Indian Railways, the country’s largest landowner, is taking a bold step towards commercialising its vast land assets, unveiling plans to lease 341.93 hectares of prime land across major cities to private developers for 90 years. This strategic move is expected to generate a substantial ₹5,000 crore, providing much-needed funds for the Railways’ modernisation efforts. The initiative comes after the national transporter reported a marginal surplus of ₹2,210 crore in FY 2023-24, signalling a need for innovative revenue streams.
Key metropolitan areas have been targeted for this land lease, including 110.46 hectares in Mumbai covering prime locations like Grant Road, Tardeo, Parel, Bandra, and Carnac Bunder. Delhi is also part of the plan, with 58.93 hectares of land identified in prestigious areas such as Chanakyapuri, Lodhi Colony, and Sarojini Nagar. Similar leases will take place in Bengaluru, Secunderabad, Chennai, and other cities, marking a nationwide effort to unlock value from underutilised public assets.
The Railway Land Development Authority (RLDA), tasked with managing the project, has outlined these plans in its 310-page “Opportunities in RLDA” report. According to RLDA, Indian Railways holds roughly 43,000 hectares of unused land, which is not required for operational purposes. The leasing programme is part of a broader strategy to generate non-tariff revenue, aiming to improve public infrastructure at railway stations, build new coaches, and fuel the ambitious redevelopment of railway networks. A significant portion of the generated revenue will be channelled into purchasing Vande Bharat trains, upgrading tracks, and installing cutting-edge safety technologies.
