NEW DELHI (Metro Rail News): A Parliamentary Standing Committee on Railways has stated the termination of 16 contracts for commercial projects led by the Rail Land Development Authority (RLDA).
According to the report submitted by the standing committee on railways, the railway ministry informed them that the Letter of Acceptance (LoA) for 16 commercial sites had been revoked.
The Railways Ministry revealed that contracts were terminated due to developers defaulting on lease premium payments. Additionally, developers encountered problems securing project financing from financial institutions. Furthermore, the National Green Tribunal (NGT) did not give its approval on specific grounds.
The Railways Ministry noted that adjustments to RLDA regulations are being considered to tackle these challenges. Once these adjustments are implemented, developers are anticipated to overcome problems in obtaining project funding from financial institutions. The Committee emphasized the need for prompt issuance of these adjustments to prevent future cancellations.
The report also spotlighted concerns related to obtaining no objection certificates (NOC) from municipal bodies. Current guidelines dictate that Indian Railways and RLDA must collaborate with urban local bodies or other statutory authorities during plan approvals.
