The decision will bring more revenue to the railways and will simplify approvals for utilities as envisaged in the PM Gati Shakti Programme. It will help develop public utilities like electricity, gas, water supply, telecom cable, sewage disposal, drains, optical fibre cables (OFC), pipelines, roads, flyovers, bus terminals, regional rail transport and urban transport in an integrated manner, an official release said.
Three hundred PM Gati Shakti cargo terminals would be developed over the next five years. The decision will generate employment for about 1.2 lakh and no additional expenditure will be incurred.
The amendment provides for long-term leasing of railway land for cargo-related activities for a period of up to 35 years at 1.5 per cent of market value of land per annum.
The existing entities using railway land for cargo terminals will have the option to switch to the new policy regime after transparent and competitive bidding process.
This will increase modal share of rail in freight transportation and reduce overall logistics cost in the country.
The policy also encourages development of social infrastructure like hospitals and schools on railway land at a nominal annual fee of ₹1 per square metre.
ALCHEMPro News Desk (DS)
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