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The redevelopment of Prayagraj Junction is progressing as a large-scale infrastructure and commercial project, with plans to lease over 2 lakh sq ft of built-up space for commercial use. The Rail Land Development Authority (RLDA) has invited bids to lease seven floors of a newly constructed nine-storey building under a 45-year revenue-sharing model. The INR 960 crore redevelopment aims to combine passenger infrastructure upgrades with long-term non-fare revenue generation. Proposed commercial uses include retail, hospitality, office spaces, and multiplexes. The project, underway for nearly three years and targeted for completion by the end of 2026, reflects Indian Railways approach of integrating real estate monetisation within transport infrastructure to support financial sustainability and urban economic activity.
The redevelopment of Prayagraj Junction, being undertaken by Indian Railways through the Rail Land Development Authority (RLDA), is incorporating large-scale commercial real estate components alongside infrastructure upgrades, with plans to lease over 2 lakh sq ft of space in a newly constructed station building, as part of a INR 960 crore project progressing over the past few years. Advertisement
The project involves development of a nine-storey building on the Civil Lines side of the station, of which seven floors from the third to the ninth have been earmarked for commercial leasing. RLDA has issued an e-tender inviting private developers and investors to take up these spaces under a long-term lease arrangement of 45 years. The leasing will follow a revenue-sharing model, with Indian Railways expected to receive a minimum of 25% share of the revenue generated from commercial operations.
The total commercial area available for leasing is estimated at approximately 2,03,000 sq ft, with permitted uses including shopping malls, hotels, food plazas, multiplexes, and corporate office spaces. The reserve price for the lease has been set at around INR 130 crore, indicating the scale of monetisation envisaged through the redevelopment.
The redevelopment project, which has been under execution for close to three years, is part of a broader strategy by Indian Railways to modernise key stations while creating sustainable revenue streams through real estate integration. The structural framework of the new building has already been completed, with further work underway on passenger-facing infrastructure and interior fit-outs.
In addition to commercial spaces, the station design includes upgraded passenger amenities such as a large concourse area on the first floor, improved circulation systems, and direct access to platforms through escalators and other vertical mobility infrastructure. Certain portions of the building, including the ground floor, will be retained for core railway functions such as ticketing, waiting areas, and administrative offices.
Officials have indicated that the redevelopment is targeted for completion by the end of 2026, with the project expected to enhance both passenger experience and revenue generation capabilities for the railways. The integration of commercial activities within station premises reflects a shift towards transit-oriented development models, where transport hubs are leveraged as economic centres.
The Prayagraj Junction redevelopment forms part of a wider national programme to upgrade railway stations with modern infrastructure and improved facilities, while simultaneously unlocking land value through long-term leasing. Such projects are increasingly being positioned as mixed-use developments that combine mobility infrastructure with retail, hospitality, and office components.
In urban centres such as Prayagraj, where infrastructure upgrades are being aligned with broader economic and planning objectives, the integration of commercial real estate within transport assets is expected to influence surrounding land use patterns and attract private investment into emerging business districts.
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