Railways floats tender to build ‘Rail Arcades’ at major stations

The Indian Railways plans to build ‘Rail Arcades’, envisioned as small city centre hubs with shopping plazas and food courts, at major train stations in the country. The first two are proposed to be developed in Bengaluru and Chandigarh.

The state-run Indian Railways Station Development Corporation Ltd (IRSDC) issued tenders last month to develop the small city centre that will let residents of the two cities and travellers “to engage, use the facilities and spend quality time”.

The tender, however, states that potential bidders won’t be allowed sell alcohol, beef and pork at these hubs.

The proposed arcade zone for KSR Bengaluru railway station will be spread across 15,550 square feet while Chandigarh railway station’s arcade will be half this size, 7,500 sq ft.

“The space is to be developed as an experience zone with presence of brands,” said the tender document issued by IRSDC, the dedicated company set up by the government to upgrade railway stations said. The construction and setting of the Rail Arcades is a part of a larger plan to monetise the national carrier’s land parcels and railway stations in a bid to shore up its falling revenue. The IRSDC is also working to transform railway station areas into a ‘Railopolis’, a mini smart city hub with mixed-use development.

According to the tender document, the company that gets the contract will be required to take over the identified space and “undertake remodelling of the entire area for development of commercial, leisure & entertainment space for passengers and other customers (non-passengers).” The successful bidder will also be responsible for bringing in reputed brands in the respective segments and ensure that there are food, refreshment and retail product outlets for the right “customer experience”.

The contract to set up the arcade, manage it and operate it on a 24X7 basis will be for a duration of nine years when the arcade will have to be transferred back.