Areas Identified for PPP
World Class Railway Stations
22 stations have been identified at the first stage. These are: CST Mumbai (Carnac
Bunder), Pune, Howrah (Kolkata), Lucknow, New Delhi, Anand Vihar and Bijwasan at
Delhi, Amritsar, Chandigarh, Varanasi, Chennai, Thiruvananthapuram, Secunderabad,
Ahmedabad, Patna, Bhubaneshwar, Mathura Bangalore, Jaipur, Gaya, Agra and
Bhopal. The process for the first project at New Delhi Station has been
initiated. Architect and Technical Consultant has been appointed. Development of
other stations and green field passenger terminals has been planned to be taken
up in a phased manner.
The areas around the stations and the air space above platform could be
commercially developed to pay for the project. The concessionaire would be
expected to construct and maintain the operational and passenger areas free of
cost, share the revenue earned from the real-estate. Cost of development
(mandatory capital expenditure at stations) will be known after the Architect
and Technical Consultants submit their report for each station.
Commercial Utilization of surplus land
The availability of vacant land is around 43000 hectares. Of this, a large part
is alongside the track in longitudinal strips, around railway stations and in
railway colonies. An authority, namely, Rail Land Development Authority (RLDA)
has been set up under the Railway (Amendment) Act 2005 to pursue this objective.
So far 92 sites of vacant land identified for commercial utilization have been
entrusted to RLDA for commercial development. RLDA is in the process of getting
feasibility studies carried out through consultants.
Setting up of JVs for manufacturing of locomotives/coaches
Ministry of Railways is exploring the feasibility of joint venture route in
setting up the following factories:
Loco Factory at Marowhra, Bihar
Loco Factory at Madhepura, Bihar.
Factory at Rae-Bareli, Uttar Pradesh.
As per Cabinet Committee on Economic Affairs (CCEA)’s
approval, which also directed that feasibility of JV route be explored, the cost
of projects and the capacity to be created are as under:
Cost* (Rs. crore)
Factory at Marowhra, Bihar
Factory at Madhepura, Bihar
at Rae-Bareli, Uttar Pradesh
*These are estimated costs as per government estimate and may change in case
of execution through PPP.
Notice for Request for Qualification (RFQ) for selection of a private sector
partners who would bring 76% of the equity for setting up of the diesel loco
factory, Marowhra has been issued on 02.08.2007. Final bids are to be received
by 14.12.2007. RFQ documents for the other two factories are currently being
prepared by the consultant.
Construction of DFC partly with PPP
The project entails construction of 2700 route kms (equivalent to around 5000
track kms ) at an approximate cost of Rs.28,000 crores (US$ 6 billion) and is
being implemented by Dedicated Freight Corridor Corporation of India Limited (DFCCIL),
a PSU under the Ministry of Railways. Execution would be by a mix of Engineering
Procurement and Construction(EPC) and PPP methods. The exact extent and the type
of PPP to be used would be decided after the report of consultant (being
selected for the purpose) is received. Other opportunities for PPP would include
commercial utilization of land, construction of freight terminals, multimodal
logistics parks and ICDs.
Catering Services, Budget Hotels and Food Plazas
Indian Railway Catering and Tourism Corporation (IRCTC) has been mandated to
develop catering services, budget hotels and food plazas at major stations
through involvement of private entrepreneurs.
IRCTC has commissioned Food Plazas ( 43 as on 31-04-2007) in Railway premises
with private participation with license period of nine years and provision of
extension of three years. It is in the process of inviting tenders for another
114 Food Plazas/Fast Food Units.
New services for the luxury tourism segment on the pattern of ‘Palace on Wheel’
in partnership with other interested State Governments/hospitality industry are
also being considered by IRCTC. It is also entrusted with setting up of 100
budget hotels over the Indian Railway’s network through Public Private
Partnership. Of this, tenders for 20 sites have been finalized and awarded to
successful bidders and those for 9 sites have been floated on 08.02.2007.
Wagon Investment Scheme
Wagon Investment Scheme had been introduced to cater to increasing demand for
wagons. The features of scheme are as follows:
of guaranteed number of rakes per month for a specified period.
freight for specified periods.
bonus rakes without concession or penalty.
maintenance of wagons by Railways.
Under this Scheme, approvals for procurement of
135 rakes entailing an investment of Rs.1500 crore by the investors have been
issued (till July, 2007). 21 rakes have already been inducted and the rest are
in the pipeline.
Other areas identified include
Super-specialty Hospital: Establishment of Super-specialty medical services in
Nephrology and Cardiology at Central Hospital, East Central, Patna through PPP
is being explored. A consultant is being appointed for Development Strategy
Advice and Bid Process Management for the selection of a developer.
Chain: The project aims at bringing benefits of retail revolution to the farming
community by leveraging land and space available at countryside stations on
Indian Railways to provide retail outlets and supply chains. An Expression of
Interest to elicit requisite information to design a competitive bidding
framework is being invited.
Multimodal Logistics Parks: The objective of the project is to provide
infrastructure and services such as freight terminals along with handling and
inter-modal transfer, storage and warehousing and bouquet of other related value
added services as part of an integrated logistics chain to enhance the
efficiency and attractiveness of rail based transport. RITES are being engaged
to conduct feasibility studies at a number of identified sites for setting up of
multimodal logistics parks through PPP.