What are the charges?
It is for the first time the national transporter will levy user fee in line with the user development fee (UDF) paid by air passengers. UDF is charged at various airports and the rate varies from city to city. The user fee is expected to be levied across nearly 700-1000 railway stations. "It will be done in about 10-15% of the stations where we expect the footfall to increase," Yadav added. As per the chairman, a very small amount will be kept as the user charge. A notification will be issued regarding the user charge for all stations including those that are getting redeveloped and those that are not.
How does the government aim to redevelop stations?
The Railways has plans to redevelop 50 railway stations and monetize its land. The policy think-tank Niti Aayog had earlier came up strongly against the Railways because of the delay in implementation of the Centre’s plan to redevelop stations.
It had suggested the formation of an empowered group of top bureaucrats for the purpose of developing 50 stations on a priority basis by the end of 2021. Railways intend to name the redeveloped hubs as 'Railopolis'. For commercial purposes, it will lease the land out for 60 years. The development will be undertaken under the public-private partnership.
The plan to redevelop stations was initially announced in 2016 by the NDA government, wherein 400 such stations were planned to be completely overhauled, the cost for which was to be met by leveraging commercial development of land and air space in and around the stations. The modernisation of stations includes developing/re-developing the new/existing railway stations and upgrading passenger amenities by new constructions/renovations.
The process will help in the re-development of the station buildings, platform surfaces, circulating area to better standards so as to serve the need of the passengers.
Why is the user fee being introduced?
The development comes in the wake of concerns raised over a potential rise in the prices of ticket fares with private entities being allowed to run trains in the country, as per the PTI report.
User charges are essentially a token amount, which will be utilised in improving convenience and facilities for all passengers at the stations. Moreover, the modernizing of infrastructure will also attract investments in the national transporter.
"I believe that competency will ensure that eventually, the prices of both passenger and freight fares will decrease in due course," said Niti Aayog CEO Amitabh Kant.
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