ministry of railways rail land development authority … · development of mfc at salem railway...

Development of MFC at Salem Railway Station

Rail Land Development Authority

Project Information Memorandum (PIM)

MINISTRY OF RAILWAYS

RAIL LAND DEVELOPMENT AUTHORITY (RLDA)

Model

Request for Qualification

For

PPP Projects

PROJECT INFORMATION

MEMORANDUM

FOR

MULTIFUNCTIONAL COMPLEX

AT

SALEM


Near Safdarjung Railway Station, Moti Bagh-1

New Delhi – 110021




DISCLAIMER This Project Information Memorandum (the “PIM”) is issued by Rail Land Development Authority (RLDA)

in pursuant to the Request for Proposal vide to provide interested parties hereof a brief overview of plot of

land (the “Site”) and related information about the prospects for development of multifunctional complex

at the Site on long term lease.

The PIM is being distributed for information purposes only and on condition that it is used for no purpose

other than participation in the tender process. The PIM is not a prospectus or offer or invitation to the

public in relation to the Site.

The PIM does not constitute a recommendation by RLDA or any other person to form a basis for

investment. While considering the Site, each bidder should make its own independent assessment and

seek its own professional, financial and legal advice. Bidders should conduct their own investigation and

analysis of the Site, the information contained in the PIM and any other information provided to, or

obtained by the Bidders or any of them or any of their respective advisers.

While the information in the PIM has been prepared in good faith, it is not and does not purport to be

comprehensive or to have been independently verified and neither RLDA nor any of its officers,

employees, advisers or consultants accept any liability or responsibility for the accuracy, reasonableness

or completeness of, or for any errors, omissions or misstatements, negligent or otherwise, relating to, or

makes any representation or warranty, express or implied, with respect to, the information contained in

the PIM or on which the PIM is based or with respect to any written or oral information made or to be

made available to any of the Bidder or its professional advisers and, so far as permitted by law and

except in the case of fraudulent misrepresentation by the party concerned, any liability therefore is hereby

expressly disclaimed.

The information contained in the PIM is selective and is subject to updating, expansion, revision and

amendment. It does not, and does not purport to, contain all the information that a Bidder may require.

Neither RLDA nor any of its advisers undertakes to provide any Bidder with access to any additional

information or to update the information in the PIM or to correct any inaccuracies therein, which may

become apparent. Each Bidder must conduct its own analysis of the information contained in the PIM and

is advised to carry out its own investigation into the prospects of developing the Site, the legislative and

regulatory regime which applies to commercial development in India, and all matters pertinent to the Site

and to seek its own professional advice on the legal, financial, regulatory and taxation consequences of

entering into any agreement or arrangement relating to the proposed Site.

The PIM is for use only by the Bidders. The PIM may not be copied, or distributed by any Bidder to third

parties (other than in confidence to that Bidder’s professional advisers) or prospective consortium

members. Under no circumstances should Bidders make contact with officers or employees of MOR

unless invited by the MOR or in accordance with the PIM.




TABLE OF CONTENTS

S.NO PARTICULARS

Salem

1.1 Salem City Profile 4

1.2 Executive Summary 5

1.3 Location On City Map and Connectivity 6

1.4 Demography 7

1.5 Rail Passenger Traffic 7

1.6 Site Location and Attributes 9

1.7 Site Layout Plan 12

1.8 Site Photographs 13

1.9 Plot Details and Area Assessment 18

1.10 Retail/Real Estate Market 18

1.11 Suggested Product Mix 19




Please refer to General PIM-Knight Frank for the Tender Process chart, Project

Potential, Guidelines on EOI and Clustering and Group Bidding on the RLDA

website.

CITY PROFILE

1.1 INTRODUCTION

Salem is located in the north central part of the state of Tamilnadu. It is the fifth largest municipal

corporation in the state. Chennai the state capital is 340 kms from the city.

Salem is a part of the Kongu Nadu(Coimbatore), which is an ancient division of Tamilakam comprising the

western part of Tamil Nadu. Almost completely surrounded by hills, Salem is at the base of the renowned

tourist destination the Yercaud hills which is at an altitude of 1600 m above sea level

The town is surrounded by hills on all sides: the Nagaramalai to the north, the Jarugumalai to the south,

the Kanjamalai to the west, and the Godumalai to the east. It is divided by the river Thirumanimuthar in

the main division. The fort area is the oldest part of the town.

Salem is one of the major producers of traditional silver anklets. It also has one of the largest magnesite

deposits in the country. The city boasts of large textile, automotive, steel, poultry and sago industries.

Periyar University Bharathi Street

http://en.wikipedia.org/wiki/Kongu_Nadu

http://en.wikipedia.org/wiki/Ancient_Tamil_country

http://en.wikipedia.org/wiki/Tamil_Nadu

http://en.wikipedia.org/wiki/Yercaud




Salem is at the base of the Yeracud hills SAIL Steel Plant at Salem

1.2 EXECUTIVE SUMMARY

Location - The Site next to the Salem Junction railway station.

Land Area proposed - 975 sqm. (Approx.), (39x25*)

Built up Area 1462.5 sqm.

Existing development at site: None.

Surroundings - North: 7.5 mt wide platform

East: Corporation road (width 7.5 mts).The commercial market is along this road. West: New platform South: Railway union office

Accessibility - The site is accessible from the two approach roads one on the North which begins from the station platform and the other this is on the East which is the Corporation road.




1.3 LOCATION AND CONNECTIVITY

Salem is well connected by road and rail with most cities and towns within the state as well as the rest of

the country.

1: Location of Salem in Tamil Nadu

Source: Maps of India

Roadways

National highways NH 7, NH 47, NH 68 and NH 67 pass through the city thus connecting it to the rest of the country. The National highways NH47 and NH68 intersect at the city. Salem also has two major bus stations; the town bus station which is the old bus station and the other is the MGR Integrated Bus Terminus. Bus services are the preferred mode of transport in the city.

Railways

The Salem railway division has a total length of 842 km. Salem Junction is a 6 railway routes merging junction and hence an important transit point in South India. In 2007 Salem became a railway division. The rail division was carved out of the Palakkad rail division in Kerala. The city has good rail connectivity with the state capital with frequent trains through the day.

Salem

Chennai




Airways

The Airports Authority of India had spruced up the airport at Salem and has made it ready for operations. Kingfisher airlines launched an ATR -72 daily services flight to Chennai. However no other airlines are present here and thus the closest airport from Salem would be the Chennai airport.

1.4 DEMOGRAPHY

As per the census of 2001, Salem had a population of 751438. Males constituted 51% of the population and females 49%. The city has an average literacy rate of 77% with male literacy rate of 82 % and female literacy rate of 72%. 10% of the population is under 6 years of age.

Description Breakup

Population

Total: 751438

Male: 383233 (51%)

Female: 368205 (49%)

Literacy Rate

Average: 77%

Male: 82%

Female: 72%

Literate Population

Total: 579359

Male: 314251

Female: 265107

Source: Wikipedia

1.5 RAIL PASSENGER TRAFFIC

Salem railway station falls in the Southern Railway zone of the Indian railways.

i) No. of Passenger Trains per day – 110 Nos.

ii) Average No. of passengers per day at station- 20000 Nos.

iii) Average Passenger earnings per day: ` 7,50,000




RAIL CONNECTIVITY MAP OF TAMILNADU

Salem




1.6 SITE LOCATION AND ATTRIBUTES

The site area covers 975 sqm. The plot is next to the Salem junction station. To the North of the plot area

there is an access road that begins at the first platform of the station To the East the site connects with

the Corporation road. An office building lies to the west. The railway ballast on the site will be removed

shortly. There are 4 trees present on the site.

City View with location of MFC




Station view along with surrounding areas




Close up view of the MFC.

Latitude: 11°40'19.26"N

Longitude: 78° 6'48.10"E

Platform

No. 1

Railway

union office

DY.C.E office &

approach road

Corporation

road &

commercial

market




1.7 SITE LAYOUT PLAN

25

2

5




1.8 SITE PHOTOGRAPHS

PHOTOGRAPHIC ILLUSTRATION OF THE SITE

Salem Junction main entrance

Station circulating area




Shops opposite the station.

Union Office adjacent to the site.




Site Area

Boundary wall around the site




Site Area

Site area




Approach road starting from the platform

Approach road from the platform




1.9 PLOT DETAILS AND AREA STATEMENT

The area of subject land plot is approximately 975sq m, which is suitable for commercial (retail) and budget hotel development.

AREA STATEMENT FOR THE PROPOSED MFC

Area Statement

Site Area Utilized 975.00 in SQM

10,491.00 In sft.

Maximum Built up Area 15,742.00 In sft.

1.10 RETAIL/REAL ESTATE MARKET

Salem is renowned for fabric exports, dating back to 1930's. Salem is the major exporter of fabric / cloth items until the recent development of Tirupur as a knitted garment export hub. Salem is also popular for its mangoes and is exported to different parts of the World. Plans are underway to build a mango pulp factory near Salem to export conditioned mango pulp.

Being one of the fastest growing tier II cities, the Tamil Nadu government and ELCOT are planning to establish an IT park in Salem covering about 160 acres (0.65 km

2). SAIL is planning a Steel SEZ inside

the Salem Steel plant covering about 250 acres (1.0 km2)

There is an exclusive Electrical and Electronics Industrial Estate in the Suramangalam area of Salem town. Coimbatore-Erode-Salem stretch was well-known for Industries and Textile processing’s and it is announced as Coimbatore-Salem Industrial Corridor and further development works are carried by SIPCOT Linking Scheme.

Hotel tariffs in Salem start at ` 900 and go up to ` 7000. The Sterling Yeracud, GRT Nature trails are a

few of the popular hotels in Salem.

Commercial properties are leased starting at ` 10 per sqft upto ` 50 per sqft.

Hotel Leela Palace Lake Forest Yeracud

http://en.wikipedia.org/wiki/Coimbatore

http://en.wikipedia.org/wiki/Erode

http://en.wikipedia.org/wiki/Coimbatore-Salem_Industrial_Corridor

http://en.wikipedia.org/wiki/SIPCOT




1.11 SUGGESTED PRODUCT MIX

Salem caters to about 20000 passengers on a daily basis. While a budget hotel may not be feasible due to the limited space provided for the MFC, organized retail can flourish in this location. The products that are envisaged to be developed on the MFC sites as per the Indian Railways are:

HOTEL RETAIL RETAIL AMENITIES • Rooms (AC/ Non AC) • Dormitory • Community

Center/Restaurant/Banquet

• Retail Retail Shops/Dining

• Anchor/Food Court/Food Plaza Vanilla Shops

• Lounge Shops

• ATM • Clinic • Internet

Café/ISD/PCO • Variety Store • Pharmacy/Book Stalls • Bank Branch + ATM • Prepaid Taxi Car

Rentals • Cloak Rooms • Tourist Information

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