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Revision of Railways’ Land policy

8th September, 2022 Science and Technology


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  • The Cabinet has approved the Ministry of Railway’s proposal to revise the railways’ land policy to implement PM Gati Shakti framework (Cargo related activities, Public utilities & Railway’s exclusive use).



  • As per the new policy, the land can be now leased for cargo-related activities for up to 35 years (as against five years earlier) at 1.5% of market value of land per annum, down from 6% earlier.
  • Additionally, 300 cargo terminals would be developed over next five years and about 1.2 lakh employment would be generated. The existing entities using railway land for cargo terminals will have the option to switch to the new policy regime after transparent and competitive bidding process.
  • The policy also provides for use of railway land to set up solar plants at a nominal cost, and encourages development of social infrastructure at an annual fee of Rs 1 per sq. m per annum.


  • This would help in attracting more cargo to the Railways and increase its modal share in freight transportation thereby reducing logistics cost of the industry.
  • The move is also expected to enable integrated development of infrastructure and more cargo terminals, helping improve revenues for the Railways.