Associated real estate development opportunities will be presented to the private players for land monetisation benefits.
Indian Railways has reverted to its original strategy and chosen to combine real estate monetisation with the redevelopment of 16 stations across India, including Thane, Dadar, and Andheri in Mumbai and Anand Vihar in Delhi.
During the current fiscal year, bids for the 16 stations are to be accepted under the public-private partnership (PPP) model.
Real estate monetisation was previously not included in the station redevelopment plan by Indian Railways.
However, the decision is now being overturned following reports that the private sector will not be able to recoup its investment.
The developers will be presented with the associated real estate development opportunities. Private players will benefit from land monetisation in terms of a return on their investment.
“The private sector cannot be expected to recover their investment from hiking station usage fees and raising travel costs for passengers,” a senior government official aware of the plan told Economic Times.
Pune, Coimbatore, Bangalore City, Baroda, Bhopal, Chennai Central, Old Delhi, Nizamuddin, Avadi, and Vijayawada are some of the stations that will be put up for bid under the PPP model.
The foot-traffic in some stations is lower than it is in Delhi and Mumbai. But there are “ample prospects” for land to be made profitable, according to the railway official.
Rooftop plazas, cafeterias, and entertainment areas will be among them.
The redeveloped stations would witness vertical growth with the creation of overhead spaces on the stations which will have world-class facilities including waiting lounges and food courts, besides amusement facilities for children.
The renovated stations must also incorporate green technologies and work with other means of transportation, such as the bus and metro.
All stations will provide a platform for the sale of regional products.