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Railways to levy fee across redeveloped stations
The ministry of railways will be notifying the amount to be charged for using the redeveloped stations, senior government officials said.
The Indian Railways will soon start levying an additional fee on train fares across its redeveloped stations. The user development fees model will be used by the national transporter for the first time.
User Development Fee (UDF) is part of the tax paid by air passengers. UDF is charged at various airports and the rate of UDF varies from airport to airport based on various factors.
The ministry of railways will be notifying the amount to be charged for using the redeveloped stations, senior government officials said. The national transporter has floated a request for proposal seeking bids for redeveloping Amritsar, Nagpur, Gwalior and Sabarmati railway stations at an estimated cost of Rs 1,296 crore.
“We will be redeveloping the first batch of railway stations under this model where, in addition to land monetization, we will be levying user development fee for all 50 stations chosen for the station redevelopment plan. We will be calling these redevelopment hubs as ‘Railopolis’. We have decided to lease the land out for 60 years for commercial purposes and 99 years for residential,” said Indian Railway Stations Development Corporation Limited (IRSDC) managing director and CEO Sanjeev Kumar Lohia.
He added that the user charge will not result in a substantial hike in passenger fares. “We will keep in mind the footfall that the station has the passengers coming at the stations. The charge would not be on the higher end. The passengers will be able to use world class services at the stations and it would be compensated in user experience,” he said.
This comes in the backdrop of railways’ plan of redeveloping 400 railways stations. The National Democratic Alliance (NDA) government had announced its plan of redeveloping 400 railway stations during its first tenure. As per the plan, the cost of station redevelopment project was to be met by leveraging commercial development of land and air space in and around the stations. The railway stations were taken up for redevelopment based on financial viability.
Apex policy think-tank Niti Aayog had, in October, pulled up the ministry of railways for delayed implementation of the Centre’s plan. Niti Aayog had recommended an empowered group of top bureaucrats to develop 50 stations on priority basis.
In a letter to railway board Chairman VK Yadav Niti Aayog CEO Amitabh Kant said on October 7, “as you are aware ministry of railways was required to take up 400 railways station projects to develop them as world class facilities. Despite the fact that the aforesaid commitment was given for last several years, actual implementation of the same has not happened...”
The Centre also plans to redevelop Mumbai’s Chhatrapati Shivaji Terminus which is a world heritage site.
