Rlys consigns IRSDC to pages of history

 

 

 

 

Indian Railway Station Development Corporation Limited (IRSDC), a company tasked with station redevelopment programme in the country was dissolved in a surprise move by the Railway Board. Through a notification issued on October 18, 2021, Railway Board notified about scrapping of the Corporation, taking the railway machinery by a surprise. Dissolving of the IRSDC comes even as redevelopment of Gandhidham railway station was touted as a huge success of the programme. The special purpose vehicle (SPV) of two subsidiaries companies of Railways was currently focussed on big ticket redevelopment plan for Chhatrapati Shivaji Terminus Mumbai (CSTM), the iconic station of Central Railway in commercial capital of country, Mumbai. According to the notification issued by Harish Chandra, Deputy Director, Station Development-2, Railway Board, all the properties, especially the ownership of railway stations that were transferred to IRSDC, would revert to respective 16 Zones.

 

The ongoing projects with the Corporation would now be taken over by the Zonal Railways and they would be its future custodians. Similarly, the contracts that span for years ahead too are now the liability of respective Zonal Railways. Also Board has directed examination of other contracts and inking fresh pact with the parties by Zonal Railways. It has specifically used word novate, mean Zones can renegotiate any part of the contract if needed. Once the entire process of retransferring the assets backs to Zonal Railways is complete, it remains to be seen what liabilities they would be taking over and how much they would have keep out of their profits for meeting those obligations, said the old timers in the national transporter organisation. Also the concession agreement inked by IRSDC wherein the developer was to pay certain fees could also provide windfall to Zones. Incidentally, IRSDC was struggling to cope with the mammoth task entrusted to it by Central Government, that of total overhaul of the railway stations of Indian Railways and modernise it by keeping in mind the future requirements.

 

The key to redevelopment was land assets that stations had, at many places in prime business districts, and hence many bidders were drawn to the projects. Still the additional task of investing in upgradation of station infrastructure was the test case for the investor as Railways did not have resources to overhaul its network that is struggling to cope with the demanding times. The clogged network at stations needs funds infusion to install modern signalling technology, laying of new tracks and not to mention civil works relating to providing new look to age old station buildings. For the investor there was attractive option of exploiting the surplus land mass at stations by developing big market places. The footfalls of customers and that of transit travellers were touted as most successful plan, though the fickle minded urban consumers and their shifting tendency were always a challenge to reckon with. Incidentally, IRSDC was set-up as a Special Purpose Vehicle (SPV) as 'Railways Stations Development Corporation Ltd.' under Companies Act, 1956 and was incorporated on March 12, 2012.

 

The Company had equity participation of IRCON International Ltd. and Rail Land Development Authority (IRDA) and they were tasked with redevelopment of railway stations. No reason was given for dissolving the company by the Board, and in its typical cryptic message it mentioned that "competent authority has now decided in principle for closure of IRSDC." In view of this development the Board also directed completion of formalities relating to transferring back stations to respective Zones. Since its inception the progress of IRSDC was nothing worth home to write about as till date it has developed only handful of stations. The process of drafting redevelopment plan and key elements of agreement with concessionaires was a time consuming process. Since the redevelopment plans needed local bodies, State Government on board, the entire progress was quite slow to transform into reality.