Indian Railways Explore Non-Fare Revenue Plans with New Measures

As per The Economic Times, Indian Railways is intensifying its push to grow non-fare revenue as it seeks to diversify income sources beyond freight and passenger tariffs.  

The new monetisation avenues are under evaluation, ranging from leasing surplus guesthouse space to hotel operators to allowing vendors to sell leftover cement and coal found in wagons. The effort aims to lift the currently modest share of non-fare income, which stands at just about 3% of the Railways’ total earnings. 

New Monetisation Ideas Under Review 

As per news reports, some zones have begun converting what were traditionally expenditure-heavy contracts into revenue-generating ones. 2 divisions, for instance, have managed to monetise wagon-cleaning work by allowing contractors to recover and sell residual materials such as cement or coal left behind in wagons.  

The Railways is also studying a plan to partially lease railway guesthouses, with a recently completed 117-room rest house in New Delhi likely to be among the first to be offered.  

According to a NITI Aayog assessment, non-fare income in advanced railway systems contributes around 30% of total earnings, indicating large untapped potential in India. 

Rising Focus on Waste, Advertisement and E-Auction Revenues 

Non-fare revenue for the national transporter touched ₹588.07 crore in FY24 and rose to ₹686.86 crore in FY25. These earnings came from advertising on overbridges and stations, e-auctions of monetisable assets, and initiatives under the New, Innovative Non-Fare Revenue Ideas Scheme (NINFRIS). 

Premium Food Brands Coming to Railway Stations 

In another major step, the Railway Board has permitted the establishment of premium single-brand food outlets such as McDonald's, KFC, Pizza Hut, Baskin Robbins, Haldiram’s and Bikanerwala at select stations.  

Spaces for these outlets will be auctioned on 5-year leases. The move aims to offer airport-like retail food experiences within major stations, improving passenger amenities while adding a new revenue stream. 

Read More: Indian Railways Sanctioned ₹2,781 Crore Infrastructure Project! 

Conclusion 

With a renewed emphasis on monetisation, Indian Railways is seeking to unlock value from assets and activities that have traditionally been overlooked. While non-fare revenue currently forms a small share of total income, the new initiatives signal a broader shift toward adopting global best practices and reducing dependence on freight and passenger fares. 

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