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. 

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement