DELHI (Metro Rail News): Indian Railways is likely to lease out 84 surplus plots worth more than ₹7,500 crore to private companies over the next 18 months. This move is part of the Rail Land Development Authority’s (RLDA) efforts to utilize surplus land for commercial purposes. The RLDA is responsible for redeveloping and commercially exploiting such land. The authority has been given 119 commercial plots to develop, 35 of which have already had their bids accepted for a total lease value of 2,835 crore.
The plan is to expedite the leasing of the remaining plots, some of which are located in prime areas within cities and near tourist attractions. This aims to complete the process by FY25. Leasing these lands for commercial use will allow the railways to generate lease rent annually over the lease period, which could range from 45 to 99 years. This approach offers a quicker way to monetize railway assets compared to other methods.
In previous fiscal years, Indian Railways monetized assets worth ₹133 crore in FY21, ₹655 crore in FY22, and ₹3,000 crore in FY23. Developing prime land parcels for commercial use is favoured by private developers and is an efficient way for the railways to monetize assets. This approach is especially crucial since the railways have been slower in monetizing assets compared to other infrastructure sector ministries.
