The 7 per cent revenue-sharing rate for mobile towers has been eliminated and the annual land use charges equal to 1.5 per cent of the land's market value would be enforced
The Ministry of Railways has reportedly made its telecom services available to private companies which will now allow them to install towers on land owned by the Railways. The move comes months after the Union Cabinet lowered the criteria for land licence fees (LLF) for railroad land in an effort to attract private investment.
According to a report in the Business Standard, in the new LLF policy, the 7 per cent revenue-sharing rate for mobile towers has been eliminated and the annual land use charges equal to 1.5 per cent of the land's market value would be enforced. As per a policy document seen by the publication, in order to encourage the spread of 5G across the nation, this step has been taken.
“So far, our telecom requirements were open only to RailTel. Now, our tenders will also be open to private players. Since they would be using them commercially, the Railways can also use the infrastructure through a competitive pricing process,” Business Standard quoted a senior official as saying.
The government reportedly issued orders in 2016 prohibiting anyone other than RailTel from installing towers or pole mounts on Railways-owned land, but now those restrictions have been overturned. However, the industry executives, as per the report, pointed out some issues that still exist. Despite the Indian Railways having the exclusive right to use the towers for advertising, the most recent regulations restrict telecom tower installation companies from using them for advertisements. Moreover, the policy permits the Railways to reclaim the land whenever necessary with just a two-month notice.
“This is a welcome move, and has been a long-standing demand of the industry," Business Standard quoted Tilak Raj Dua, director general of the Digital Infrastructure Providers Association, as saying.