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WELCOME. EARNINGS FROM NON- CONVENTIONAL SOURCES - RAILWAY LAND Presentation by V.Natarajan, ADEN(HQ)BCT.

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Presentation on theme: "WELCOME. EARNINGS FROM NON- CONVENTIONAL SOURCES - RAILWAY LAND Presentation by V.Natarajan, ADEN(HQ)BCT."— Presentation transcript:

1 WELCOME

2 EARNINGS FROM NON- CONVENTIONAL SOURCES - RAILWAY LAND Presentation by V.Natarajan, ADEN(HQ)BCT

3 SOURCES OF EARNINGS FROM RAILWAY LAND Licensing of Railway land for grow more food Licensing of Railway land for grow more food Sale of grass rights, fruits rights & Fishing rights Sale of grass rights, fruits rights & Fishing rights Sale of dry & mature trees Sale of dry & mature trees Licensing of Railway land. Licensing of Railway land. - For Teh Bazari and shopping purpose - For Teh Bazari and shopping purpose - To oil companies - To oil companies - For private sidings - For private sidings - Commercial plots for stacking & storing - Commercial plots for stacking & storing - For other purposes - For other purposes

4 SOURCES OF EARNINGS FROM RAILWAY LAND Commercial exploitation through property development by long time leasing Commercial exploitation through property development by long time leasing Long time leasing of Railway land to state Govts Long time leasing of Railway land to state Govts Way leave facilities & easement rights Way leave facilities & easement rights Leasing of infrastructure facilities in microwave stations Leasing of infrastructure facilities in microwave stations Afforestation of Railway land by Railway state forest department Afforestation of Railway land by Railway state forest department

5 SOURCES OF EARNINGS FROM RAILWAY LAND PlantationAfforestation on Railway land on commercial lines PlantationAfforestation on Railway land on commercial lines Commercial publicity along track & LCs Commercial publicity along track & LCs Leasing of Railway assets to Railway PSUs like IRCTC, RAILTEL, IRCON, CCI etc.. Leasing of Railway assets to Railway PSUs like IRCTC, RAILTEL, IRCON, CCI etc..

6 EARNINGS OF BCT DIVISION FROM LAND IN LAST FIVE YEARS IN CRORES OF RUPEES

7 GROW MORE FOOD

8 Surplus Railway land is licensed to Gr.C & D staff of Railway with preference to SC/ST and weaker sections of society in urban areas to prevent encroachment as well as to grow more food. Surplus Railway land is licensed to Gr.C & D staff of Railway with preference to SC/ST and weaker sections of society in urban areas to prevent encroachment as well as to grow more food. Generally size of plot should be 1 to 3 acres. However size up to 5 acres can be permitted. Generally size of plot should be 1 to 3 acres. However size up to 5 acres can be permitted. Employees with balance of less than 5 years service should not be considered. Employees with balance of less than 5 years service should not be considered. Initial license period should be 2 years and to be finalised by division and subsequent extensions can be done by ADENs subject to maximum license period of five years. Initial license period should be 2 years and to be finalised by division and subsequent extensions can be done by ADENs subject to maximum license period of five years.

9 GROW MORE FOOD License fees to be fixed based on revenue generating potential and should be between 1/4 th to 1/3 rd of revenue expected and to be decided by DRM in consultation with Sr.DFM (Present rate is Rs.1100 per acre per annum) License fees to be fixed based on revenue generating potential and should be between 1/4 th to 1/3 rd of revenue expected and to be decided by DRM in consultation with Sr.DFM (Present rate is Rs.1100 per acre per annum) License fees & security deposit to be recovered in advance and to be revised every year. License fees & security deposit to be recovered in advance and to be revised every year. Agreement to be signed with employees. Around 60 employees have been allotted plots on suburban section yielding a revenue of Rs.1.00 lacs per year. Agreement to be signed with employees. Around 60 employees have been allotted plots on suburban section yielding a revenue of Rs.1.00 lacs per year. Register to be maintained in IOW/ADEN’s office of details of plots, to whom licensed, extensions granted, license fees recovered etc.. and ADENs to ensure that registers are up to date. Register to be maintained in IOW/ADEN’s office of details of plots, to whom licensed, extensions granted, license fees recovered etc.. and ADENs to ensure that registers are up to date.

10 SALE OF GRASS RIGHTS, FRUITS RIGHTS, FISHING RIGHTS ETC..

11 SALE OF GRASS, FRUITS, FISHING RIGHTS ETC. As per powers delegated under para 31(a) of SOP Part`E’, JA grade Officers have full powers for sale of usufructary rights for grass cutting, grazing, fruit gathering, Pisiculture, agriculture etc.. through sealed tenders or auction. As per powers delegated under para 31(a) of SOP Part`E’, JA grade Officers have full powers for sale of usufructary rights for grass cutting, grazing, fruit gathering, Pisiculture, agriculture etc.. through sealed tenders or auction. There are around 75 coconut trees in suburban section for which earnings of around Rs.25,000- per annum are realised from fruit rights in section of Horticulture Superintendent - BCT There are around 75 coconut trees in suburban section for which earnings of around Rs.25,000- per annum are realised from fruit rights in section of Horticulture Superintendent - BCT Two tenders are usually awarded for grass rights – one under ADEN-DRD and other under ADEN-BL’s section. Two tenders are usually awarded for grass rights – one under ADEN-DRD and other under ADEN-BL’s section. Further scope for sale of such rights can be identified by other ADENs also. Further scope for sale of such rights can be identified by other ADENs also.

12 SALE OF DRY AND MATURED TREES

13 Matured tree is the stage at which the tree gives maximum yield of timber. Matured tree is the stage at which the tree gives maximum yield of timber. Harvesting of dry and matured trees on Railway land can be done by invitation of open tenders for which powers are delegated in para 31(b) of SOP Part`E’ is as under:- Harvesting of dry and matured trees on Railway land can be done by invitation of open tenders for which powers are delegated in para 31(b) of SOP Part`E’ is as under:- AGM - Up to Rs.5.00 Crores AGM - Up to Rs.5.00 Crores PCE - Up to Rs.3.00 Crores PCE - Up to Rs.3.00 Crores THODs - Up to Rs.1.00 Crores THODs - Up to Rs.1.00 Crores SAG officer other than DRM/ADRM - Up to Rs.0.75 Crores SAG officer other than DRM/ADRM - Up to Rs.0.75 Crores DRMs - Up to Rs.0.75 Crores DRMs - Up to Rs.0.75 Crores ADRMs - Up to Rs.0.40 Crores ADRMs - Up to Rs.0.40 Crores JA grade officers - Up to Rs.0.20 Crores JA grade officers - Up to Rs.0.20 Crores Sr.Scale officer - Up to Rs.0.05 Crores Sr.Scale officer - Up to Rs.0.05 Crores (However the invitation of first ten tenders require CE’s approval)

14 SALE OF DRY AND MATURED TREES Harvesting of matured trees requires the permission of state governments. In protected forest area, approval of forest department is mandatory. Harvesting of matured trees requires the permission of state governments. In protected forest area, approval of forest department is mandatory. Some times contractor’s find it difficult to get permission from state government/ forest department for cutting & carting the trees. These trees can also be disposed through state government agencies like forest development corporations at approved rates. Some times contractor’s find it difficult to get permission from state government/ forest department for cutting & carting the trees. These trees can also be disposed through state government agencies like forest development corporations at approved rates. To ensure ecological balance, three saplings should be planted for every matured tree disposed To ensure ecological balance, three saplings should be planted for every matured tree disposed

15 LICENSING OF RAILWAY LAND

16 LICENCING OF RLY LAND GM is the competent authority for licensing of railway land & structures which are connected with Railway working. However licensing of existing facilities can continue as long as land is not required for Railway. GM is the competent authority for licensing of railway land & structures which are connected with Railway working. However licensing of existing facilities can continue as long as land is not required for Railway. For facilities not connected with Railway working, Railway Board is the competent authority for licensing. For facilities not connected with Railway working, Railway Board is the competent authority for licensing. No land can be handed over without signing agreement (with agreement plan) with the party. No land can be handed over without signing agreement (with agreement plan) with the party.

17 LICENCING OF RLY LAND License fees is worked out as a percentage of market value of land which is to be evaluated from sources which are defined by the Board. License fees is worked out as a percentage of market value of land which is to be evaluated from sources which are defined by the Board. The rate of license fees (percentage) varies as per use of land. The rate of license fees (percentage) varies as per use of land. Usage of land should be limited to the purpose licensed which will be mentioned in agreement. Usage of land should be limited to the purpose licensed which will be mentioned in agreement.

18 IMPORTANT CIRCULARS OF LAND LICENCING 1. BOARD’S LETTER No.83/W2/LM/18/87 Dt.17.9.85 Dt.17.9.85 2. BOARD’S LETTER No.83/W2/LM/18/87 Dt.29.8.95 Dt.29.8.95 3. BOARD’S LETTER No.83/W2/LM/18/87 Dt.23.9.02 (specially for private sidings & Dt.23.9.02 (specially for private sidings & bulk oil facilities) bulk oil facilities) 4. BOARD’S LETTER No.83/W2/LM/18/87 Dt.24.3.04 Dt.24.3.04

19 POLICY OF LICENCING OF LAND AS PER BOARD’S LETTER No.83/W2/LM/18/87 Dt.17.9.85)

20 1. CLASSIFICATION OF PLOTS BASED ON LAND COST RANGES (TABLE `A’) GROUP LAND COST RANGE Spl Above Rs.30 lacs/acre (Rs.747/Sqm) Spl Above Rs.30 lacs/acre (Rs.747/Sqm) `A’ Rs.25-30 lacs/acre (Rs.618/sqm-747/Sqm) `A’ Rs.25-30 lacs/acre (Rs.618/sqm-747/Sqm) `B’ Rs.20-25 lacs/acre (Rs.494/Sqm-618Sqm) `B’ Rs.20-25 lacs/acre (Rs.494/Sqm-618Sqm) `C’ Rs.15-20 lacs/acre (Rs.371/Sqm-449/Sqm) `C’ Rs.15-20 lacs/acre (Rs.371/Sqm-449/Sqm) `D’ Rs.10-15 lacs/acre (Rs.247/Sqm-371/Sqm) `D’ Rs.10-15 lacs/acre (Rs.247/Sqm-371/Sqm) `E’ Rs. 5-10 lacs/acre (Rs.124/Sqm-247/Sqm) `E’ Rs. 5-10 lacs/acre (Rs.124/Sqm-247/Sqm) `F’ Rs. 2- 5 lacs/acre (Rs. 50/Sqm - 124/Sqm) `F’ Rs. 2- 5 lacs/acre (Rs. 50/Sqm - 124/Sqm) `G’ Rs. 1- 2 lacs/acre (Rs. 25/Sqm - 50/Sqm) `G’ Rs. 1- 2 lacs/acre (Rs. 25/Sqm - 50/Sqm) `H’ Rs.0.5-1.0 lacs/acre (Rs.13/Sqm - 25/Sqm) `H’ Rs.0.5-1.0 lacs/acre (Rs.13/Sqm - 25/Sqm) `I’ Rs.0.1-0.5 lacs/acre (Rs. 3/Sqm - 13/Sqm) `I’ Rs.0.1-0.5 lacs/acre (Rs. 3/Sqm - 13/Sqm) `J’ Below Rs.0.1 lacs/acre (Rs.3Sqm) `J’ Below Rs.0.1 lacs/acre (Rs.3Sqm)

21 2. APPROVED SOURCES FOR VALUATION (a) Valuation of revenue authority (b) Valuation of town planning department (c) Actuals as per PWD/CPWD Transactions (d) Actual transaction as per documents filed in sub-registrars office. (e) Value of land as assessed by professional evaluators of the state & Central governments.

22 3. AUTHORITY FOR FIXING LAND COST For facilities in `A’ & `B’ class cities, the market rates of land is to be recommended by a PHOD committee consisting of PCE, FA&CAO & CCM and approved by GM. For facilities in `A’ & `B’ class cities, the market rates of land is to be recommended by a PHOD committee consisting of PCE, FA&CAO & CCM and approved by GM. For facilities in other than class `A’ & `B’ cities, the market rates of land is to be approved by PCE. For facilities in other than class `A’ & `B’ cities, the market rates of land is to be approved by PCE.

23 4. RATES FOR LICENCING (TABLE`B’) Type of plots %age of Type of plots %age of market value market value (a) Commercial plots including (a) Commercial plots including city booking & out agencies 10% city booking & out agencies 10% (b) Steel yards, coal dumps, bulk oil, (b) Steel yards, coal dumps, bulk oil, Private sidings, covered area on 15% Private sidings, covered area on 15% commercial plots commercial plots (c) Retail oil depots/ outlets etc 20% (c) Retail oil depots/ outlets etc 20%

24 5. LICENCE FEES License fees per annum = A x R x P where A = Area in Sqm R = Rate of land as per average of cost range in the group which the plot falls in Rs per in the group which the plot falls in Rs per Sqm shown in table.A above Sqm shown in table.A above P = Prescribed %age as per usage of land shown in table.B above shown in table.B above

25 6. APPLICATION OF REVISED GUIDELINES & PERIODICITY OF REVISION (a) The revised guidelines are applicable from 1.4.86 (to give 6 months notice period) 1.4.86 (to give 6 months notice period) (b) The periodicity of revision of market rates will be as under:- rates will be as under:- (i) Once in 3 Years for `A’ & `B’ class cities (i) Once in 3 Years for `A’ & `B’ class cities ie.1.1.89, 1.1.92, 1.1.95 etc.. ie.1.1.89, 1.1.92, 1.1.95 etc.. (ii) Once in 5 years for other cities (ii) Once in 5 years for other cities ie.1.1.91, 1.1.96 etc.. ie.1.1.91, 1.1.96 etc.. (c) Recovery of license fees as well as validity of agreements should be as per calendar year. agreements should be as per calendar year.

26 POLICY OF LICENCING OF LAND AS PER BOARD’S LETTER No.83/W2/LM/18/87 Dt.29.8.95)

27 SALIENT FEATURES OF CIRCULAR Dt.29.8.95 This policy completely supercedes Board’s earlier letter Dt.17.9.85. This policy completely supercedes Board’s earlier letter Dt.17.9.85. These instructions are applicable w.e.f 1.4.86 (ie with retrospective effect) These instructions are applicable w.e.f 1.4.86 (ie with retrospective effect) Land rate has to be evaluated as on 1.1.85 and these rates have to be enhanced by 12.5% to arrive at base rate as on 1.4.86. Land rate has to be evaluated as on 1.1.85 and these rates have to be enhanced by 12.5% to arrive at base rate as on 1.4.86. The land rates thereafter has to be enhanced by 10% every year over the notional value of the previous year. The land rates thereafter has to be enhanced by 10% every year over the notional value of the previous year.

28 SALIENT FEATURES OF CIRCULAR Dt.29.8.95 For approved sources for evaluation, valuation of revenue authorities has been excluded. For approved sources for evaluation, valuation of revenue authorities has been excluded. Minimum license fees will be Rs.1000/- per annum Minimum license fees will be Rs.1000/- per annum Termination/ renewal of agreements will be as per financial year instead of calendar year. Termination/ renewal of agreements will be as per financial year instead of calendar year.

29 RATE OF LICENSE FEES (LETTER Dt.29.8.95) Type of plots %age of Type of plots %age of market value market value (a) Commercial plots including (a) Commercial plots including city booking & out agencies & 6% city booking & out agencies & 6% commercial plots without structures commercial plots without structures (b) Commercial plots with temporary (b) Commercial plots with temporary structures for stacking/storing 7.5% structures for stacking/storing 7.5% (c) Steel yard, coal dumps,bulk oil 10% (c) Steel yard, coal dumps,bulk oil 10% (d) Private sidings 6% (d) Private sidings 6% (e) Shops. Retail oil depots 20% (e) Shops. Retail oil depots 20%

30 OTHER FEATURES (LETTER Dt.29.8.95) Valuation of market rate is only a one time exercise. ie. as on 1.1.85. Valuation of market rate is only a one time exercise. ie. as on 1.1.85. The classification in Board’s earlier circular Dt.17.9.85 was with an upper limit of Rs.30 lacs/ acre under group special ie Rs.747/Sqm whereas land rates in Mumbai as on 1.4.86 were up to Rs.9300/ Sqm. Hence license fees with market rate of Rs.747/Sqm and Rs.9300/Sqm were the same as per policy in Board’s letter Dt.17.9.85. Therefore there is a steep increase in license fees as per Board’s letter Dt.29.8.95 which is based on actual market rates The classification in Board’s earlier circular Dt.17.9.85 was with an upper limit of Rs.30 lacs/ acre under group special ie Rs.747/Sqm whereas land rates in Mumbai as on 1.4.86 were up to Rs.9300/ Sqm. Hence license fees with market rate of Rs.747/Sqm and Rs.9300/Sqm were the same as per policy in Board’s letter Dt.17.9.85. Therefore there is a steep increase in license fees as per Board’s letter Dt.29.8.95 which is based on actual market rates

31 POLICY OF LICENCING OF LAND AS PER BOARD’S LETTER No.83/W2/LM/18/58 Dt.23.9.02 FOR SIDINGS & BULK OIL INSTALLATIONS

32 BOARD’S LETTER Dt.23.9.02 In partial modification of Board’s circular Dt.29.8.95, revision of license fees for sidings & bulk oil installations has to be done by revision of market rate of land once in three years w.e.f 1.4.92

33 POLICY OF LICENCING OF LAND AS PER BOARD’S LETTER No.83/W2/LM/18/58 Dt.24.3.04

34 SALIENT FEATURES OF CIRCULAR Dt.24.3.04 Retrospective orders of Board’s letter Dt.29.8.95 has been withdrawn which means policy from 1.4.86 to 31.3.95 will be governed by Board’s letter Dt.17.9.85 and Board’s circular Dt.29.8.95 will be applicable from 1.4.95 only Retrospective orders of Board’s letter Dt.29.8.95 has been withdrawn which means policy from 1.4.86 to 31.3.95 will be governed by Board’s letter Dt.17.9.85 and Board’s circular Dt.29.8.95 will be applicable from 1.4.95 only Further the yearly increase in market rates of land over the previous year from 1.4.2004 will be 7% instead of 10%. Further the yearly increase in market rates of land over the previous year from 1.4.2004 will be 7% instead of 10%.

35 SALIENT FEATURES OF CIRCULAR Dt.24.3.04 In case current market value of land is adopted instead of updated land cost from 1.4.86 as the basis, an increase of 7% will be applicable thereafter. In case current market value of land is adopted instead of updated land cost from 1.4.86 as the basis, an increase of 7% will be applicable thereafter. Any recovery already effected need not be refunded but adjusted against future payments Any recovery already effected need not be refunded but adjusted against future payments

36 RATE OF LICENSE FEES (LETTER Dt.24.3.04) Type of plots %age of Type of plots %age of market value market value (a) Railway related activities such as (a) Railway related activities such as city booking & out agencies & 6% city booking & out agencies & 6% commercial plots w/o structures commercial plots w/o structures (b) Commercial plots with temporary (b) Commercial plots with temporary structures for stacking/storing 7.5% structures for stacking/storing 7.5% (c) Steel yard, coal dumps,bulk oil 7.5% (c) Steel yard, coal dumps,bulk oil 7.5% (d) Private sidings 6% (d) Private sidings 6% (e) Shops. Retail oil depots 10% (e) Shops. Retail oil depots 10%

37 MINIMUM LICENSE FEES (Letter Dt.19.5.04) The minimum license fee of Rs.1000/- per annum prescribed by Board is for plot area up to 100 Sqm For plot area of more than 100 Sqm, minimum license fee will be Rs.1000/- per annum every 100 Sqm rounding off area to farthest 100. For example for plot area of 250 Sqm, minimum license fee will be Rs.3000/- per annum

38 EARNING THROUGH PROPERTY DEVELOPMENT AND LONG TERM LEASINGF

39 PROPERTY DEVELOPMENT ON LONG TERM LEASING Category-I Involving rebuilding remodeling of stations Case 1 :- Developer constructs entire structure including station building. Case 2 :- Developer waits for construction of station building by Railway at Railway’ s cost Category-2 Involving construction on upper floors of Railway structure

40 PROPERTY DEVELOPMENT ON LONG TERM LEASING Category-III Built up area readily available and property can be readily marketed. Category-IV Development of station cum commercial complex Category-V Property development in vacant plots

41 PROPERTY DEVELOPMENT ON LONG TERM LEASING METHODOLOGY - Two packet system of tendering by Railway or by Railway PSUs like IRCON, RITES,MRVC.. However owner ship will rest with Railway. - GM is empowered to engage Railway PSUs as consultant up to limit of Rs.50.00 lacs per case - Technical bid to be finalized by Railway & financial bid by Railway Board. - Powers for approval for invitation & finalization rests with Board with limited powers to GM as shown below.

42 PROPERTY DEVELOPMENT ON LONG TERM LEASING POWERS OF GM - GM has powers for calling bids in open manner for area up to 1000 Sqm (Roof area and not sum of all floors) in other than metro cities - The powers for finalization of these Tenders will be the same as per works contract with GM’s power for acceptance up to Rs.8.00 crores - Identification & recommendations of sites for area less than 1000 Sqm will be by committee of Sr.DEN(HQ),Sr.DFM & Sr.DCM

43 LONG TIME LEASING OF RAILWAY LAND TO STATE GOVERNMENTS

44 LONG TIME LEASING TO STATE GOVTS (Board’s letter No.W.2001LML1353 Dt.4.10.01) Long time leasing of Railway land to state governments can be done for period of 35 years. Long time leasing of Railway land to state governments can be done for period of 35 years. The rate of license fees was 6% of market value of land earlier. But now since difficulties were experienced in recovery of lease charges, lump sum payment of the lease charges equal to 99% of market value of land shall be recovered in addition to nominal license fee of Rs.1000- per annum The rate of license fees was 6% of market value of land earlier. But now since difficulties were experienced in recovery of lease charges, lump sum payment of the lease charges equal to 99% of market value of land shall be recovered in addition to nominal license fee of Rs.1000- per annum The lease agreement shall be further renewable for a period of 35 years at a nominal license fees per annum to be decided at that time. The lease agreement shall be further renewable for a period of 35 years at a nominal license fees per annum to be decided at that time.

45 . WAY LEAVE FACILITIES

46 - These are rights given for passing of water & drainage lines, gas & oil pipes, power & drainage lines, gas & oil pipes, power & communication cables, passage for public, road communication cables, passage for public, road etc.. to private as well as govt agencies where etc.. to private as well as govt agencies where there is no means for access/crossing or when there is no means for access/crossing or when there is no feasibility of providing them from there is no feasibility of providing them from any other direction. (Para.1033E) any other direction. (Para.1033E) - DRMs are delegated powers to grant way leave facilities (which are different from licensing as facilities (which are different from licensing as procession of land is always with Railway) procession of land is always with Railway)

47 WAY LEAVE FACILITY CHARGES No Facility 1a. Passage/pathway up to one metre width, cattle X-ings (Rs.6400- as one time charges for 35 years) (Rs.6400- as one time charges for 35 years) 1b. Water lines to individual farmers (Rs.12800/- as one time charges for 35 years) (Rs.12800/- as one time charges for 35 years) 1c. Electric crossings for individuals (Rs.12800/- as one time charges for 35 years) (Rs.12800/- as one time charges for 35 years) 1d. Water & sewage lines to individuals upto 300mm dia (Rs.12800/- as one time charges for 35 years) (Rs.12800/- as one time charges for 35 years) 1e Electrical crossings of electricity boards & central agencies (Rs.12800/- as one time charges for 35 years) (Rs.12800/- as one time charges for 35 years) 1f ROB/RUBS on deposit terms (Rs.5000- PA for two track crossing & two lane road and (Rs.5000- PA for two track crossing & two lane road and Rs.10,000- PA for more than 2 road lanes or 2 track crossing) Rs.10,000- PA for more than 2 road lanes or 2 track crossing)

48 WAY LEAVE FACILITY CHARGES No Facility Rate pa 2a Passage/road up to 3 metres width 6% of market value of land for housing societies/ private (subject to min of Rs.5000) for housing societies/ private (subject to min of Rs.5000) 2b Public roads for govt/welfare org 6% of market value of land (subject to min of Rs.10000) (subject to min of Rs.10000) 2c Under ground water/sewerage lines 6% of market value of land (subject to min of Rs.10000) (subject to min of Rs.10000) 2d Under groundoverhead electric 6% of market value of land crossings for other than those (subject to min of Rs.10000) crossings for other than those (subject to min of Rs.10000) under 1c above under 1c above 2e For MTNL/VSNL/OFC facilities 6% of market value of land (subject to min of Rs.10000) (subject to min of Rs.10000)

49 WAY LEAVE FACILITY CHARGES No Facility Rate pa 3a Open drains, over ground water/ 10% of market value of land sewerage/ oil/ gas/ effluent pipe lines (subject to min of Rs.20000) sewerage/ oil/ gas/ effluent pipe lines (subject to min of Rs.20000) for private as well as PSUs for private as well as PSUs 3b Under ground oil/gas/pipe lines 10% of market value of land (subject to min of Rs.20000) (subject to min of Rs.20000) NOTE :- 1. For facilities from 1a to 1e, length of land should not normally exceed 50 metres. Agreement for these facilities will be for 35 years extendable by 35 years 2. Width of passage/road for more than 3 metres should be considered under licensing of Railway land. 3. No openings into railway land/space shall be permitted. This includes drops/ sprouts from building, supports for building, wires, poles and other needs which are of permanent nature.

50 WAY LEAVE FACILITIES For the purpose of assessment of way leave charges width of land is to be taken as 1 metres. However in electrical crossings, width of land should be decided in consultation with Sr.DEE/DEE concerned. For the purpose of assessment of way leave charges width of land is to be taken as 1 metres. However in electrical crossings, width of land should be decided in consultation with Sr.DEE/DEE concerned. The way leave facility charges are recoverable for 10 years in advance by discounted cash flow as per prevailing interest rates announced by RBI for government securities. No discount is applicable for first year. The discount applicable for subsequent years are 6.98%, 13.47%, 19.51%, 25.13%, 30.96%, 35.22%, 39.74%, 43.95% & 47.87% respectively. The way leave facility charges are recoverable for 10 years in advance by discounted cash flow as per prevailing interest rates announced by RBI for government securities. No discount is applicable for first year. The discount applicable for subsequent years are 6.98%, 13.47%, 19.51%, 25.13%, 30.96%, 35.22%, 39.74%, 43.95% & 47.87% respectively.

51 WAY LEAVE FACILITIES While calculating the advance equivalent of ten years annual charges, an annual increase of 10% in land value should be assumed. Adjustments needed because of variations viz-a-viz actual increase in rates as notified by local development authority or as obtained from district collector should be carried out at the time of payment of the installment of the way leave charges for the next ten years While calculating the advance equivalent of ten years annual charges, an annual increase of 10% in land value should be assumed. Adjustments needed because of variations viz-a-viz actual increase in rates as notified by local development authority or as obtained from district collector should be carried out at the time of payment of the installment of the way leave charges for the next ten years Way leave permission for open drains, surface/ over head pipe lines should be granted only in unavoidable cases. In any case fresh permission for this to any private parties should not be given. Way leave permission for open drains, surface/ over head pipe lines should be granted only in unavoidable cases. In any case fresh permission for this to any private parties should not be given.

52 WAY LEAVE FACILITIES Proper agreement should be executed for way leave facilities which should provide clause for revision of way leave charges Proper agreement should be executed for way leave facilities which should provide clause for revision of way leave charges Way leave charges for facilities mentioned in 1a to 1e applies prospectively ie.. for fresh cases. Cases already decided shall continue as per earlier provision. However one time recovery as per present guide lines can be applied in old cases, if the party accords consent for the same. Fresh agreement needs to be executed in such cases Way leave charges for facilities mentioned in 1a to 1e applies prospectively ie.. for fresh cases. Cases already decided shall continue as per earlier provision. However one time recovery as per present guide lines can be applied in old cases, if the party accords consent for the same. Fresh agreement needs to be executed in such cases

53 WAY LEAVE FACILITIES FOR CABLE TV (Boards letter No.2000LML/24/20 Dt.13.11.01 & 11.12.01 Annual Supervision charges PA Annual Supervision charges PA Item Charges one track Addl tracks In Metros Rs.6000 Rs.5000/ Rs.3000/track In non-metros Rs.3000 Rs.5000/ Rs.3000/track - Cables laid parallel to track on Railway land involving no crossing of track will be Rs.50/Rm - Way leave charges are not to be levied for Cables within Railway colonies meant to serve Railway men.

54 WAY LEAVE FACILITIES FOR CABLE TV The length of tracks to be crossed normally should not exceed 50 metres. The length of tracks to be crossed normally should not exceed 50 metres. The diametre of pipe in case of under ground cables should not be more than 300mm The diametre of pipe in case of under ground cables should not be more than 300mm Way leave and maintenance charges should be collected for three years in advance with one year charges as security deposit. Way leave and maintenance charges should be collected for three years in advance with one year charges as security deposit. Over ground laying of cables either across or parallel to tracks should not be permitted. Over ground laying of cables either across or parallel to tracks should not be permitted. Length of cable parellel to track should not exceed 500 metres. Length of cable parellel to track should not exceed 500 metres.

55 LEASING OF INFRASTRUCTURE IN MICROWAVE TOWERS AND FOR MICROWAVE STATIONS

56 LEASING OF INFRASTRUCTURE IN MICROWAVE TOWERS AND FOR MW STATIONS (BOARD”s letter No.95/Tele/MW3 Dt.2.11.99 The lease charges for installation of antennas will be Rs.2.00 lacs per tower for installation up to 4 antennas and additional rate of Rs.2.00 lacs for every four antennas or part thereof. The lease charges for installation of antennas will be Rs.2.00 lacs per tower for installation up to 4 antennas and additional rate of Rs.2.00 lacs for every four antennas or part thereof. Safety of existing tower to be verified by proof consultants approved by Railway at party’s cost. Strengthening to be done at party’s cost and Railway’s supervision. Safety of existing tower to be verified by proof consultants approved by Railway at party’s cost. Strengthening to be done at party’s cost and Railway’s supervision. The lease charges of land for microwave stations will be 20% of market value of land The lease charges of land for microwave stations will be 20% of market value of land

57 AFFORESTATION OF LAND BY RAILWAY/FOREST DEPT

58 AFFORESTATION OF LAND BY FOREST DEPT. Afforestation on Railway land by forest department should be done only after signing the prescribed agreement advised by Railway Board. Afforestation on Railway land by forest department should be done only after signing the prescribed agreement advised by Railway Board. Afforestation should be done on Railway land which is not required for use by Railway for next 15 years Afforestation should be done on Railway land which is not required for use by Railway for next 15 years Earnings from sale of forest produce should be shared by Railway and forest department on mutually agreed terms Earnings from sale of forest produce should be shared by Railway and forest department on mutually agreed terms

59 AFFORESTATION / PLANTATION ON RAILWAY LAND ON COMMECIAL LINES

60 AFFORESTATION ON COMMERCIAL LINES Private sector can be involved in afforestation plantation on Railway land through open bids Private sector can be involved in afforestation plantation on Railway land through open bids The area identified should not be within 10 Km from outer municipal limits in metro area and 2Km of other cities. The area identified should not be within 10 Km from outer municipal limits in metro area and 2Km of other cities. The land should not be required for railway use for the next 30 years. The land should not be required for railway use for the next 30 years. Party will have the right for harvesting the flowers, crops, vegitables subject to payments being made by them regularly Party will have the right for harvesting the flowers, crops, vegitables subject to payments being made by them regularly

61 AFFORESTATION ON COMMERCIAL LINES Tenders will be in two packet system Tenders will be in two packet system Security deposit will be 10% of annual bid subject to minimum of Rs.25,000/- Security deposit will be 10% of annual bid subject to minimum of Rs.25,000/- Initial period of agreement will be 30 years renewable by 20 years Initial period of agreement will be 30 years renewable by 20 years A detailed Project report to be given by parties in Technical bid. A detailed Project report to be given by parties in Technical bid. In price bid the bidder is required to give annual sum payable by them in six stages each covering period of 5 years. In view of initial investments, the bidders have the option not to pay any annual fees for first three years. In price bid the bidder is required to give annual sum payable by them in six stages each covering period of 5 years. In view of initial investments, the bidders have the option not to pay any annual fees for first three years.

62 AFFORESTATION ON COMMERCIAL LINES The bidder in his offer should give the number of trees he expects to harvest, their species, girth/height expected, expected time for maturity of trees, current value expected from sale and how he proposes to share with the Railway the tree wealth created at the end of each cycle of harvesting and the total value of the present day value of the tree wealth which the Railway would obtain and the bidder will get The bidder in his offer should give the number of trees he expects to harvest, their species, girth/height expected, expected time for maturity of trees, current value expected from sale and how he proposes to share with the Railway the tree wealth created at the end of each cycle of harvesting and the total value of the present day value of the tree wealth which the Railway would obtain and the bidder will get Payment due annually should be paid in two installments in advance by 1 st April & 1 st Oct and interest will be 1.5% per month on delayed payments. Payment due annually should be paid in two installments in advance by 1 st April & 1 st Oct and interest will be 1.5% per month on delayed payments.

63 COMMERCIAL PUBLICITY ALONG TRACK AND LEVEL CROSSINGS

64 Railway Board Board vide letter No.2000TGIV397TFPP Dt.4.12.01 had decided that advertisements along tract outside station limits should be taken over by Engg department.The methodology and terms and condition and system will be on same lines as is being done in commercial department. Railway Board Board vide letter No.2000TGIV397TFPP Dt.4.12.01 had decided that advertisements along tract outside station limits should be taken over by Engg department.The methodology and terms and condition and system will be on same lines as is being done in commercial department. There is tremendous potential of advertisement in level crossings (especially high way crossings) There is tremendous potential of advertisement in level crossings (especially high way crossings) As per Board’s letter No.2000/TGIV/39/8/TF/PP Dt.17.4.2000, the unmanned level crossings can be manned at the cost of private sectors/advertisers in lieu of commercial publicity rights on level crossing gates. The initial investment will be around Rs.10.00 lacs for manning of LC and annual expenditure of Rs.2.00 to 2.50 lacs for its operation. As per Board’s letter No.2000/TGIV/39/8/TF/PP Dt.17.4.2000, the unmanned level crossings can be manned at the cost of private sectors/advertisers in lieu of commercial publicity rights on level crossing gates. The initial investment will be around Rs.10.00 lacs for manning of LC and annual expenditure of Rs.2.00 to 2.50 lacs for its operation.

65 Leasing of Railway assets to Railway PSUs like IRCTC, RAILTEL, IRCON, CCI etc..

66 LEASING OF RAILWAY ASSETS TO RAILWAY PSU Railway assets are leased to Railway PSUs and there are separate Memorandum of understanding signed by Railway with these Railway PSUs like IRCTC, RAILTEL etc… Railway assets are leased to Railway PSUs and there are separate Memorandum of understanding signed by Railway with these Railway PSUs like IRCTC, RAILTEL etc… These can be discussed in detail later. These can be discussed in detail later.

67 THANKS


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