Indian Railways earns Rs 6,813 crore from scrap sales in FY 2025-26

Indian Railways earned Rs 6813.86 crore from scrap sales in FY 2025-26, exceeding its target. Non-fare revenue also rose significantly, supporting infrastructure upgrades and passenger services without increasing fares, the government said

New Delhi: The government on Sunday said that Indian Railways has significantly strengthened its financial resilience by earning Rs 6813.86 crore from scrap sales in FY 2025–26, surpassing its Rs 6000 crore target.

A key highlight of this approach is the robust performance in scrap monetisation, where the national transporter exceeded its financial targets by a substantial margin.

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This follows a similarly strong performance in FY 2024–25, when it earned Rs 6641.78 crore against a target of Rs 5400 crore.

The continued success reflects a systematic effort to unlock value from idle and unserviceable assets across depots, yards, and workshops.

Officials noted that the initiative not only strengthens financial sustainability but also frees up valuable space and contributes to environmental goals through recycling and waste reduction. The transparent disposal mechanism has further improved efficiency in handling obsolete materials.

Alongside scrap monetisation, non-fare revenue (NFR) has emerged as a critical pillar supporting the Railways’ financial health.

Earnings from NFR streams — including station redevelopment, advertising, and commercial utilisation of railway assets — have seen steady growth over the past five years.

From approximately Rs 290 crore in FY 2021–22, NFR has risen to Rs 777.76 crore in FY 2025–26 — marking an increase of around 168 per cent.

The latest figures also exceed the annual target of Rs 720.85 crore, achieving about 107.9 per cent of the goal. In comparison, NFR earnings stood at Rs 686.86 crore in FY 2024–25, as per the filing.

The government emphasised that these additional revenue streams are helping Indian Railways reinvest in modern infrastructure and passenger-centric improvements.

These include better station amenities, enhanced cleanliness, improved digital services, and upgraded safety systems, all delivered without burdening passengers with higher fares.

To further boost non-fare income, Indian Railways has rolled out initiatives such as premium branded outlets at stations. Contracts have been awarded to set up company-owned single-brand outlets, with 22 premium brands already allotted across the network. These outlets are aimed at enhancing passenger convenience while generating additional revenue.