Project Report on

Development of MFCs at Rudrapur & Kathgodam

Submitted by

Sri Pradeep Singh

CGE/NER/GKP

Facilitated by

Sri Ravij Seth

FA & Sr. Professor (Finance & PPP)/IRITM/Lucknow

Administrative support by
Sri Kishor Mehta
CMI/IRITM/Lucknow

14 June 2013
Indian Railways Institute of Transport Management, Lucknow (Uttar Pradesh)

A Project Report
on
In PPP perspective, a Study of Measures undertaken in N.E. Railway for
Commercial development

by Public/Private Sector viz.: (i) Identification of

surplus railway land ( 4 plots in 2 Divisions) ;offered to RLDA by Railway

Board for

commercial exploitation, ii) MFC at Kathgodam, (iii) Proposed

Greenfield PFT at Rudrapur, (iv) Improvement and upgradation of retiring

rooms/dormitories at Railway stations.
By
Pradeep Singh
CGE, N E Railway

June, 2013
Indian Railways Institute of Transport Management
Lucknow

DECLARATION

I declare that the Project Report on In PPP perspective, a Study of Measures

undertaken in N.E. Railway for Commercial development by Public/Private Sector
viz.: (i) Identification of surplus railway land (4 plots in 2 Divisions) ;offered to RLDA
by Railway Board for commercial exploitation, ii) MFC at Kathgodam, (iii) Proposed
Greenfield PFT at Rudrapur (iv) Improvement and upgradation of retiring
rooms/dormitories at Railway stations is submitted by me on completion of course
on 14-06-2013 to the Indian Railways Institute of Transport Management, Lucknow .
My report may be used by Indian Railways/ IRITM for official purposes.

Date : 14-06-2013

Name

Place : Lucknow

Designation: CGE, N E Railway

Pradeep Singh

CONTENTS

Sl.

Description

Page No.

No.
1

Introduction

Chapter 1: Vacant Railway Plots (4 Nos. in 2

2-9

Divisions) identified for commercial development;

offered to RLDA by Railway Board for Commercial
development.
3

Chapter 2 :Construction of Multi-Functional

10 - 22

Complex (MFC) in Kathgodam.

3

Chapter 3 : Green - Field Private Freight

23 - 29

Terminal (PFT) in Indian Railways : Policy of

Railway Board on Green Field PFTs.
4

Chapter 4 : A study of proposed PFT at Rudrapur,

30 - 34

Izzatnagar Division, N.E. Railway

5

Chapter 5 : Improvement and upgradation of

35 - 38

retiring Rooms/Dormitories in Railway stations

under PPP.
6

Chapter 6 :Suggested Measures

Bibliography

39 - 43

References/ Bibliography
(1) Railway Budget Speech 2009
(2) FM policy circular No. 5 of 2012 issued by Railway Board
(3) Railway Board`s Policy letters regarding MFCs issued in 2009-2012
(4) ME`s D.O. letter to GM, NE Railway
(5) Ideas on PPP by Dr Kalpana Dube and Ashish Shukla
(6) Public Private Partnership in Infra-structure Sector Reading
Material (for IRAS Probationers) by PPP Knowledge Centre, IRITM,
Lucknow .

INTRODUCTION
In PPP perspective , private sector and Public Sector/ Government
Department partnership can occur through several contractual forms such as :
Management contract, Build Operate Transfer (BOT), Build Own Operate Transfer
(BOOT), Build Own Operate Transfer (BOOT), Build Own Operate (BOO),
Concessioning, Design Build Finance Operate (DBFO),Annuity Model, Assets sale
(complete privatization), and models modified/structured to project needs for roads,
ports, airports and railways.
In N.E. Railway important measures have been under-taken for participation of
private

sector

in

MFCs

and

improvement

and

upgradation

of

retiring

rooms/dormitories in railway stations, construction of Greenfield PFTs, and

identification of surplus vacant railway land for commercial development. In this
project Report, four specific cases have been studied as listed below :
(i)

Vacant Railway Plots (4 Nos. in 2 Divisions) identified for commercial

development; offered

to RLDA by Railway Board for Commercial

development.
(ii)

Construction of Multi-Functional Complex (MFC) in Kathgodam.

(iii)

Green-field PFT at Rudrapur ( Izzat Nagar Division )

(iv) Improvement and upgradation of Retiring Rooms/Dormitories facilities of several

railway stations in the three Divisions (LJN,IZN & BSB) under PPP.

Chapter - 1
Vacant Railway Plots (4 Nos. in 2 Divisions) identified for commercial
development; offered to RLDA by Railway Board for Commercial
development.
(1) Ministry of Railways has set up Rail Land Development Authority (RLDA) through
an Amendment (No.47 of 2005 dated 15/09/2007) to the Railway Act, 1989 for
commercial development of vacant railway land etc for generating revenues by nontariff measures.
(3) GM,NE Rly was informed by ME vide DO letter No. 2007/LML/2/8 dated 29-112007 that in-order to ensure that RLDA is successful in achieving its objectives,
considerable assistance would be required from the Railways, who are, and shall
continue to be, the owner and custodian of railway land.Some of the important areas
where Railway`s assistance would be required are as follows :
(i) Identification of suitable plots of land (free from encroachments) which are not
required for operational purposes in foreseeable future for commercial development
with proper dimensions,sketches etc.
(ii) Assistance to consultants and developers in site inspections and making available
necessary drawings ,land title records etc from the field/headquarter units.
(iii) Removals of encroachments/encumbrances from the concerned sites in time
before the bids are invited from the developers.
(iv) Assistance to RLDA officers/officials during their visits/interactions with Zonal
and Divisional units, including providing rest house accommodation, site visits etc.
7

Zonal Railways may proactively assist RLDA in its efforts as above .

(4) Entrustment of sites for commercial development of railway land to RLDA :
The following four plots of vacant railway land were identified by N.E .Railway
(Engineering Department) for commercial development and intimated to Railway
Board for offering the same to RLDA for commercial development in 2009-10.
Railway Board subsequently offered these 4 plots of railway land to RLDA for
commercial development. Further action is to be explored by RLDA for commercial
development of the four plots.
Name of Site (City)

Area ( in Hectare)

Division

Shahmatganj (Bareilly)

14.633

IZN

Clutterbuckganj (Bareilly)

55.090*

IZN

Bareilly City (Bareilly)

1.033

IZN

Kanpur Gwaltoli (Kanpur)

1.516

LJN

(* Part of this vacant land there-after has been identified by Railways for construction
of DEMU Workshop by Railways. The remaining part is thus to be considered for
commercial development by RLDA.)
(5) The salient points about the location of these plots are as given below :
(a) Shahmatganj, Bareilly City (Bareilly) : These plots are located in the busy
city area.
(b) Clutterbuckganj (Bareilly) : This plot is located near the running lines
between Bareilly and Shahjahanpur, near Clutterbuckganj railway station. Part of
this vacant plot has since been ear-marked for construction of a DEMU maintenance

work-shop. The remaining vacant plot can be utilized by RLDA for commercial
development as considered appropriate which could be under a PPP project.
(c) Kanpur Gwaltoli (Kanpur) : This plot is located in Kanpur city. It has well
developed localities nearby.
The four plots are shown in Figure Nos. 1 to 5.
(6) In PPP perspective, commercial development of surplus vacant railway land is
involved when any PPP project of Indian Railways is to be located on railway land.
The choice of contract form may be a combination of various contract forms under
PPP model where commercial development of land is involved such as Lease or
Lease and BOT along with EPC,Lease and BOT.

Figure- 1: Plan of vacant/surplus land at Shahmatganj (Bareilly)

10

Figure-2 : Plan of vacant/surplus railway land at Clutterbuck Ganj (Bareilly)

11

Figure -3 : Plan of vacant railway land plot at Clutterbuck Ganj (Bareilly)

12

Figure-4 :
Plan of vacant/surplus land between Bareilly city Bareilly Jn

13

Figure -5 : Plan of vacant railway land plot at Gwaltoil (Kanpur)

14

Chapter - 2
Construction of Multi-Functional Complex (MFC) in Kathgodam.
(1) IR has introduced the concept of MFC at Railway stations beginning from year
2009-10 for developing facilities for rail users at one centralized complex.
(2) The provision of MFCs are aimed to improve and upgrade the existing
amenities for rail passengers in cities having tourist and religious importance by
way of developing land/air space at railway stations.
(3) MFCs will be developed to provide rail users with facilities such as shopping,
food stalls, ATMs, medicines and variety stores , budget hotels, parking etc.
(4) In first phase of the project announced I year 2009-10 development of 48 MFCs
were started by RLDA jointly with three railway PSUs IRCON, RITES and
RVNL.
(5) 6 MFCs at Cuttack, Dehradun, Jhansi, Katra, Nanded and Ujjain were proposed
to be developed through private parties.
(6) 86 MFCs will be developed by RLDA across the country through private parties
as part of the second phase as parties as part of the second phase of the MFC
project announced in the Rail Budget in year 2010-11.
(7) Rail Land Development Authority (RLDA) has been given the responsibility of
developing Multi Functional Complexes (MFCs) through IRCON, RITES, RVNL
and private sector. MFCs will provide multiple facilities like shopping, food
stalls/ restaurants, Book stalls, PCO Booths, ATMs, Medicines and Variety
stores, Budget Hotels, parking spaces and other similar amenities to rail users
at Railway Stations. Sites are being offered on 30-45 years lease on upfront
15

lease premium or Revenue Sharing basis through MOU to PSUs and through
open bidding process to private sector. Ministry of Railways has sanctioned 67
and 93 MFC sites in 2009-10 and 2010-11 respectively.
(8)

Revised Policy issued Railway Board in August,2012 for Allotment and

Operation/ Management of Multi Functional Complexes (MFCs) :
The extent revised policy for Allotment and Operation/ Management of Multi
Functional Complexes

(MFCs) has been issued by Railway Board vide

Director/WCS, Railway Board`s letter No. 008/LML/2/13 dated 12-08-2013.

MFCs constructed by Zonal Railways or handed over by PSUs to Zonal Railway
after

construction

for

operation

and

management

(O&M),

shall

be

licensed/allotted/managed by Commercial Department of Zonal Railways.

Transfer of operation & management (O&M) of MFC to Zonal Railway by PSU
shall be permitted by Railway Board only in very exceptional circumstances.
Engineering Department of Zonal Railways will continue to provide support for
land management and maintenance of infra-structure. To ensure the provision
of demand based product mix, plan for MFC (being developed by Zonal
Railways) shall be got approved by Commercial and Engineering departments
and ,there-after, should be got approved by DRM.MFCs being developed by
RLDA and MFCs built by PSUs & not handed over after construction to Zonal
Railways for operation and management would be operated/ managed/
maintained by PSUs/ RLDA for the entire period of lease with RLDA acting as
nodal agency and Engineering Department would be responsible for
coordination with Zonal Railways for the same.

16

(9) In N.E. Railway, MFCs have been proposed to be constructed at Gorakhpur,

Azamgarh, Ram-Nagar, Jhusi stations by RLDA and at Kathgodam by
N.E.Railway. Out of these, the Phase-I stage of MFC at Kathgodam has been
completed by N.E. Railway and opened for usage. RLDA is dealing with
evaluation of the other sites of MFCs with assistance as needed by the Zonal
Railway.
(10) A list of 64 stations identified for construction of MFCs was communicated to
GM,,N.E..Railway by M.E. vide his D.O. letter No.2009/LML/2/13 dated 20-082013, which indicated two sites in N.E.Railway viz. Kathgodam (KGM) and
Nainital (NNT) and the responsibility for development of these facilities has
been entrusted to RLDA and IRCON who have signed an MOU in this regard.
After identification and verification of the site at proposed stations by concerned
divisional officers along-with RLDA-IRCON officials in this

regard, the

necessary proposal for entrusting the site to RLDA could be submitted to

Railway Board for entrusting the site to RLDA for further action.
(11) In reply to ME`s above-mentioned D.O. letter dated 20-08-2013 , PCE, N.E.
railway informed him with the approval of GM that there is no land available at
KGM and Nainital ( which is not connected by a rail head ) for construction of
MFCs and as an alternative Haldwani station where a plot of land of 2800 sq.m.
was proposed for construction of MFC. It was informed that Haldwani station is
well

situated in the city surrounded

by residential

and commercial

establishments and having good road approaches. in a way , Haldwani is the

commercial hub of this area and in Nainital district, with important rail heads viz.
17

KGM and LKU stations located nearby. MFC , if developed at this station, will
be patronized by railway employees, railway passengers and the residents of
the city.
(12) It was informed by Railway board vide Director(L&A)`s two letters bearing the
same number and date viz. No. 2009/LML/2/13 dated 04-12-2009 that
construction of MFC at KGM was to be under-taken by zonal railway in one
letter and at NNT by RLDA and IRCON in the second letter. A reply was sent by
CPDE vide GM/Engg, N.E. Railway`s letter No.W/286/MFC/W-7 dated 11-122009 informing Director(L&A) informing non-availability of land at KGM and
NNT for construction of MFCs and as an alternative proposing Haldwani station
as a site for MFC where a plot of 2800 sq.m. of land could be spared by the
zonal

railway

as

requisitioned

by

RLDA

vide

their

letter

no.

RLDA/2009/Project/MFC dated 30-09-2009.

(13) Construction of MFC at KGM is an MR targeted work. Estimate for the same
has been sanctioned under Division`s power in 2009-10 under Plan Head-53 :
Name of Work

Construction of MFC ( First Phase)

PH.

53

Allocation

Cost ( Rs in lakhs)

DF-I

Rs 59.72

DF-I

Rs 25.00

At KGM Station (Restaurants,Showrooms,

Entrance Gate,Tower,Parking,Lawn etc.)

Electrical

53

(For improvement of lighting in surrounding area)

18

Total Fund Requirement = Rs 59.72+ Rs 25.00 =Rs 84.72 lakhs.

Number of Shops and area :
Shop No.

Area (Sq.m)

01

23.812

License fees for five years as indicated in

Open Tender Notice No.
C/MFC/Kathgodam/11 dt. 29.10.2012 of
Commercial Department, IZN Division
Rs. 452032/-

02

16.576

Rs. 314669/-

03

16.576

Rs. 314669/

04

16.576

Rs. 314669/

05

16.576

Rs. 314669/

06

16.576

Rs. 314669/

07

16.576

Rs. 314669/

08

16.576

Rs. 314669/

09

24.746

Rs. 469765/-

(14) Product Mix of MFC at KGM :(i) PhaseI: Food Plaza, 9 shops, Entrance, Tower, Stair Cases and circulating
areas including horticulture etc with plinth area measuring 320
Sq m.
Phase-II : Food PLAZA ON Ground floor with 15 Nos. additional shops
having plinth area 433 Sq.m & 19 Rooms of Budget hotel with
plinth area 740 Sq.m on first floor.
(ii) Phase-I work commenced in Feb 2011 and ground floor of Phase-I
completed and handed over by Feb. 2013
(15) Estimated Cost of construction of MFC ( Ist Phase ) : Rs 59,93,606/- or say Rs
60 lakhs ( approx.) as per sanctioned Capital Work of LWP 2010-11 (Plan
Head-53).
19

(16) As per CPDE, NE Railway vide letter No. W/286/MFC/W-7 dated 19-10-2010 to
Sr.DEN(1)/IZN, NE Railway , while planning the MFC, following guidelines of
Railway Board need to be kept in view :
(i) It should come up in a manner so that the passengers are served without
hindering the flow of vehicular and passenger traffic.
(ii) Its design should reflect local architecture.
(iii) It should have the following facilities :
(a) Shopping
(b) Food stalls and Restaurants
(c) Book stalls
(d) PCO/STD/ISD/Fax Booths
(e) Medicine and variety stores
(f) Budget Hotel
(g) Parking (Surface or under-ground)
(17) Nine shops have been allotted in December 2012 by Commercial Department,
Izzatnagar Division for sale of food articles in Phase-I. The earnings of
railways will be in the form of deposit of one time license fees for each shops
by the shopkeepers and payment of rent of the shops at the rate of Rs. 500/per month subject to annual increase of 10% of the rent. The license fees for
each shop is dependent on the particular shop.
20

(18) The photographs of Kathgodam railway station are shown in figure-1, Sketch
of Kathgodam MFC in figure-2, Layout of MFC in Phase-I and II in figures 3
to 6.
----

21

Figure -1
1 : Photographs of Kathgodam Railway Station

Figure -2 : Sketch of Kathgodam Yard

22

Figure -3 : Sketch of MFC at Kathgodam

23

Figure -4 : Plan of MFC at Kathgodam Phase I (Ground floor)

24

Figure -5 : Plan of MFC at Kathgodam Phase II (1st floor)

25

Figure -6 : Layout of MFC at Kathgodam

26

Chapter 3
Green - Field Private Freight Terminal (PFT) in Indian Railways : Policy of
Railway Board on Green Field PFTs.
(1) INTRODUCTION :
Railway Board has issued directives to zonal railways regarding a revised policy on
Private Freight Terminals vide FM circulars No. 05 of 2012 vide Director Freight
Marketing, Railway Board`s letter No. 2011/TC(FM)/14/14 dated 23-04-2013 with a
view to increase freight handling capacity of Indian railways through participation of
private sector to build, maintain and operate PFTs on private land with rail
connectivity to existing rail network. This policy seeks to supplement the in-house
programme of Ministry of Railways by opening the area of terminal development with
participation of the logistics service providers to create world class facilities.
(2) Scope :
(i) PFT shall be set up only on private land. However, for rail connectivity, railway
land can be offered.
(ii) PFT would be permitted to book and handle all traffic excluding coal, coke and
iron ore traffic.
(iii) All type of wagons permitted to run on IR network shall have access to the PFT.
(iv) PFT would provide various logistics related services with adequate inter-modal
facilities and convenience centres.

27

(3) Facilities to be provided in the PFTs :

(i) Placement capacities on the handling lines should be adequate to deal with full
rakes ( composition as notified by Railways from time to time).
(ii) Depending upon anticipated business plan, as submitted by the TMC as per Para
8 of the PFT Policy Circular No. 5 of Railway Board, PFT would provide various
logistics related services.
(iii) TMC will be required to provide furnished rest room facilities for crew and guard
at the PFT at its cost.
(iv) TMC will permit the train crew and guard to avail the facilities of staff canteen in
their premises, if available, on payment of charges as prescribed for their own staff.
(v) TMC will be responsible to develop adequate facilities for handling the
anticipated volume of traffic at his PFT without causing undue detention to incoming
trains or causing stabling of such trains at any station on IR network.

(4) Revenue Sharing :

(i) Greenfield projects :- revenue sharing will start after 5 full years of notification of
the PFT .
(ii) Revenue sharing to be paid to the Zonal Railway Administration will be at 50 % of
the prevailing per ton rate of terminal charge leviable at the railway Goods Sheds or
Rupees 20/- per ton which-ever is higher. The sharing of terminal charges will be for
the tonnage mentioned in the railway receipt.
28

(iii) The revenue sharing will be on the basis of the weight mentioned in the RR.
(5) Eligibility for Terminal Management Company (TMC) :
(i) A TMC should be :
(a) A company should be an entity registered in India under the Companies Act,
1956,
(b) A public sector entity (PSUs or organizations created under an act of
Parliament), or
(c) An entity registered as a Cooperative Society under the Cooperative Societies
Act, 2012, or
(d) An entity owning an existing Private siding or an assisted siding, or
(e) A subsidiary of an entity covered in (5)(a) or (b) above, or
(f) A joint venture company, or
(g) A consortium.
(5) Construction of PFT :
(i) The construction of PFT will be as per provision of private siding policy. The
connectivity to Railway line through Railway land will be facilitated by Railway as per
extant rules on payment of license fee. All charges stipulated in the extant policy for
construction of private siding would be applicable on PFT.
(ii) Each PFT will be provided connectivity with a station on IR network. Such a
station will be serving station for the PFT.
29

(iii) Generally, a PFT will not be permitted to be connected to IR network in mid

section. How-ever, in exceptional cases where such a connection becomes
inescapable due to physical lay-out, the same will be permitted by Railway
Administration in accordance with the extent relevant policy guidelines for private
siding.
(6) Application Procedure for setting up a PFT:
1) An eligibility entity proposing to set up any type of PFT will apply to CCM/FM of
the Zone in whose jurisdiction the proposed PFT falls enclosing the prescribed
documents and application fee. CCM/FM will scrutinize the application for looking
into aspect of eligibility criteria and forward to CTPM of the Zone who will examine
the proposal for the proposal for operational feasibility. CTPM will put up to CCM
and COM for in principle approval for the PFT.
2) Proposal for setting up a Greenfield PFT will be examined as under:
2.1) Examination of such proposals would be limited to confirmation of the TMC
fulfilling the eligibility criteria and operational feasibility of the proposal.
2.2) Examination of operational feasibility will be restricted only to confirmation
of the technical feasibility of connecting the proposed PFT with the rail network of IR.
3) If the proposal for setting up a Greenfield and Brownfield PFT is found to be
operationally feasible, RA will grant an in-principle approval of the proposed PFT
within 45 days of submission of the application and the prescribed documents
together with the application fee.
4) Setting up a PFT would not require a Rail Transport Clearance (RTC).
30

5) Final Approval: After grant of an in-principle approval of a PFT, Zonal railway and
the applicant/TMC should abide but the following time schedule for the grant of final
approval by CTPM
.For Greenfield PFT
(i) DPR submission by the applicant.

Three months after receipt of Zonal

Railways in principle Approval.

(ii) DPR approval by zonal railway.

One month on receipt of DPR from

the applicant/TMC.

(iii) Engg./bridge drawing submission One month after DPR approval by

by the applicant.

Zonal Railway.

(iv) Engg. Drawing approval by zonal One

railway.

month

engineering

after

receipt

of

drawings

from

the

applicant.
(v) Bridge drawings approval by zonal Two month receipt of bridge drawings
railway.

from the applicant/TMC.

6) The completion time of 1 year for Browning Field and 3 years for Greenfield will
start after approval is given by CTPM as per the time schedule as above mentioned.
7) CCM/FM of the concerned Zonal Railway and the TMC will execute an
Agreement for operation of the PFT before commissioning of the PFT.
8) Chief Commercial Manager of the concerned Railway will issue a commercial
notification opening a PFT as an independent terminal.
31

9) However, a commercial notification will be issued only after the Agreement has
been executed between CCM/FM and the TMC.
(7) Nodal office / Agency :
(1)

Executive Director (Freight Marketing), Ministry of Railways (or any other

functionary nominated for this function by Railway Board) would be the nodal officer
for implementation of this policy.
(2)

At the level of Zonal Railways, CTPM would be the nodal officer during

construction and planning stage. CCM/FM is nodal officer after commissioning of

PFT.

32

Chapter 4
A study of proposed PFT at Rudrapur, Izzatnagar Division,
N.E. Railway
(1) General :
Rudrapur in Uttar Pradesh is an industrial area and near the border of uttrakhand.
Rice mills, Automobiles, chemicals, electronics, handicrafts, Iron & Steel, Paper,
Plywood etc are some commercial segments in this area and near by cities/towns
like Kashipur, Kathgodam, Rampur, Moradabad, Bareilly which are connected by
road and rail network. The development of a green field PFT at Rudrapur as
proposed is envisaged for increasing freight loading/unloading of railways in this
area.
The company applied to NER in May 2011 for setting up of the proposed PFT.
In Principle Approval was issued with by N.E. Railway, Gorakhpur vide
GM/Commercial letter no. C/147/0/3/PFT/RG dated 22.06.2011 and N.E. Railway,
Gorakhpur vide STM/Plg. letter no. T/555/216/Palogix/Pt-I dated 30.03.2012
Name of Private Sector Company : M/s Palogix Infrastructure Pvt Ltd

33

(2) In the DPR, the traffic projection details are as below :INWARD TRAFFIC
Commodity to be Number of rakes to be handled Source/Loading Station
moved

per month
2012

Corn/rice/Vegetable 6

2013

2014

Bihar,MP,Gujarat

oil
Fertilizer

Mundra,Kandla,Paradeep

Cement

10

11

MP,Rajasthan

OUTWARD TRAFFIC
Commodity

Number of rakes to be handled per Destination

to be moved

month

LCV/Two

2012

2013

2014

Pan India

Mundra,

wheelers/Auto
Containers

JNPT

34

(3) WAREHOUSING & HANDLING FACILITIES :

TYPE

OF HANDLING

CONSIGNMENT

REQUIREMEN

AREA

WAREHOUSINH

OF G & STORAGE

HANDLING
BAGGED

Rail

Level Manual

Mobile storage in

CARGO

platform

along handling

standard

Cement,

the goods siding

fertilizers,

containers

food-

grains etc

(TEUs)

for

storage

and

dispatch
AUTOMOBILES

Rail level yard

Loading through Open yard

temporary ramp

CONTAINERS

Rail
platform

level Cranes (to be Open yard

along hired

when

the goods siding required)

STEEL

Rail

PRODUCTS

platform

level Cranes (to be Open yard

along hired

when

the goods siding required)

VEGETABLE OIL

Rail
platform

level Rail side mobile No

along decanting

the goods siding facility

(4) ESTIMATE : As per DPR

35

Storage

facilities provided

Type of Works

Amount (Rs)

Civil Engineering

7,29,94,390

General Electrification

30,00,000

Signal

&

telecommunication 1,00,00,000

Engineering
Grand Total

8,59,94,390

(5) Location and lay-out :

(a) The proposed PFT yard shall be provided with two lines at 6 m track centre
spacing, out of which one line is proposed to be engine escape line. CSL of
both lines is 720 m.One rake-handling platform of length 720 m and width 20 m
is proposed to be provided with the rake handling line.
(b) The proposed PFT siding is take-off from the main line at Km 44.331 towards
Bilaspur Road end of Rudrapur City Station Yard. This point is 72 m away from
Railway`s proposed SRJ of line No.5 at the same end Km 44.403. After taking
off by a proposed 5 degree right hand curve the alignment is oriented to and at
Km 44.112 enters the private land of the company.
(6) The yard plan of the proposed PFT and connectivity with existing railway line
signed by divisional and headquarter railway authorities. The detailed estimate
submitted by the company is under examination at divisional level.
Benefits :-

36

(i)

With setting up of the proposed green field PFT at Rudrapur, the private

company shall have rail access to handle third party cargo and undertake business
by freight loading/unloading which is a business opportunity.
(ii)

TMC shall recover various charges from its customer for the use of PFT

including Terminal, Wharfage charges and other charges for value added services
provided at PFT. TMC will be free to decide tariff for such services at PFT.
(iii)

No Wharfage charges are required to paid by TMC to Railways.

(iv)

Railways will be able to increase share and earnings in the market.

(v)

Both TMC and Railway may gain profits through this partnership enterprise of

green field PFT.

----

37

Chapter 5
Improvement and upgradation of retiring Rooms/Dormitories in Railway
stations under PPP.
(i) In N.E. Railway, Commercial Department has issued an advertisement
newspapers on 07-06-2013 inviting EOIs

in

from private firms/parties for

improvement and upgradation of Retiring Rooms/Dormitories facilities of several

railway stations in the three Divisions (LJN,IZN & BSB) under PPP and
Renovation/Rehabilitation, operation and transfer (R.O.T.) scheme.
(ii) The Division-wise list of Railway stations is given below :(a) Lucknow Division : Lucknow, Gorakhpur, basti, Gonda, Khalilabad,
Badshah- Nagar, Kanpur Anwar-ganj, Lakhim-pur, Mankapur, Sitapur.
(b) Izzat- Nagar Division : Kathgodam, Rudrapur City, Farrukhabad, Haldwani,
Kannauj, Kashipur, Lalkua, Pilibhit.
(c) Varanasi Division : Chappra, Azamgarh, Balia, Mau, Siwan, Bhatni, Ghazipur
City, Manduahdih, Salempur.
(iii) EOI proposals can be submitted for all stations or all stations of one Division or
various stations in a group or station-wise.
(iv) Reception facility, telephone, literate attendant, TV set, cable connection, air
cooler/room heater etc and other day to day usage facilities like toiletries outlet ,
boot polish machine, internet facility on payment, transport facility and medical
assistance etc have to be made available.

38

(v) Contract period will be for 15 years and there-after all movable and immovable
property will get transferred to Railways. Contractor will have to pay annual user
charges to railways at the rate of 80 % for A-1 category stations, 70 % for A
category stations , 60 % for B category stations and 50 % for other category
stations. In addition, annual licence fee would be payable for each year as per
the quoted financial bid by the contractor.
(vi) (a) As Security Deposit Contractor has to deposit 50 % of the license fee for the
first year and user charge for that year. Interested firm/Company should be
registered under Companies Act, 1956. Firm should have minimum annual
turn-over of 50 lakhs in the previous three years for operation and
maintenance of hotels ( room charges and other services given to visiting
guests).
(b) Details of net profit earned in previous three years are required to be
submitted,
(c) Firm should not have been declared a defaulter by any Financial
Institution/Bank in any of the previous three financial years.
(d) Company/Firm should be paying Income Tax and Sales Tax/ Service Tax.
(vii) Interested firms can submit EOIs to CCM Office, N.E. Railway, Gorakhpur by
03.07.2013. There-after, two packet system may be adopted and an open
tender may be invited.
(viii) Other detailed information can be seen in Commercial Policy Circular No.
89/2006 on internet web-site www.indianrailways.gov.in.

39

(ix) For the railway stations, the daily number of passengers and the number of
retiring

rooms/dormitories

can

be

seen

in

the

internet

web-site

www.ner.indianrailways.gov.in.
(x) Station-wise details of number of passengers, earnings and retiring
rooms/dormitories are shown in Table No. (A).
Benefits :(i)

Through private sector participation in the operation, maintenance and

upgradation/improvement of retiring rooms/dormitories railways will be benefited
by saving in manpower resources as departmental man power will not be
required from the railway side for this purpose.

(ii)

Earnings of the railways may increase from the receipt of user charges every
year from the private firms/ companies entrusted with the management of retiring
rooms/dormitories.

40

Chapter 6
Suggested Measures
(A) Commercial development through land usage of surplus vacant
plots of railway land; offered to RLDA by Railway Board :
(1) The surplus vacant railway land plots can be considered by RLDA for
commercial development for site specific and locality based considerations for
economically viable and profitable business in private or public sector and PPP
could be explored. It is suggested that in case of lease of railway land for
commercial development under PPP etc the usage of the railway land may be
planned for a purpose connected with the working of the railway.
(2) The CBJ site in IZN Division is the largest of the 4 plots to RLDA. Part of this
plot is earmarked for construction of DEMU work-shop. The remaining plot can
be explored by RLDA for exploring the possibility of profitable and useful PPP
project. This site is located near the northern Railway running lines between
Bareilly and Shahjanpur.

41

(B) Proposed MFC at KGM :

(1) The earnings of Railways in this MFC comes from rental of 9 shops at the rate
of Rs. 500 per month for 5 years period. The commercial service/sale of each
shop has been specified by Railways such as PCO, Food plaza etc. The rental
earnings of Rs 54,000 for 9 shops per year are limited earnings, which need to
be reviewed for suitably increasing them. The product mix/service of these 9
shops will also need review to attract more profits for example like an outlet for
pre-paid taxi service( non-AC), one outlet for pre-paid taxi service (AC) as in
New Delhi Airport by tie-up with private sector.
(2) The MFC at Kathgodam after construction of Phase-1 and II by the zonal
Railway may be considered for operation in PPP for a limited period,say, 5
years on experimental basis by allowing the private operator to rent out the
shops and budget hotel rooms at mutually agreed rates between the private
company and Zonal Railways (Commercial Department). The product mix for
the shops may be specified by the Railways. The operation, maintenance of
the MFC may be with the private Company.
(3) The sites earmarked for construction of MFCs in N.E.Railway by Railway
Board are Kathgodam, Ram-Nagar, Jhusi, Azam- Garh and Gorakhpur in
which the MFC at KGM is to be built by Zonal Railway and the rest through
RLDA. Out of these sites, passenger traffic is low at Azam-garh, Ram-Nagar
and Jhusi. It is suggested that instead of taking up MFCs at these low
passenger volume stations, MFC may be first tried at a high passenger volume
42

station like Gorakhpur on PPP project basis by RLDA to see its economic
viability and gather experience with the exercise.

(C) Green-Field PFT at Rudrapur :

(1) The railway land is required to be given to the private Company on land
licence basis for providing connectivity of the private siding to the existing
railway running line in the station yard (Rudrapur) . The time period specified
for the land licence will be 5 years as per the extent directives of Railway
Board before renewal of licence. This period may be considered to be
reviewed for specifiying a period of longer duration by Railway Board for grant
of land licence incase of Green-Field PFT project, which is sanctioned for 30
years period. This may avoid the necessity of seeking renewal of land licence
after every 5 years by the private party from the Railways in its PFT operation
during its Consession Agreement period of 30 years.

(D) For improvement and upgradation of retiring rooms and

dormitories in railway stations in the three Divisions :
(1)

The tariff of retiring rooms/dormitories at present are quite low in

comparison to reputed hotels in the same city. At major stations like

Lucknow and Gorakhpur it is very difficult for passengers to find any vacant
retiring room/dormitory. There is a need to review the rate structure of the
retiring rooms/dormitory and also to increase the number of retiring
rooms/dormitory by suitable modification/addition in the railway stations.
43

The firms/Companies may offer higher tariff rates for the retiring rooms/
Dormitories under the proposed scheme. It is suggested that Railways may
need to ensure that the rent to be charged for the retiring room/dormitory is
not excessive for railway passengers.
(2)

The minimum eligibility criteria in Railway Boards circular for ROT

stipulates that an applicant should have an annual turn over of at least 50

lakhs from hotel business etc. This criteria may attract suitable bidders
from hotel industry in large metro cities with A or A1 class railway stations
like Gorakhpur & Lucknow. However, for small road side railway stations
with a few retiring room/dormitory. It may be difficult to find bidders
satisfying the eligibility criteria as above mentioned. Therefore, it is
suggested that for smaller category railway stations, the minimum eligibility
criteria may be reviewed at Railway Board level.

44

Table (A) : Station-wise details of daily average number of passengers, daily average passenger income and station-wise
details of retiring rooms/dormitories.
Daily
Daily
Retiring Room / Dormitory
Sl.
Station
average Average AC
AC
AC
AC
Non AC
Non AC
Non AC
No.
passeng Passeng Double
Double
single
Dormitor Double
single
Dormitory
ers
er
Bed
Bed
Bed
y
Bed
Bed
No. of
(No.)
Earnings Deluxe
Retiring
Retiring
No. of
Retiring
Retiring
Beds
(Rs)
Room
Room
Room
Beds
Room
Room
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

Lucknow
Gorakhpur
Gonda
Basti
Khalilabad
Badshah Nagar
Kanpur
Anwarganj
Lakhimpur
Mankapur
Sitapur
Kathgodam
Rudrapur City
Farrukabad
Haldwani
Kannauj
Kashipur
Lalkua
Pilibhit
Chappra
Azamgarh
Ballia

21748
39180
17439
7559
3086
4695
4542

3208248
6021341
1191344
981362
277195
205849
145831

2
-

4
4
1
1
1
-

1
-

6
-

9
9
1
1
1
1

1
3
-

24
39
14
6
-

8838
4737
7909
2440
1807
8333
1892
6270
10896
4132
15428
15410
4331
7769

150242
155883
114352
546231
219921
185817
146192
116597
159989
160738
154753
1645734
746119
702171

1
1
1

1
1
1
2
1
1
2
1
1
1
1
-

1
1
1

6
4
2
6
4
4
4+8(Yatri
Niwas)
10
2
2
2

Mau
22
10493
586250
Siwan
23
13487
1274740
Bhatni
24
4143
205343
Ghazipur City
25
2933
190627
Manduadih
26
3824
183198
1
Salempur
27
4407
158597
( Source : Internet website of N.E.Railway : www.ner.indianrailways.gov.in )