NITI Aayog will soon come up with a roadmap for Indian Railways to maximise non-fare revenue with focus on asset monetisation, enhanced public-private-partnership in station redevelopment and identifying new sources of revenue generation.
The government’s think-tank has invited expressions of interest for conducting a research study on ‘non-fare revenue maximisation for Indian Railways’.
The non-fare revenue of Indian Railways stood at Rs 686.86 crore in 2024-25 compared to Rs 588.07 crore in 2023-24, just 3% of its total revenue compared to 34% in Deutsche Bahn (Germany), 30% in Japan Railways and 10% in France National Railway Company.
“Indian Railways (IR), a vital backbone of India’s economy, primarily generates revenue from freight and passenger operations. However, in line with the vision for a self-sustaining and commercially vibrant railway network, non-rare revenue (NFR) generation has emerged as a crucial strategic focus,” the Aayog said in the public notice put out on Tuesday.
The objective of this study is to enable Indian Railways to significantly enhance its non-fare revenue streams, thereby improving financial sufficiency and reducing reliance on traditional revenue sources.
The duration of the study is six months from the date of the award of the study.
This study is expected to undertake a comprehensive and data-driven analysis to identify, evaluate, and propose actionable strategies for maximising NFR, aligning with NITI Aayog's vision for efficient resource utilisation and accelerated economic growth.
Besides, it will also identify underperforming assets or initiatives within the current NFR portfolio and analyse reasons for sub-optimal performance.
As per the terms of reference, the study will explore untapped potential in IR’s assets, such as railway land parcels along tracks, underutilized station platforms (for commercial purposes like coaching classes, small functions), air space above tracks/stations, rolling stock and digital infrastructure (Wi-Fi monetization, data analytics).
Besides, it will also identify opportunities for new services that can generate revenue (e.g., specialised logistics and warehousing, last-mile connectivity solutions, value-added passenger services, tourism packages, leveraging railway assets), the Aayog said.
“Evaluate potential for revenue generation from sustainable initiatives (e.g. solar energy generation on railway land/roofs, waste recycling units),” it added.
The government’s think-tank has invited expressions of interest for conducting a research study on ‘non-fare revenue maximisation for Indian Railways’.
The non-fare revenue of Indian Railways stood at Rs 686.86 crore in 2024-25 compared to Rs 588.07 crore in 2023-24, just 3% of its total revenue compared to 34% in Deutsche Bahn (Germany), 30% in Japan Railways and 10% in France National Railway Company.
“Indian Railways (IR), a vital backbone of India’s economy, primarily generates revenue from freight and passenger operations. However, in line with the vision for a self-sustaining and commercially vibrant railway network, non-rare revenue (NFR) generation has emerged as a crucial strategic focus,” the Aayog said in the public notice put out on Tuesday.
The objective of this study is to enable Indian Railways to significantly enhance its non-fare revenue streams, thereby improving financial sufficiency and reducing reliance on traditional revenue sources.
The duration of the study is six months from the date of the award of the study.
This study is expected to undertake a comprehensive and data-driven analysis to identify, evaluate, and propose actionable strategies for maximising NFR, aligning with NITI Aayog's vision for efficient resource utilisation and accelerated economic growth.
Besides, it will also identify underperforming assets or initiatives within the current NFR portfolio and analyse reasons for sub-optimal performance.
As per the terms of reference, the study will explore untapped potential in IR’s assets, such as railway land parcels along tracks, underutilized station platforms (for commercial purposes like coaching classes, small functions), air space above tracks/stations, rolling stock and digital infrastructure (Wi-Fi monetization, data analytics).
Besides, it will also identify opportunities for new services that can generate revenue (e.g., specialised logistics and warehousing, last-mile connectivity solutions, value-added passenger services, tourism packages, leveraging railway assets), the Aayog said.
“Evaluate potential for revenue generation from sustainable initiatives (e.g. solar energy generation on railway land/roofs, waste recycling units),” it added.
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