “Modern stations should look like airports and would be functional centres.”

The new PSU has come up as a special purpose vehicle (SPV) after IRCON International Limited and Rail Land Development Authority (RLDA) signed an MoU on Wednesday.

It is proposed to provide the identified stations with well-designed concourses, high quality waiting spaces, easy access to the platforms, congestion-free platforms, state-of-the-art catering facilities, hotels and other amenities.

The redeveloped stations would be disabled passenger-friendly and would have provision for convenient entry, inter-platform transfer and easy access to all facilities for physically-disabled persons and senior citizens. They would also be provided with waste disposal facilities to improve hygiene and cleanliness. De-congestion would be a priority. For that, arrival and departure will be segregated as in airports, Trivedi said. Roof plaza and green environment are the other things that are being planned to make the stations vibrant, he added.

Existing vendors would not be displaced, Trivedi said. Besides, the modernisation programme would not burden passengers. The revenue will come through private investments by way of public-private partnership. Trivedi said it would be an imperative to have modern, functional stations which would be customer-oriented and equipped with proper circulation area and railway operation facilities.

The Railways has sent letters to state governments and local bodies to improve areas surrounding the stations and approach roads leading to them. The property and assets of the entity will remain with the Railways.

Multi functional complexes at five stations soon

Rail Land Development Authority (RLDA) today announced appointment of private developers for development of Multi Functional Complexes (MFCs) at five stations – Cuttack, Dehradun, Jhansi, Katra and Nanded.

Railways have introduced the concept of MFC at railway stations beginning year 2009-10 for developing facilities for rail users at one centralised complex.

Indian Railways operate more than 7000 stations across the country.

“The aim is to upgrade the existing amenities for the rail users in cities having tourist and religious importance by way of developing the land/air space at railway stations, said a senior Railway Ministry official.

MFCs are being developed through private investment to provide rail users with facilities such as shopping, food stalls/ restaurants, book stalls, ATMs, medicines and variety stores, budget hotels, parking etc.

RLDA, a statutory authority established by Railway Ministry for generating non-tariff revenue from railway land, had appointed Knight Frank India as marketing consultant for the first six MFCs to be developed through private parties. Out of the six MFCs, five MFCs were awarded to Keshari Estates Ltd (Cuttack), Janak Holdings (Dehradun and Nanded), Bhagwati Infraestate Pvt. Ltd. (Jhansi) and MGC Estates (Katra).

A total 86 MFCs will be developed by RLDA across the country through private parties as part of the second phase of the MFC project announced in the rail budget in the year 2010-11. Bidding for the second phase is to be initiated soon.


Published in: on February 20, 2011 at 7:53 am  Leave a Comment  
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