In the midst of COVID-19, the Rail Land Development Authority (RLDA) has invited bids from private players to redevelop an area of five lakh square metres at the New Delhi station and another 2.6 lakh square metres surrounding it for commercial purposes. The estimated cost of the entire project is Rs 6,500 crore.
RLDA, an organisation under the Ministry of Railways, said that the project was likely to be completed in around four years.
The objective of the project is to position the New Delhi Railway Station as a multi-model hub through upgradation of the infrastructure and provision of state-of-the-art amenities such as elevated concourse, multi-level car parking and much more to passengers, RLDA said.
The project would be developed on a Design-Build Finance Operate Transfer (DBFOT) model for a concession period of 60 years. The estimated capital expenditure for the project is approximately Rs 6,500 crore and is slated to be completed in around four years, it said.
A Request For Qualification (RFQ) floated by the RLDA pegs the estimated cost of the redevelopment of the station at Rs 4,925 crore. It involves redeveloping the iconic station, road connections through flyovers, relocation of railway offices and buildings and creating social infrastructure.
“New Delhi is the national capital and a nerve centre of political, economic and social activities. New Delhi Railway Station will be transformed into a world-class, one-stop destination for retail, commercial and hospitality business. The development will boost the tourism potential and accentuate real estate as well as investment prospects in New Delhi and surrounding regions,” said Ved Parkash Dudeja, Vice Chairman, RLDA.
The phased redevelopment would involve station redevelopment, development of associated infrastructure, upgradation of social infrastructure as well as refurbishment of railway offices and railway quarters.
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Some of the salient features of the planned redevelopment include an elevated concourse with segregation of arriving and departing passengers, refurbished platforms with easy access from the concourse level, mezzanine level exclusively for passenger facilities such as lounges, food courts and restrooms, an elevated road network with multiple entry and exit points, a multi-level car parking facility and Green Building provisions such as optimum use of natural ventilation and lighting.
The project would also include a significant commercial component entailing a mix of retail, office, and hospitality developments such as 5-star hotels, budget hotels and serviced apartments on approximately 30 acres of land.
It also envisages a business district to be located on the outer circle of Connaught Place and near Bhavbhuti Marg, close to Civic Centre. The station will be integrated with DMRC yellow line, airport express line and with the Connaught Place outer circle through a pedestrian boulevard.
The concessionaire will earn revenues from several components including passenger handling fees collected from passengers via ticket sales, revenues from passenger facilities within the station such as retail areas, lounges, parking, advertisement spaces, F&B, etc. and income from the development and lease of the commercial components. The developer is expected to give an annual concession fee (ACF) (bid variable) to the authority along with a fixed upfront premium.
The other components of the RFQ include all permissible commercial developments like retail, hotels, offices and service apartments at designated locations.
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The redeveloped station would have separate arrival and departure sections. It would also feature a large concourse along with passenger facilities such as lounges, food courts, retail and rest rooms.
The RFQ, approved by the PPP Appraisal Committee (PPPAC), is slated to open on November 6 which will be followed by a RFP next year.
Indian Railways had entrusted New Delhi railway station to RLDA to redevelop it with state of the art architecture, facilities and public amenities.
This project is to be executed with private sector partnership by leveraging the real estate development potential in the airspace above the station and on land around the station. Key objective of this project is to provide modern passenger services for railway passengers following the PPP model.
The concessionaire will earn revenues from passenger handling fees collected from ticket sales, revenues from passenger facilities within the station such as retail areas, lounges, parking, advertisement spaces, F&B and income from the development and lease of the commercial components.
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The RLDA is currently working on 62 stations in a phased manner, while its subsidiary, the IRSDC, has taken up another 61 stations. In the first phase, the RLDA has prioritised prominent stations like New Delhi, Tirupati, Dehradun, Nellore, and Puducherry for redevelopment. The railway stations across India will be redeveloped on a PPP Model as a part of Smart City Projects launched by the government.
The New Delhi station, the largest and busiest railway station with 4.5 lakh daily footfalls, handled around 400 trains per day before the pandemic struck.