An aerial view of the SRT-held Makkasan plot. KRIT PROMSAKA NA SAKOLNAKORN

The State Enterprise Policy Office (Sepo) says land development of 39,000 rai held by the debt-ridden State Railway of Thailand (SRT) could offer a quick solution.

Director-general Ekniti Nitithanprapas said SRT, one of the biggest landlords in the country, has holdings that are ideal for commercial development.

Some 23,000 of the 39,000 rai consists of unused land, and there are five big plots among them with a combined space of 1,500-1,700 rai in Bangkok that have great potential, Mr Ekniti said.

He specified two plots at Bang Sue subway station, land near a subway station in Yannawa district near the Chao Phraya River, the Makkasan station in downtown Bangkok and vacant land near Chatuchak market.

The rest of the lands also have potential to develop commercial projects, but they are not located in prime areas like those five major plots. Some of them have squatters and have become slums, said Mr Ekniti.

A Sepo study suggested the SRT should accelerate its project developments to improve its financial situation, perhaps through public-private partnership.

The SRT projects are part of investment plans for the country's 45 state enterprises with a combined budget of 370 billion baht in the fiscal year 2017 budget. The Finance Ministry set a target to see state enterprises disburse at least 95% of their total budget in fiscal year 2017 ending on Sept 30.

In fiscal 2016, the group disbursed 178 billion baht or 60% of their 297-billion-baht investment budget. As of last month, state enterprises disbursed 16.7 billion baht, a 25% rise year-on-year.

Mr Ekniti said this fiscal year should see an improvement in government budget disbursement, including for state enterprises, as there are a lot of projects that were delayed from previous year for further study. If the studies conclude, they should be able to start investment.