Indian Railways to get into retail

In a bid to enhance revenue, the railways is set to join the retail bandwagon through a public-private partnership venture by leasing out land to retailers. The contours of the plan have already been discussed with the leading retailers and those supplying to these chains, including the likes of Reliance Fresh, ITC, Cargill India, IL&FS, Pantaloon, Adani and Agrovet, to name a few. Railways, India's biggest land owner after defence ministry, plans to start the initiative from around a dozen stations initially. It is estimated that railways owns 4.2 lakh hectares across the country and initiative will be driven through Railway Land Development Authority, a dedicated body set up last year. With public private partnership, the railways proposes to build "national retail hubs," by leasing about 100 acres at stations located near capital cities. It also plans to develop similar retail hubs at stations close to district headquarters and even at local levels. Thus 25-100 acres will be given to highest bidders. It proposes to give land on long-term lease, ranges from 30-35 years. The private player will be permitted to build malls but at the same time they will have to ensure back-end business like cold storage, godown, sorting and packaging facilities. Railways will only provide them with transportation facility.