Railways has finally given its nod to award contract of 11 hectares of its vacant land in the capital to private developers for commercial development on a 90-year lease.
"Sarai Rohilla becomes the first piece of railway surplus land to be given away to private developers for the commercial development after the formation of Rail Land Development Authority (RLDA) to deal with such vacant land, a senior Railways Ministry official said.
Though the private developer ABW Infrastructure had emerged as the highest bidder after quoting Rs 1,026 crores in the tender for the commercial development of surplus land at Sarai Rohilla near Filmistan in the capital, Railways Ministry had earlier stalled the contract raising objections to the 90-year lease period.
"However, it has been sorted out and certain formalities need to be completed before handing over the land to the highest bidder," the official said and added "the developer would be able to possess the land by November."
Railways had invited bid for construction of integrated township including shopping complex, school and dispensary at the 11 hectares of surplus land near Filmistan in the capital as part of the commercial utilisation of surplus land project.
Almost all major players had participated in the pre-bidding conference for Sarai Rohilla land in May.
Eight developers were shortlisted out of a total 27 participants.
The reserve price was fixed at Rs 675 crores.