Indian Railways’ Massive Revenue Push: Concepts of Paytm, Savlon Express; Privately Run Bhopal Railway Station!

Indian Railways has decided to push the accelerator, in order to increase non-fare revenues via innovative schemes and strategies. During 2016-17, Rs 10,181 crore was earned by Indian Railways via non-fare revenues, which they want to increase it to Rs 14,000 crore in this current fiscal year.

As we had shared earlier this year, some of the most interesting concepts for increasing non-fare revenues include branding of important trains, offering railway stations to private players and others.

The good news is that Railway Board has already approved several of these plans, and in the coming days, things would move swiftly.

Paytm, Savlon Express Arriving On Platform # 3?

One of the most talked about plans of Indian Railways was allowing brands to sponsor who trains, inner walls and the outer surface of coaches; and this plan is now approved.

A Railway official has given two examples: train named Paytm Express and Savlon Swachh Bharat Express, which would be soon running near your location.

The official said, “Besides premier trains, all mail and express trains are also on the offer for advertising and we are in the process of finalising the contracts,”

Besides, inner and outer surfaces of coaches would be covered with vinyl advertising, promoting various brands on the running train.

5-year contract of major trains such as Rajdhani, Shatabdi and Duronto Express would be soon announced. Hence, as we had speculated earlier, Coke Rajdhani and Pepsi Shatabdi would become a reality.

In fact, vinyl based advertising for 4 trains: Mumbai Rajdhani, August Kranti Rajdhani, Mumbai-Ahmedabad Shatabdi and Ahmedabad-Mumbai double-decker trains have already been sold for Rs 8 crore.

Overall, Railways is planning to generate revenues worth Rs 1500 crore from vinyl based advertisements, covering rail over bridge, rail under bridge, railway stations and trains.

Private Firms Will Run Bhopal’s Railway Station

Another major form of non-fare revenue would be a partnership with private players for running railways stations.

And Bhopal’s Habibganj Railway station would become first such instance.

As per reports coming in, Habibganj Railway station in Bhopal has been decided to hand over to private firms for running daily operations and maintenance.

As per a speech by Railway Minister Suresh Prabhu, this would be the first such instance wherein private firms will run operations of railway stations.

Earlier this year, reports emerged that beautification of 23 railway stations would be done by private companies, but now, Railways has decided to handover complete operations as well.

Interestingly, Railways has now allowed freight trains to be run by private companies; and analysts are saying that trains would be too offered to private firms to run and maintain.

All these will lead to additional non-fare revenues for Indian railways.