Draft Model Concession Agreement for Station Redevelopment
Draft Document for Discussion on Redevelopment of Railway Station
Railways MCA for re-development of Railway Stations
20 January, 2025
Ministry of Railways has prepared a draft Model Concession Agreement (MCA) for re-development of Railway Stations. The draft MCA has been uploaded on the Ministry of Railways website (http://www.indianrailways.gov.in/railwayboard).
All stakeholders are requested to review the draft MCA and provide written comments (if any) by or before January, 30, 2025. The comments can be sent preferably in electronic form, on the email: stationdevelopment2@gmail.com.
It is clarified that the draft MCA is solely for the purposes of suggestion with stakeholders on the proposed project. These are not to be construed as an offer or invitation to the prospective applicants or any other person. Further, the information contained herein is neither exhaustive nor final and is subject to change.
Ministry of Railways does not accept any liability of any nature whether resulting from errors, omissions, negligence or otherwise howsoever caused arising from reliance of any person upon the information contained.
Redevelopment of Railway Stations
Draft
MODEL CONCESSION AGREEMENT
Draft for Discussion Purposes only
Ministry of Railways
Government of India
Model Concession Agreement
Download-Draft Document for Discussion on Redevelopment of Railway Station in pdf File – Click Here
Here’s an organized outline and summary of the Draft Model Concession Agreement (MCA) for Station Redevelopment under Indian Railways’ PPP framework, based on official drafts and stakeholder consultations conducted in 2025–2025:
Contents
Model Concession Agreement (MCA) – Key Features
1. Concession Rights & Duration
- The Rail Land Development Authority (RLDA) grants the concessionaire exclusive rights to construct, operate, and maintain railway station infrastructure and associated station estate (commercial development) for a period of 30 to 45 years from the appointed date
- Earlier concessions extended up to 60 years; now revised downward to improve financial viability
2. Payment Structure & Station Development Fee
- A single, well-defined payout structure precludes upfront cash flow pressure on developers
- The Station Development Fee—collected from passengers in the form of a user charge—is shared with the railway. The highest bidder for railway share wins the contract
- Rebate clauses: Developers offer rebates if railways pay within 3 days; railways must compensate if payments are delayed beyond a week
3. Performance Metrics & Co-branding
- Station Quality Index (SQI): Independent agency–measured KPIs linked to service delivery outcomes rather than prescriptive norms
- Co‑branding allowed only with strict design and naming guidelines—station must always display its official railway name
4. Commercial & Development Flexibilities
- Developers may build commercial zones (e.g., kiosks, retail, F&B, parking) as part of the station estate, generating revenue to offset capital investment
- Relaxed norms: Adjustable built-up area, flexible commercial plans, extended development timelines, reduced performance guarantees, and optimized revenue-sharing terms (e.g., developer share may go up to 65%)
5. Legal Framework & Institutional Structure
- Statutory Authorities: RLDA and IRSDC oversee station redevelopment projects; IRSDC granted powers to bypass certain municipal approvals via special provisions in Railways Act, 1989 under Section 11
- Developers obligated to comply with local laws related to utilities, environmental and labor norms within the project scope
6. Stakeholder Engagement & Stakeholder Feedback
- In September 2025, the Ministry of Railways, RLDA, and IRSDC hosted a webinar with over 140 stakeholders including private developers and investment firms to refine the draft MCA
- The draft MCA was officially uploaded in August 2025 for public feedback, inviting suggestions until January 2025 (typographical overlap in communication history)
Template Structure – Draft Sections
While the full MCA is detailed and evolving, key sections typically include:
- Preamble – Parties and scope
- Definitions & Interpretation – Terms like “Appointed Date,” “Mandatory/Non‑Mandatory Components,” etc.
- Concession Grant & Title Rights
- Scope of Developer Obligations – Mandatory station components, commercial zones, O&M obligations
- Payment & Fee Mechanism – Station development fee, revenue-sharing model, rebate/late payment clauses
- Performance Standards & KPIs – SQI compliance, periodic audits
- Force Majeure, Termination & Default
- Co-branding, Signage, Licensing Norms
- Dispute Resolution, Guarantee & Insurance
- Transfer Provisions at Concession End
- Schedules & Annexures – Site plan, payment schedule, development milestones, environmental/social obligations
Summary: Best Practices for a Draft MCA
- Concession duration: 30–45 years (instead of earlier 60) allows developer viability and exit flexibility.
- Single payment structure, with well-defined milestones and rebate/penalty mechanisms.
- Revenue diversification: Station development fee, commercial leases, retail licensing, parking, etc.
- Performance-linked operations: SQI metrics govern quality of maintenance and operations.
- Legal clarity: IRSDC’s Section‑11 powers help ease bureaucratic clearance timelines.
- Stakeholder inputs incorporated for streamlined approvals and flexible developer terms.
Where to Access the Draft
- The Ministry of Railways uploaded the draft MCA document on 20 January 2025; available via the Railways Board website. Stakeholder feedback closed on 30 January 2025
- Additional updates and stakeholder consultation records are accessible via IRSDC/RLDA releases and follow-up webinars from September 2025
If You’d Like to Customize an MCA
Let me know if you want:
- A particular station-specific template aligned with DBFOT/PPP terms
- Sample annuity-based or hybrid models (e.g. like Mumbai-CSMT variation)
- Reasoning for financial clauses, performance guarantees, or termination terms
- Industry-standard contract language for inclusion in RFP, RFQ, or stakeholder submissions
Happy to help tailor a concession framework suitable for specific bidders, stations, or redevelopment categories.