Exploring options of commercial use for station redevelopment: a case of Gwalior railway station

Abstract

Indian Railways, considered to be lifeline of nation, has served to our nation since its inception. It has played a major role in the economic development of nation. On the other side, it has suffered from under-investment during last several years. To manage with under-investment and improving customer satisfaction Indian railways has identified financing options which include private Participation in Building rail Connectivity, Foreign Direct Investment, Commercial Utilization of Railway land, and station redevelopment by PPP. Railway has started the work of station development through its statutory body IRSDC which selects railway stations. PIM for Anand Vihar, Bijwasan is prepared. Work for Habibaganj railway station has started. Gwalior railway station is selected for the work. IRSDC has identified stations and has provided scope of work which provides the way forward for development at station. But, very important point to notice is that the railway is interested in providing land on lease for commercial development and its saleability. For that, the development should be a need which is to be fulfilled through railway land development for commercial purpose. Railway’s aim to generate revenue will be possible only if there is demand for the development which it is making. Over-supplied market lead to negative growth rate and lower rent and increased vacancy So, Aim is to explore the option for commercial development at station. As the railway has its own activities (operational and non-operational activities). So the first objective is fulfil with railway land requirements by identifying and computing the space required for operational and non-operational activities. Then, allocating spaces as per norms rates. Hence, assessment for the need of development is an important exercise in this thesis. of the various use is assessed. Also analysis for the current and future period is done for the decided use by railway. For retail – Consumer expenditure with the existing retail facilities is analysed For office Space- Demand in Private sector and public sector is analysed using the data available for work force involved in the organised sector activities. For Hospitality sector – Railway Passengers are considered as market and a surrounding area analysis is done and demand for future is assessed and should be the supply is calculated. Finally coming with product mix for development which is feasible from the perspective of railways model as the development is to be held by a Private Developer which is known as concessionaire. Here, the objective is not to propose development at railway station. The approach is oriented toward the assessment of demand. This demand can turn out to be lesser or more according to the output found from the analysis. The development is proposed as per the demand available for it from current analysis