Indian Railways has created a new directorate to carry out advertisements in rail coaches, along the track and near stations in a big way to increase the revenue substantially from non-tariff sources.
Named as ‘Non-Fare Revenue Directorate’, the new wing would explore getting advertisements on coaches, wagons, locomotives and at stations and commercial exploitation of vacant rail land among others.
The directorate would be headed by a senior-level railway official and the new wing will focus on various ways to enhance revenues by 10 per cent to 20 per cent from the current 5 per cent from the non-tariff sources.
Action plan to increase the non-fare revenue was a Rail Budget proposal this year, according to a senior Railway Ministry official.
“Though Railways enjoys the highest captive eyeballs in a railway station we earn less than 5 per cent of our revenues through non-revenue sources,” Railway Minister Suresh Prabhu had said while presenting his second budget in February.
Indian Railways will evolve models to determine the revenue potential of at least 20 stations shortly to increase the advertising revenue substantially.
Besides the new directorate will enter into new areas like commercial farming alongside railway tracks, sponsorship of uniforms for railway personnel and also sponsorship of activities and events at stations to enhance non-tariff revenue.