Habibganj in Madhya Pradesh and Gandhi Nagar in Gujarat will be India’s first railway stations to be operationalised under the public-private partnership (PPP) scheme as the Indian Railways sets in motion its station redevelopment plan.
The Indian Railway Stations Development Corporation (IRSDC) stated that both the stations will offer space for retail, office spaces, food and beverage set-ups.
In Habibganj, the developer will monetise 1,70,000 sq ft land while in Gandhi Nagar, a five-star hotel has been built on the railway tracks, which will also be inaugurated shortly. These stations will become a model for future development as it plans to redevelop more stations under the PPP mode.
Of the 123 stations currently available for redevelopment, the Railways aims to issue tenders for 50 by March 2021. The government plans to open up about 20 million sq ft real estate, attracting investment of Rs 50,000 crore.
Some of the major stations, work for which has been awarded this financial year include Delhi, Mumbai, Nagpur, Amritsar, Dehradun, Nellore, Tirupati and Puducherry.
Habibganj railway station was redeveloped as a brownfield project under a PPP agreement signed in March 2017. The developer has 45 years lease rights for 17,245 sq mtr of railway land. The responsibility of the station’s operation, maintenance and revenue collection is also with the developer for eight years.
IRSDC will get a fixed percentage of station revenue as its management fee, without any expenditure for operations and management.
The redevelopment of Gandhinagar Capital Railway Station project, with a 300-room five-star hotel, has been completed by special purpose vehicle (SPV), the Gandhinagar Railway & Urban Development Corporation.
The SPV was formed with equity contribution of the government of Gujarat and IRSDC in the ratio of 74:26 respectively.
Habibganj brownfield PPP project will pave the way for other interested private developers to invest in similar upcoming projects. IRSDC is also executing redevelopment of Mumbai’s CSMT station.