Railway Land Development Authority Fails in Its Objective to Develop Railway Land for Commercial Use

The Public Accounts Committee of Lok Sabha has found that the Railway Land Development Authority (RLDA) failed to develop railway land sites for commercial use due to various reasons.

The Public Accounts Committee of Lok Sabha has presented a report highlighting the failure of the Railway Land Development Authority (RLDA) in achieving its objective of developing railway land sites for commercial use. The report, based on a review of 17 out of 49 sites entrusted to RLDA by the Indian Railways since 2007, revealed that none of the sites were developed until 2017.

Lack of Development and Commercial Viability

The Committee noted that out of the 49 sites entrusted to RLDA, only 40 were found to be commercially viable. Despite this potential, the RLDA failed to develop any of the sites, resulting in the loss of revenue for the Indian Railways.

Reasons for Non-Development

The report identified several reasons for the non-development of the railway land sites. These included delays in engaging consultants, submitting reports, obtaining permissions for change of land use, and providing encumbered land to RLDA. Additionally, the Committee found that some of the sites were identified incorrectly or had incomplete documentation, further hindering the development process.

Financial Implications

While RLDA incurred significant expenditure on establishment, consultancy charges, and advertising from 2006-07 to 2016-17, its earnings from the development of Multi-Functional Complexes (MFCs) at railway stations fell short of the expected revenue from commercial development of the entrusted lands.

Status of Development

The Committee's review of the status of development of the 17 sites revealed that only three were handed over for development, seven were de-entrusted, and the handing over of the remaining seven was delayed due to various reasons, including legal issues, valuation processes, and termination of agreements.

Recommendations

The Committee recommended that the Railway Board provide reasons for de-entrusting seven sites and update the status of handing over the remaining seven sites to RLDA. It also sought information on the status of the 40 sites that were found to be commercially viable as of March 31, 2017.

Other Inactions by RLDA

The report highlighted additional inaction on the part of RLDA, such as delays in appointing consultants to assess the financial valuation of land and identify its potential use for maximum revenue generation. Furthermore, RLDA failed to prepare development plans and obtain necessary permissions for converting railway land from Public and Semi Public Zone to Commercial Zone.

The Public Accounts Committee's report exposes the shortcomings of the Railway Land Development Authority in developing railway land for commercial use. The lack of progress in site development, despite the availability of commercially viable sites, raises concerns about the efficiency and effectiveness of RLDA. The Committee's recommendations aim to address these issues and ensure that the potential of railway land is fully realized for the benefit of the Indian Railways and the nation.