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GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAJYA SABHA
UNSTARRED QUESTION NO. 3330
ANSWERED ON 20.03.2026
RAIL LAND DEVELOPMENT AUTHORITY
3330 SHRI ANIL KUMAR YADAV MANDADI:
Will the Minister of RAILWAYS be pleased to state:
(a) whether Government is aware of the fact that Rail Land Development Authority (RLDA) is not
adequately exploring or implementing more remunerative payment models such as the Minimum
Guaranteed Annual Payment (MGAP) with private developers, thereby, causing huge loss to
Government;
(b) if so, the details thereof;
(c) whether Government has any proposal to introduce more remunerative payment model to earn more
non-fare revenue; and
(d) if so, the details thereof and if not, the reasons therefor?
ANSWER
MINISTER OF RAILWAYS, INFORMATION & BROADCASTING AND
ELECTRONICS & INFORMATION TECHNOLOGY
(SHRI ASHWINI VAISHNAW)
(a) to (d): The vacant railway land, which is not required by Railways for its immediate operational needs,
is entrusted to RLDA by the Ministry of Railways. This land is utilized for commercial development,
wherever feasible, to mobilize additional financial resources for the purpose of non-fare revenues. The
sites are mainly entrusted for the purposes of commercial development, colony redevelopment, etc.
Approximately 1308 hectares of Railway land has been entrusted to RLDA, towards commercial
development of Railway land.
Earlier mainly Upfront Lease Premium Model was adopted by RLDA for commercial development
projects. However, after gaining experience and also based on market response, RLDA has also
introduced Revenue Share Model with Minimum Guaranteed Payment (MGP) for commercial
development projects last year.
This model has shown encouraging results, as reflected in improved bidder participation and enhanced
revenue potential in recent finalized bids. RLDA continues to assess and adopt suitable monetization
models based on project characteristics, feasibility and prevailing market conditions with a view to
maximizing non-fare revenue.
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