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

-end-

Differences between Lease & License

Differences between Lease and License

1991 with Books - 10 marks.

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Lease:   

1. It is an agreement between the Lessee (user) and the Lessor (owner) for use of an asset in return for specified rental/lease payments.

2. As per Section 105 of The transfer of Property Act, 1882   -  " A transfer of right to enjoy the concerned property for a pre-defined time period or in perpetuity subject to the consideration given by Lessee (user of the property)  to the Lessor (owner of the property).
License:

1. A promise by the Licensor not to sue the Licensee.  That means without a License, any use or exploitation of intellectual property by a third party would amount to copying or infringement.

2. As defined in section 52 of the Indian Easements Act, 1882  -  " License does not allow any interest in the Property on the Licensee's part.  It merely gives the Licensee the right to use and occupy the Property for a limited duration."

Basically looks both terms are one and alike.  But for entitlement/possession and title of property, many a difference between Lease and Licensee.  Those who ( Property owners) avoid risk will prefer License mode.  But they have to lose higher remuneration/compensation compare to Lease mode.

Lease	License
1.Parties: Lessor (owner) and Lessee (user)	1.Parties: Licensor (who accorded permission) and Licensee (to whom permission is accorded)
2. Exclusive possession of property to Lessee for a period of time.	2. No such exclusive possession of property to Licensee.
3. It is irrevocable.  Means cannot be cancelled before the completion of Agreement unless otherwise specified.	3. It is revocable/cancel before the completion of Agreement at the choice of Licensor.
4. Consideration is called Lease rental	4. consideration is called Fees.
5. It is transferable.  That means Lessee can transfer the lease to third party.	5.  It is not transferable.
6. Transfer of interest in the property to the Lessee.	6. Here the legal possession continues to be with the Licensor, not Licensee.  But Licensee is permitted to make use of the property for a particular purpose.  So it does not create any interest in the property to Licensee.
7. Can be terminated as per the terms of Agreement only.  ( But not at the will of parties).	7.  Can be withdrawn /terminated at any time by the Licensor.  For this reason organizations such as Indian Railways prefer License option rather than Lease option, while permit using of its assets by third parties.
8. It does not come to an end either by death of Lessor or the Lessee.	8. But here it come to an end either by Licensor or Licensee.
9. Lessee entitled to any improvement made to the property.	9.  No such entitlement to  Licensee for any improvement to the property.

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