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Hubballi: The Railway Land Development Authority (RLDA) of New Delhi has invited a request for a proposal (RFP) to lease out 52,630 sqmtr of MTS Railway Colony on a prime location on Karwar Road at Rs 83 crore for 99 years.
However, businessmen and activists rue that the price is nominal. RLDA officials on the other hand claim that it is the minimum bidding price for which there was no response from bidders in the past also.
Vasant Ladawa, former president, Karnatak Chamber of Commerce and Industry, Hubballi, alleged that leasing for 99 years is nothing but selling. “Land price is about Rs 3,000 per sqft around MTS Colony, but RLDA is leasing it out at throwaway prices. Like elsewhere, the Union government is trying to sell land to private companies in Hubballi too. Instead of leasing it our for long term, RLDA should try to use it for building railway offices or staff quarters. It can also be developed as a commercial complex and leased out to shops, like how HDMC does, so that the railway department itself can get profit,” he added.
He said the railways have not given publicity to the tender process. “It should try to attract national-level contractors to develop land located in the heart of the city,” he said.
HM Koppad, member, Central Working Committee, National Federation of Indian Railwaymen (NFIR), New Delhi, termed it as a another type of privatisation. “Though Indian Railway never suffered losses in its history, railway ministry is privatising stations, trains and freight services. Now this long–term lease of land is another threat for railways’ existence” he said.
“This request for proposal was called for re-development of MTS Railway Colony in 2019 at an estimated cost of Rs 4.95 lakh. As we did not get response, we revised it for lease for 99 years at reserve price of Rs 83 crore and invited another RFP in 2020. Each RFP will have a validity period. If we don’t get a response, we will issue a fresh RFP, as we have done currently. If the price is meagre, why are we not getting bidders? Rs 83 crore is the current reserved price and can go up if we get more bidders. Minimal price is kept to attract more bidders,” said Ram Mohan Reddy, chief project manager, RLDA, Bengaluru.
However, businessmen and activists rue that the price is nominal. RLDA officials on the other hand claim that it is the minimum bidding price for which there was no response from bidders in the past also.
Vasant Ladawa, former president, Karnatak Chamber of Commerce and Industry, Hubballi, alleged that leasing for 99 years is nothing but selling. “Land price is about Rs 3,000 per sqft around MTS Colony, but RLDA is leasing it out at throwaway prices. Like elsewhere, the Union government is trying to sell land to private companies in Hubballi too. Instead of leasing it our for long term, RLDA should try to use it for building railway offices or staff quarters. It can also be developed as a commercial complex and leased out to shops, like how HDMC does, so that the railway department itself can get profit,” he added.
He said the railways have not given publicity to the tender process. “It should try to attract national-level contractors to develop land located in the heart of the city,” he said.
HM Koppad, member, Central Working Committee, National Federation of Indian Railwaymen (NFIR), New Delhi, termed it as a another type of privatisation. “Though Indian Railway never suffered losses in its history, railway ministry is privatising stations, trains and freight services. Now this long–term lease of land is another threat for railways’ existence” he said.
“This request for proposal was called for re-development of MTS Railway Colony in 2019 at an estimated cost of Rs 4.95 lakh. As we did not get response, we revised it for lease for 99 years at reserve price of Rs 83 crore and invited another RFP in 2020. Each RFP will have a validity period. If we don’t get a response, we will issue a fresh RFP, as we have done currently. If the price is meagre, why are we not getting bidders? Rs 83 crore is the current reserved price and can go up if we get more bidders. Minimal price is kept to attract more bidders,” said Ram Mohan Reddy, chief project manager, RLDA, Bengaluru.
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