Railways' new policy okays advertisement in trains, stations

Aiming at about Rs 2,000 crore earnings in a year, the railways on Tuesday unveiled non-fare revenue (NFR) policy, allowing trains, level-crossings and areas along the tracks to be used for advertising.

The NFR policy envisages various schemes for revenue-yielding activities including train branding, rail radio scheme and using platforms for installing ATMs and renting out less-crowded platforms for wedding or teaching purposes across the country.

Long-term sustainability is not possible with revenue from just freight and passenger fare. "We have to explore non-fare revenue," Railway Minister Suresh Prabhu said here after launching the policy.

The non-fare revenue policy comprises out-of-home advertising policy, train branding policy, ATM policy, content-on-demand and rail radio policy.

Prabhu said, "It is a new revenue stream and part of the Rail Budget proposal. We have set up a new non-fare directorate for it. Since April, our earnings from NFR has gone up by 41 per cent but we want to increase it more."

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 according to the policy.

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.