In potentially the first big FDI in railways, Malaysia’s state-owned Construction Industry Development Board (CIDB) will participate in the auction for redevelopment of Udaipur, Howrah, Indore, Secunderabad, Pune and Faridabad railway stations.
The estimated cost of redevelopment of these stations would be Rs 5,000Cr. CIDB Holding Malaysia has written to the Railway Board, saying it would participate in the ongoing Swiss challenge bidding process of these shortlisted stations on behalf of Malaysian companies.
In the first phase of auction, 23 of them will be awarded under the Swiss challenge method wherein proposals are invited online and rivals can offer counterbids. The builders will get commercial exploitation rights for railway land for 45 years in lieu of redeveloping and modernising the existing stations.
The successful bidders will be required to raise the stations to world standards by building new platforms, providing lifts and other passenger amenities and also maintaining the premises. In lieu of this, the railways will allow them to build hotels, malls, cinema halls and shops within the station complex.