Government unveils first phase of Station Redevelopment Programme

Union Railway Minister Suresh Prabhu unveiled the first phase of the ambitious Station Redevelopment Programme. It is the world’s largest transit-oriented development programme ever executed.

As part this programme, tenders are being floated for 23 of a total of the total 400 A1 and A category stations selected re-developing in the first phase.

Stations being modernised in 1st phase: Lokmanya Tilak, Pune, Visakhapatnam, Thane,Howrah, Faridabad, Jammu Tawi, Kamakhya, Secunderabad, Udaipur City, Vijaywada, Chennai Central, Ranchi,  Kozhikode, Bangalore Cantt, Yesvantpur, Bhopal, Mumbai Central, Bandra Terminus, Borivali and Indore.

Key Facts 

  • Station Redevelopment Programme is the biggest non-fare revenue generating programme being undertaken by Indian Railways.
  • Financial Model of the programme: It will be executed in a public-private-partnership (PPP) model through a fair bidding system.
  • Government will not incur any expenditure as the developer will be rebuilding the railway stations and maintaining it for 15 years.
  • In return, the developer would be granted 45 years’ leasing rights for the commercial properties developed at these stations. These properties could be hotels, malls, hospitals, among others.
  • Selection Process: These stations will be awarded to private developers under the so-called Swiss challenge method. It involves inviting proposal online and allowing rival bidders to beat that proposal.
  • Amenities at Revamped stations: escalators, elevators, digital signage, self-ticketing counters, executive lounges, walkways, luggage screening machines, free and paid WiFi, etc.
  • Commercial potential of the vacant Railway land at and near the stations will be leveraged to develop world-class stations.

Significance

The entire programme is estimated to attract investment of upto Rs 1 lakh crore from the developers. It will help Railways will generate a surplus of Rs 10,000 crore which can be invested in other modernisation programmes. Most of the pension funds in the world and a multilateral agency like World Bank are keen to participate in this project. It will benefit more than 100 cities and 16 million passengers per day across the country.

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Categories: India Current Affairs 2017

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