Union Cabinet gives nod to redevelop 400 major railway stations July 17, 2015



A proposal to redevelop about 400 railways stations in metros and major cities besides pilgrim centres and tourist spots was cleared by the government. This approval will enable the Union Ministry of Railways to accelerate the redevelopment of ‘A-1’ and ‘A’ category railway stations across the country. These stations generally are located in major cities, metros, pilgrimage centres and important tourist destinations. The Union Cabinet, chaired by Prime Minister Narendra Modi, gave its approval for redevelopment of the railway stations on ‘as is where is’ basis to accelerate the process of revamping them.Under this model, interested parties coming through open bids would develop the stations with their designs and business ideas while commercial development of real estate would be allowed by the Zonal Railways.


Under this initiative, major stations will be redeveloped by leveraging real estate development of land and air space in and around the stations. It also includes permitting commercial development of real estate by the Zonal Railways. Swiss Challenge: In this method, government agencies are required to invite bids for a public project such as a port or railways. Under this method the bid is invited from third parties to match or exceed or improve the existing bid. Finally, the original bidder gets to lower the bid or accept the new bid. Categorisation of A-1 and A category railway stations: At present, Indian Railway’s based on earnings classify 7000 railway stations into seven categories. A-1 category railway stations are those non-suburban stations with 50 crore rupees and above annual passenger earnings. While, Category A railway stations comprises non-suburban stations with 6 crore to 50 crore rupees annual passenger earnings.
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