The Rail Land Development Authority (RLDA), the land development arm of Indian Railways, has announced plans to monetise approximately 25 acres of prime land across Mumbai. The initiative, which includes plots in Bandra, Mahalaxmi, Parel, and Bandra East, is expected to generate around ₹8,000 crore in revenue through long-term leases, signalling a significant move in the city’s real estate market.
The 25-acre portfolio represents some of Mumbai’s most strategic locations, offering high commercial and residential development potential. The RLDA is finalising details related to reserve prices, lease tenures, and permissible Floor Space Index (FSI) for the plots, ensuring that the leases align with Mumbai’s urban development framework.
The Bandra West parcel covers around five acres and currently accommodates railway staff quarters constructed in 1955. The RLDA intends to relocate existing staff into a proposed 25-storey high-rise building, freeing up land for commercial development. The authority is evaluating the reserve price, lease terms, and development potential to maximise the plot’s value while balancing residential rehabilitation requirements.
The Mahalaxmi site measures 10,801 square meters (approximately 2.66 acres) near the railway station and has a proposed FSI of 4.0. The RLDA floated bids on September 8, 2025, for a 99-year lease, anticipating revenue of nearly ₹1,000 crore. The plot’s location and development potential make it suitable for mixed-use commercial and residential projects.
In Parel, the RLDA is also offering a 5.69-acre plot for long-term lease, targeting a 99-year tenure. The land supports an FSI of 4.05, enabling significant residential development. The authority estimates that the lease could generate over ₹1,700 crore in revenue, contributing to both urban redevelopment and investment inflows in the city.
The largest of the four parcels is situated near the Bandra East railway station, spanning 11.2 acres. With an FSI of 4.0, the RLDA expects to raise over ₹5,300 crore from leasing this plot. Its development potential is primarily commercial, making it a high-value asset for long-term urban infrastructure projects.
Analysts highlight that the RLDA’s leasing strategy will significantly impact Mumbai’s real estate sector. By unlocking prime government-owned land, the initiative is likely to catalyse both residential and commercial development. The strategic placement of these parcels in high-demand areas further reinforces Mumbai’s position as India’s leading commercial and investment hub.
The monetisation drive is consistent with Indian Railways’ broader objective of leveraging land assets to fund infrastructure expansion and operational requirements. The inclusion of residential rehabilitation in Bandra West also demonstrates a balanced approach between commercial utilisation and social obligations for displaced railway staff.
The move comes amid heightened activity in Mumbai’s land market, with several high-value transactions and redevelopment projects underway in South Mumbai and other commercial hubs. The RLDA’s plan to monetise 25 acres through long-term leases could serve as a model for optimising government land assets while addressing the city’s growing demand for commercial and residential space.
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