The Union Cabinet is expected to approve a proposal this week to reduce the land licence fee (LLF) for industrial users of railway land from 6% to “2-3 percent” of the land’s worth. The approval of the long-awaited LLF policy will speed up the implementation of PM Gati Shakti – National Master Plan for Multimodal connectivity, a digital platform that will bring together 16 ministries, including railways and roads, to plan and implement infrastructure connectivity projects in a coordinated manner.
With 1.134 million acres, the railways are the largest landholder among civilian government entities. About 100,000 acres of these were undeveloped. The railways are eager to speed up the commercial exploitation of land for a variety of public and private sector initiatives.
The new LLF policy will also pave way for privatisation of Container Corporation of India (ConCor), which may have to fork out much lesser amounts as land rentals to Indian Railways. The new policy may extend the land lease period from 5 years to 35 years or more.
