Development of MFC at Salem Railway Station Rail Land Development Authority

MINISTRY OF RAILWAYS RAIL LAND DEVELOPMENT AUTHORITY (RLDA)

PROJECT INFORMATION MEMORANDUM

FOR

MULTIFUNCTIONAL COMPLEX

AT SALEM Model

Rail Land Development Authority

NearRequest Safdarjung for Railway Qualification Station, Moti Bagh -1

New Delhi – 110021 For

PPP Projects

Project Information Memorandum (PIM) Page 1

Development of MFC at Salem Railway Station Rail Land Development Authority

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.

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Development of MFC at Salem Railway Station Rail Land Development Authority

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

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Development of MFC at Salem Railway Station Rail Land Development Authority

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(), which is an ancient division of Tamilakam comprising the western part of . 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

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Development of MFC at Salem Railway Station Rail Land Development Authority

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.

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Development of MFC at Salem Railway Station Rail Land Development Authority

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

Chennai

Salem

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.

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Development of MFC at Salem Railway Station Rail Land Development Authority

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

Total: 751438

Population Male: 383233 (51%)

Female: 368205 (49%)

Average: 77%

Literacy Rate Male: 82%

Female: 72%

Total: 579359

Literate Population Male: 314251

Female: 265107

Source: Wikipedia

1.5 RAIL PASSENGER TRAFFIC

Salem railway station falls in the of the .

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

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Development of MFC at Salem Railway Station Rail Land Development Authority

RAIL CONNECTIVITY MAP OF TAMILNADU

Salem

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Development of MFC at Salem Railway Station Rail Land Development Authority

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

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Development of MFC at Salem Railway Station Rail Land Development Authority

Station view along with surrounding areas

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Development of MFC at Salem Railway Station Rail Land Development Authority

Close up view of the MFC.

DY.C.E office & Corporation approach road road & commercial market

Platform No. 1

Railway union office

Latitude: 11°40'19.26"N

Longitude: 78° 6'48.10"E

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Development of MFC at Salem Railway Station Rail Land Development Authority

1.7 SITE LAYOUT PLAN

5 5 2 2

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Development of MFC at Salem Railway Station Rail Land Development Authority

1.8 SITE PHOTOGRAPHS

PHOTOGRAPHIC ILLUSTRATION OF THE SITE

Salem Junction main entrance

Station circulating area

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Development of MFC at Salem Railway Station Rail Land Development Authority

Shops opposite the station.

Union Office adjacent to the site.

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Development of MFC at Salem Railway Station Rail Land Development Authority

Site Area

Boundary wall around the site

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Development of MFC at Salem Railway Station Rail Land Development Authority

Site Area

Site area

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Development of MFC at Salem Railway Station Rail Land Development Authority

Approach road starting from the platform

Approach road from the platform

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Development of MFC at Salem Railway Station Rail Land Development Authority

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

975.00 in SQM Site Area Utilized 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 km2). 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--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

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Development of MFC at Salem Railway Station Rail Land Development Authority

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) • Retail • ATM • Dormitory Retail Shops/Dining • Clinic • Community • Anchor/Food • Internet Center/Restaurant/Banquet Court/Food Plaza Café/ISD/PCO Vanilla Shops • Variety Store • Pharmacy/Book Stalls • Lounge Shops • Bank Branch + ATM • Prepaid Taxi Car Rentals • Cloak Rooms • Tourist Information Boot

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