Indian Railway main logo
Search :
Increase Font size Normal Font Decrease Font size
View Content in Hindi
National Emblem of India

About Us

General Info

News & Recruitment

Tenders

Vendor Information

RTI Information

Contact Us



 
Bookmark Mail this page Print this page
QUICK LINKS

 
 

Commercial Plots


Policy on licensing of Railway Land for Commercial Plots:

1.         General:

1.1       Leasing of land is not permitted except in cases where it is specifically approved by the Railway Board.  Land for the purpose of commercial use should be given on licensing basis only.  In this connection, Board's letter No.82/W2/LM/18/116 dt.22.11.1982 may please be referred to. 

1.2       Temporary licensing of railway land to private individuals for the purpose of setting up shops, commercial offices, vending stalls, clinics etc. not connected with the Railway working was stopped in terms of Board's letter No.80/W2/18/O/A dt.7.8.1984.  This ban will continue.  In exceptional cases, where such licensing may have to be done with the prior approval of the Board, licence fee must be fixed by resorting to public auction/open tenders for getting the maximum revenue. 

1.3       Licensing of ordinary commercial plots connected with Railway working will be done with the personal approval of General Manager in consultation with FA&CAO.  The periodical review may, however, be approved by DRM on the recommendation of Committee of Divisional Heads of Engineering, Commercial and Finance Departments. 

1.4       Licenses of existing licencees, not connected with the Railway working as mentioned in Para 3 (f) below may, however, be renewed from time to time so long as the land is not required by Railway for its own purpose but on new terms and conditions as indicated below. 

1.5       In each case of licensing, proper agreement must be executed between the Railway Administration and the licencees before the licencee is given possession of the land/plot.  This must be strictly followed and for any violation of these instructions, the official handing over land before the execution of agreement shall be held personally responsible by the Railway Administration. 

2.         Rates of Licence Fee:

2.1       Licence fee of plots will continue to be fixed as a percentage of the land value, determined as per the procedure detailed in para-5 below.  The percentage applicable w.e.f. 1.4.04 to various types of plots will be as under: 

Item

No.

Types of Plots

Annual Licence Fee as a Percentage of Land Value

(a)

Railway related activities such as City Booking offices, Out Agencies etc.

6%

(b)

Ordinary Commercial Plots - without structures

6%

(c )

Ordinary Commercial Plots - with temporary structures for slacking/storing 

(I) Covered area 

(ii) Open area

             (i)                   7 �%

             (ii)          6% 

(d)

Steel yards / Coal Dumps Bulk Oil Installations etc.

7 �%

(e)

Land used to lay private siding

6%

(f)

Shops / Retail Depots etc.

10%

 Licence fee of plots will continue to be fixed as a percentage of the land value, determined as per the procedure detailed in para-5 below.  For period prior to 1.4.1995, the license fee will be governed in terms of Board's letter No.83/W2/LM/18/87 dated 17.9.1985.  For subsequent periods, the percentage would be as under: - 

Item

No.

Types of Plots

Annual Licence Fee

As a Percentage of

Land Value (from

1.4.95 to 31.3.04 in terms of Boards letter dated 29.8.95)

Annual Licence fee as a Percentage of Land Value (from 1.4.04 onwards in terms of Board's letter dated 24.3.04)

(a)

Railway related activities such as City Booking office, Out Agencies etc.

6%

6%

(b)

Ordinary Commercial Plots - without structures

6%

6%

(c)

Ordinary Commercial Plots - with temporary structures for stacking/storing

(i)Covered area

 

      (ii)       Open area

 

7 �% for the whole area

 

(i)7 �%

 

    (ii)        6%

(d)

Steel Yards / Coal Dumps Bulk Oil Installations etc.

10%

7 �%

(e)

Land used to lay private sidings

6%

6%

(f)

Shops / Retail Depots etc.

20%

10%

3.0       Formation of a Standing Committee

3.1       A Standing Committee of three HODs of Engineering, Commercial and Finance departments will be set up at the Headquarters of such Zonal Railway and other Railway Units.  This Standing Committee shall examine fresh cases connected with railway working as indicated in Para 3 (a) to (e) and submit its recommendations to GM for approval. 

3.2       The periodical review will, however, be done by DRM on the recommendations of Divisional Heads of Engineering, Commercial and Finance Departments.  The Committee will review annually whether the traffic commitments by the licensees of the commercial plots have actually materialised or not and in case of any deviation initiate suitable corrective action including de-licensing and vacation as necessary. 

4.0       Fixing of Land value:

4.1       The market value will be taken to serve as a base value for working out rental fee payable.  This shall be fixed on the basis of the land value of the surrounding area as on 1.1.1985, as determined from the Revenue Authorities and/or from the following:

(a)       Evaluations of Town Planning Department;

(b)       Actuals as per PWD and CPWD transactions;

(c)        Actual Transactions, as per documents filed in the Office of the Sub-Registrar;

(d)       Value of land as assessed by professional evaluators of the State and Central Governments 

4.2       The land value as worked out shall be increased every year on the 1st of April, starting from 1.4.1986, at the rate of 10% over the previous year's land value to arrive at the land value for the following year based on which the annual licence, fee shall be fixed.  From 1.4.2004 onwards, the land value shall be increased at the rate of 7% every year over the previous year's value.

4.3       However, for fresh cases of licensing of plots, for any purposes defined in Para 3.1 (a) to (e) above, the licence fee shall be fixed after obtaining the current value of land.  In very rare cases where  it is not possible to obtain the current cost (reasons for which should be brought on record), the updated cost based on 1.1.1985 land price should be adopted.

However, for the Metropolitan towns of Mumbai, Kolkata, Delhi, and Chennai if the HODs' Committee feels that the land rates are widely varying within the city, two or more rates can be utilised for that city.   

5.0       Minimum Licence Fee:

5.1       The minimum licence fee in respect of plots should be Rs.1000/- per annum.  For the purpose of determining the minimum license fee, the maximum size of a plot shall be taken as 100 sq.metres.  For instance, in case licensing of plot measuring 250 sq. metres is involved, the minimum license fee chargeable shall be relevant to three plots of 100 sq.metres each and will work out to Rs.3000 per annum

6.0       Revision of Licence Fee:

6.1       As the notional land value will increase by 7% over the previous years land value as mentioned in Para 5.2 above, the licence fee will automatically go up by 7% over the previous year's fee from the first of April every year.  Suitable provisions, with the Schedule of payment due, may be incorporated in the Agreement. 

6.2       The termination/renewal date of the Agreement should always be the end of the financial year so that there is no confusion and a better watch is kept on renewals. 

7.0       Power of Licensing and Renewal:

7.1       Fresh cases of licensing of plots connected with Railway working will be approved by GM, on recommendation of the HOD's Committee.  As regards plots mentioned at (f) of Para 3, viz. shops, retail oil depots etc., as already stated, the existing ban on fresh licensing for purposes unconnected with Railway working will continue.  Renewal of licences of railway land not connected with Railway working can be done at G.M's level with Finance concurrence. 

 




Source : North Western Railway / Indian Railways Portal CMS Team Last Reviewed on: 29-06-2011  


  Admin Login | Site Map | Contact Us | RTI | Disclaimer | Terms & Conditions | Privacy Policy Valid CSS! Valid XHTML 1.0 Strict

© 2016  All Rights Reserved.

This is the Portal of Indian Railways, developed with an objective to enable a single window access to information and services being provided by the various Indian Railways entities. The content in this Portal is the result of a collaborative effort of various Indian Railways Entities and Departments Maintained by CRIS, Ministry of Railways, Government of India.