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Cash-Strapped Indian Railways Taps Mumbai’s Prime Land to Raise ₹8,000 Crore.

Facing a severe cash crunch and missing its monetisation target by over ₹1.2 lakh crore, Indian Railways has turned to its vast land bank for relief. Through the Rail Land Development Authority (RLDA), the railways plans to lease out nearly 110 hectares of prime land in Mumbai — including plots in Mahalaxmi, Parel, and Bandra East — for 99 years, expected to fetch around ₹8,000 crore. These leases are part of a larger national asset monetisation push covering 340 hectares across India. Despite owning 4.9 lakh hectares of land, only 4.5% of Indian Railways’ total earnings come from non-fare revenue. The leasing strategy aims to unlock the value of underused assets, fund passenger infrastructure projects, and improve financial sustainability. However, bureaucratic hurdles and slow progress have raised questions about whether this monetisation drive can deliver long-term gains.