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Commercial Plots

Commercial Plots

Railway Board vide letter No.2005/LML/18/8 dated 10.02.2005, circulated new policy guidelines on allotment of Commercial plots duly superseding earlier policy guidelines dated 29.08.1995.


          As per Board’s guidelines the land value has to be obtained from revenue authority to fix license fee for allotment of Commercial plot, subject to a minimum license fee of Rs 1000/- per annum for 100 Sq.Mts.




1) Licensing of ordinary commercial plot connected with Railway working will be done with the approval of General Manager of the Zonal Railway

2) The customer shall apply to the concerned Divisional Railway Manager with the committed traffic/traffic projections for allotment of commercial plot at railway premises.

3) On receipt of application the Division will examine the feasibility and availability of commercial plot.

4) After examination of the application, division will forward the same to Hqrs for approval of General Manager.   

Fixing of Land Value

 A market value would however, be required to be taken to serve as a base value for working out rental fee payable.This shall be fixed on the basis of the land value of the surrounding area as on 1.1.1985, as determined from the Revenue Authorities and/or from the following:


1. Evaluation of Town Planning Department.  

2. Actuals as per PWD and CPWD transactions.

3. Actual Transactions, as per documents filed in the office of the sub-registrar;

4. Value of land as assessed by professional evaluators of the state and Central Governments.


Rates of license fee


Item No.

Types of Plots

Annual licence Fee as a % of land value (From 1.4.95 to 31.3.2004 in terms of Board letter dt.29.8.1995)

Annual licence Fee as a % of land value (From 1.4.04 onwards in terms of Board letter dt.24.3.2004)


Railway related activities




Ordinary commercial plots without structures



( c)

Ordinary Commercial plots – with temporary structures for stacking/storing

1.Covered area.

2.   Open area.

7.5% for the whole area.

a. 7.5%

b. 6%



Steel Yards/

Coal Dumps 




Land used to lay private sidings




Shops/Retail Depots etc.,



 A standing committee of three HODs will be set up at Zonal Railway level. The standing committee consisting of PCE, CCM and FA & CAO shall examine fresh cases connected with Railway working as indicated at item (a) to (e) shown above and submit its recommendations to GM for approval.


Minimum License Fee:

The minimum licence fee in respect of plots covered under this letter should be Rs.1000/- per annum.For the purpose of determining the minimum license fee, the maximum size of a plot shall be taken as 100 Sq metres.For instance, in case licensing of a plot measuring 250 Sq metres is involved, the minimum license fee chargeable shall be relevant to three plots of 100 Sq.Metreseach and will work out to Rs.3000 per annum.


Revision of License Fee:

As the notional land value will increase by 7% over the previous year’s land value, the license fee will automatically go up by 7% over the previous year’s fee from the first of April every year.Suitable provisions, with the Schedule of payment due may be incorporated in the agreement.    



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Source : South Central Railway CMS Team Last Reviewed : 11-08-2016  

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