Indian Railways’ ad revenue crosses Rs 1,313 crore in five years

New Delhi: Indian Railways has earned Rs 1,313 crore in non-fare revenue over the past five years from advertising across railway stations and trains, highlighting the growing role of commercial monetisation as the national transporter seeks to reduce reliance on passenger fares and strengthen its finances.

This information was provided by the Ministry of Railways in a written response to the Lok Sabha on Wednesday.

The revenue was generated through advertisements at both station and train levels, including displays across station buildings, platforms, foot overbridges, and the internal and external surfaces of rolling stock. The ministry noted that advertising income is tracked zone-wise, as each railway zone generally covers several states and Union Territories. 

Although no state-wise or year-wise details were shared, officials said advertising has emerged as a consistent and scalable source of non-fare income at a time when operating expenses continue to rise.

Advertising on railway property operates under a defined policy framework. Displays within station premises are governed by the Rail Display Network (RDN) Policy, while advertisements in other railway areas fall under the Out of Home Advertising (OOHA) Policy. Separate mobile asset advertising policies apply to branding on trains and locomotives. 

All advertising contracts are awarded through e-auctions on the Indian Railways E-Procurement System (IREPS), in line with the policy on commercial earnings and non-fare revenue. The ministry added that eligibility conditions for advertisers, along with display standards and restrictions, are clearly specified in the Special Conditions of Contract.

As part of its push to modernise and diversify revenue streams, Indian Railways has placed greater emphasis on digital advertising. Under the RDN policy, zonal railways are permitted to install digital screens, video walls, glow signboards and other contemporary display formats at stations. Several zones have already awarded contracts for such digital assets, while Metro Railway Kolkata has rolled out station co-branding initiatives based on local feasibility.

The ministry also said safeguards are in place to ensure advertisements displayed in public railway spaces do not contain misleading, harmful or prohibited content. Compliance is enforced through contractual clauses and routine monitoring by railway authorities.

With passenger and freight tariffs under continuous review, officials view advertising as a low-risk, high-visibility tool to support Indian Railways’ balance sheet. The Rs 1,313-crore revenue generated over five years suggests that non-fare income, particularly from branding and digital media, is set to play a more prominent role in the Railways’ long-term financial strategy.

Mumbai’s suburban rail corridor from Churchgate to Virar, often described as the city’s lifeline, presents significant advertising potential. According to a Right to Information (RTI) reply, Western Railway has earned Rs 219 crore from advertisements over the past five years. The Mumbai division of Western Railway has 127 hoardings, although alignment-related challenges continue to exist.

RTI data shows that Western Railway’s advertising revenue rose sharply from Rs 11.47 crore in 2020–21 to Rs 70.69 crore in 2023–24. As of January 2024–25, the revenue stands at Rs 64.69 crore.