Railway's Land Policy

 Railway’s Land Policy

• As part of NLP - National Logistics Policy

• Indian Railways revised its land policy to give boost PM Gati Shakti framework ( Cargo related activities, Public utilities and Railway’s exclusive use)

• Liberalization of Land policy would avenues to all stakeholders/service providers/operators to establish more cargo related facilities there by additional cargo traffic to Railways. 

• Financial implications  - No additional expenditure will be incurred 

 

• Reducing overall logistics cost in India to the Single digit (i.e., 8%) of World standard. (At present Logistics cost as a proportion of the GDP is around 14 %) 

 

• 300 PM Gati Shakti Cargo Terminals - next five years. 

 

Objects: 

1. To attract more cargo to Indian Railways, thereby increasing modal share in freight transportation from 36 % at present to 45 % by 2030 year

2. Create employment generation potential of about 1.2 lakh employment

3. Simplify approvals for utilities such as Electricity, Gas, Water supply, Telecom cable, sewage disposal, drains, OFC, pipelines, roads, flyovers etc

Comparison of Railway’s Land Policy

Item	Previous Policy		Revised Policy
Leasing of Railway’s Land	5 years		35 years
Land - Annual Lease charges	6 % of Market value of Land		1.5 % of Market value of Land
Leasing of Land for Hospitals through PPP	Nil		Re. 1 per Square Meter per annum
Land for renewable energy, water treatment, water recycling, sewage treatment plants etc for exclusive use of the Railways	Nil		Re. 1 per Square Meter per annum
OFC - Optical Fiber Cable Annual Lease charges	6 % per annum		Rs. 1000 (nominal charge)

Material for MCQ

1. NLP stands for National Logistics Policy

2. GCT stands for Gati shakti Cargo Terminal 

3. OFC stands for Optical Fiber Cable 

4. GDP stands for Gross Domestic Product

5. Present logistics cost as proportion to GDP  - 14% (approx)

6. Target Logistics cost as proportion to GDP  - Single Digit 

7. Railway’s modal share in Freight transport - Present level 36 % to 45 % by the year 2030

8. Leasing of Railway’s Land - up to 35 years (previous period - 5 Years) 

9. Annual leasing charges for Railway’s Land - 1.5 % of Market value of Land

10. Leasing of Land for Hospitals through PPP - Re. 1 per Square Meter per annum 

11. Land for renewable energy, water treatment, water recycling, sewage treatment plants etc for exclusive use of the Railways - Re. 1 per Square Meter per annum 

12. OFC - Optical Fiber Cable Annual Lease charges  - Nominal charge of Rs.1000

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