NFR: Need for clarity on role, power of executing agencies


NFR: Need for clarity on role, power of executing agencies

Indian Railways’ share of non-fare revenue (NFR) earned, as a percentage of total revenue, is around 5%, and is much lower than the 10-20% NFR earned by global railway companies or organizations. Railways has come out with its policy document titled, New Innovative Non-Fare Revenue Ideas Scheme, to support the achievement of its target of raising about ₹15,000 crore NFR in the next 10 years and monetize its assets.

This policy aims at decentralization of powers in NFR matters, by empowering general manager of zones to take decisions in these regards. While this step shows intent, it does not solve the underlying issues causing the non-realization of NFR potential lying with Indian Railways.

In a government set-up such as the railways in India, pure policies—without precedence—hardly create an impact. A case in point is the corporate social responsibilities (CSR) guidelines of the railways, which had given power to zones to take decisions on relevant matters. Read More

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