+
Railways expedite commercial land monetisation through private leasing
RAILWAYS & METRO RAIL

Railways expedite commercial land monetisation through private leasing

Indian Railways intends to solicit bids from private enterprises for the lease of 84 surplus plots valued at over Rs 75 billion in the upcoming 18 months, as disclosed by individuals familiar with the matter.

This initiative forms part of the land monetisation strategy outlined by the Rail Land Development Authority (RLDA), the entity entrusted with the task of redeveloping and commercially exploiting surplus land. The authority has been designated to oversee the development of 119 commercial sites, of which 35 have already been awarded bids, resulting in a lease value of Rs 28.35 billion.

According to one of the aforementioned sources, who requested anonymity, the objective is to expedite the leasing process for the remaining sites, some of which are strategically situated in metropolitan areas, prominent cities, and locations of tourist attraction. This acceleration is aimed at concluding the process by the end of the fiscal year 2025. Under the proposed plan, the commercial leasing of this land would enable the railway system to secure annual lease revenue over the entire duration of the lease agreement, which could span periods of 45, 60, or 99 years.

For context, in the fiscal years 2021, 2022, and 2023, the railways generated asset monetisation gains of Rs 1.33 billion, Rs 6.55 billion, and Rs 30 billion, respectively. The source highlighted that the rapid and efficient monetisation of prime land parcels for commercial development is a favoured approach among private sector developers and offers a noteworthy opportunity for the railways. This method also holds significance for the railway sector, which has exhibited a comparatively slower pace in asset monetisation in comparison to other ministries within the infrastructure domain.

Indian Railways intends to solicit bids from private enterprises for the lease of 84 surplus plots valued at over Rs 75 billion in the upcoming 18 months, as disclosed by individuals familiar with the matter.This initiative forms part of the land monetisation strategy outlined by the Rail Land Development Authority (RLDA), the entity entrusted with the task of redeveloping and commercially exploiting surplus land. The authority has been designated to oversee the development of 119 commercial sites, of which 35 have already been awarded bids, resulting in a lease value of Rs 28.35 billion.According to one of the aforementioned sources, who requested anonymity, the objective is to expedite the leasing process for the remaining sites, some of which are strategically situated in metropolitan areas, prominent cities, and locations of tourist attraction. This acceleration is aimed at concluding the process by the end of the fiscal year 2025. Under the proposed plan, the commercial leasing of this land would enable the railway system to secure annual lease revenue over the entire duration of the lease agreement, which could span periods of 45, 60, or 99 years.For context, in the fiscal years 2021, 2022, and 2023, the railways generated asset monetisation gains of Rs 1.33 billion, Rs 6.55 billion, and Rs 30 billion, respectively. The source highlighted that the rapid and efficient monetisation of prime land parcels for commercial development is a favoured approach among private sector developers and offers a noteworthy opportunity for the railways. This method also holds significance for the railway sector, which has exhibited a comparatively slower pace in asset monetisation in comparison to other ministries within the infrastructure domain.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code