The Rail Land Development Authority (RLDA) has invited e-bids to lease a 34,517 square metre tract of railway land within the Yeshwantpur railway colony in Bengaluru for residential development, the latest in a series of railway land monetisation initiatives being executed across major Indian cities.
Under the proposed arrangement, the selected developer will both construct new apartments for sale to the public and undertake the redevelopment of existing staff quarters, 316 units currently used by South Western Railway personnel, which will remain reserved for railway employees. The total project cost is estimated at ₹119 crore, with lease revenue to be shared between the developer and RLDA. E-bids must be submitted by March 6, 2026.
How the Project Is Structured
RLDA’s tender covers the grant of lease of 34,517 sq metres of railway land for residential development for 99 years, along with a separate licence for 15,446 sq metres for the redevelopment of the existing railway colony at Yeshwantpur. The dual mandate means the winning developer takes on two responsibilities simultaneously building private apartments on the leased land for open-market sale, and reconstructing the 316 existing staff quarters within the licensed colony area. Revenue from private apartment sales funds the colony redevelopment, making the model self-financing without direct government capital expenditure.
Yeshwantpur & It’s Strategic Sense
Yeshwantpur is one of Bengaluru’s most connected localities, home to the Yeshwantpur Junction railway station, a key terminal on the South Western Railway network and one of the city’s busiest freight and passenger nodes. The locality sits at the intersection of Tumkur Road and the Outer Ring Road, with direct access to Peenya Industrial Area, Rajajinagar, and the upcoming metro corridors serving the north and northwest quadrants of the city.
For residential development, this translates into strong end-user demand from working professionals employed in the surrounding industrial and commercial clusters, as well as connectivity to Bengaluru’s tech and IT corridors via the ring road network.
For apartment buyers considering units in the eventual Yeshwantpur project, the 99-year leasehold structure is the most critical factor to evaluate. Leasehold properties differ from freehold in one fundamental way: the underlying land ownership stays with RLDA and Indian Railways throughout the lease term.
This affects resale, mortgage eligibility, and long-term asset security. Buyers should confirm that their lender accepts RLDA leasehold title before committing, and ensure the sale agreement clearly specifies sublease transfer rights and any conditions attached to resale.
For developers evaluating the bid, the Yeshwantpur land parcel’s proximity to a major railway junction, established road infrastructure, and an underserved mid-segment residential demand base makes it a viable proposition, provided the colony redevelopment obligation is factored accurately into project costing from the outset.
