Indian Railways boosts revenue through scrap sales, non-fare streams without raising fares

Indian Railways has strengthened its financial position while improving passenger experience by significantly increasing earnings from scrap monetisation and non-fare revenue streams, all without raising ticket prices.

According to the Ministry of Railways, the national transporter earned ₹6,813.86 crore from scrap sales in the financial year 2025–26, surpassing its target of ₹6,000 crore. This builds on the previous year’s performance, when it recorded ₹6,641.78 crore against a target of ₹5,400 crore.

The sustained push for scrap monetisation has enabled Railways to unlock value from idle assets while freeing up critical space across depots, yards, and workshops. The initiative also contributes to environmental sustainability by promoting recycling and reducing waste accumulation.

At the same time, non-fare revenue (NFR) has emerged as a key pillar of financial resilience. Earnings from non-fare sources have grown sharply by around 168% over the past five years—from approximately ₹290 crore in 2021–22 to ₹777.76 crore in 2025–26. This figure exceeds the annual target of ₹720.85 crore, highlighting the success of diversified revenue strategies.

The Ministry noted that non-fare revenue is being generated through station redevelopment, advertising, and commercial utilisation of railway assets. These funds are being reinvested into modern infrastructure, improved cleanliness, upgraded passenger amenities, enhanced safety systems, and better digital services across stations.

Several initiatives have contributed to this growth, including the rollout of 120 Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs) at railway stations to provide affordable medicines, as well as the establishment of 22 premium branded outlets. Authorities have also approved further expansion of such outlets to boost both passenger convenience and revenue.

Zonal Railways have introduced innovative services such as multi-level car parking, medical care centres, nursing pods, e-wheelchair services, gaming zones, and health kiosks. Vacant spaces are being utilised for passenger amenities and commercial purposes, further enhancing revenue streams.

A notable initiative includes the development of co-working digital lounges, first introduced by Western Railway, offering high-speed Wi-Fi, workstations, conference facilities, and flexible workspace options. The concept is being expanded across other zones to provide a modern and productive waiting experience for passengers.

The Railways said this dual strategy of efficient asset management and diversified revenue generation is helping deliver cleaner stations, better infrastructure, and improved services, while maintaining affordable fares for passengers.