Short of funds, Indian Railways is leasing valuable land in Mumbai and other cities to private developers for 99 years. The move aims to raise money for infrastructure projects after the railways missed its earlier monetisation target by over ₹1.2 lakh crore.
Through its land arm, the Rail Land Development Authority (RLDA), the railways plans to lease about 10 hectares across four prime Mumbai sites, hoping to earn around ₹8,000 crore. Nationwide, it plans to lease nearly 340 hectares of surplus land.
Some major Mumbai plots include:
- Mahalaxmi: 2.6 acres, expected to fetch about ₹1,000 crore
- Parel: 5.6 acres, reserve price ₹1,734 crore
- Bandra East: 11.6 acres, reserve price ₹5,365 crore
The railways owns 4.9 lakh hectares of land, with about 13% lying vacant. These unused plots are being developed commercially to generate income.
Despite efforts, the railways’ non-fare revenue (like land leasing and ads) is only 4.5% of total earnings, far below global peers. Officials say leasing land will help fund projects and reduce reliance on passenger and freight income.
