The Rail Land Development Authority (RLDA) has leased out plots, on a bidding basis, at 35 locations in places such as Durgapur, Asansol, Somnath, Abu Road and Vijayawada, so far in the current fiscal.

The RLDA has a mandate to mop up revenues through commercial development of Railway land.

The 45-year leases will be used to build multifunctional complexes (MFCs) and generate approximately ₹150 crore on a net present value basis. The net present value reflects the current value of the entire money that will accrue over 45 years.

Small-sized plots

The leased out plots are small-sized — ranging from 500 sq m to 3,000 sq m — which indicates why the values are not very high, RLDA Vice-Chairman YP Singh told BusinessLine .

The other locations include Deogarh, Raja ki Mandi near Agra, Panipat, Ludhiana, Tumkur, Ajmer, Patna Saheb, Ratlam, Junagadh, Bhuj, Anand, Salem, Kasargod, Zahirabad, Dharmavaram, Cuttack and Katra.

Bids have been invited to develop MFCs in places such as Sanchi, Vasai Road, Kurnul Town, Tiruchi Fort, Dhakulia, Siuri, Jamalpur, Nabadwip Dham, Agartala, Purulia, Bhilai, Hajipur and Hissar.

The leased out land parcels are located by the side of railway stations, and are meant to provide passenger facilities that may be lacking at present. The complex may have a budget hotel, lodging and boarding arrangements, restaurants and shops.

Repeat bid

“When the 45-year lease ends, land ownership is supposed to come back to the Railways. The Railway Ministry is required to invite the bid again. Whatever the highest bid, the developer with the existing bid will have the right to first refusal by matching the highest bid,” said Singh.

The RLDA has earned ₹1,360 crore on a cumulative basis and expects to mobilise about ₹500 crore in the current fiscal as earnings through commercial utilisation of land that has already been bid out.

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