New Delhi, Aug 7: Finally overcoming many roadblocks, Railway Minister Piyush Goyal is likely to pilot the long-awaited station redevelopment proposal in the Cabinet meeting slated for Wednesday seeking the involvement of the private sector in redeveloping 600 stations on an extended 99-year lease period.
The proposal to extend the lease period from earlier approved 45 years was hanging fire with Finance Ministry, Urban Affairs Ministry and Niti Ayog since the new plan were firmed up by Goyal to make the redevelopment project a success venture both for the public transporter and the real estate players.
Since the 45 years lease proposal did not get a good response from private players, there was a need to make it more attractive, said a senior Railway Ministry official.
According to the amended proposal slated to be taken up by the Cabinet, the Railways will seek approval for redeveloping 600 stations in the first phase through Indian Railway Station Development Corporation (IRSDC) as the nodal agency for a lease period ranging between 45 years to 99 years depending upon the project.
After facing hurdles to the 99 years lease proposal, railways has adequately explained to the concerned Ministries of the need of the extended lease period.
Railways have explained in a note that the changes it sought were “essential to attract the major real estate players into such transit-oriented development (TOD) programmes in the urban sector”.
TOD is a type of urban development programme which maximizes the amount of residential, business and leisure space within walking distance of public transport. (IANS)