Even as the proposed privatization of Chennai Central station is expected to take off, it has hit a road block now. According to reliable sources the Southern Railway (SR) has been forced to defer the closing date of 350-crores tender to June 30 after contractors have reportedly demanded that platform ticketing be included in the contract.
In the original bidding document which was published in February last,SR had fixed May 22 as the closing date to bid for appointment of station facilitation managers (read as contractors) who would develop, redevelop and commercially develop Chennai Central Railway junction, Chennai.
Incidentally, Central station privatization project is the second most expensive project at Rs 350 crore next only to Howrah at (Rs 400 crore, out of the 23 stations which are tipped for privatization projects to be executed under the PPP (public private partnership) model across the country.
A close look at the invitation document suggests that developers would be permitted to commercially develop the station space and leverage the real estate potential of reserved railway land adjacent to or in the vicinity of the station after paying a lease premium to the railway department for a period of 45 years.
Commercial development would include sub-leasing of parking facilities or stalls like eateries and book shops in the concourse area of Central station and even construction of a mall, if adequate railway land is available for the contractor.
Travelers could expect professionally trained male and female hospitality and conservancy staff to engage in the upkeep of the station. However, it has a catch. The right of pricing would rest with the private contractor. The contractor, who invests Rs 350 crore for 45 years, would be at liberty to increase the license fee, which would reflect in the price travelers has to pay for amenities and services provided at the station" said R.Elangovan, leader of of Railway Employees Union.
“At the central station, a cup of tea is sold at Rs 7 per cup now because vendors pay license fee to railways, but a contractor would demand more from the licensee, who will impose it on the buyers. Railways will lose its control over pricing services.
Resultantly every passenger amenity would get be commercialized in the long run.” said R.Elangovan, leader of CPI(M) - backed DREU, arguing that only corporates would run the services as smaller players would not be able to bid for a Rs 350 crore project.
Southern Railway sources have conceded that contractors have objected to Railway authorities insisting on provision of free water and toilet facilities at stations besides demanding that platform ticketing be handed over to them.
"The proposal would also defeat the purpose of appointing a Station Director, a Senior Divisional Commercial manager for Chennai Central, which SR recently did." says R.Elangovan.