Mumbai's iconic CST station to be redeveloped; for first time, funding agencies also invited in bidding process

MUMBAI: Mumbai's iconic Chhatrapati Shivaji Maharaj Terminus station will be re-developed and renovated soon and the Indian Railways has invited bids for eligible funding agencies in this regard.

For the first time, funding agencies have also been invited to participate in the CST Station Redevelopment project. IRSDC, the nodal agency of the Indian Railways, is in talks with NIIF ( National Funding agency).

According to sources, the IRSDC is also in talks with pension/ funding agencies. In addition, L&T, Tata Constructions has also been approached & the project is discussed as Mumbai CST Station is a megaproject that has a Heritage Structure too.

The Request for Qualification (RFQ) for the redevelopment of Chhatrapati Shivaji Maharaj Terminus (CST) in Mumbai on PPP has been invited by IRSDC, the Ministry of Railways said on Monday.

The RFQ was issued on August 20 and the pre-bid conference is scheduled to take place on September 22. The deadline to submit applications is October 22, 2020. 

Applicants fulfilling the eligibility criteria will be shortlisted for participating in a further stage. The entire bidding procedure is a two-stage bidding process consisting of RFQ and Request for Proposal (RFP).

The selected bidder at the RFP stage will take up the redevelopment of the Railway station and commercial development of the surrounding railway land on leasehold basis up to 60 years for commercial development and up to 99 years for residential development on selected plots, along with operation and maintenance of the station for 60 years on a concession basis.  

The user charge will also be another continuous source of revenue to the concessioner which will be available just after the Commercial Operation Date (COD) of the station.

The planning has been done by M/s AREP from France and discussions have been held with various stakeholders on a periodic basis, the Railways said. The redevelopment cost of the station (mandatory cost) including the cost of financing and contingency is Rs 1642 crore. 

The investment opportunity for redevelopment is on DBFOT (Design, Build, Finance, Operate and Transfer) basis.

Here are the key salient features of CST (Mumbai) development project:

1. In-principle approval of PPPAC comprising representatives from Ministry of Finance, Ministry of Law, Niti Aayog, Ministry of Railways etc, as per the Guidelines for PPP projects by Govt of India

2. The eligibility criteria is in terms of financial capacity at the RFQ stage and the net worth/ACI should be Rs 821 cr at the close of preceding financial year.

3. The construction and O&M experience capacity shall have to be met after the award of project but before the appointed date.

4. Extended O&M period of railway stations: For providing better passenger services and amenities, railway stations shall be on license with Concessionaire for 60 years.

5. Additional revenue stream: Pre-determined user charges (as notified by MoR) from railway station users as in practice in airports etc.

6. Long Term lease-rights for real estate: Upto 99 years for residential or mix use format & 60 years for non-residential formats. Upto 2.54 lakh sqm of Built up Area (tentative) is allowed for commercial development. Exact built up area allowed shall be known at the RFP stage.

7. No Change in Land use is required.

8. No prior environmental clearance is required from the Ministry of Environment and Forest.

9. IRSDC will be a single-window for approval of master plan and building plans in consultation with local authorities in terms of power conferred under Section 11 of Railway Act, 1989.

10.  Alternate Investment Fund (AIF) or Foreign Investment Fund (FIF) are also eligible to participate. 

11. All Applicants who meet the qualification criteria shall be eligible to submit price bid at RFP stage, i.e., there is no upper cap for shortlisting of Applicants for RFP stage.