MFC contracts earn Rs 28 cr for Railways

Indian Railways on Friday announced contracts to private developers to build Multi-Functional Complexes (MFCs) consisting of hotels, shopping arcades, medicine and variety stores at five stations earning the railways Rs 27.61 crore in lease money.

The projects were awarded by the Rail Land Development Authority (RLDA) and are expected to come up in stations at Cuttack, Dehradun, Jhansi, Katra and Nanded.

This is the first time that the MFCs are being developed through a private investment, officials said.

For the projects, a total of 15 bidders submitted 28 financial bids.

The total present value of the lease premium and annual lease rent received for five stations in response to the competitive bidding was Rs 27.61 crore ? much higher than the pre-bid expectations, the Railways said.

With the tremendous success of the pilot project of bidding for 5 MFCs, RLDA plans to invite bids for 86 more MFCs at railway stations across India very soon and all these MFCs are targeted to be awarded this year.

Indian Railways have introduced the concept of MFC at Railway stations beginning year 2009-10 for developing facilities for rail users at one centralised complex.

86 MFCs will be developed by RLDA across the country through private parties as part of the second phase of the MFC project announced in the Railway Budget in year 2010-11.

Bidding for the second phase is expected to be initiated shortly.