The government has made it simpler and cheaper for various entities to set up a range of infrastructure on Railway land on long-term lease. These including cargo-related enterprises, public utilities, renewable energy projects and even schools.

Railway land can now be used to set up solar plants, sewage and water treatment facilities at Re 1 per square meter per annum for 35 years and hospitals through PPP and schools with Kendriya Vidyalaya Sangathan for Re 1 per square meter per annum for up to 60 years.

The Union Cabinet Wednesday, chaired by Prime Minister Narendra Modi, approved the new land lease policy of Railways, which owns around 4.84 lakh hectares in India of which 0.62 lakh hectare is vacant. This includes land that runs parallel to tracks.

The thrust of the revision of the policy is to help set up cargo terminals across the Railway network. The government wants to encourage a modal shift of cargo movement to railways in order to reduce logistics cost and infuse competitiveness in the economy.

Setting up of cargo terminals and cargo-related activities on Railway land will attract a rate of 1.5 per cent of current market value of land per annum with a 6 per cent annual increment accounting for inflation, for up to 35 years.

(With inputs from agencies)