10 firms show interest for redevelopment of CSMT Railway Station on PPP

Indian Railway Stations Development Corporation Ltd. (IRSDC) invited Request for Qualification (RFQ) for redevelopment of Chhatrapati Shivaji Maharaj Terminus Railway Station (CSMT), Mumbai on PPP on 20th August, 2020, after ‘in principle’ approval of Public Private Partnership Appraisal Committee (PPPAC).

  • Pre-bid Meeting conducted on 25th September, 2020 was chaired by CEO, Niti Aayog & Chairman & CEO, Railway Board. 
  • The Request for Qualification (RFQ) for the redevelopment of Chhatrapati Shivaji Maharaj Terminus (Mumbai) Railway Station was opened on 15.01.2021 in the office of Indian Railway Stations Development Corporation Ltd. (IRSDC), New Delhi. 
  • IRSDC is elated to announce the overwhelming response of Developers & Fund Houses in submitting the RFQ Applications. 
  • A total of 10 applications have been received.

Following 10 organisations successfully submitted the applications:

  1. GMR Enterprises Pvt. Ltd.
  2. ISQ Asia Infrastructure Investments
  3. Kalpataru Power Transmission Ltd.
  4. Anchorage Infrastructure Investments Holdings Ltd.
  5. Adani Railways Transport Ltd.
  6. Brookfield Infrastructure Fund IV
  7. Moribus Holdings Pte. Ltd.
  8. Godrej Properties Ltd.
  9. Keystone Realtors Pvt. Ltd.
  10. Oberoi Realty Limited

This has been the best participation in recent times in terms of numbers of applications, when compared to projects of Delhi Airport, Mumbai Airport, Navi Mumbai Airport, Goa Mopa Airport, Jewar Airport and other airports at Jaipur, Ahmedabad, Lucknow, Guwahati, Mangalore, Thiruvananthapuram or other railway stations.

The Key salient features of the project are:

  1. In principle approval of PPPAC comprising representatives from Ministry of Finance, Ministry of Law, Niti Aayog, Ministry of Railways etc, as per the Guidelines for PPP projects by Govt. of India;
  2. Extended O&M period of railway stations: For providing better passenger services and amenities, railway stations shall be on license with Concessionaire for 60 years;
  3. Additional revenue stream: Pre-determined user charges (as notified by MoR) from railway station users as in practice in airports etc.
  4. Long Term lease-rights for real estate: Upto 99 years for residential or mix use format & 60 years for non-residential formats.
  5. About 2.54 lakh sqm of Built up Area (tentative) is allowed for commercial development.
  6. IRSDC will be a 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.
  7. The redevelopment cost of the station (mandatory cost) including the cost of financing and contingency etc. is Rs.1642 crore. The investment opportunity for redevelopment is on DBFOT (Design, Build, Finance, Operate and Transfer) basis. 

The Applicants fulfilling the Eligibility Criteria shall be shortlisted for participating in further stage. The entire bidding procedure is a two-stage bidding process consisting of RFQ and Request for Proposal (RFP). The selected bidder at the RFP stage shall take up the redevelopment of the CSMT Railway station.

While the initial planning was done by M/s AREP, French Consultant, the Technical Consultant for planning of the project now is M/s AECOM. The Financial and Transaction Consultant is M/s Knight Frank. 

About CSMT:

  • CSMT is a historic and UNESCO World Heritage site located in the heart of Mumbai city. The redevelopment plan encapsulates integration of various modes to make this railway station a multimodal transport hub as per the vision of Hon’ble PM of India.
  • It will include segregation of arrival and departure, divyang friendly station, better level of services for passengers, energy efficient building and restoring the heritage site as per its 1930 levels.
  • The CSMT railway station will function like a city centre rail mall where in addition to a passenger’s transportation needs, his daily needs will also be fulfilled, like- Retail, F&B,Entertainment, Souvenir shopping. The aim is that most of his daily needs are catered to by visiting the railway station thus avoiding unnecessary travel within the city.
  • The infrastructure at the redeveloped station is envisaged in such a manner that it promotes seamless integration from one mode to another mode. Upon redevelopment, it will provide multiple access points to passengers for easy commute and also a direct linkage between suburban railway, harbour line, long distance, Metro rail and commercial development.
  • This will help in reducing the congestion while enjoying the enhanced heritage structure. Efforts would also be made to integrate the last mile connectivity so that passengers can be provided end-to-end solutions.

Redevelopment of Railway Stations in India:

Redevelopment of railway stations across India is a priority agenda of the Ministry of Railways, Government of India. This agenda is being driven with full force by the Government with the participation of private players as a part of PPP projects.

As part of this agenda, work on redevelopment of 123 stations is in progress. Out of this, IRSDC is working on 61 stations and RLDA is working on 62 stations. As per current estimates, total investment needed for redevelopment of 123 stations along with real estate development is about Rs 50,000 crore.

About IRSDC:

IRSDC is a Joint venture company of RLDA, RITES and IRCON. IRSDC is at the core of Indian Railways’ mission of transforming the country’s railway stations into world-class 24×7 hubs and is the Nodal Agency and the main Project Development Agency (PDA) for redevelopment of Railway stations. These redeveloped hubs will be called as ‘Railopolis’, as it will attract huge investment and business opportunities.

To fast track the redevelopment of Railway Stations and harness true value of commercial development, following tools have been developed by IRSDC/MoR to streamline all processes for planning, designing, tendering, implementation and management of Railway Stations in India:-

  • Model Agreements for Station redevelopment and Station Facility Management.
  • Updation of Manual for Standards and Specifications for Railway Stations; brought out by MoR.
  • Handbook for Master planning & Value Creation for Railway Station (Re)development.
  • Harmonized Guidelines for Standards of Accessibility & Provisions of Facilities for Persons with Disabilities (Divyangjan) in Indian Railways – by MoR.
  • Form based codes for Commercial Development within Railway Land, comprising of:-
    • Codes for Station Area Layout Regulating Plans; 
    • Codes for Property Development Cards (Commercial Development);
    • Codes for Architectural Design within Commercial Development;
    • Codes for Green Buildings within Commercial Development;
  • Handbook for Preparation of Layout Regulating Plans and Property Development Cards.
  • Codes for upgradation of Heritage Railway Assets (For full project lifecycle).

With application of these tools developed by IRSDC/MoR, the availability of public areas in Railopolis shall increase thus making such redeveloped railway stations as true “City Centres”

Source: IRSDC-Press Note | Image Credit: MoR