Rail Infra
The Indian rail sector requires a staggering investment worth Rs 5 lakh-cr to build its infrastructure in the next half decade thereby opening up huge business opportunities to infrastructure building players, Standard Chartered said in its recent research report, adding that the railways has targeted to push its commercial traffic share from the current 32% to 74% and to achieve that it requires to build special corridors, modernize the existing infrastructure, increase the average speed of freight trains and build logistic parks. In fact, the projects of such magnitudes would be financed by various funding resources including public-private partnership, state partnerships and loans from multilateral agencies.

In fact, to meet its financing targets, the Indian Railways has already started generating funds from its own resources as the Railway Land Development Authority (RLDA), which is undertaking the task of commercial exploitation of its land. It has already floated tenders seeking interest from real estate developers for commercial development of 4.3 hectares of a prime land parcel in Bandra (east). The land, which will be given to successful bidders on a 45-year lease, is expected to fetch to railways Rs. 2,500-3,000cr, said official sources adding that the much-delayed process of putting the land for commercial development first started in 2008. However, the proposal was met with opposition from some citizens who disputed the ownership of the land when RLDA first invited bids six years back. But in the changed scenario, the process of commercialization of land for generating funds is all set to start on war footing, said an industry insider.