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Tuesday, January 25, 2022

Mumbai CSMT revamp: PPP model dropped, railways to go for hybrid annuity model

Under the new model, the railways will initially have to invest 40 per cent of the total Rs 1,350 crore project cost and 60 per cent will be invested by the developer, which the railways will have to repay in the next 27 years before taking over the station, an official said.

Written by Vallabh Ozarkar | Mumbai |
Updated: December 24, 2021 1:43:45 pm
Mumbai CSMT, Indian Railway Stations Development Corporation, Mumbai, Mumbai news, Indian express, Indian express news, Mumbai latest newsAs per the earlier PPP model, the developer had to bear the entire cost of the project and, in return, would have received long-term lease rights for real estate development up to 99 years for residential or mixed-use purposes. (File)

The Indian Railways which had decided to redevelop the Chhatrapati Shivaji Maharaj Terminus (CSMT) railway station on a public-private partnership (PPP) model, will now be developing it under a hybrid annuity model wherein the station will be leased out to a private developer for just 27 years, instead of 99 years.

Under the new model, the railways will initially have to invest 40 per cent of the total Rs 1,350 crore project cost and 60 per cent will be invested by the developer, which the railways will have to repay in the next 27 years before taking over the station, an official said.

As per the earlier PPP model, the developer had to bear the entire cost of the project and, in return, would have received long-term lease rights for real estate development up to 99 years for residential or mixed-use purposes.

The Indian Railway Stations Development Corporation Ltd (IRSDC), which has since been dissolved, had earlier invited Request for Qualification (RFQ) for the project in August 2020 after receiving in-principle approval of the PPP Appraisal Committee (PPPAC) to redevelop the CSMT railway station and transform it into an iconic city centre.

On January 15, 2021, after the evaluation, nine bidders qualified for the next stage. The shortlisted bidders were Adani Railways Transport Ltd, M/s Godrej Properties Ltd, M/s Anchorage Infrastructure Investments Holdings Ltd, M/s Oberoi Realty Ltd, M/s ISQ Asia Infrastructure Investments Pte Ltd, M/s Kalpataru Power Transmission Ltd, M/s GMR Enterprises Private Ltd, M/s Moribus Holdings Pte, Ltd and M/s BIF IV Infrastructure Holding DIFC Pvt Ltd.

After the dissolution of the IRSDC, the Rail Land Development Authority (RLDA) became the single-window for approval of master plan and building plans, in consultation with local authorities, in terms of power conferred under Section 11 of Railway Act, 1989.

The PPP model was, however, dropped for better execution of the project and the railways decided to go for the hybrid annuity model, which is a mix of the Engineering, Procurement and Construction (EPC) and Build-Operate-Transfer (BOT) models. According to an official, with this model, the estimated redevelopment cost of the station (mandatory cost), including the cost of financing and contingency, would come down to Rs 1,350 crore from Rs 1,637 crore. The investment for redevelopment is on Hybrid Build-Operate-and-Transfer basis and 40 per cent of the cost would be borne by the railways initially, an official said.

Anil Lahoti, General Manager of Central Railways, said after the change in financial model, a few more changes have been made in the design and planning of the redevelopment. “A fresh RFQ will be carried out and, this time, bidders who were ineligible earlier can also participate,” said another official.

The government has constituted a high-level committee under the Chief Secretary to facilitate the redevelopment of the terminus along with other railway stations in Mumbai. A committee of the Mumbai Heritage Conservation Committee (MHCC) has been formed and the proposal for CSMT redevelopment is under consideration for giving in-principle nod.

CSMT is a UNESCO world heritage site located in the heart of Mumbai city. Its redevelopment plan encapsulates integration of various modes to make this railway station a multimodal transport hub. It will include segregation of arrival and departure of passengers, Divyang-friendly station, better level of passenger services, energy-efficient building and restoring the heritage site as per 1930 levels.

The station will function like a city centre rail mall where, in addition to passengers’ transportation needs, their daily needs will also be fulfilled, including retail sales, F&B, entertainment, souvenir shopping, etc. The aim is to cater to most daily needs of passengers as they transit through the railway station, thus avoiding unnecessary travel within the city.

Infrastructure at the redeveloped station is envisaged in such a manner that it promotes seamless integration from one mode to another. Upon redevelopment, it will provide multiple access points to passengers for easy commute and a direct linkage between suburban railway, harbour line, long distance, Metro rail and commercial development. This will help reduce congestion while allowing for an enhanced heritage structure. Efforts will also be made to integrate last-mile connectivity so passengers can be provided with end-to-end solutions. Further, the station shall be developed on a green building concept. CSMT shall be a smart station with modern Building Management System integrated with CCTV and other systems.

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