Summary:
CHENNAI: Southern Railway has identified a number of vacant plots that it owns in Chennai that it can hand over for commercial development of malls, shopping centres, hotels and offices. The railways has earned lease revenue of a few crores of rupees each year through the deal.RLDA has kept the conditions flexible and allowed individuals, public or private limited companies, foreign companies, registered cooperative societies or a consortium of companies to bid for the railway sites, a railway official said. The newly-formed Railway Land Development Authority (RLDA) has identified various properties in several cities with the potential to earn no less than ?5,000 crore.Railway officials said it was a win-win game for developers and the railways.“Land developers will require low initial capital investment,” one official said.However, ownership will remain with the railways, which will hand over the properties for a pre-decided period of time to the developers. It recently made a presentation in this regard to real estate players.Interestingly, the railways has offered to private developers a parcel of land in Poes Garden near the residences of actor Rajinikanth and former chief minister J Jayalalithaa Handing over land for commercial development is another method that the railways is experimenting with to increase its non-tariff revenues, officials said. RLDA officials will also help developers obtain all noobjection certificates needed from the authorities if required, the presentation to the developers stated.Other pieces land offered for development include areas near the Egmore station’s Poonamalee High Road-side entrance, railway colonies in Perambur (Pananthope) and Ayanavaram, and some areas near Pulianthope and Wall Tax Road near Basin Bridge, officials said.An advantage for developers is that these pieces of land are mostly located close to railway stations and, as such, are sites that will be easy to market to customers, railway sources said.Industry sources said the railways handed over a site in a western Chennai suburb to a leading brand for a lease of close to 45 years..