The Modi government has approved a policy on long-term leasing of Indian Railways’ land to implement the PM Gati Shakti framework.
Union Minister Anurag Thakur said that over 300 cargo terminals will be developed in 5 years.
According to the PIB, with employment generation potential of about 1.2 lakh jobs, the policy will also bring more revenue to the national transporter.
The new land policy for PM Gati Shakti provides for long term leasing of railway land for cargo related activities for a period up-to 35 years @ 1.5% of market value of land per annum.
The existing entities using railway land for cargo terminals will have the option to switch to the new policy regime after transparent and competitive bidding process and it will increase modal share of rail in freight transportation and reduce overall logistics cost in the country, according to the government press release.
The policy also simplifies Railways’ land use and Right of Way (ROW) for integrated development of public service utilities like electricity, gas, water supply, sewage disposal, urban transport etc by providing railway land @ 1.5% of market value of land per annum, says the release.
For Optical Fibre Cables (OFC) and other smaller diameter underground utilities a one-time fee of Rs 1000/- will be charged for crossing railway track and it provides for use of railway land at nominal cost for setting up of solar plants on railway land, the release notifies.
The government through its press release claims to encourage development of social infrastructure (such as hospitals through PPP and schools through Kendriya Vidyalaya Sangathan) on railway land at a nominal annual fee of Rupee 1 per sqm per annum.