International BusinessMore efforts to lift sundry earnings
Non-traditional revenues are expected to fall to Rs 2,760 crore for 2009-10.
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Indian Railways intends to make full use of its vast surplus land to generate non-traditional revenues through setting up multi-functional complexes, budget hotels and leasing land along the proposed industrial corridors.
Railway Minister Mamata Banerjee expects such non-traditional revenues, or sundry earnings, to touch Rs 2,760 crore for the current fiscal 2009-10. However, this target comes with an implicit rider: a revival in the real estate sector which has been hit hard by the ongoing financial turmoil.
In the previous fiscal, the railways earned Rs 3,250 crore from sundry earnings as against a much higher Budget estimate of Rs 5,000 crore. The current economic slowdown hitting the realty sector is cited as the reason for missing the target.
The three major proposals are: setting up multi-functional complexes at 50 stations across India in places of pilgrimage, industry and tourist interest, establishing budget hotels on railway land at pilgrim centres and hill stations and leasing out land along the proposed industrial corridors. The Rail Land Development Authority (RLDA) will be in the charge of developing these facilities.
“The proposals would help upgrade the public amenities and creating fresh market. But demand of these lands depend upon the location and pricing,” said Sanjay Chandra, managing director of Unitech Ltd, one of the country’s leading realtors. However, analysts say market does not exist due to the dearth of buyers as real estate companies are short of funds.
Nearly 10 per cent of railways’ total land holding of 423,000 hectares are classified as “surplus”. Around 319,000 hectares is being used by the railways, but the rest is encroached.
Also, the railways plan to sell tickets through the 5,000 post offices across the country. Revenue estimate through this tie-up was not given.