Railways expedite commercial land monetisation through private leasing
RAILWAYS & METRO RAIL

Railways expedite commercial land monetisation through private leasing

Indian Railways intends to solicit bids from private enterprises for the lease of 84 surplus plots valued at over Rs 75 billion in the upcoming 18 months, as disclosed by individuals familiar with the matter.

This initiative forms part of the land monetisation strategy outlined by the Rail Land Development Authority (RLDA), the entity entrusted with the task of redeveloping and commercially exploiting surplus land. The authority has been designated to oversee the development of 119 commercial sites, of which 35 have already been awarded bids, resulting in a lease value of Rs 28.35 billion.

According to one of the aforementioned sources, who requested anonymity, the objective is to expedite the leasing process for the remaining sites, some of which are strategically situated in metropolitan areas, prominent cities, and locations of tourist attraction. This acceleration is aimed at concluding the process by the end of the fiscal year 2025. Under the proposed plan, the commercial leasing of this land would enable the railway system to secure annual lease revenue over the entire duration of the lease agreement, which could span periods of 45, 60, or 99 years.

For context, in the fiscal years 2021, 2022, and 2023, the railways generated asset monetisation gains of Rs 1.33 billion, Rs 6.55 billion, and Rs 30 billion, respectively. The source highlighted that the rapid and efficient monetisation of prime land parcels for commercial development is a favoured approach among private sector developers and offers a noteworthy opportunity for the railways. This method also holds significance for the railway sector, which has exhibited a comparatively slower pace in asset monetisation in comparison to other ministries within the infrastructure domain.

Indian Railways intends to solicit bids from private enterprises for the lease of 84 surplus plots valued at over Rs 75 billion in the upcoming 18 months, as disclosed by individuals familiar with the matter.This initiative forms part of the land monetisation strategy outlined by the Rail Land Development Authority (RLDA), the entity entrusted with the task of redeveloping and commercially exploiting surplus land. The authority has been designated to oversee the development of 119 commercial sites, of which 35 have already been awarded bids, resulting in a lease value of Rs 28.35 billion.According to one of the aforementioned sources, who requested anonymity, the objective is to expedite the leasing process for the remaining sites, some of which are strategically situated in metropolitan areas, prominent cities, and locations of tourist attraction. This acceleration is aimed at concluding the process by the end of the fiscal year 2025. Under the proposed plan, the commercial leasing of this land would enable the railway system to secure annual lease revenue over the entire duration of the lease agreement, which could span periods of 45, 60, or 99 years.For context, in the fiscal years 2021, 2022, and 2023, the railways generated asset monetisation gains of Rs 1.33 billion, Rs 6.55 billion, and Rs 30 billion, respectively. The source highlighted that the rapid and efficient monetisation of prime land parcels for commercial development is a favoured approach among private sector developers and offers a noteworthy opportunity for the railways. This method also holds significance for the railway sector, which has exhibited a comparatively slower pace in asset monetisation in comparison to other ministries within the infrastructure domain.

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000