Cashing in on the realty boom, the Rail Land Development Authority (RLDA) is all set to go ahead with its plans to lease surplus land for commercial development?a project which is estimated to generate revenues of over Rs 4,000 crore in 2008-09.
In fact it has just issued a revised bid document for an 11 acre plot in Bandra (Mumbai) situated near the suburban railway station. This was initially bid out in June and set a reserve price of Rs 1,750 crore.
As per the new tender, the developer will have to make an upfront payment of revenue. Also the floor area ratio has been increased, a clause which has to be put in the new document.
“Even though the railway ministry is reviewing the Sarai Rohilla project, we are preparing tenders for all other sites in order to carry forward the process,” an RLDA official said.
Rail Bhawan is reviewing the lease period of 90 years for the Sarai Rohilla site, which is why its tender that has already been awarded has been temporarily put on hold. ?We are confident all issues will be sorted soon,? the official said.
The 25-acre plot in Sarai Rohilla was bid out in April this year with a reserve price of Rs 675 crore. But because of the tremendous response, the final bid was secured at Rs 1,026 crore, an official source said.
Meanwhile, RLDA has also held pre bid conferences for a few sites and has also engaged consultants for carrying out feasibility studies for some sites. The contracts are awarded using the standard request for proposal and request for qualification procedure, which is not only faster but also leads to greater transparency, an official pointed out.
As reported by FE earlier, the railway ministry has handed over 10 plots to RLDA in various cities including Delhi, Mumbai, Gwalior, Vishakhaptnam, Kanpur, Kolkata and Bangalore for leasing out to private developers.
Along with using it for commercial activities, the developer was also expected to construct quarters for railway employees.