The Centre on Wednesday approved railway station development plan, which allows the national transporter to take up commercial development of land and air space in and around stations.

The Indian Railway Stations Development Corporation (IRSDC) will be the nodal agency, which will leverage the commercial development of land and air space in and around the stations.

"This will help provide state-of-the-art amenities for passengers, generate additional revenues and will be overall at least cost neutral to the railways over a basket of stations," a statement said.

The Cabinet chaired by Prime Minister Narendra Modi also gave nod to increase the lease period to 99 years from 45 years. The railways plan to invest Rs 1 lakh crore on developing 600 stations.

IRSDC will prepare the overall strategic plan and business plans for individual or a group of stations ensuring cost neutrality.

"This would enable railways to accelerate the redevelopment of major stations across the country on an overall cost-neutral basis. These redevelopment efforts will lead to the creation of state-of-the-art smart stations that will function as mini smart cities," it said.