Railway proposed to extend the lease period to 99 years


The indian railways has circulated a note to various ministers seeking the redevelopment in railways and making several changes like extending the lease period from 45 years to 99 years.
In July 2015, the union minister approved the proposal to redevelop 400 railway station using the method “Swiss challenge”.
Swiss challenge is a process of giving the contracts where any person or group can give their proposals or methods for the development to the government. It was considered one of the best method for development.
Indian railways now proposed to extend the lease period to 99 years but instead of choosing Swiss challenge method it allowed PPC,EPC,Joint ventures etc. Extending the lease period will require approx 1 lakh crore expenditure.
The finance ministry is not in favour to increase the lease period to 99 years and observed that lease period should be 60 years. The redevelopment of indian railways includes opening of various shopping
complex,offices,hotels and parking spaces on the railway land make an ease for the passengers.
Various groups like TATA , Shapoorji , Essel etc have raised ther concerns along with the railway minister Piyush Goyal.
Railway aims to earn Rs.50000 crores from the redevelopment of the land near the railways. IRSDC will prepare the proper plans to avoid the wastage of funds and ensure the proper development