The redevelopment of New Delhi station is one of the key initiatives being monitored by the PMO. FileAIMING TO fast-track the redevelopment of New Delhi Railway Station, which is the largest such project of the national transporter, the Government is likely to delink the construction of the station complex from the commercial development of land around it, The Indian Express has learnt.
A Rs 4,700-crore plan is currently undergoing evaluation, with the Government turning away from the PPP (Public Private Partnership) model and looking to directly fund the Engineering Procurement and Construction (EPC) contracts.
The latest strategy involves rebuilding the station complex according to a design that has already been approved and the Master Plan for the railways’ largest station. The commercial development of areas around the station will be taken up later through the PPP model, based on values governing the real-estate development proposition, sources said.
The project is one of the key initiatives being monitored by the Prime Minister’s Office (PMO).
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The original plan was seen as capital-intensive, with private players to monetise the land and use the profitability to build the station complex. The aim was to get a redeveloped station without spending Government funds. However, it turned out that this plan had its limitations, especially with the real estate sector not displaying a matching appetite for investment.
The six-floor station complex, with two signature domes, has been planned as a modern landmark of Delhi. The commercial monetisation and revamp of the surrounding areas, as per the Master Plan, will be a separate exercise. It includes areas that are currently railway colonies, offices, inner roads adjoining Connaught Place and the Karnail Singh stadium — all on railway land.
Apart from major stations such as the one in New Delhi and Chhatrapati Shivaji Maharaj Terminus, the Railways has taken up the redevelopment of 50 stations across India under the EPC model, instead of PPP, armed with a budgetary outlay of around Rs 17,500 crore — excluding the amount being considered for New Delhi.
“In the financial model that was proposed for all stations earlier, several private players participated in pre-bids and Request for Qualification, but virtually no one came for Request for Proposal, making the project less lucrative for Railways,” said a senior Government official.
The Railways is also planning to levy a nominal station development fee on stations that will undergo redevelopment. The redevelopment project has gathered speed with complete tenders of at least 15 stations given out and those for another 20 in the finalisation stage.
The Railways has not completely given up on the PPP model, though. NITI Aayog is learnt to have advised the transporter to explore this model in the redevelopment of at least 15 more stations, apart from the 50.
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