The government is set to award 50 stations for redevelopment entailing an investment of around Rs 50,000 crore in 2020-21, a government official said. The station redevelopment initiative of the Indian Railways has drawn interest from Indian conglomerates and foreign pension funds alike.
GMR, Adan Group, JKB Infra, Shapoorji Pallonji, Tata Realty, NIIF, ISquared Capital, Global Infrastructure Fund, Essel Group, and Anchorage Capital were among the companies that have evinced interest in the first lot of stations up for redevelopment.
Meanwhile, the railway ministry will issue user development fee, along the lines of a levy charged by airport operators, which will help fund the upgradation of railway stations.
The Indian Railways Station Development Corporation Ltd (IRSDC), one of the government entities responsible for station redevelopment, invited request for qualification (RFQ) for redevelopment of stations in Nagpur, Gwalior, Amritsar and Sabarmati, at an indicative cumulative cost of around Rs 1,300 crore.
Niti Aayog, the government’s thinktank, has been pushing for a comprehensive plan that envisages a holistic development of the area around railway stations, which has strong potential to draw private investment. The government last year pegged the private funding requirement of the Indian Railways at Rs 50 lakh crore between 2018 and 2030.