Context: The Central government has made it simpler and cheaper for various entities to set up a range of infrastructure on Railway land on long-term lease.
- These including cargo-related enterprises, public utilities, renewable energy projects and even schools.
What Policy changes have been introduced?
- Under the new land policy, setting up of cargo terminals and cargo-related activities on Railway land will attract a rate of 1.5 per cent of current market value of land per annum with a 6 per cent annual increment accounting for inflation, for up to 35 years.
- Through the new land policy, the Central government envisages cargo-related activities to be taken up by any player, be it PSU, Railways, private players, existing and future players.
- Renewable energy plants, water recycling and treatment plants are to be for exclusive use of Railways while social infrastructure like schools and hospitals may be for Railway beneficiaries and the public at large.
- The changes introduced are in line with the one of the key concepts of the PM Gati Shakti programme which is to bring all infrastructure and utility projects in sync with each other.
Must Read: PM Gati Shakti
Source: The Hindu