Non-Fare Revenue Generation in Railways: Press Information Bureau Government of India Ministry of Railways

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Press Information Bureau
Government of India
Ministry of Railways
01 AUG 2018 5:33PM by PIB Delhi
Non-Fare Revenue Generation in Railways

In order to monetize assets of Indian Railways and undertake revenue yielding activities, Indian
Railways has decided to promote new ideas and concepts for enhancement of non-fare revenue.
Guidelines on ‘New Innovative Non Fare Revenue Ideas Scheme’ (NINFRIS) have been issued.
The scheme is to be executed at the Divisional level on Zonal Railways. The scheme has been
very recently issued on 21.05.2018. Receiving, Examining and Implementing of New Ideas and
Concepts by Zonal Railways is an on-going process. New ideas and concept received under Non-
Fare Revenue by the Railways are as follows:

Display of Advertisement in Passenger Reservation System (PRS) Ticket, Robotic Massage


Chair with Foot Massager and Body Mass Index Machines, BMI Kiosk (Body Mass Index) at
various Station/Workshops, Light Emitting Diode (LED) Digital Wall/Screens, Reverse Osmosis
(RO) Water Purification in Train Coaches, Micro smart stay Lounge, Mobile Application Based
Suburban Tracking System, Three Dimensional (3D) Product Displays for products & Services,
Mobile Tower & Small Cell units proposal, Projection Mapping Technology, Vinyl Wrapping on
Platform Raisers, Advertisement on Pay slips, Advertisement Rights on Bottle Crushing
Machines, Advertising in EMU Rakes through Public Information System, On Board Shopping
in Mail/Express Trains, Exhibition at Stations, Market Contracts, Promotion of Railway
Ticketing App (Unreserved Ticketing System on Mobile), Heritage Café, Health ATM, Jingles at
various Stations, Tex Plaza at Station and Setting up of a mobile food court at Railway Station,
publicity on panel Truss and Ceiling of platform shelter, Publicity rights on glass façade at
Railway Station, dual display infotainment system.

To generate revenue from Non Fare Revenue sources, Indian Railways has fixed an annual target
of `1200 crore for Budget Estimate 2018-19.

This information was given by the Minister of State of Railways, Shri Rajen Gohain in a written
reply to a question in Lok Sabha toda
Indian Railways, a state owned railway company, owned and operated by Govt. of India
through Ministry of http://Railways.It is one of the largest transportations and logistics hubs
in the world.The earning of Indian Railways is divided into three parts-1.Freight 2.Passengers
earnings 3.Sundry earnings.The sundry earnings consist of every cash inflows which is not a
part of freight and passengers business revenues which includes leasing of lands, brake vans
and advertising revenues and fee for various examinations and tender fee etc.

The Railway Minister Suresh Prabhu has said that Indian Railways will increase the revenue
through non-fare sources.While introducing the rail budget for 2016-17 in parliament the
railway minister said that the current revenue through non-fare sources is less than 5% and
it will be increased to the world average of 10% by next 5 http://years.In order to find
alternative ways of non-fare revenue sources for IR, we have to think of these below-
mentioned points-

1.Sponsorships of uniforms for railway personnel wherever in vogue

2.Commercial farming alongside railway tracks

3.Monetization of soft assets, including generation of revenue from websites through


advertisements and web links

4.Siding and way leave charges

5.Parking of Vehicles in railway land other than at stations

6.Operation of pay and use toilets in land other than at stations

7.Interactive services(video games parlor, kids zone) in railway premises

8.Renovating the abandoned building and offices and selling it as property

http://9.By allowing different food stalls and other vendors in railway premises in unutilized
area of rail premises

интернет-магазин деревообрабатывающих станков, садовой техники,


электроинструмента в Минске. E-auction and biddings of the scrap materials, broken iron
structures, broken compartments, wagons to industrialists for selling.

Картриджи HP,Canon,Epson,Samsung, Чернила, Тонеры для Лазерных и Струйных


Принтеров в Минске implementing train ticket vending machines like ATVM and other
arrangements to book tickets in local trains from inside it

http://12.By increasing Penalization for those who smoke inside the train.


Создание сайтов в Беларуси. Создание сайта под ключ. Продвижение сайта. increasing
the tender fares up to a reasonable extent.

Svarichevsky Mikhail increasing the various exam fees of railways

System of working: On account of the above-mentioned points the system of working of


these points are discussed one by one-

1.Sponsorships of uniforms for railway personnel can be given to a reputed company and
the revenue generated from the sponsor can be considered as a non-fare revenue.

2.Commercial farming beside the railway tracks is also a good source of


earning revenue.By farming in the lands of railway along sides the track will not only be a
source of employment but also the agricultural products derived can be stored in go down
and can be sold later, earning revenues as well as properly utilizing the lands.

3.A large no. of passengers regularly visit and book their tickets through http://IRCTC.So by
putting various relevant advertisements and resourceful web links(may be UPSC or Sarkari
Naukri etc) royalty can be gained.Advertisements can be put using Google Adsense like
software which is a free and simple way to make revenues by placing ads in websites

5.Apart from railway stations, Parking can also be provided in the lands owned by railway
and in this way revenues can be earned.

6.Operations of more Pay and Use toilets in and outside railway premises can also be a
good source for making, generating and earning revenues.

7.Interactive services like games parlor and kids zone in the railway premises is also a good
option to make revenues.This interactive services will engage the passengers as well as will
help to earn revenues which are non-fare for the railways.

8.Besides the railway tracks, we often see many abandoned railway buildings and
multifunctional rail property which are abandoned nowadays.These buildings can be
renovated and can be sold to property dealer or others who are interested.This will not only
make revenues but also the abandoned buildings can be properly utilized.

9.There are many vendors, merchants and food stall owners who want to place their stalls in
the rail http://premises.By allowing them in the unutilized area of the railway premises non-
fare revenues can be generated.These merchants will pay a one time fee for installing their
stalls to the railway and will later give nominal charges on a monthly basis
to http://railways.So in this way revenues can be made as well as unutilised spaces can be
used properly.
10.Each and every year lots of accidents and collisions take place between trains, goods
train etc.The broken compartments, wagons, unused scrap irons of good quality can be sold
by E-auctioning and bid to buyers or industrialists who are willing to purchase.A website
and an app can be made for this purpose and even the media or the newspaper can also be
used to broadcast the messages of the auction to the public.

11.Most of the times due to some hurry or other reasons people don't have ample time to
book a ticket through a counter and they board the local trains without
the http://ticket.In local trains small ticket vending machines like ATVM can be implemented
or the machine like ATM swipe(usually found in different stores across the country)can be
installed,it will collect the cash and generate the ticket,therefore revenues will be collected
as well as passenger's distress will be resolved up to a great extent.

12.Usually, in the general compartments passengers smoke fearlessly so in order to stop this
the penalization can be increased which will discourage them from doing it moreover
smoke sensors can be installed which will send signals to the authorities and the smoker can
be penalized which increases in revenues.

Создание сайтов в Беларуси. Создание сайта под ключ. Продвижение сайта. increasing,


tender fares up to reasonable extent revenues can be gained.

14.Each and every railway conducts many exams across the http://nation.So by hiking a little
in the exam fees a lot of revenues can be gained as the no. of candidates are huge.

Passengers point of view: The abovementioned points which will help in improving
passengers experience over railways are mentioned and elaborated below-

1.Apart from railway stations, Parking can also be provided in the lands owned by railway
and in this way revenues can be earned and problems regarding parking spaces can be
resolved and public distresses will be reduced.

2. Operations of more Pay and Use toilets in and outside railway premises can reduce public
problems.Due to the insufficiency of toilets, there is a lot of pressure in one or two toilets in
a station and passengers have to wait in a long queue but this problem can be resolved by
placing more toilets which will also promote cleanliness as well as add to revenues.

3. Interactive services like games parlor and kids zone in the railway premises is also a good
option to make revenues and keep the children in control.This interactive services will
engage the passengers as well as will help to earn revenues which are non-fare for the
railways.

4. Most of the times due to some hurry or other reasons people don't have ample time to
book a ticket through a counter and they board the local trains without
the http://ticket.In local trains small ticket vending machines like ATVM can be implemented
or the machine like ATM swipe(usually found in different stores across the country)can be
installed,it will collect the cash and generate the ticket,therefore revenues will be collected
as well as passenger's distress will be resolved up to a great extent.

5. Usually in the general compartments passengers smoke fearlessly so in order to stop this
the penalization can be increased which will discourage them from doing it moreover
smoke sensors can be installed which will send signals to the authorities and the smoker can
be penalized which increases in revenues moreover fellow passengers who do not like
smoke can breathe freely which will solve their misery.

Feasibility and modifications:

1.For the sponsorship of uniforms for rail personnel, finding a sponsor is not a very hard
task and can be found by advertising in media, newspapers etc.

http://2.By Google Adsense like software, advertisements can be put in the websites and
royalty can be gained and lesser modifications are required for that purpose on the website.

3.For Parking of vehicles, only lands owned by railways can be used so it is feasible.CCTV
cameras should be employed to take proper care of the vehicles.

4.to build Pay and use toilets in and outside rail station, railway owned spaces and lands are
required and the nominal cost to build toilets is required.

5.Interactive services like games parlor set up can be handed over to companies like m3d
gaming, Xcite gamings etc.

6.Renovation of abandoned buildings is also feasible and can be handed over to


constructional companies.

7.Allowing different companies like Monginis, Mio Amore to open their stalls inside rail
premises is also a feasible task.

8.Deploying smoke sensors is not a very complicated task as the smoke sensors are not very
costly which costs around 200-300 Rs each.it can be put on the ceiling of the compartment
and this type of sensors are very sensitive and capable of sensing from a reasonable
distance.

9.Exam fee hike is also a feasible option.Suppose in a particular exam 20 lakhs candidate is
appearing and the exam fees are 1000 Rs. then a total of 200 crores can be earned and if
the fees are increased 1 Rs. then a total of 20 lakhs can be earned along with 200 crores.

Maintainability:
1.Sponsorship can be renewed after a year after analyzing the cost and if it is not
satisfactory then the sponsorship of uniforms can be given to other company.

2.For proper maintenance of parking slots, two or three people can be employed and CCTV
cameras around the parking slots should be employed.Day to day analysis is required.

http://3.In the case of interactive services, the devices should be maintained and have to
replace if becomes faulty.

4.Smoke sensors usually don't become defective and if found so can be changed at the
expense of nominal cost'

Originality:

All the ideas are original to the best of our knowledge and are not superficial as such types
of technologies are currently in use across the globe.

Possible constraints:

1.While putting ads to the site, utmost care should be taken so that malicious, underrated
ads do not appear.

2.Hiking of exam fees is also a problem of concern as the majority of people will not
consider it.

3.Proper space utilization in and outside rail premises is a challenging job.

Cost effectiveness:

http://1.To Provide parking slots to vehicles initial cost is less and operating and life cycle
investment is very less, only the salary of the guards has to be considered.

2.To is for sale! 域名出售中! build toilets and proper sanitation system initial cost is high
and to maintain the lifecycle cost is less only the cost of disinfectants and chemicals to
discriminate foul odour is to be considered

3.Renovation cost of abandoned building is more but after that, there is no cost to maintain
as it will be sold to the third party.

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