Indian Railways is planning to earn more money from sources other than just passenger and freight fares. To help with this, NITI Aayog, the government’s think tank, is working on a new plan to increase the Railways’ non-fare revenue.
What is Non-Fare Revenue?
Non-fare revenue means money earned from things other than selling train tickets. This can include earning from station buildings, land, tourism, solar energy, and digital services.
Why Is This Important?
Right now, Indian Railways earns only about 3% of its total income from non-fare sources. In comparison:
- Germany’s Deutsche Bahn earns 34%
- Japan Railways earns 30%
- France’s SNCF earns 10%
So, India has a lot of room to improve in this area.
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What Will NITI Aayog Do?
NITI Aayog will run a six-month study to find new ways for Indian Railways to earn more through:
- Asset monetisation (like using land or buildings to earn money)
- Public-private partnerships (working with private companies to develop stations)
- Creating new services and business ideas
The study will look at:
- Land near tracks and underused station areas that could be used for commercial activities (like setting up coaching centers or small shops)
- Space above stations, trains, and coaches that can be used creatively
- Monetising free Wi-Fi and using data to generate income
- Starting services like better tourism packages, warehousing, or last-mile delivery options
- Green initiatives like setting up solar power plants on railway land or rooftops, and recycling units
The Goal
The aim is to make Indian Railways more self-sufficient and financially strong, without depending only on ticket sales and goods transport. By using its existing assets better, Railways can grow revenue and support India’s economy.
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