Indian Railways is gearing up for a strategic shift toward monetising its underutilised assets. The initiative, spearheaded by NITI Aayog, aims to sharply increase the share of non-fare revenue in total railway earnings by tapping into diverse avenues including land use, solar power generation, tourism services, and digital infrastructure.
Despite being the world’s fourth-largest railway network, Indian Railways still relies heavily on fare-based income from freight and passengers. In 2024–25, the transporter earned ₹686.86 crore from non-fare sources, up from ₹588.07 crore the previous year. Yet this figure represents just 3% of its total revenue—far below global counterparts such as Germany’s Deutsche Bahn (34%), Japan Railways (30%), and France’s SNCF (10%). In an effort to bridge this gap, NITI Aayog has invited proposals for a six-month research study to chart practical, data-backed pathways for monetisation. The study will audit current non-fare initiatives, flag underperforming assets, and identify structural bottlenecks that hinder effective revenue generation. It will also explore innovative business models in line with the government’s larger goal of building net-zero, inclusive, and commercially self-sustaining transport infrastructure.
A critical component of the strategy involves leveraging real estate holdings along railway corridors. This includes repurposing idle land, airspace above stations, and seldom-used platforms to support commercial ventures such as retail outlets, skill centres, or event venues. The study will also explore the possibility of optimising station redevelopment projects through public-private partnerships, thereby unlocking latent value while modernising infrastructure. Digital and clean energy solutions are also under consideration. Officials believe that monetising Wi-Fi infrastructure, using data analytics, and installing solar panels on rooftops or vacant railway lands could simultaneously generate revenue and align with India’s sustainability goals. Waste recycling units and water conservation mechanisms are other avenues being reviewed for their financial and ecological viability.
Tourism and logistics form another promising frontier. Rail-linked tourism circuits, curated passenger experiences, and last-mile freight connectivity are seen as opportunities to diversify income streams while enriching public service. Warehousing and specialised cargo handling are also expected to support micro, small and medium enterprises (MSMEs), boosting regional economies. By adopting a more entrepreneurial approach, Indian Railways could significantly improve its financial health without burdening passengers. The NITI Aayog-led study is expected to deliver actionable insights that not only reshape the transporter’s balance sheet but also support the broader goals of smart urban development, clean energy transition, and equitable infrastructure access.
The roadmap being drawn could well determine how India’s most expansive mobility network redefines its economic engine in the years to come.
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