Indian Railways Told To Unlock Land Bank For Urban Development

In a move to unlock developable land for commercial development, the Cabinet has given a go-ahead on the construction and development of residential spaces around the railway stations across the country.  This expansion will be a part of the redevelopment programme of the Indian Railways. Also, the lease time for such developments been extended to up to 99 years from the previous 45 years.

These stations will be equipped with smart technologies and will function as mini-smart cities.

The aim for allowing residential development is to enhance the economic viability of the commercial development. However, approval of residential complexes will be done on a case-to-case basis. These residential dwellings will be constructed mainly for mid or lower-income group people who are dependent on public transport and do not have personalised vehicles.

Under the approved plan, the Indian Railway Stations Development Corporation (IRSDC) and Divisional Railway Managers would redevelop the main station amenities and facilities, after which the station along with the land parcels around it will be put up for bidding for commercial development. The redevelopment of 600 stations is expected to cost Rs 1.07 lakh crore.

These land parcels, according to Law Minister Ravi Shankar Prasad, will transferred to the Railways on a free-hold basis, allowing the redevelopment programme to roll on an overall cost neutral basis.

 Earlier in July this year, the Railway Land Development Authority (RLDA) had identified vacant land in and around Chennai that could be utilised for developing commercial infrastructure. The commercial development for which this vacant land, worth Rs 5,000 crore, be used for building malls, hotels, office space and shopping centres.

This move is expected to address the biggest concern the country faces – housing. More and more small dwellings could come up across the country that would not only offer roof to many  but will also allow Indian Railways to make use of unused or under-used properties.