Railway Land Development Authority
Ensuring smooth flow of funds to meet its investment requirements, the Indian Railways has decided to monetize realty assets to the tune of Rs. 5,000 crore across the country. The Railway Land Development Authority (RLDA), which has been entrusted with the job has already generated Rs 937 crore by way of public-private partnerships and is set to garner another Rs 1,000 crore by the end of this fiscal. For the land development agency, a residential project in Sarai Rohilla in Delhi is one of the first big-ticket projects to take off this year. The project could fetch the railways as much as Rs 1,650 crore as the Parsvnath Developers will build residential and shopping complexes on about 11 hectares out of the 15.27 hectares and on the remaining portion of land parcel the developer will construct 750 quarters for the railways.

Apart from this, other residential and commercial projects also are expected to come up in Ashok Vihar (Delhi), Bandra East, Kurla and Mahalaxmi (Mumbai), Nirala Nagar (Kanpur), Aishbagh (Lucknow). Even if it manages to award two or three projects this year, it will get about Rs 5,000-6,000 crore. These are big projects and the tenders for the project in Ashok Vihar, Delhi, and Bandra East, Mumbai, will be floated by next month, vice-chairman, RLDA, Y P Singh, said adding that the structure of each project will be based on the location and feasibility. All of these will be public-private partnerships, with the railways leasing the land to earn revenue and the agency is also keen to explore the option of revenue-sharing, but it depends on the kind of project. The managing director, Occupier Services, Aniruddh Wahal, commented that railways should have considered engaging as a joint developer, but given the structure of the government, it doesn’t have the sophistication to engage as an active partner. This is like the slum model in many cities such as Mumbai, where the slum dwellers are rehabilitated in vertical complexes and the private party uses the rest of the land.