In a bid to generate revenue for the ailing Railways, the Railway Ministry has hit upon the novel idea of lending its station premises for marriage and other social functions.
From advertising on trains, stations and bridges to setting up ATMs at platforms and augmenting the Railways display network, the national transporter has been exploring all avenues to jack up its falling revenue.
With a target to generate Rs 2,000 crore per year as part of the Non-Fare Revenue (NFR), the zonal offices of the Railways have been asked to prepare details of stations with extra space and good ambience so that they can be rented out for marriages and social functions.
For instance in the national Capital, Safdarjung Station in posh Chanakyapuri area is likely to be identified as a station that can generate revenue. The IRCTC is already planning to rent out the National Rail Museum premises for hosting functions.
As part of the station development project, Indian Railways has already announced that under the
PPP model, the concessionaries would be allowed to use the railway station premises for shopping arcades, etc.
“We have been struggling with a huge financial burden, especially after the new Pay Commission announcement. Railway is now exploring new avenues to add on to revenues. We have huge space at some of the railway stations which can be rented for social gatherings. Due to social obligations Indian Railways cannot routinely increase the passenger fare and freight rates, hence all options are being looked into to get more money through a new directorate called no-fare revenue,” said a senior Railway official.
Railway expects to earn roughly Rs 17,000 crore in the next five years through Non-Fare Revenues. Railway’s PSU RITES has suggested that entire Railways has a potential to earn Rs 10,000 crore a year just by selling space for advertising in coaches, wagons and stations among others. Railways is likely to take several measures to boost its Non-Fare Revenues from existing Rs 300 crore to nearly Rs 1,800 crore per year.
Railway Minister Suresh Prabhu has reached out to the Finance Ministry seeking additional help to meet the “unbearable burden” arising in the wake of the Pay Commission’s implementation. “Rs 32,000 crore is an unbearable burden on the Railway finances. We are talking to the Finance Ministry on how we can deal with this still self revenue generation is best model and we are tapping on them,” Prabhu said.
The Railways, the largest employer with over 13 lakh staff and an equal number of pensioners, is the only Government organisation that meets its staff and pension outgoes from its revenues. Indian Railway’s current salary bill is about Rs 58,350 crore and annual expenses on pensions is over Rs 33,200 crore.