Railway to give surplus land to set up industries

The cash strapped Indian Railways has decided to give its surplus land to state governments to set up industries as part of the national transporter plan to monetise its land bank and raise funds.

The railway ministry officials held a meeting on this issue recently and will soon send communications to each state asking them to take the land by paying market value and set up the industries, said an official here.

The railways, which has over 12,000 acres of surplus land spread across the country, is in the view that since most of its surplus land is close to railway track, it would be more advantages to set up industries and help to economic development.

The Rail Land Development Authority (RLDA), which is responsible for monetising the land held by Indian Railways, already engaging with private companies for commercial exploitation of its lands.

In the coming days, the Authority will also engage with the state governments on giving land to them for setting up the industries, said an official in the Ministry.

The RLDA already in the process of auctioning the empty land inviting prospective builders for the development of residential apartments and commercial complexes in different parts of the country mostly in major cities.

It has identified around 45 sites in major cities that have revenue potential more than Rs 45,000 crore. The national transporter is giving its land to private builders up to 99 years lease for development of residential buildings while for commercial buildings on 45 years lease basis.

In the budget presented by Finance Minister Nirmal Seetharaman, the Minister emphasised on more private investment in the railway sector.

Railways will require Rs 50 lakh crore over a 12 years period between 2018-30 she said adding that it required almost Rs 1.5 lakh crore per year for taking up new projects and investment in ongoing projects.

Indian Railway has tried unlocking its land bank several times earlier but failed to make much progress due to slow down in reality sector.