Railways eyes Rs 30,000-crore revenue with new land licensing fee policy

Sources also indicated that the current policy was causing a lot of leasable Railways land to go idle, notwithstanding the potential for terminal operations

With its new land licensing fee (LLF) policy, the Ministry of Railways has identified a revenue potential of Rs 30,000 crore over the next five years, senior officials in charge of estimation said on Thursday.

The revenue will be realised through augmented freight volume brought through GatiShakti cargo terminals.

On Wednesday, the Cabinet Committee on Economic Affairs (CCEA) approved the revised railway land lease policy to 1.5 per cent of the land’s market value, from the earlier 6 per cent. The annual increment in lease has been reduced from to 6 per cent, from 7 per cent.

The CCEA announcement