The Union Cabinet Committee on Economic Affairs (CCEA) has revised the long-term lease policy for the industrial use of the Railways’ land. The new policy will see the Railways’ land licensing fee coming down to 1.5 per cent, from the current 6 per cent (with a 7 per cent annual increase) of the market value of the land. The lease period has been extended to 35 years from five years now.
According to a government statement, the policy has been tweaked for a smoother implementation of the PM Gati Shakti National Master Plan framework. According to sector observers, the revised terms will also help facilitate the government’s strategic disinvestment in the Railways’ undertaking Container Corporation of India (Concor).
“Liberalising the land leasing policy would open avenues for all stakeholders/service providers/operators to establish more cargo-related facilities and render their participation, assisting in the generation of additional cargo traffic and freight revenues to the Railways,”
