Indian Railways, through its Rail Land Development Authority (RLDA), has opened up three prime plots in Mumbai—Mahalaxmi, Bandra (East), and Parel—for long-term lease using its first-ever mandatory revenue share model.
This move is designed to generate a significant real estate windfall, with a combined reserve price of approximately ₹8,092.30 crore and the potential for ongoing revenue from profit-sharing arrangements with developers.
The land parcels, located close to major business hubs and transport routes, have been designated for premium residential and commercial projects. Under the lease conditions, winning bidders must meet the set reserve prices and additionally share part of their profits with RLDA.
*Floor Space Index (FSI), also known as Floor Area Ratio (FAR), is the ratio of a building's total built-up area to the total area of the plot of land it stands on.
These leases are part of the railways' policy to create non-fare revenue streams by unlocking underused land banks in India's costliest cities.
The sites are targeted for luxury residential, office, hotel, and retail use. Mumbai’s leading developers are expected to participate, given the locations’ proximity to Lower Parel, Bandra-Kurla Complex, and key metro lines.
Funds raised will support railway infrastructure, station upgrades, and passenger amenities, helping modernise Mumbai’s vital transit system.
This marks a landmark reform in Indian public land monetisation: by using a revenue-sharing model instead of just upfront sales, Indian Railways stands to benefit from Mumbai real estate’s future growth, not just one-time payments.
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