Rail Land Development Authority
Rail Land Development Authority (RLDA) is a statutory authority, under the Indian Ministry of Railways, set-up by an Amendment to the Railways Act, 1989. It is responsible for creating assets for Indian Railways through the development of vacant railway land for commercial use to generate revenue by non-tariff measures. RLDA's mission is to be a leader in creating value through the redevelopment of land and air spaces – residential, commercial, and transportation hubs. RLDA's expenses are covered through grants provided by Indian Railways. RLDA transfers the total earnings generated from the development of  railway land to Indian Railways. The Indian Planning Commission has computed an approximate budget of around Rs 20 to 272 billion for the development of infrastructure nationally during the 11th plan period. Out of this budget, the Railways has an anticipated requirement of Rs 2800 billion. 83% of this requirement is supposed to be met through public sector investment. In order to generate the remaining investment required to meet the budget mentioned above, the Indian Railways set up the Rail Land Development Authority on 1 November 2006. Ved Prakash Dudeja, a 1986 batch IRSE officer, is Vice Chairman of RLDA . He joined RLDA on 7 April 2019. Currently, RLDA is working on four types of projects: Purpose. Indian Railways own approximately 43,000 hectares of vacant land. The land which is not required for operational purposes in the foreseeable future will be identified by the zonal railways and the details will be advised to the Railway Board. Such plots of land would then be handed over to the RLDA by the Railway Board in phases for commercial development. RLDA's Business Model. By monetization of land parcels, Railways will be earning 100% non-tariff earnings at no cost either by getting  Upfront Lease Premium or by asset formation in the form of Railway Colonies/Railway Stations. By the development of Railway Stations/MFCs, better facilities are being provided to Railway Passengers without any investment on the part of Railway. Initially, RLDA was entrusted with 23 Railway Colonies in 2018 with the purpose to re-develop these depilated Railway colonies which were mostly single or double storied and covering huge areas, thus, there was poor utilization of FSI/FAR available for that particular land area. RLDA has already finalized various Architects for Feasibility/Do-ability study. Railway Colonies will be developed by  efficient utilization of FSI/FAR. Thus, creating a Railway Colony in one small pocket of land, while freeing the rest of the land for monetization. This land can be leased out to a possible developer, functioning as potential earning to Railways in the form of Upfront Lease Premium, as well as the Development of Railway Colonies without any investment on the part of Railways. Recently, 61 more Railway Colonies have been entrusted to RLDA for Development on the same model. Approximately 25000 Staff Quarters will be re-constructed. A total of 123 MFCs were entrusted to RLDA for development. Out  of these, 52 MFCs has been leased out for a lease period of 45 years to various developers PAN India for developing multiple facilities like shopping, food stalls/restaurants, Book Stalls, ATMs, Medicines and Budget Hotels, Parking Spaces and other similar amenities for rail users at Railway Stations. Total revenue generation is approximately Rs. 500 Cr. which is the earnings of Railways. Out of the total 123 MFCs entrusted 33 MFCs have been advised to Railway Board for deferring and for approximately 13 MFCs alternative sites are being suggested by Railways and approximate tenders for 19 MFCs will be called  shortly. Commercial / Residential Sites A total of 21 Commercial Sites leased out for 45/99 years to various Developers with Realized/Expected revenue of approximately Rs. 1700 crores for Railways. Upfront lease premium model through transparent E-bidding system is adopted. Approximately 55 more sites having an approximate value of Rs. 7500 crores available for lease PAN India. Some major Commercial sites which have been leased out are as follows:-  Re-Development of Railway Colonies Re-development of Railway Stations Multi-Functional Complex (MFC) Sites