The Union Cabinet, chaired by Prime Minister Narendra Modi, gave approval for redevelopment of 400 railways stations (A1 and A category) in metros and major cities besides pilgrim centres and tourist spots. Under the model ‘as is where is’, the parties coming through open bids will develop the station with their designs and business ideas, while zonal railways would permit the commercial development of real estate which include land and air space around the stations. This scheme will encourage innovative ideas from interested parties at no cost to the railways.
Finance Minister Jaitley detailing the scheme said that it is new process of giving contracts where any person with credentials can submit a development proposal to the government. That proposal will be put online and a second person can give suggestions to improve and beat that proposal. The best proposal will be selected by an expert committee; the original proposer will be given a chance to match it, only in case it is an improvement on his proposal. If he is unable to match the competing proposal, the project will be awarded to the competing proposer.
Commenting on development Railway Minister Suresh Prabhu said that, the existing process for redevelopment are time consuming as they involve various steps which include, inception and pre-feasibility report’, appointment of architect, technical consultants, financial and legal consultants, in-principle approval of local authorities, request for qualification, short listing of bidders, and request for technical proposals, hence they added little success.
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