ECONOMY

Mumbai CSMT revamp: PPP model dropped, railways to go for hybrid annuity model

The Indian Railways which had decided to redevelop the Chhatrapati Shivaji Maharaj Terminus (CSMT) railway station on a public-private partnership (PPP) model, will now be developing it under a hybrid annuity model wherein the station will be leased out to a private developer for just 27 years, instead of 99 years.

Under the new model, the railways will initially have to invest 40 per cent of the total Rs 1,350 crore project cost and 60 per cent will be invested by the developer, which the railways will have to repay in the next 27 years before taking over the station, an official said.

As per the earlier PPP model, the developer had to bear the entire cost of the project and, in return, would have received long-term lease rights for real estate development up to 99 years for residential or mixed-use purposes.

The Indian Railway Stations Development Corporation Ltd (IRSDC), which has since been dissolved, had earlier invited Request for Qualification (RFQ) for the project in August 2020 after receiving in-principle approval of the PPP Appraisal Committee (PPPAC) to redevelop the CSMT railway station and transform it into an iconic city centre.

On January 15, 2021, after the evaluation, nine bidders qualified for the next stage. The shortlisted bidders were Adani Railways Transport Ltd, M/s Godrej Properties Ltd, M/s Anchorage Infrastructure Investments Holdings Ltd, M/s Oberoi Realty Ltd, M/s ISQ Asia Infrastructure Investments Pte Ltd, M/s Kalpataru Power Transmission Ltd, M/s GMR Enterprises Private Ltd, M/s Moribus Holdings Pte, Ltd and M/s BIF IV Infrastructure Holding DIFC Pvt Ltd.

After the dissolution of the IRSDC, the Rail Land Development Authority (RLDA) became the single-window for approval of master plan and building plans, in consultation with local authorities, in terms of power conferred under Section 11 of Railway Act, 1989.

[“source=indianexpress”]