The Comptroller and Auditor General of India (CAG) has delivered a stinging critique of the Indian Railways' efforts to generate revenue from its vast tracts of vacant land. The national auditor found that despite creating a dedicated body nearly two decades ago, the railways have largely failed to monetise this valuable surplus asset in a professional manner.
RLDA's Underwhelming Performance Since 2006
In a significant move to tap into the commercial potential of its unused land, the Indian Railways established the Rail Land Development Authority (RLDA) in 2006. The authority's core mandate was to systematically develop, manage, and monetise the railway ministry's surplus land parcels. However, the latest CAG report, tabled in Parliament, concludes that the RLDA has failed to achieve the desired results over its long tenure.
The audit reveals a substantial gap between the authority's objectives and its on-ground achievements. The CAG scrutiny indicates that the specialised agency could not leverage its potential to become a significant revenue stream for the national transporter, which is often in need of funds for modernisation and safety projects.
Missed Opportunities and Audit Findings
The report underscores a critical failure in strategic asset management. The Indian Railways sits on thousands of acres of land across the country, much of which lies idle or underutilised in prime urban and semi-urban locations. The CAG's assessment suggests that the RLDA did not execute its development and monetisation mandate effectively, leading to forgone earnings that could have bolstered the railways' financial health.
While the report does not specify the exact monetary value of the lost opportunity, the implication is that the failure represents a significant fiscal shortfall. The auditor's findings point to systemic issues in planning, execution, or possibly the framework governing the RLDA's operations, preventing it from functioning as the professional and revenue-focused entity it was intended to be.
Implications for Railway Infrastructure and Policy
This failure has direct consequences. Revenue from land monetisation is envisioned as a key source for financing the mammoth infrastructure needs of the Indian Railways. The shortfall identified by the CAG means less internal capital available for crucial upgrades, new lines, station redevelopment, and safety enhancements.
The report, finalised and released on 18 December 2025, serves as a crucial accountability check. It calls for a serious re-evaluation of the RLDA's strategies and operational models. Policy makers and railway officials are now compelled to revisit the mechanism for unlocking the value of railway land, potentially through more transparent auctions, streamlined partnerships with private developers, or a revised mandate for the authority itself.
The CAG's findings, reported by journalist Ajith Athrady, highlight a persistent challenge in public sector asset management. It underscores the need for not just creating specialised agencies but also ensuring they are empowered, accountable, and results-driven to meet their defined national objectives.
