News: Reliance, Bharti see retail opportunity in Railway land

(BL 21/12/2006) New Delhi - India's organised retail players, for whom real estate comes at a premium, are looking to commercially exploit 44,000 hectares of surplus land lying with Indian Railways across the country under a win-win formula.

The railway ministry sources said feelers have been received from corporate houses, including Mukesh Ambani-spearheaded Reliance Retail, R P Goenka Enterprises and Bharti Group, after Railway Minister Lalu Prasad announced that the surplus land would be made available for commercial purposes under public-private-partnership.

The Railway has about 44,000 hectares of surplus land across the country, which the railway ministry is ready to offer to corporate houses for building budget hotels, warehouses, farm outlets and hospitals.

Indian Railway Catering and Tourism Corporation (IRCTC) has already announced over 100 budget hotels on the surplus land and issued tenders for execution of 40 such projects.

The railway ministry has also announced setting up over 7,500 farm outlets at railway stations across the country to provide benefit to farmers by selling their products.

Sources said the ministry was planning to hire a consultant to advise it about the use of these surplus lands, mainly lying idle near railway stations.

While Reliance Retail Ltd has ambitious plans to provide fresh food and vegetables in its outlets the railway's surplus land could provide an opportunity to grow a wide variety of food products.