Railways eyes pvt funding to redevelop 15 stations

Indian Railways is exploring a new public-private partnership (PPP) model to attract private investment to redevelop railway stations, two people aware of the development said.

- Subhash Narayan

Under this model, investors would receive up to 40% of the total project cost as viability-gap funding (VGF) and be allowed to use the space above platforms and tracks commercially.

The Rail Land Development Authority (RLDA), an Indian Railways unit, plans to run pilots at 15 stations, including Vijayawada and Anand Vihar, the people cited above said on condition of anonymity. Based on the experience, the model will be finetuned and implemented across other major stations, they added.

Under the hybrid PPP model, bids will be chosen based on the quantum of VGF support required by the private investor. The private developer will be allowed to develop air space (vertical space above platforms) to generate additional revenue through commercial activities, including the lease of office space, development of entertainment and recreational facilities, hospitality services, malls and even healthcare facilities.

Railway land around the stations would not be part of station redevelopment PPP, which is expected to be exploited by RLDA separately under a different monetization exercise involving the lease of land for commercial and residential development.