The Hindu Business Line : Bill to set up Rail Land Development Authority introduced in RS

THE Union Government on Monday introduced a Bill in the Rajya Sabha to establish Rail Land Development Authority, which would enable Railways to use its land for commercial purposes for generating revenues by non-tariff measures.

The Railways (Amendment) Bill 2004, introduced by Minister of State for Railways Mr R. Velu, provides for consultancy, construction and management services and undertaking of operations by Railways in the country for development of land and property.

Indian Railways earned Rs 116.53 crore from the use of railway land in 2003-2004 compared with Rs 91.49 crore in 2002-2003 and Rs 223.53 crore in 2001-2002.

Commercial development of some of the land could increase Railways' revenue by a further Rs 100-200 crore over 2-3 years.

The Bill which amends the Railway Act for this purpose will also enable Railways to undertake beautification of stations and provide modern amenities to rail users through the commercial development route.

The amendment follows a proposal in the Ninth Plan that Railways could supplement their financial resources through non-tariff measures like commercial utilisation of land and the airspace.

The Railways owns 4.23 lakh hectares of land, out of which 3.37 lakh hectares is used for tracks and structures, about 0.20 lakh hectares is lying vacant and another 0.02 lakh hectares is under encroachment.