Indian Railways is strengthening its financial position while improving passenger experience through higher scrap monetisation and rising non-fare revenue, without increasing passenger fares, according to a statement by the Ministry of Railways on Sunday, 19 April.
According to the ministry, Indian Railways has achieved a significant milestone in scrap disposal, registering robust performance in the financial year 2025-26.
Against a target of ₹6000 crore, the Railways recorded scrap sales amounting to ₹6813.86 crore, surpassing the set benchmark with notable efficiency.
This follows a strong performance in FY 2024-25, when scrap sales reached ₹6641.78 crore against a target of ₹5400 crore.
The scrap monetisation drive focuses on systematic disposal of unserviceable materials, helping 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.
Non-Fare Revenue (NFR) has emerged as an important pillar in strengthening the financial sustainability of Indian Railways, directly benefiting passengers across the network, the ministry said.
“By generating revenue through avenues such as station redevelopment, advertising, commercial utilization of railway assets, and other innovative initiatives, NFR reduces excessive dependence on passenger fares and freight earnings. This additional income enables Indian Railways to reinvest in modern infrastructure, upgrade station amenities, enhance cleanliness and passenger facilities, improve digital services, and introduce better trains and safety systems,” the ministry said.
This ultimately delivers a more comfortable, convenient, and reliable travel experience for passengers, it added.
NFR earnings have grown from around ₹290 crore in FY 2021-22 to ₹777.76 crore in FY 2025-26, marking an increase of about 168% over five years.
For FY 2025-26, the estimated NFR target was ₹720.85 crore, which has already been exceeded, with actual earnings reaching ₹777.76 crore, translating to an achievement of about 107.9%.
In comparison, NFR stood at ₹686.86 crore in FY 2024-25.
To further boost non-fare income, Indian Railways has expanded commercial initiatives across stations.
Railways has also issued guidelines to Zonal Railways for setting up company owned single brand outlets to enhance passenger experience and generate additional revenue.
A total of 22 premium brand outlets have been allotted through NFR across all Indian Railways.
Further, setting up of Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs) in railway station premises have been scaled up, with 120 outlets operational out of a planned 150.
Several passenger-focused initiatives are being implemented across zones, including multi level car parking, medical care centres, nursing pods, e-wheelchair services, gaming zones, health kiosks and platform branding. Vacant spaces are also being utilised for passenger amenities and public facilities.
In a notable innovation, Western Railway has introduced premium co-working digital lounges equipped with high-speed Wi-Fi, workstations, charging points and conference facilities, along with services such as printing, scanning and refreshments.
To proliferate such good ideas over other Railways, necessary directions were given to other Zonal Railways, according to the ministry.
“All the above initiatives are enhancing non-fare revenue for Indian Railways while also providing passengers with a more convenient and comfortable travel experience,” the ministry said.
