Rlys rope in pvt cos to build complexes at five stations

Written by fe Bureau | Chennai | Updated: Jan 29 2011, 06:06am hrs
Rail Land Development Authority (RLDA), a statutory authority established by railways ministry for generating non-tariff revenue from railway land, announced appointment of private developers for development of Multi Functional Complexes (MFCs) at five stations Cuttack, Dehradun, Jhansi, Katra and Nanded. This is the first time that MFCs are being developed through private investment. Indian Railways operates more than 7,000 stations across the country.

RLDA had appointed Knight Frank India as marketing consultant for the first six MFCs to be developed through private parties. Out of the six MFCs, five MFCs were awarded to Keshari Estates (Cuttack), Janak Holdings (Dehradun and Nanded), Bhagwati Infraestate (Jhansi) and MGC Estates (Katra).

RLDA has not accepted the bid for Ujjain being below expectation due to certain existing constraints in the approach road to the site. A total of 15 bidders submitted 28 financial bids. The total present value of the lease premium and annual lease rent received for 5 stations in response to the open competitive bidding is Rs 27.61 crore which is much higher than the pre-bid expectations. Ujjain MFC will be put to re-bidding after getting the constraints removed.

Rituraj Verma, national director-retail agency, Knight Frank India, said, RLDA tendered 6 stations namely Ujjain, Nanded, Jhansi, Katra, Dehradun and Cuttack on a pilot project. Mumbai's real estate developer Sumer Group, Future Group were some of the companies that participated in the auction. The auction recorded 28 bids from 18 bidders. The total net value from the lease rentals received for 6 stations is Rs 29.79 crore which is almost 20% higher than pre-bid expectations.

With the tremendous success of the pilot project of bidding for 5 MFCs, RLDA plans to invite bids for 86 more MFCs at railway stations across India very soon and all these MFCs are targeted to be awarded this year.