The Indian Railways is working on a plan to allow private freight terminals (PFTs) on railway land adjacent to stations with a view to utilising vacant land parcels better, increase public-private-partnership (PPP) investments and boost freight revenue. Commercial viability of private terminals is more near cement companies, ports and power plants which consume coal. At present, private freight terminals are built by private investors on private land and connectivity is given by the railways to the operators on lease basis. The transporter believes that PFTs on railway land would help reduce encroachment of its land apart from increasing earnings through licensing fee. Under this scheme captive warehouses will be built by investors on land adjacent to stations and railways will earn lease rentals. The transporter will also charge for the railway lines leading up to the warehouses, since commercial use of land will require.
This update is authored by Clasis Law, Clyde & Co's associated firm in India
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