The State Railway of Thailand (SRT) has been instructed to re-evaluate 7,000 land lease contracts in a move to better reflect market prices.
The State Enterprises Policy Commission chaired by Prime Minister Prayut Chan-o-cha gave the mandate for the loss-ridden state enterprise to reappraise its land lease contracts in order to raise revenue and tackle existing debts that amount to 100 billion baht.
The SRT has as many as 10,000 land lease contracts with the private sector spanning 234,000 rai nationwide. Some 7,000 contracts are scheduled to expire in September.
The commission also ordered the ad hoc committee, whose members are from the Finance Ministry, the Transport Ministry and the SRT, to work out details about the leading contract reappraisal.
The loss-making SRT is one of the state-owned enterprises that has failed to improve its operating performance. The SRT itself is taking the major step to clear its huge debts by offering up three precious plots of land for commercial development.
They include a 277.5-rai piece of land near Mae Nam railway station in Khlong Toey district, a 270.57-rai plot behind the Energy Ministry in Chatuchak district and 218 rai of land at Bang Sue station.
The plot of land near Mae Nam railway station lies on the bank of the Chao Phraya River, opposite tambon Bang Kachao in Samut Prakan's Phra Pradaeng district, a vast area of green space across the river.
Major domestic and foreign investors are known to be interested in this prime land, which could serve as a business hub and high-end residential space.
Meanwhile, Ekniti Nitithanprapas, director-general of the State Enterprise Policy Office (Sepo), said yesterday that the commission had turned down the SRT's request to operate the Red Line (Bang Sue-Rangsit and Bang Sue-Taling Chan) worth 44 billion baht.
The commission did give the Provincial Electricity Authority permission to install submarine cables at Koh Samui and Koh Tao, projects worth 2.13 billion and 1.77 billion baht, respectively.
It also gave permission to Airports of Thailand Plc (AoT) to invest 5 billion baht to expand Phuket airport.
According to Mr Ekniti, the commission further approved a draft bill to establish a national holding company. That bill will go before the cabinet some time this month.
The draft bill is expected to pass in the National Legislative Assembly during the fourth quarter.
The government plans to transfer ownership of 12 state enterprises to the national holding company, while the other 44 state enterprises will remain under the supervision of Sepo.