The Indian government announced that Indian Railways, in the fiscal year 2025–26, generated Rs 6813.86 crore from scrap sales, surpassing its target of Rs 6000 crore. Notably, the national transporter excelled in scrap monetisation, exceeding financial expectations significantly. In the previous fiscal year 2024–25, Indian Railways earned Rs 6641.78 crore against a target of Rs 5400 crore, showcasing consistent strong performance.
The success in scrap monetisation is a result of a strategic effort to extract value from idle and unserviceable assets in depots, yards, and workshops. This initiative not only enhances financial sustainability but also aids in creating space and aligns with environmental objectives by promoting recycling and waste reduction. The transparent disposal process has enhanced efficiency in managing obsolete materials.
Apart from scrap monetisation, non-fare revenue (NFR) has emerged as a crucial component supporting the financial well-being of Indian Railways. Over the past five years, revenue from NFR sources, including station redevelopment, advertising, and commercial use of railway assets, has shown consistent growth. Starting from around Rs 290 crore in FY 2021–22, NFR revenue has surged to Rs 777.76 crore in FY 2025–26, marking a substantial increase of approximately 168 percent.
The latest figures have surpassed the annual target of Rs 720.85 crore, achieving around 107.9 percent of the set goal. In comparison, NFR earnings were at Rs 686.86 crore in FY 2024–25. The government highlighted that these additional revenue streams are facilitating investments in modern infrastructure and passenger-centric enhancements by Indian Railways. These investments encompass improved station facilities, enhanced cleanliness, upgraded digital services, and advanced safety systems, all aimed at benefiting passengers without increasing fares.
To further enhance non-fare revenue, Indian Railways has introduced initiatives like premium branded outlets at stations. Contracts have been awarded for establishing company-owned single-brand outlets, with 22 premium brands already allocated across the network. These outlets aim to improve passenger convenience while generating extra revenue.
