300 PM Gati Shakti Cargo Terminals to be developed over the next five years

300 PM Gati Shakti Cargo Terminals to be developed over the next five years.

The Union Cabinet, has approved the Ministry of Railway’s proposal to revise the railways’ land policy to implement PM Gati Shakti framework.

An official statement said the decison will help in attracting more cargo to railways, increase railways’ modal share in freight transportation thereby reducing logistics cost of the industry.

The revised railways’ land policy will enable integrated development of infrastructure and more cargo terminals.

"Since rail is an efficient mode of transport it is essential to more freight by rail so as to reduce the logistics cost of the industry. To enhance the modal share of rail in freight transportation need has been felt to modify the land leasing policy to encourage development of more cargo terminals" the statement said.

It provides for long term leasing of railway land for cargo related activities for a period up-to 35 years @ 1.5% of market value of land per annum.

A comprehensive Policy document will be framed and implemented within 90 days of cabinet approval. The approvals for setting up utilities envisaged under PM Gati Shakti Programme will be simplified.

The policy also simplifies Railways’ land use and Right of Way (ROW) for integrated development of public service utilities like electricity, gas, water supply, sewage disposal, urban transport etc by providing railway land @ 1.5% of market value of land per annum

This will bring more revenue to railways and will simplify approvals for utilities as envisaged in PM Gati Shakti Programme. This will help in development of public utilities like electricity, gas, water supply, telecom cable, sewage disposal, drains, optical fibre cables (OFC), pipelines, roads, flyovers, but terminals, regional rail transport, urban transport etc. in an integrated manner.

"This policy amendment will enable employment generation potential of about 1.2 lakh employment" the statement said.

Financial Implications:

No additional expenditure will be incurred and liberalizing the land leasing policy would open avenues for all stakeholders / service providers / operators to establish more cargo related facilities and render their participation assisting in generation of additional cargo traffic and freight revenues to Railways.

This policy amendment will enable employment generation potential of about 1.2 lakh employment.

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