Railways seeks private fund to develop Mumbai's CST station

The estimated cost of the project is around Rs 1,642 crore.

The Indian Railways has floated a tender to redevelop Mumbai's Chhatrapati Shivaji Maharaj Terminus (Mumbai) station with private participation, expecting to see investments to the tune of around Rs 1,642 crore.

Built-in 1887, the station was declared a UNESCO World Heritage Site in 2004 and had a footfall of over a million people a day before restrictions to.

The site is also the headquarters of Central Railways. Earlier, t

here were reservations from the state government regarding the redevelopment of the station.

“The estimated cost of the project is around Rs 1,642 crore.

"Out of this, the construction cost will be Rs 1,231 crore, refurbishment cost of Rs 53 crore, heritage transformation cost of Rs 30 crore and financing cost of Rs 328 crore,” said S K Lohia, managing director and chief executive officer of Indian Railway Stations Development Corporation (IRSDC).

As per the roadmap, 40 per cent of the station area will be redeveloped within eight years from the date, a private player is entrusted with the task.

The project has already got in-principle approval of Public Private Partnership Appraisal Committee (PPPAC).

The entire procedure is a two-stage bidding process consisting of RFQ and Request for Proposal (RFP).

The selected bidder at the RFP stage shall take up the redevelopment of the station and commercial development of the surrounding railway land on a leasehold basis up to 60 years for commercial development and up to 99 years for residential development on selected plots, along with operation and maintenance of the station for 60 years on a concession basis.

The user charge will also be another continuous source of revenue to the concessioner which will be available just after the Commercial Operation Date (COD) of the station.

The planning has been done by AREP from France and discussions have been held with various stakeholders on a periodic basis.

The eligibility criteria in terms of financial capacity at the RFQ stage will be for entities having a net worth of Rs 821 crore at the close of preceding financial year.

As per the new plans, no prior environmental clearance is required from the Ministry of Environment and Forest for the project. IRSDC will be a single-window for approval of the master plan and building plans in consultation with local authorities in terms of the power conferred under Section 11 of Railway Act, 1989.

The company said in a statement that alternate investment fund (AIF) or foreign investment fund (FIF) are also eligible to participate in the bidding.

IRSDC is at the core of Indian Railways' plan to transform the country’s railway stations.

These redeveloped hubs will be called ‘railopolis’ to attract investment and create business opportunities in the heart of cities.

Photograph: PTI Photo