Commercial real estate to emerge on vacant railway properties
Southern Railway has identified a number of vacant plots that it owns in Chennai that it can hand over for commercial development of malls, shopping centres, hotels and offices. It recently made a presentation in this regard to real estate players.
Interestingly, the railways has offered to private developers a parcel of land in Poes Garden near the residences of actor Rajinikanth and former chief minister J Jayalalithaa.
Handing over land for commercial development is another method that the railways is experimenting with to increase its non-tariff revenues, officials said. The newly-formed Railway Land Development Authority (RLDA) has identified various properties in several cities with the potential to earn no less than ₹5,000 crore.
Railway officials said it was a win-win game for developers and the railways.