KMRL to spare space near stations to mop up revenue

EoI invited to lease out 2.40 acres to private players to develop infra on PPP mode

Aimed at mobilising alternative revenue from commercial development of open spaces in select metro stations, Kochi Metro Rail Limited (KMRL), which is staring at a widening gap between revenue and expenditure, has invited Expression of Interest (EoI) to lease out 2.40 acres to private players, to develop infra on public-private partnership mode.

The metro agency has invited EoI to develop commercial spaces and share revenue from them at Aluva and Edappally stations and the upcoming station at Vadakkekotta in Thripunithura. “The revenue will be shared between KMRL and the private partner, while KMRL will in addition get an annual licence fee. The response to the EoI will be known in a few days, following which Request for Proposal (RfP) will be floated in a month. The period of long-term lease has been set at 50 years now. The exact tenure and conditions will be specified in the RfP, based on the response to the EoI,” metro sources said.

Location-specific models

Commercial spaces could be let out for office complex or used as retail, entertainment space, and food court. Location-specific models will be adopted. For instance, ground and first floor spaces are ideal for retail, the sources said.

KMRL will specify parameters for construction on open spaces that will be leased out, so that the construction is in sync with adjacent metro stations. The metro agency will rent out approximately 60,000 sq.ft. retail space and 50,000 sq.ft. office space at metro stations which witness substantial footfall, it is learnt.

The agency is also readying plans to mop up alternative revenue from sponsors of median-beautification work beneath the metro corridor, from advertisements within and outside stations and trains, in a bid to lessen the ever-widening revenue-expenditure gap.

Bliss City

The proposal to garner income from the proposed ₹3,000-crore Bliss City in government land at Kakkanad has been temporarily held up, since KMRL has not got possession of the entire 17.43 acres. A PPP model has been envisaged here to build a modern wellness and wholesome entertainment zone.