Indian Railways plans to use its prime residential properties for redevelopment
The Indian Railways may soon unlock its prime residential property across the country for redevelopment. The ministry has asked all 17 zonal offices to compile details of residential land that can be redeveloped and offered to investors. The plan is to grant 99-year leases to developers making compelling offers for such land,
This move could bring in additional revenue of Rs 20,000-25,000 crore for the Railways. The Indian Railways has over 40,000 hectares of land, of which almost 950 hectares has been encroached upon. The Railways owns real estate in all major cities and has swathes of residential property in Connaught Place, Nizamuddin and Chanakyapuri in New Delhi, apart from land in the heart of Mumbai, Bengaluru, Chennai and Pune.
The Railways is looking at the National Building Construction Corporation (NBCC) model. NBCC redevelops government colonies by making high-rise buildings and commercial complexes and leases part of the property to private parties, setting aside some units for government use.