Rahul Mehta Gandhinagar LsCandidate
Leasing Railway station to private company vs Govt developing the station
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Say a private or govt company builds a complex with say 1000 shopping units, Say it has decided that it will not sell the units but only rent them on three year basis. The company has to decide monthly rent.
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option-1 : The company sees that if rent is Rs 10000 per month , then some 2-3 shops will remain vacant but all will go. So total rent collected will be 1000 * Rs 10000 per shop = Rs 1 crore per month.
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option-2 : then the company sees that if rent is raised to Rs 15000 per month, then 100 shops will remain vacant, but total rent will rise to Rs 15000 per shop * 900 = Rs 1.35 crore per month, some 35% HIGHER than option-1 !!
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So private company will take second option.
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Whereas citizens can FORCE govt company to take first option by ensuring that every shop is given for rent via OPEN auction price, and floor price is set just enough that all but some 1% shops go for rent. (why 1% shops must remain vacant !!!??)
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The revenue in second case is higher, but TOTAL benefit to society in first case is higher, even if rent is distributed in citizens equally !! Why? Because in first case, employment will be more and competition will be more, and so price consumer will pay at shops will decrease. So eventually, private player will have to switch to option-1.
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Now in case of private mall, I would say --- if the private company is keeping price higher even if there is vacancy, then let it do. Because risk of loss was on that private company and so risk imo gives it moral right to make higher profit. And his higher profit wont ;last long. Because as more private malls come up, he too will have to lower the rents
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But railway station is a monopoly created by people. If a private mall keeps rents too high, then people will go to another mall. But railway station has monopoly over audience = consumer because of railways (not because of shops at the station). And so if a private person has leased the land and station for say 50 years, then he will raise the rents to maximize TOTAL rent collection, not ensure that all shops do get rented i.e. he will take option-2. And a new railway station wont come up to compete with him. So he will never switch to option-1
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Moral from this GYAAN?
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Moral is that instead of leasing MONOPOLIES OVER CITIZENS such as railway stations to private companies, it is LESS INEFFICIENT i.e. better to improve management in Govt using Right to Recall Railway Minister, Jury System over Railway Staff, having Advisory Committee under Station Master of 5 members , where two members are recallable by citizens of that town/city, another one is recallable by Passangers , one is MLA of appointed by MLA and another MP or appointed by MP. I oppose RTR over Station Master, but do support Jury Trial by National Juries over Station Masters.
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This will reduce corruption in station management and also reduce inefficiencies.
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Leasing stations to private companies will ensure that most stations will evntuially go foreign companies, or Indian companies who have taken huge loans from Mauriius Banks, as Indian companies are now deep in debt and have no cash. So profits have to be repatriated in dollars, and so this will worsen repatration situation.
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So SOLUTION?
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Please note that SoMoKe have opposed RTR-RailMin, Jury System over Railway Staff and all these law-drafts,. Pls also note that ALL CoRaAp = congress / rss / aap workers have opposed these RTR / Jury law-drafts
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So pls dont waste time and hopes after SoMoKe and CoRaAp workers. Pls publicize RTR / Jury etc law-drafts. Or else, inefficiencies across India will increase and so will repatriation crisis. .