RS. 80,000 CRORES
RAILWAY STATION
OVER PLATFORMS BY CONSTRUCTING MEGA BUSINESS COMPLEX
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| Chongqing Highspeed Railway Terminal (300 Meter Office Towers) |
Traditional funding sources have already been exploited to their optimum level. Now the Railway Board has to look for some unconventional sources to fund the operational and developmental projects.….. including Prime Minister, Narendra Modi’s Bullet Train. If, the authorities involved in the process look beyond their centuries old rule book…….solutions are not far from reach.
To be more precise, the freely available Railway Real Estate assets have the required potential to generate enormous surplus to meet its financial needs and also to strengthen the Railways Balance Sheet to the envy of any successful corporate in the world.
India has at least 500 – 700 major Railway Stations Real Estates assets, which can be developed for augmenting Railway revenue. Each of the Railway Station occupies sizable land. This station land over the platforms and adjoining Railway lines can be easily monetized. A multi-story multipurpose complex can be constructed without disturbing the regular functioning and movement, over the Railway platforms. This real estate can be easily marketed to generate capital and revenue profits. The monetary valuations of these properties can run into astronomical figures.
Keeping in view the size of the city, a multistory complex can be erected over any railway stations. The construction can be done on BOT basis or contract basis etc. depending on various factors. The research data suggests, the space available can be easily marketed as the railway stations are always city centers and enjoy tremendous locational advantages.
LATENT SPACE POTENTIAL
According to a rough estimate, an average Railway Station occupies at least 3,00,000 sq. mtrs.(750 mtr. *400 mtr. ). So, each station can provide a minimum developable land base area of 750*400 = 3,00,000 sq. mtr. If a 60 story building is constructed over New Delhi Railway Station utilizing the entire 3,00,000 sq. mtr. of land space, it will provide a Building Complex consisting of 1.8 crore sq. mtrs. of usable floor space. This will be the most attractive property in town due to its central location and confirmed foot fall. Besides, the backing of the Government will do the needful branding for enhanced property valuations. The building complex can be designed considering the population and business requirements. The numerics of the project are presented herein below.
PROPOSED MULTISTORIED BUILDING COMPLEX OVER RAILWAY PLATFORMS | ||||||
TOWN POPULATION (IN LAKHS) |
100+ |
100 – 75 |
75-50 |
50-25 |
25 | |
NO. OF PROPOSED FLOORS |
60 |
40 |
30 |
10 |
8 | |
FLOOR APPLICATION | ||||||
FOR RAILWAY PURPOSES |
12 |
8 |
6 |
2 |
1 | |
HOTELS & RESTAURANTS |
8 |
6 |
4 |
1 |
1 | |
SHOPPING |
9 |
6 |
4 |
1 |
1 | |
HOSPITALS |
8 |
6 |
4 |
1 |
1 | |
OFFICES |
9 |
6 |
4 |
1 |
1 | |
SPORTS |
3 |
1 |
2 |
1 |
1 | |
PARKING |
8 |
5 |
4 |
1 |
1 | |
Non-Usable (Facilities) |
3 |
2 |
2 |
2 |
1 | |
HELIPAD |
ROOF |
ROOF |
ROOF |
ROOF |
ROOF | |
COST – BENEFIT ANALYSIS
To explain the cost benefit analysis, New Delhi Railway Station can be a representative sample.
Presumptions:
Cost Presumptions | ||||
1. Size of the Proposed Multi-Storied Complex | ||||
a. Length | 750 Sqm. | |||
b. Breadth | 400 Sqm. | |||
c. No. of Floors |
60 | |||
d. Total Area | 1.80 Crores Sqm. | |||
2. Cost of Construction |
Rs. 40,000 sqm. | |||
3. Cost of Construction |
Rs. 72,000 Crores | |||
4. Incidental/ Interest Cost |
Rs. 8,000 Crores | |||
5. Total Cost |
Rs. 80,000 Crores | |||
Building Valuations | ||||
1 |
Constructed Area |
1.8 Crores Sqm. | ||
2 |
Most Conservative Rate of Commercial Property in Central Delhi |
Rs. 3,00,000 / Sqm. | ||
3 |
Value of New Assets |
Rs. 5,40,000 Crores | ||
4 |
Notional Cash Profit from one Railway Station |
Rs. 5,00,000 Crores | ||
Revenue Calculations | ||||
Nil ( Free ) | ||||
1. Revenue from Railways ( 12 Floors) | ||||
2. Revenue from 30% ( 18 Floors ) salable area | ||||
(Shopping Arcade + Office Space) | ||||
= 54 Lakh Sqm @ Rs. 3,00,000 |
Rs. 1,62,000 Crores | |||
3. Cost of 30% Salable Construction Area |
Rs. 24,000 Crores | |||
=54 Lakh @ Rs.40,000 Per Sqm | ||||
4. Cash Profit from 30% Area |
Rs. 1,38,000 Crores | |||
5. Annualised Rental Earnings ( 30 Floors ) | ||||
a. Hotels (24 Lakh Sqm. @ Rs. 18,000 Sqm) |
Rs. 4,320 Crores | |||
b. Hospitals (24 Lakh Sqm. @ Rs. 4,500 Sqm) |
Rs. 1,080 Crores | |||
c. Sports (9 Lakh Sqm @ Rs. 4,500 Sqm) |
Rs. 405 Crores | |||
d. Parking (24 Lakh Sqm. @ Rs. 4,500 Sqm) |
Rs. 1,080 Crores | |||
e. Surplus Floors ( 9 Lakh Sqm @ Rs 4,500 Sqm ) |
Rs. 405 Crores | |||
Total Annualised Rental Earnings |
Rs. 7,290 Crores | |||
3,78,000 Crores to the Balance Sheet of the Railways. If the figures are multiplied appropriately, keeping in mind total number of Railway Station available in the country for development, the result will be astonishing. It may also be noted that all figures have been conservatively considered from revenue point of view.
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| Michigan Central Railway Station in Detroit, This was tallest rail station in the world when it was built in 1913. |
Besides, above many other objections can be placed against any scheme of development. Nevertheless, if country has to go forward only strategic thinking and audacious decisions are the answers. In Detroit, United States a multi-storied building over the railway station was constructed in 1913 almost 101 years before. Delhi Metro in its initial stage faced far more resistance than what is mentioned above. No body believed that, Metro Tunnel can be constructed without demolishing Chandni Chowk and adjoining Chawri Bazar Market. People also said that, “Metro will always be a security risk”. Metro provided superb market to steel and cement companies. International Construction Companies with experience of such gargantuan projects are ever ready to undertake projects in India in partnership with Indian companies. When China had to construct a water reservoir and dam for electricity generation, it gently moved thirteen large cities and hundreds of villages from their original location. This success was achieved because of support to the working executives in field and determination of the Governing Bodies. In case of Delhi Metro also, Mr. Shiridharan provided the leadership and direction and he was whole heartedly supported by Bureaucracy, Judiciary and the Government. Very fortunately Indian NGOs and the opposition parties also did not play negative.
Such projects can also come up on public utility buildings used as Bus-Stands in small towns, Sea-Ports and surplus government properties.
If the Hon’ble Railway Minister and our enterprising Prime Minister can implement this project, no surprise the entire country will be covered by the network of Bullet Trains.
