A view of the Chhatrapati Shivaji Maharaj Terminus in Mumbai
A view of the Chhatrapati Shivaji Maharaj Terminus in Mumbai|Photo: Central Railway website
Business & Economy

Railways invite RFQ for redevelopment of Chhatrapati Shivaji Maharaj Terminus in Mumbai

NetIndian News Network

New Delhi, August 25, 2020

The Indian Railways have invited Request for Qualification (RFQ) for the redevelopment of the iconic Chhatrapati Shivaji Maharaj Terminus in Mumbai in public-private partnership (PPP) mode.

The proposal has received in-principle approval of the Public-Private Partnership Appraisal Committee (PPPAC), an official press release said.

The RFQ document is available here. The Pre-bid Conference is scheduled to take place on September 22. The application due date is October 22.

The applicants fulfilling the eligibility criteria will be shortlisted for participating in the next stage The entire bidding procedure is a two-stage bidding process consisting of RFQ and Request for Proposal (RFP). The selected bidder will take up the redevelopment of the railway station and commercial development of the surrounding railway land on leasehold basis up to 60 years for commercial development and up to 99 years for residential development on selected plots, along with operation and maintenance of the station for 60 years on a concession basis.

The user charge will also be another continuous source of revenue to the concessioner which will be available just after the Commercial Operation Date (COD) of the station.

The planning has been done by AREP from France and discussions have been held with various stakeholders periodically. The redevelopment cost of the station (mandatory cost) including the cost of financing and contingency etc. is Rs 1642 crore. The investment opportunity for redevelopment is on DBFOT (Design, Build, Finance, Operate and Transfer) basis.

The salient features of the project include In-principle approval of PPPAC comprising representatives from the Ministries of Finance, Law and Railways as well as from the Niti Aayog as per the Guidelines for PPP projects.

The eligibility criteria are in terms of financial capacity at the RFQ stage and the net worth/ACI should be Rs 821 crore at the close of the preceding financial year. The construction and O&M experience capacity should be met after the award of the project but before the appointed date.

For providing better passenger services and amenities, the concessionaire’s license for the railway stations will be for 60 years. Pre-determined user charges (as notified by Railway Ministry) from railway station users as in practice in airports etc.

The Long-Term lease-rights for real estate will be up to 99 years for residential or mixed-use format and 60 years for non-residential formats. Up to 2.54 lakh sqm of Built-up Area (tentative) is allowed for commercial development. The exact built-up area allowed will be known at the RFP stage. No Change in Land use is required or prior environmental clearance is required from the Ministry of Environment and Forest.

IRSDC will be a single-window for approval of the master plan and building plans in consultation with local authorities in terms of power conferred under Section 11 of Railway Act, 1989. Alternate Investment Fund (AIF) or Foreign Investment Fund (FIF) are also eligible to participate. All applicants who meet the qualification criteria will be eligible to submit price bid at RFP stage, that is, there is no upper cap for shortlisting of Applicants for RFP stage, the release added.

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