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The Railway Land Development Authority (RLDA) has received a bid of INR 1,368 crore for redeveloping nearly six acres of its Supari Baug colony in central Mumbai's Parel area. The bid, submitted by Dineshchandra R Agrawal Infracon, slightly surpasses RLDA's revised reserve price. Offered on a 99 year lease under a revenue share model, the project will now undergo technical and financial evaluation. Parel's transformation over the past two decades into a residential and commercial hub has made centrally located railway land highly attractive to developers.
The Railway Land Development Authority (RLDA) recently received a bid of INR 1,368 crore for redeveloping its Supari Baug railway colony, a nearly six acre parcel located in the central Mumbai neighbourhood of Parel. The parcel, which falls under RLDA's land monetisation initiative, is being offered for redevelopment on a 99 year lease under a revenue share model. This approach is part of Indian Railways broader efforts to generate non fare revenue from prime urban land assets. Advertisement
The bid, submitted by Dineshchandra R Agrawal Infracon, is marginally above the revised reserve price of INR 1,343 crore set by RLDA. The authority had adjusted the initial terms by excluding INR 390 crore from the project value for rehabilitation of the existing railway residential colony, bringing down the effective reserve price from the original INR 1,734 crore.
The redevelopment will follow a revenue share arrangement, allowing the authority to benefit from a portion of the project's earnings over the lease period. Industry experts note that the bid will now undergo standard technical and financial evaluation before a final decision. RLDA has not indicated whether it will accept the single bid or reissue the tender to attract additional participants.
Supari Baug's strategic location near Dr Babasaheb Ambedkar Road, and its connectivity to major commercial areas, make it a highly desirable site. Over the last twenty years, Parel has shifted from an industrial and mill-dominated zone to a mixed-use urban centre with strong residential and commercial demand, supported by improved transport links and urban infrastructure.
Dineshchandra R Agrawal Infracon has previously secured other high-value railway land parcels, including a site in south Mumbai's Mahalaxmi area, showing sustained developer interest in centrally located projects. The redevelopment will allow a base floor space index of 4.05 times, offering substantial built-up potential, subject to regulatory approvals and project clearances. The project is also expected to incorporate rehabilitation for existing railway residents, a key aspect of RLDA's planning.
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