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Indian Railways targets for Rs 30,000 crore more from land-lease

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NEW DELHI : The Indian Railways aims to generate around Rs 30,000 crore additional revenue over the next five years and subsequently nearly Rs 30,000 crore per year through the new long-term land lease policy, which will accelerate setting up of 300 cargo terminals. The additional revenue generation will be on account of increased freight movement by railways, officials said.

Railway Minister Shri Ashwini Vaishnaw said that the target of developing 300 Gati Shakti terminals within the next five years is very much possible considering that nearly 150 players have submitted proposals and have shown interest in setting up the terminals. He said this will boost the cargo movement on the railway network and help bring down overall logistics cost.

The Union cabinet had approved a policy on long-term leasing of railways land for 35 years for setting up cargo-related projects and this can be extended for another 35 years. Vaishnaw said most of these leases are related to getting access from the railway network. “Till now such players needed to get the lease renewed every five years. When we had consultations with interested players for the 300 Gati Shakti cargo terminals, they proposed a long-term lease for 35 years. This is a win-win policy for all,” the minister

He added that the existing terminal holders such as CONCOR, Food Corporation of India (FCI), Coal India and SAIL, are public sector undertaking units and there is a 30-year lease policy in place for them. “We have consciously made a decision that we are not changing any terms and conditions of existing cargo terminals.

For the existing players, their terms and conditions, lease rates, escalations, and terms and conditions will remain the same,” Vaishnaw said. As per the new policy, the railways will also give land on lease for 60 years for setting up hospitals under public-private partnership. The minister said the details of the plan will be out soon.

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