July 01, 2017

Rail Land Development Authority (RLDA), an institution under Ministry of Railways and National Building Construction Corporation (NBCC), a PSU of Ministry of Urban Development sign an MoU regarding redevelopment of identified railway stations on Indian Railways

An MoU was signed today i.e. 30th June,2017 between Rail Land Development Authority (RLDA), an institution under Ministry of Railways and National Building Construction Corporation (NBCC), a PSU of Ministry of Urban Development for implementation of station redevelopment projects for 10 identified stations in partnership with respective Smart Cities in the gracious presence of Shri Suresh Prabhakar Prabhu, Minister of Railways & Shri M Venkaiah Naidu, Minister of Urban Development, Minister of Housing & Poverty Alleviation and Minister of Information & Broadcasting, Shri Rajen Gohain, Minister of State for Railways in New Delhi. Member Engineering, Railway Board & Ex Officio Chairman, RLDA, Sh Aditya Kumar Mittal was also present. Signatories to the MoU were Shri Rakesh Goyal, Vice Chairman, RLDA & Anoop Kumar Mittal, Chairman cum MD, NBCC. These 10 stations are – Tirupati, Delhi Sarai Rohilla, Nellore, Madgaon, Lucknow, Gomtinagar, Kota, Thane New and Ernakulam Jn.

Speaking on the occasion, Shri Venkaiah Naidu, Minister of Urban Development, Minister of Housing & Poverty Alleviation and Minister of Information & Broadcasting said that the people of the country are looking for new facilities and new changes, they expect transformations to be done expeditiously in all spheres of life. It is a very good idea to develop smart stations along with the smart cities. He said that the PSUs of his ministry will undertake stations redevelopment in a professional way.

Speaking on the occasion, Shri Suresh Prabhakar Prabhu, Minister of Railways said that Indian Railways has taken up this ambitious program of station redevelopment in a big way and have adopted multi pronged strategy to accomplish this mammoth task. He said we have chosen PPP model and are roping in varied agencies to execute the project namely Railways’ own PSUs, other Central Government PSUs, foreign countries through Government to Government cooperation and state governments. He said that once the stations are redeveloped, the passengers will get facilities of world standard. He said that NBCC has now been given 10 stations in first phase for redevelopment and more stations would be given to them in subsequent phases.

RLDA and NBCC shall form a SPV in the form of a JV Company to execute the station redevelopment project. The JV shall redevelop the stations on a self-financing model. NBCC shall use its expertise in preparing DPR of the Project and business model. RLDA shall extend necessary help to NBCC in arranging all requisite data pertaining to the stations and get the vacant land entrusted from Ministry of Railway as per approved master plan of the station. The JV of NBCC and RLDA shall also enter into city support agreement with the respective Smart City Authorities and local bodies to obtain support relating to development of approach infrastructure and favorable Development Control Norms for the project.

Background

Earlier in October 2016, the MoU was entered into between Ministry of Railways and Ministry of Urban Development for mutual cooperation between the two Ministries for integrated planning of redevelopment of railway stations in the cities included in the ‘SMART Cities’ and AMRUT schemes.The proposal was to plan the redevelopment of stations in partnership with the smart city SPVs and Urban Local Bodies so that the planning and redevelopment of the station and the city areas near the station is done in an integrated manner. This MoU between Ministry of Railways and Ministry of Urban Development

provided for formation of a JV company between NBCC and RLDA to take up the station redevelopment projects as NBCC has very wide and varied business experience in and expertise in the field of construction & real estate development and RLDA has expertise in monetization of Railway land by way of long term leasing of land.