Adani, GMR among 9 in fray for CSMT makeover

Nine companies, including Godrej Properties, Anchorage Infrastructure Investments Holdings, Oberoi Realty and Adani Railways Transport, have emerged as prospective bidders for redevelopment of the Chhatrapati Shivaji Maharaj Terminus Railway Station.

Kalpataru Power Transmission, GMR Enterprises, ISQ Asia Infrastructure Investments Pte, Moribus Holdings Pte and BIF IV Infrastructure Holding DIFC are the other bidders shortlisted by the Indian Railway Stations Development Corporation after the evaluation of the request for qualification applications submitted by the bidders.

The redevelopment cost of the CSMT station, including the cost of financing and contingency, is Rs 1,642 crore and the project will be undertaken on the design-build-finance-operate and transfer basis.

“Nine firms have qualified the RFQ stage for the redevelopment of CSMT station which is one of our most ambitious projects and we at IRSDC are committed to transform the CSMT station into a state-of-the-art transport hub,” SK Lohia, managing director & CEO of IRSDC, said on Tuesday.

As the nodal agency and the main project development agency for the redevelopment of railway stations, IRSDC had invited the RFQ in August 2020 after it received ‘‘in principle” approval of the public-private partnership appraisal committee to redevelop CSMT station. The PPPAC comprises representatives from the Ministry of Finance, Ministry of Law, Niti Aayog, Ministry of Railways. The RFQ applications, which were opened on January 15 , 2021, received a positive response from 10 developers and were evaluated by IRSDC which picked 9 applications as ‘qualified’ for the next stage.

The evaluation has been done in accordance with the criteria of financial capacity, which includes a minimum net worth of Rs 821 crore at the close of preceding financial year, or minimum ACI of Rs 821 crore at the close of the preceding financial year applicable to an Alternative Investment Fund or foreign investment fund. The construction and O&M experience capacity shall have to be met after the award of the project but before the appointed date.

The IRSDC will now proceed with the call for request for proposal from the nine shortlisted bidders with the selected bidder at the RFP stage taking up the CSMT redevelopment. For providing better passenger services and amenities, railway stations shall be on the licence with concessionaire for 60 years and will have additional revenue stream from pre-determined user charges – as notified by the ministry of railways – from railway station users as in practice in airports. The long-term lease rights for real estate allows up to 99 years for residential or mix-use format and 60 years for non-residential formats and up to 2.54 lakh sq metre of built-up area is permitted for commercial development. The technical consultant of the project is AECOM and financial and transaction consultant is Knight Frank.