PwC report suggests cess on construction near railway stations

Although a cess had been suggested, it would require extensive changes in government regulations, said a PwC source. “As new railway stations or extension of railway lines directly benefit construction projects, it has been suggested that builders be charged a cess by the government as a betterment charge which can be given to the railways. The cess can vary as per the geographical location of the station,” said a railway official.

As part of the study, a detailed plan of real estate development at Thane, Byculla, Bhandup and Nahur/Mulund has been submitted to the Railways. A suggestion to redevelop railway colonies and operational assests has also been mooted. “A detailed plan of a 5,000-sq feet land parcel in Thane, which has the approval of Thane Municipal Corporation, has been submitted,” said another senior railway official.

As per the study, the discount offered to a season pass-holder, who at present pays only for 15 trips in a monthly season pass, has been found to be high as compared to traveling habits of commuters, suggesting that the subsidy to pass-holders should be reduced.

A targeted intervention that will depend on the affordability of commuters to pay, to reduce government subsidy for capital expenditure in future projects, has also been suggested.

Changing procurement approach and contracting rules to capture the potential of digital media, judicious mix of off-station facilities like ATM, kiosks and pay and park facilites are among the other suggestions made in the study.

priyal.dave@expressindia.com