October 14, 2025: Facing funding constraints, the Indian Railways is turning to its extensive land holdings in Mumbai and other major cities to raise capital for infrastructure projects. After missing its initial monetisation target by over Rs 1.2 lakh crore, the railways now aims to unlock substantial funds through 99-year leases of prime land parcels.
In September, the Rail Land Development Authority (RLDA), the railways’ land development arm, invited bids to generate at least Rs 8,000 crore by leasing key properties in Mumbai. The plan covers roughly 10.11 hectares across four strategic locations in the financial capital.
These Mumbai parcels are part of a broader initiative in which the RLDA intends to lease nearly 340 hectares nationwide to private developers. The railways’ phased strategy aims to eventually lease close to 110 hectares in Mumbai alone. Beyond Mumbai, high-value plots have been identified in premium areas such as Lodhi Colony and Chanakyapuri in New Delhi, as well as in Bengaluru, Lucknow, Gwalior, Chennai, Secunderabad, and Amritsar.
The move reflects the railways’ intent to tap into real estate demand in India’s key urban centres to bridge funding gaps for its projects. Officials noted that partnering with private developers through long-term leases allows the railways to monetise land without relinquishing ownership while attracting investments in commercial and residential developments.
By leveraging prime urban land, the Indian Railways expects to channel the proceeds into enhancing passenger amenities, modernising stations, and expanding its network, creating a sustainable funding model while addressing the growing infrastructure needs of the country.
Source: The Times of India
