Stations, Land and Non-Fare Revenue

How Indian Railways tries to earn more from stations, land, advertising and catering, and why redevelopment is complex.

Besides fares and freight, railways can earn from non-fare revenue.

Sources

Advertising at stations and on trains.
Catering and stalls.
Parking.
Leasing land for commercial use.
Optical fibre along tracks for telecom.
Station redevelopment with shops, hotels and offices.

Land

Indian Railways owns vast amounts of land, some in prime city locations. Using it well could bring significant revenue.

Station redevelopment

Rani Kamlapati station in Bhopal and Gandhinagar were early redeveloped stations.
The Amrit Bharat Station Scheme plans to upgrade over 1,300 stations.

Challenges

Encroachments on railway land.
Legal and approval hurdles.
Private investors unsure of returns.

Why it matters

Non-fare revenue has historically been a small share of total income, well below levels in some other countries’ railways. Growing it could reduce reliance on fare hikes.

The station mall

A redeveloped station includes a food court, shops and a hotel. Rent from these businesses adds to railway income without raising ticket prices.

Thinking railways can only earn from tickets

Stations, land, advertising and catering offer other revenue.

Key takeaways

Non-fare revenue comes from advertising, land, catering and more.
Railways own large, valuable land parcels.
The Amrit Bharat scheme targets over 1,300 stations.
Encroachments and investor caution are hurdles.