September 18, 2025: The Rail Land Development Authority (RLDA), the land monetisation arm of Indian Railways, is set to lease premium land parcels across Mumbai in a move expected to raise at least Rs 80 billion. The initiative covers nearly 25 acres across four prime sites, offering significant scope for both residential and commercial development.
In Bandra West, a five to six-acre site currently housing staff quarters built in 1955 has been earmarked for redevelopment. RLDA plans to rehouse railway employees in a newly constructed 25-storey residential tower, freeing up the remainder of the land for commercial projects. Details regarding reserve pricing, lease tenure, and permissible Floor Space Index (FSI) are still being finalised.
At Mahalaxmi, a 2.66-acre plot near the railway station has already been put out to tender. With an FSI potential of 4.0, the 99-year lease is projected to fetch close to Rs 10 billion. The site is expected to attract bids from developers interested in mixed-use schemes, spanning both residential and commercial segments.
In Parel, RLDA is offering a 5.69-acre parcel, also on a 99-year lease. With an FSI of 4.05, the site carries notable potential for residential development and is expected to generate upwards of Rs 17 billion.
The largest parcel, spanning 11.2 acres in Bandra East, has been designated for commercial use. Situated directly outside the railway station, the site—with an FSI of 4.0—is anticipated to raise more than Rs 53 billion, making it the most lucrative of the four projects.
These proposals underscore Indian Railways’ broader strategy to unlock the value of underutilised assets, boosting revenue streams while reshaping Mumbai’s property landscape. With long-term lease models and sought-after locations, the scheme is expected to draw strong interest from major developers.
Source: Construction World
