To attract more private investors in the mega railway station development plan, the Indian Railways is proposing incentives to states which relax their construction norms.
The Railways, which sent a proposal to the Union Cabinet for approval, said the states which give the national transporter extra FAR (floor area ratio) and FSI (Floor Space Index) would be given incentives in the form of sanctioning of additional projects in these states, shares in revenues or shares in any other income accrued out of such policy, said an official in the railways.
The cabinet note also proposed an increase in the lease period from the present 45 years to 99 years for such projects to facilitate private players and encourage them to invest in the schemes.
Railways is planning to develop 600 stations across the country, and in the first phase, around 90 stations will be taken up.
The total cost of the project is expected to be around Rs 1 lakh crore for 600 stations.
To minimise problems with land acquisition, the railways also suggested that the transfer of land to the sector should be on a freehold basis.
The national transporter will no longer seek the approval of local bodies for building purposes but merely take their consent, as is prescribed in Clause 11 of the Railway Act.
As per the proposals, the Railways will be free to use the land for both commercial and residential purposes.
"These proposals to help the national transporter to garner additional revenues from the projects and cost of the projects can be met from the revenue generated from the commercial development of extra railway land," said the official.
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