Kochi: Ahead of divestment in Container Corporation of India, the Centre has cleared
a revised railway leasing policy that would facilitate it to rent out its land for a longer period for storing cargo at budget rate.
This is likely to help integrated development of infrastructure and creation of more cargo terminals that would help the railways to increase its revenue, media reports said
The lease period steeply goes up to 35 years from five years while the lease rent falls to 1.5 percent of market value of land per annum from six percent earlier.
Three hundred cargo terminals will be set up in next five years generating 1.2 lakh employment as per the proposal which was approved by the Union Cabinet, chaired by the Prime Minister Narendra Modi.
The Railways is aiming to grab a major share of freight transportation business by reducing the logistics cost.
The development assumes significance ahead of the divestment of 30.8 percent in Container Corporation of India Ltd that was announced in 2019.
The policy also provides for use of railway land to set up solar plants, hospitals through PPP and schools.
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