Indian Railways Earns Rs 3.13 Billion via Land Monetisation
RAILWAYS & METRO RAIL

Indian Railways Earns Rs 3.13 Billion via Land Monetisation

Indian Railways has earned Rs 3.13 billion in FY25 from monetising its land for commercial use, marking a 16 per cent rise over the previous year, Railways Minister Ashwini Vaishnaw informed Parliament on Wednesday. Over the past three years, earnings from land usage have grown at a compounded annual growth rate (CAGR) of 21.5 per cent.
Railways owns approximately 490,000 hectares of land, of which only around 1 per cent—about 4,930 hectares—is currently being utilised for commercial purposes, including parcels managed by its development arm, the Rail Land Development Authority (RLDA).
Despite this growth, income from land and other sundry sources such as advertisements makes up just 1.1 per cent of Indian Railways’ total revenue, signalling vast untapped potential. Former East Central Railway General Manager Lalit Chandra Trivedi noted that leveraging even 5 to 10 per cent of the land could significantly boost earnings and operational efficiency, recommending the adoption of global best practices such as Hong Kong’s MTR or Japan’s JR East.
The RLDA has faced criticism for slow execution. While it was tasked with redeveloping 90 stations, only two have been completed. Of the 157 commercial sites assigned, most remain in the planning or early development stage. Coordination challenges with state governments and local bodies are cited as major hurdles, alongside instances of developers cancelling contracts over lease payment disputes.
A 2023 parliamentary committee urged increased private sector involvement, a phased redevelopment strategy, and prioritisation based on passenger footfall and connectivity. Experts have also proposed forming a dedicated railway land monetisation authority with inter-ministerial coordination to expedite development.
Of the total railway land bank, only 62,068 hectares remain vacant, with 60 to 70 per cent comprising narrow strips adjacent to tracks—primarily used for operational requirements. 

Indian Railways has earned Rs 3.13 billion in FY25 from monetising its land for commercial use, marking a 16 per cent rise over the previous year, Railways Minister Ashwini Vaishnaw informed Parliament on Wednesday. Over the past three years, earnings from land usage have grown at a compounded annual growth rate (CAGR) of 21.5 per cent.Railways owns approximately 490,000 hectares of land, of which only around 1 per cent—about 4,930 hectares—is currently being utilised for commercial purposes, including parcels managed by its development arm, the Rail Land Development Authority (RLDA).Despite this growth, income from land and other sundry sources such as advertisements makes up just 1.1 per cent of Indian Railways’ total revenue, signalling vast untapped potential. Former East Central Railway General Manager Lalit Chandra Trivedi noted that leveraging even 5 to 10 per cent of the land could significantly boost earnings and operational efficiency, recommending the adoption of global best practices such as Hong Kong’s MTR or Japan’s JR East.The RLDA has faced criticism for slow execution. While it was tasked with redeveloping 90 stations, only two have been completed. Of the 157 commercial sites assigned, most remain in the planning or early development stage. Coordination challenges with state governments and local bodies are cited as major hurdles, alongside instances of developers cancelling contracts over lease payment disputes.A 2023 parliamentary committee urged increased private sector involvement, a phased redevelopment strategy, and prioritisation based on passenger footfall and connectivity. Experts have also proposed forming a dedicated railway land monetisation authority with inter-ministerial coordination to expedite development.Of the total railway land bank, only 62,068 hectares remain vacant, with 60 to 70 per cent comprising narrow strips adjacent to tracks—primarily used for operational requirements. 

Next Story
Resources

Anant Raj Appoints Anish Sarin as Director

Anant Raj has appointed Anish Sarin as Director on its Board, marking a key step in the company’s leadership transition and long-term growth strategy. The announcement was made during the company’s Q4 and FY26 results declaration, reflecting the induction of next-generation leadership as the company expands across real estate, cloud infrastructure and data centre businesses. Anish Sarin, grandson of veteran industrialist Ashok Sarin, represents the emerging leadership at Anant Raj. Educated at Regent’s University London, he brings a global business outlook along with a strong focus on t..

Next Story
Technology

Vedanta eyes AI-led value growth

Vedanta Group expects to unlock USD 300–400 million in additional value over the next three years through large-scale deployment of AI-led industrial technologies across its businesses. The group said its V-Spark DeepTech Ventures platform has already delivered nearly four times return on investment since inception.Vedanta is scaling AI, predictive analytics, Industrial Internet of Things, digital twins, machine learning, automation and connected manufacturing technologies across its metals, mining, energy and industrial operations. These deployments are aimed at improving productivity, lowe..

Next Story
Infrastructure Urban

Hindustan Zinc inks pact with Group Nirmal

Hindustan Zinc has signed an MoU with Group Nirmal to set up a zinc wire manufacturing facility at its Zinc Industrial Park in Khankhala, Bhilwara district, Rajasthan. The partnership will expand downstream manufacturing activity and support value-added zinc applications in India.Under the agreement, Group Nirmal will manufacture zinc wire products using Hindustan Zinc’s Special High Grade zinc. The products will cater to infrastructure, renewable energy, automotive and industrial engineering sectors.Zinc wire is used in thermal spray coating and metallising processes to protect steel struct..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement