IRSDC offers more sops for redevelopment of Surat Railway Station

IRSDC offers more sops for redevelopment of Surat Railway Station

Indian Railways Station Development Corporation (IRSDC), the nodal agency for development of railway stations, has fast-tracked the development of Surat Railway Station as a multi modal transport hub. It has also initiated a series of steps to make this unique project more attractive and risk free to developers.

A truly seamless multi modal transport hub integrating all modes of transport is to be developed at Surat Railway station wherein all the three levels of government, namely central government (Railways), state government (Gujarat State Road Transport Corporation) and local government (Surat Municipal Corporation) have come together to pool their lands and also form an SPV named SITCO. 

The area for commercial development has been increased from 5.07 lakh sq m to 8.40 lakh sq m. The definition of built-up area has been modified to exclude basement(s) or any upper floor(s) for satisfying the parking/ fire requirements as per local byelaws.

The estimated cost of mandatory project has been reduced from Rs1,008 crore to Rs895 crore. The commercial retail area on ground level has also been increased from 3,54,864 sq m to 7,84,596 sq m, considering the local demand at Surat.

Besides, flexibility has been given to the developer to modify the commercial development plan without disturbing the area requirements and intent of mandatory project. Master plan has also been revised to provide more commercial area on ground.

IRSDC being declared the nodal agency by union cabinet for railway station redevelopment and given full powers for plan approvals over railway land.

Other relaxations include flexibility in commercial development - only 40 per cent of the commercial development project to be completed in eight years from effective date. Balance 60 per cent can be completed in 15 years from the effective date (extendable by another 5 years without levy of liquidated damages).

Performance guarantee for commercial development project has been reduced from 100 per cent to 40 per cent of commercial development cost.

Milestones of project development fee installments payable by the developer has been realigned to reduce upfront expenditure of developer.

Interest rate on balance lease premium payable by the developer has been reduced from 15 per cent to 12 per cent.

Station revenue share payable by the developer to SITCO has been reduced from 50 per cent to 35 per cent.

Maximum tenure of sub-license at a time has been increased from 3 years to 9 years.

The bid opening date has now been extended to 7 December 2018 based on the request of bidders.

This project once completed, will transform the face of Surat.

SITCO IRSDC Surat Indian Railway