The Indian Railways looks forward to receiving INR 7,500 crore from three land parcels near metro stations in Delhi by monetizing them under the Transit-Oriented Development scheme (TOD). The railways were hopeful of making INR 5000 crore from the land parcels before the approval of the TOD policy in Delhi. The Rail Land Development Authority (RLDA), which is a statutory authority under the ministry of railways for the development of vacant railway land for commercial purposes, has written to the Delhi Development Authority (DDA) seeking inclusion of land parcels at Kishanganj, Shakur Basti under TOD policy.
“The 15.27 hectare land at Kishanganj was put on sale for INR 1860 crore but in between, the DDA approved the TOD policy. Because the land is close to the metro station, under the new policy, it can fetch up to INR 2,700 crore. As per our estimate, the rate will go by 53 percent if the land becomes part of TOD,” said Vaid Prakash Dudeja, vice-chairman of RLDA.
The reason behind the increase in price is due to the high floor area ratio (FAR) and commercial exploitation of land under the tod policy. The DDA normally allows 10 percent area of land for commercial development whereas, under the TOD, it can rise up to 30 percent which results in an increase in the land price. “Dynamics changes once you allow more area for commercial use since the demand for commercial space is more than residential. By joining hands with the railways, the developer will get land without litigation and no one else have a huge chunk of land in Delhi,” Dudega said.
RLDA is offering about 100 acres of land at the three locations close to the metro station as well as providing land parcels at other parts of the capital. The DDA had approved the TOD policy in September and it will soon be notified. In the policy, the development has been proposed along with metro stations and for the pilot phase, Dwarka Sector 18, Dwarka Sector 21, Mayur Vihar Extension, Mukundpur, Sarojini Nagar and INA (combined) metro stations have been selected.