The Hindu Business Line : 51 Rly sites to be handed over for development

Following the handover, it can invite parties to develop the site for the best possible purpose - hotels, warehouses, residential complexes or office complexes.

"What would come up at a site would be decided by RLDA only - but it would be market-driven," said official sources.

The time period for which different sites would be leased could vary widely from as low as 10-12 years to 90 years.

This would depend on the size of land and the nature of project for which it would be leased.

It would also depend on projections of how soon the Railways would need the land for its own use.

RULES BEING FIRMED UP

These are as per the rules framed by the Railway Ministry for the authority, which has been vetted by the Law Ministry.

The proposal is awaiting final approval by the Railway Board. If the board does not seek further changes, it can notify the rules without any more clearances from Law Ministry.

DEDICATED FUND

Also, the Railways plans to form a dedicated fund for the authority. The fund would be used to undertake research and feasibility studies for RLDA.

The RLDA is likely to start with an initial fund of Rs 15 crore to undertake activities for developing Railway sites.

It would also be allowed to retain a small percentage of the revenue share accruing to the Railways from the parties who develop the sites.

The proceeds would be a part of non-lapsable, RLDA fund. Except for this share, the rest of the earnings from land development would accrue to the Consolidated Fund of India.

The Rs 15-crore fund, which was not provided for in the 2006-07 Railway Budget, would have to be taken care of in the forthcoming Budget.

In the 2006-07 Railway Budget, Rs 75 lakh was allocated to get the RLDA moving.

The RLDA came into effect from November 1, with the Railway notification issued on October 31 by Mr R.P. Gupta, Advisor to the Railway Board.

It has Mr R.R. Jharuhar as Chairman, Mr B.B. Saran as Vice-Chairman, Mr Ashok Gupta as Member (Planning-Infrastructure and Development), Mr Deepak Kashyap as Member (Planning Rail Traffic Co-ordination) and Mr Samar Jha as Member (Finance).