Indian Railways is strengthening its financial resilience while enhancing passenger experience through sustained earnings from scrap monetisation and a steady rise in non-fare revenue streams, without increasing passenger ticket fares. 

By unlocking value from idle assets and expanding innovative revenue avenues beyond fares, the Railways is ensuring that improvements in station amenities, cleanliness, digital services, and passenger facilities are achieved in a financially sustainable manner. 

This balanced approach reflects a strategic focus on efficient asset management, customer-centric investments, and environmentally sustainable practices, reinforcing the Railways’ commitment to delivering a more comfortable, modern, and reliable travel experience.

Indian Railways Unlocks the Scrap Monetisation Potential

Indian Railways has achieved a significant milestone in scrap disposal, registering robust performance in the financial year 2025-26. Against a target of ₹6000 crore, the Railways recorded scrap sales amounting to ₹6813.86 crore, surpassing the set benchmark with notable efficiency.

This achievement builds on the strong performance of the previous financial year 2024-25, wherein Indian Railways exceeded its target of ₹5400 crore by achieving scrap sales worth ₹6641.78 crore.

The sustained momentum in scrap monetisation reflects Indian Railways’ focused approach towards efficient asset management and transparent disposal mechanisms. By systematically clearing unserviceable materials, the organisation is not only unlocking value from idle assets but also freeing up critical space across depots, yards, and workshops.

The initiative contributes significantly to environmental sustainability by promoting recycling and reducing waste accumulation.

Non-Fare Revenue Strengthening Railways and Enhancing Passenger Experience

Non-Fare Revenue (NFR) has emerged as an important pillar in strengthening the financial sustainability of Indian Railways, directly benefiting passengers across the network. By generating revenue through avenues such as station redevelopment, advertising, commercial utilization of railway assets, and other innovative initiatives, NFR reduces excessive dependence on passenger fares and freight earnings. This additional income enables Indian Railways to reinvest in modern infrastructure, upgrade station amenities, enhance cleanliness and passenger facilities, improve digital services, and introduce better trains and safety systems. This ultimately delivers a more comfortable, convenient, and reliable travel experience for passengers.

The steady growth in NFR earnings—from approximately ₹290 crore in FY 2021–22 to ₹777.76 crore in FY 2025–26—reflects a robust upward trajectory, registering an overall increase of about 168% over five years. For FY 2025–26, the estimated NFR target was ₹720.85 crore, which has already been surpassed with actual earnings reaching ₹777.76 crore, translating to an achievement of about 107.9%. In comparison, NFR earnings in FY 2024–25 stood at ₹686.86 crore. This trend underscores the growing importance of strategic monetization initiatives in strengthening the financial position of Indian Railways.

In this connection, following initiatives have been taken:

Premium Brand Outlets

Guidelines have been issued to Zonal Railways to award contracts for setting up of company owned single brand premium outlets, to boost NFR. Railways have opened some innovative branded outlets under this policy and other branded stores will also be opened on similar lines to enhance passenger experience. 22 Premium brands are allotted through NFR across all Indian Railways.

Opening of Pradhan Mantri Bhartiya Janaushadhi Kendra (PMBJKs)

In the pursuit to enhance wellness and welfare of passengers passing through railway stations, Indian Railways had conceptualized and implemented a policy framework to establish 50 Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs) in railway stations premises. The PMBJK stalls function as per the guidelines issued by Pharmaceuticals and Medical Devices Bureau of India. On 12th of March 2024, all 50 PMBJKs were inaugurated by Hon'ble Prime Minister. Further, based on the success of the initiative and to further expand the welfare scheme, instructions have been issued to set up additional 100 PMBJKs over Indian Railways. Out of these additional 100 PMBJKs, 18 PMBJKs were inaugurated by the Hon'ble Prime Minister on 13th of November 2024. Till date, 120 PMBJKs out of 150 have been opened over Indian Railways. Authority for further expansion of Pradhan Mantri Bhartiya Janaushadhi Kendra (PMBJK) outlets on Indian Railways has been delegated to General Managers at Zonal Railways to speed up proliferation of the PMBJK scheme, generating more revenue as well as ensuring passenger benefit.

Notable initiatives by Zonal Railways

Railways have consistently made efforts to enhance passenger experience and boost Non-Fare Revenue (NFR) through innovative ideas and their effective implementation. 

Some of the notable initiatives undertaken include:  Multi Level Car parking, Medical Care Centre, Nursing pods, Wagon Cleaning contracts, Facility for E- wheel chair as paid service, Health Kiosk, Gaming Zone, Plastic Bottle Crushing Machine, Platform Branding,  Utilization of Vacant Space for Passenger amenity and public facility, etc.

A new innovation of Premium Co-working Space/Digital Lounge has been designed by Western Railway to enhance passenger amenities by offering high-speed Wi-Fi, workstations, charging points, conference facilities, and comfortable seating. Additional services include printing, scanning, refreshments, and flexible usage plans such as hourly workspace access and bundled packages. This initiative marks a significant step towards providing a modern, comfortable and productive waiting experience at railway stations. To proliferate such good ideas over other Railways, necessary directions were given to other Zonal Railways.

All the above initiatives are enhancing non-fare revenue for Indian Railways while also providing passengers with a more convenient and comfortable travel experience.

*Authored jointly By Dharmendra Tewari/ Dr. Nayan Solanki/ Ritu Raj/ Manik Sharma