Indian Railways is set to monetise two prime land parcels in Mumbai—located at Mahalaxmi and Bandra East—through 99-year lease agreements, in a bid to raise over Rs 60 billion in revenues, sources confirmed on Tuesday. The move is part of its broader strategy to unlock the value of underutilised railway land for high-end residential and commercial development.The Rail Land Development Authority (RLDA), which oversees the commercial exploitation of Indian Railways’ land assets, has already floated a tender for the 2.67-acre Mahalaxmi plot, with a base lease value of Rs 9.93 billion. The 10.6-acre Bandra plot, currently encroached upon in parts, will be offered to developers later this week.Developers will also be required to share a minimum of 35 per cent of project revenue with RLDA, as per lease conditions, with further details to be finalised at a pre-bid meeting on 9 September at a South Mumbai five-star hotel.Mahalaxmi Plot: Luxury Potential Amidst Mill LegacyHistorically home to textile mills and worker housing, Mahalaxmi has transformed into one of Mumbai’s most coveted real estate zones. The railway-owned parcel lies adjacent to key transport infrastructure including Mahalaxmi railway station, the metro, Sant Gadge Maharaj monorail station, and major business districts like Lower Parel and BKC.The walled 2.67-acre plot fronts Dr E Moses Road and contains several dilapidated structures including godowns and a weighbridge, along with 20–25 trees—some overgrown Banyans. It carries a floor space index (FSI) of 4.05, though this may be enhanced under the National Transit-Oriented Development (TOD) Policy, which allows higher-density construction around transit nodes.“If approved for additional FSI, developers could construct 50-storey towers, similar to other luxury residential and office buildings in the vicinity,” said a senior railway official, adding that revenue sharing terms would scale accordingly.Bandra East Plot: Next in LineThe RLDA will soon invite bids for its 10.6-acre Bandra East plot, located adjacent to Bandra railway station. The land—valued at an estimated Rs 50 billion—has long faced encroachment issues but remains strategically located in a rapidly developing zone with excellent connectivity.With these tenders, Indian Railways aims to capitalise on Mumbai’s booming luxury property market while also generating significant non-fare revenue. The projects promise mixed-use, high-rise development close to key transit hubs, aligning with the broader goal of urban densification through public asset optimisation.