Critics, however, raise concerns regarding the surplus railway land while advocating for affordable housing and the creation of integrated transport hubs over revenue generation from leasing land.India’s largest landowner, the Indian Railways, is planning to leverage its extensive land holdings for both revenue generation and infrastructural enhancement. The Railways has identified 341.93 hectares of prime land across the nation to give to private developers on a 90-year lease arrangement, aiming to yield Rs 5000 crore in revenue, Hindustan Times reported. This initiative follows a marginal surplus of Rs 2,210 crore in the fiscal year 2023-’24.
In the bustling metropolis of Mumbai, the Railways is looking to lease 110.46 hectares at Grant Road, Tardeo, Parel, Bandra (east and west), and Carnac Bunder among other areas. Similarly, in the national capital, 58.93 hectares will be earmarked for development in areas such as Chanakyapuri, Lodhi Colony, Sarojini Nagar, and near the New Delhi railway station. Land parcels in cities like Bengaluru, Secunderabad, Hyderabad, Chennai, Amritsar, Gwalior, Lucknow, and Kanpur are also slated for auctioning.
According to the Railway Land Development Authority (RLDA), entrusted with the task of commercialising rail land, the Railways has approximately 43,000 hectares of vacant land not needed for operational needs in the foreseeable future. The proceeds from these ventures will be used for public amenities at railway stations, coach manufacturing, station redevelopment, and enhancing passenger experience.
A senior rail official said that funds generated will also be directed towards modernisation initiatives such as Vande Bharat trains, track expansion, and the deployment of cutting-edge train safety technologies across the vast Indian Railway network.
In Mumbai, 19.22 hectares of railway land at Mahim, Matunga and Dadar has already been transferred for the Rs 23,000-crore Dharavi Redevelopment Project (DRP) on a 99-year lease. The Adani-led Dharavi Redevelopment Project Private Limited has paid Rs 1,000 crore from the total Rs 2,800 crore it has to pay for this land.
A 135-storey skyscraper at Parel, Mumbai, dubbed as the “airspace development of Parel Workshop”, will be built over 23.9 hectares.
The blueprint for Delhi includes 2.2 hectares in Chanakyapuri for the construction of a five-star hotel, as well as the development of commercial establishments spanning 11.01 hectares near the New Delhi station.
About 55.44 hectares have been identified across key regions like Secunderabad, Bengaluru, Hyderabad, and Vijaywada. In the northern cities of Kanpur, Gwalior, Lucknow, Bareilly, and Ajmer 91.34 hectares will be available primarily for residential projects.
A senior railways officer said they will offer an FSI (Floor Space Index) varying from 1.33 to 4 depending on the location.
Critics, however, raise concerns regarding the surplus railway land while advocating for affordable housing and the creation of integrated transport hubs over revenue generation from leasing land.
“Ideally, if the railways have surplus land it should be handed over to the respective state governments. These large swathes of land should be utilised to create affordable housing and developing integrated transport hubs rather than leasing them for revenue generation,” AV Shenoy, member, Mumbai Mobility Forum and Transport, was quoted as saying by Hindustan Times.
Echoing similar sentiments, Madhav Pai, CEO of the World Resources Institute India, said, “Mixed-use development near transit stations drives transit-oriented development (TOD) that has the potential to improve liveability in urban areas and also promote a low-carbon lifestyle. The authorities must build a pipeline for the development of this land where they consider high-density development with mixed-use provisions for the next few years.”