NEW DELHI: Battling cash crunch after being hit hard by the implementation of the seventh pay commission recommendation, the Railways will soon unveil the non-fare revenue policy in a bid to mop up additional revenue.
Besides opening various avenues for the indoor and outdoor advertisements, Railway Minister Suresh Prabhu is all set to give space for installation of over 2,000 ATMs at various railway stations. The Ministry of Railways has apparently set a target to mobilise additional `2,000 crore from non-fare revenue.
“The policy will share scopes for non-fare revenue from spaces in trains, level crossings and areas along tracks, besides platforms. The non-fare revenue policy will be the first such endeavour to be unveiled by the ministry, which will offer various schemes for revenue-yielding activities, including train branding, rail radio schemes and the mega offer of setting up about 2400 ATMs at platforms of major stations across the country,” said a senior Railway official.
Incidentally, the non-fare revenue is less than five per cent of the total revenue earned by the Railways through non-tariff sources. The official stated that the ATMs will be on end platforms or prominent spaces in the circulating area of the station, while stations will be offered via transparent e-auction process for a long-term 10-year contract.
“The policy will allow advertising at areas, which have so far not been tapped such as tracks, road-over-bridges and level-crossing gates. It will offer out-of-home advertising policy and monetisation of railway assets by means of advertising,” said the official. Besides, big LED screens will come up at station buildings, platforms, foot overbridges (leading to station area) for advertising under Rail Display Network as part of the new policy.
The policy will offer branding of trains allowing internal and external advertisement and product sampling on trains on a long-term basis to big players allowing marketing flexibility thereby leading to higher realisation of earnings. Advertisement through vinyl wrapping of train exterior (including windows of AC coaches) and inside the coaches shall be allowed under the scheme.
There will be distribution of sample products free of cost for gauging passenger reaction to the product. However, no sale of products will be allowed in trains.