Railways gets Rs 2,600 crore to redevelop 19 stations to world class standard

Nineteen stations will be redeveloped to world class standards by the Indian Railways. The list of these stations is being made by the Railways. As the national transporter has received Rs 2,600 crore in credit from its financing arm to this end, the work will start from the end of this year.

A senior railways ministry official said that the nodal body for station redevelopment, Indian Railways Stations Development Corporation (IRSDC) will develop the identified stations on its own in the engineering, procurement and construction mode.

According to a report in The Economic Times, the senior official said that private players can come in later and bid for the commercial area that would be made available at the stations. It would be similar to the National Building Construction Corporation (NBCC) model of reconstruction, the official said.

Apart from the credit line from the Indian Railways Finance Corporation, other railway public sector units including RLDA, RITES and IRCON will provide equity support to the IRSDC for the project.

Officials mentioned that real estate industry was reluctant about the development of station buildings, platforms and other core areas but private players are willing to bid for the commercial areas.

This plan to redevelop 19 stations is part of the NDA government’s promise in 2014 to modernise 400 railway stations.

Suresh Prabhu, who was the Railway Minister then decided to go for 100 per cent private participation expecting companies to invest in exchange for development rights of land owned by the Indian Railways.

 

source: businesstoday


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