Earnings Budget of Indian Railways Quiz

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Questions and Answers

What is the primary purpose of the Earnings Budget on Indian Railways?

  • To meet revenue and capital expenditure on Indian Railways (correct)
  • To determine the salaries of railway employees
  • To allocate funds for the maintenance of railway tracks
  • To calculate the yearly contribution to the Government of India's contingency fund

Which of the following categories contributes the most to the total earnings of Indian Railways?

  • Passenger earnings
  • Goods earnings (correct)
  • Sundry earnings
  • Other coaching earnings

Which of the following is NOT classified under 'Other Coaching Earnings'?

  • Charges for cloak rooms
  • Freight earnings from coal transportation (correct)
  • Charges for platform tickets
  • Penalties imposed by ticket checking staff

What happens to the surplus earnings generated by Indian Railways?

<p>They are contributed to the contingency fund of the Government of India (C)</p> Signup and view all the answers

Which of these options is considered a revenue expenditure for Indian Railways?

<p>Salaries of railway employees (C)</p> Signup and view all the answers

Approximately what percentage of total earnings do 'Passenger Earnings' contribute, according to the content, up to the end of March 2022?

<p>20% (C)</p> Signup and view all the answers

Which of the following is a typical example of 'Goods Earnings' for Indian Railways?

<p>Earnings from transporting coal and other commodities (C)</p> Signup and view all the answers

What is the standard contract period for content on demand services according to the provided text?

<p>10 years (B)</p> Signup and view all the answers

What basis is revenue shared between Railtel and Indian Railways from Content on Demand contracts?

<p>50:50 basis (D)</p> Signup and view all the answers

According to the policy on unsolicited proposals, what should be the timeframe for finalizing a proposal?

<p>D + 165 days (B)</p> Signup and view all the answers

What is the initial selection period for an agency under the unsolicited proposal policy?

<p>5 years (B)</p> Signup and view all the answers

Under the policy for co-branding of railway stations, which of the following entities is generally not eligible for co-branding rights?

<p>Advertising agencies (C)</p> Signup and view all the answers

What percentage of revenue do most world railway systems generate from non-tariff sources?

<p>10% to 20% (A)</p> Signup and view all the answers

What has Indian Railways typically focused on to increase revenues?

<p>Increasing tariff hikes (A)</p> Signup and view all the answers

Which of the following is NOT a segment within non-fare revenue?

<p>Sale of train tickets (D)</p> Signup and view all the answers

What does NFR stand for in the context of Indian Railways?

<p>Non-Fare Revenue (B)</p> Signup and view all the answers

In which year did the Ministry of Railways announce new policies for increasing Non-Fare Revenue (NFR)?

<p>2016 (D)</p> Signup and view all the answers

What kind of proposals are included in the 'Unsolicited proposals' category of NFR?

<p>Proposals not covered in any existing policy (C)</p> Signup and view all the answers

What is a primary goal of the Indian Railways regarding their assets?

<p>To exploit every asset for revenue generation (C)</p> Signup and view all the answers

Which of these is an example of 'Onboard' non-fare revenue?

<p>Entertainment services on trains (C)</p> Signup and view all the answers

What does IR want to challenge?

<p>Conventional thinking in its approach to revenue (C)</p> Signup and view all the answers

What does 'NINFRI' stand for, in the context of the content?

<p>A type of unsolicited Non-Fare Revenue (C)</p> Signup and view all the answers

Which earning segment includes advertisements displayed inside railway station buildings?

<p>Rail Display Network (D)</p> Signup and view all the answers

What type of advertising is the 'Vinyl Wrapping' on train exteriors and interiors classified as?

<p>Mobile Assets (A)</p> Signup and view all the answers

Under what category do on-board entertainment services fall under?

<p>Content on Demand (C)</p> Signup and view all the answers

Which of these options is NOT part of the Out of Home policy?

<p>Advertisements on train interiors (B)</p> Signup and view all the answers

What was the initial nodal agency for inviting bids under the Out of Home policy?

<p>RITES (A)</p> Signup and view all the answers

Which policy circular initiated the 'Out of Home' Policy?

<p>Commercial Circular No 04 of 2017 (D)</p> Signup and view all the answers

What does the term 'Unsolicited Proposals' refer to in the context of railway earnings?

<p>Offers submitted by external agencies (D)</p> Signup and view all the answers

When did the Railway Board modify the Out of Home policy by delegating powers to General Managers?

<p>2018 (B)</p> Signup and view all the answers

Which of these is an example of 'Co-Branding of Railway Stations'?

<p>Adding a brand name as a prefix to a railway station name (D)</p> Signup and view all the answers

What type of advertisement is covered under 'Out of Home' policy?

<p>Digital boards outside the station (A)</p> Signup and view all the answers

What is the primary goal of implementing non-fare revenue strategies for Indian Railways?

<p>To increase overall revenue and make the railway more economically sustainable (D)</p> Signup and view all the answers

Which of the following is NOT a method being explored by Indian Railways to generate non-fare revenue?

<p>Increasing regular train fares to match operational costs (D)</p> Signup and view all the answers

What percentage range does non-fare box revenue typically account for in major metro projects?

<p>10-20% (A)</p> Signup and view all the answers

Which of the following is an innovative approach for non-fare income generation being adopted by the Railways?

<p>Using projection mapping technology at stations (B)</p> Signup and view all the answers

Besides advertising, what other type of service or amenity is being considered to generate non-fare revenue at railway stations?

<p>Provision of robotic massage chairs and BMI machines (D)</p> Signup and view all the answers

What is a significant limitation of the fare box revenue system, particularly for railway operations?

<p>Its inability to adapt to inflation and rising operation costs (B)</p> Signup and view all the answers

What is the annual target revenue from non-fare sources that Indian Railways set for the budget year 2018-19?

<p>Rs. 1200 crore (B)</p> Signup and view all the answers

Which of the following is being used to enhance the passenger experience while also generating additional non-fare revenue?

<p>Micro smart stay lounges at stations (B)</p> Signup and view all the answers

How are mobile applications being integrated into the Indian Railways non-fare revenue strategy?

<p>By tracking suburban trains and advertising (C)</p> Signup and view all the answers

Which of the following best represents the distribution of sundry earnings among different departments for the financial year 2021-22, based on the provided data?

<p>Engineering accounts for the largest portion at 58%, followed by Commercial at 21%, and Accounts &amp; Personnel contribute the smallest portion at around 8%. (C)</p> Signup and view all the answers

Which of the following best describes the scope of the 'Out of Home' policy, as defined in the provided content?

<p>It focuses on monetizing advertising assets outside station areas, including areas like ROBs and railway land. (A)</p> Signup and view all the answers

Considering the South Central Railway (SCR) originating revenue to the end of March 2022, what is the approximate combined percentage contribution of 'Other Coaching' and 'Sundries' to the total revenue?

<p>Approximately 5% (A)</p> Signup and view all the answers

Based on the provided 'Indian Railways – Budget 2021-22' data, if total earnings were represented as a pie chart, what would be the closest representation of the sectorial contribution?

<p>Goods (63%), Passenger (28%), Other Coaching (3%), Sundry (6%). (A)</p> Signup and view all the answers

According to the provided text, what was the effect of the 2018 modification (Commercial Circular No 50 of 2018) on the 'Out of Home' policy?

<p>It delegated powers for policy implementation to General Managers of each Zonal Railway. (D)</p> Signup and view all the answers

Which of these advertising types would NOT fall under the 'Out of Home' policy, as per the given definitions?

<p>Vinyl wrapping advertisements applied to the interiors of train coaches. (B)</p> Signup and view all the answers

According to the provided revenue data up to the end of March 2022 for South Central Railways, what is the ratio of Goods revenue to Passenger revenue?

<p>Approximately 3.6:1 (C)</p> Signup and view all the answers

Based on the provided information, what is the rationale behind decentralizing the bid process management for 'Out of Home' advertising?

<p>To streamline decision making and improve the efficiency of policy implementation at the Zonal level. (D)</p> Signup and view all the answers

Based on the 'Sub Heads of Sundry Revenue of Commercial Department', what percentage of the total commercial department sundry revenue is generated by 'Catering - D.E.F & IRCTC'?

<p>Approximately 32% (B)</p> Signup and view all the answers

In the context of Indian Railways, what is the most accurate interpretation of the term 'Abstract "Z" Sundry Other Earnings (93)'?

<p>A classification of income that encompasses diverse sources, such as rent, catering receipts, and advertisement fees, under a single accounting category. (C)</p> Signup and view all the answers

Which of the following accurately describes the chronological order in which the 'Out of Home' policy was established and modified, as presented in the text?

<p>Initial policy issued (Commercial Circular 04 2017) followed by bid process decentralization and then policy modification (C)</p> Signup and view all the answers

Referring to the South Central Railway (SCR) service head-wise originating earnings, what was the percentage change in total earnings from 2020-21 to the end of Mar-22?

<p>An increase of approximately 44.0% (C)</p> Signup and view all the answers

If a railway division seeks to implement the 'Out of Home' policy, what step is essential before floating tenders, according to the text?

<p>They must get concurrence of headquarter finance and approval of General Manager and use the Standard Bid documents (A)</p> Signup and view all the answers

Which of these is NOT mentioned as a permissible method of advertisement under the 'Out of Home' policy?

<p>Advertisements on station name boards. (A)</p> Signup and view all the answers

Based on the content provided, what is the most likely reason for the Railway Board's decision to modify the 'Out of Home' policy and delegate powers to General Managers?

<p>To streamline the implementation process and make the policy more effective at zonal level. (A)</p> Signup and view all the answers

In the context of the 'Out of Home' policy, what is the primary significance of the Standard Bid Documents (SBDs)?

<p>They were circulated among Divisions for floating the tenders for the out of home policy. (C)</p> Signup and view all the answers

What is the maximum duration for which unsolicited proposals can be accepted under the specified policy?

<p>3 months (D)</p> Signup and view all the answers

Which of the following statements regarding the Content on Demand Contract is incorrect?

<p>It has a revenue-sharing model different from a 50:50 basis. (A)</p> Signup and view all the answers

What process is followed if an unsolicited proposal proves successful after the initial selection of an agency?

<p>Subsequent selection of agency by open tendering. (C)</p> Signup and view all the answers

In the context of co-branding railway stations, which entity typically does not have eligibility for branding rights?

<p>Advertising agencies (C)</p> Signup and view all the answers

How long is the timeframe set for finalizing proposals submitted under the unsolicited proposal policy?

<p>D+165 days (A)</p> Signup and view all the answers

What is the maximum area allowed for advertising inside the passenger coaches as stipulated by the policy?

<p>250 sqft (C)</p> Signup and view all the answers

Which of the following options best describes the advertising restrictions on windows of non-AC coaches?

<p>Vinyl wrapping is not permitted. (A)</p> Signup and view all the answers

How is the advertisement window for Local Trains priced according to the scheme?

<p>Rs.25 Lakhs per rake (A)</p> Signup and view all the answers

What significant change occurred in 2018 regarding the management of the bid process for mobile assets?

<p>General Managers were delegated powers for effective implementation. (A)</p> Signup and view all the answers

What is the fixed rate for advertising on the full body of a rake for non-local trains?

<p>Rs.1 Crore per year (D)</p> Signup and view all the answers

According to the Mobile Assets Policy, who is responsible for the overall bid process management?

<p>RITES (D)</p> Signup and view all the answers

What is the visibility requirement for vinyl wrapping on windows of air-conditioned coaches?

<p>70% visibility (B)</p> Signup and view all the answers

Which of the following policies governs the advertisement on exterior trains operated by Central & State Government Departments?

<p>Out of Home (OOH) Policy (C)</p> Signup and view all the answers

What is the main objective of the Mobile Assets Policy as issued by the Railway Board?

<p>To offer combined train packages with advertisement options. (B)</p> Signup and view all the answers

Based on the details provided, which of the following best describes the 'Rail Display Network' (RDN) policy's primary aim?

<p>To establish a standardized digital platform for all railway information nationwide (D)</p> Signup and view all the answers

What kind of revenue generation strategy is the 'Vinyl Wrapping' on train coaches, as described in the content, most closely aligned with?

<p>Outdoor advertising and visual marketing on railway infrastructure (B)</p> Signup and view all the answers

Which of these entities is specifically responsible for overseeing the bidding process and management of the Rail Display Network (RDN)?

<p>RailTel (B)</p> Signup and view all the answers

What is a major distinction between the advertising revenue generated from 'Vinyl Wrapping' on EMU/DMU/MEMU trains and that from Mail/Express trains, as per the provided information?

<p>Vinyl Wrapping is permitted on entire coaches for EMU/DMU/MEMU, but only below the window sill for Mail/Express trains (B)</p> Signup and view all the answers

Which of these statements BEST reflects the primary goal of the Indian Railways regarding their assets, as suggested by the information provided?

<p>To leverage their assets strategically for both revenue generation and passenger benefit (B)</p> Signup and view all the answers

Based on the context of the content, where is advertising NOT permitted under the 'Out of Home' policy?

<p>In the circulating area of railway stations (A)</p> Signup and view all the answers

According to the provided information, what is the key characteristic of the 'Unsolicited Proposals' category within the non-fare revenue framework?

<p>Proposals that are not pre-approved by the Railway Board, seeking opportunities for revenue generation (B)</p> Signup and view all the answers

What is the primary difference between the fixed rates for 'Vinyl Wrapping' on EMU/DMU/MEMU trains compared to Mail/Express trains?

<p>The EMU/DMU/MEMU rate is fixed per square foot (per coach), while the Mail/Express rate is fixed per year per coach (A)</p> Signup and view all the answers

What is the specific implication of the statement that the 'entire exercise shall be cost neutral to Railways' regarding the Rail Display Network (RDN)?

<p>The Railways will not incur any financial expenses for implementing and maintaining the RDN (C)</p> Signup and view all the answers

What can be inferred from the statement that 'the proposed Rail Display Network shall be utilised to display railway information will not be less than 50% in terms of time and/or space?'

<p>At least half the time or space on the RDN displays will be dedicated to railway information (D)</p> Signup and view all the answers

What constitutes the largest proportion of earnings for Indian Railways?

<p>Goods Earnings (B)</p> Signup and view all the answers

Which of the following is considered a capital expenditure for Indian Railways?

<p>Construction of New Railway Lines (C)</p> Signup and view all the answers

Which of the following is a typical example of 'Other Coaching Earnings'?

<p>Charges for platform tickets (A)</p> Signup and view all the answers

What is a major contributing factor for the need of an earnings budget for Indian Railways?

<p>To meet both the revenue and capital expenditures. (A)</p> Signup and view all the answers

Which of these best describes how 'Surplus Earnings' are managed?

<p>Contributed to the contingency fund of the Government of India. (B)</p> Signup and view all the answers

Which of the following contributes the smallest percentage to the total earnings of Indian Railways up to the end of March 2022?

<p>Other Coaching Earnings (B)</p> Signup and view all the answers

Which of these is NOT a component of 'Goods Earnings'?

<p>Passenger fares for AC coaches (B)</p> Signup and view all the answers

According to the policy, what is the visibility requirement for vinyl wrapping on windows of air-conditioned coaches?

<p>70% visibility must be achieved. (D)</p> Signup and view all the answers

What is the maximum permissible area for advertising inside coaches, according to the policy?

<p>250 sqft (A)</p> Signup and view all the answers

Which of the following types of trains are explicitly excluded from vinyl wrapping on windows?

<p>Non-AC coaches (D)</p> Signup and view all the answers

What is the fixed rate offered per year for advertising on the exterior of a rake of local or short-distance trains?

<p>Rs. 25 Lakhs (A)</p> Signup and view all the answers

According to the policy, who has the authority to allot trains for advertising purposes without a tendering system?

<p>Central and State Government Departments and Agencies. (A)</p> Signup and view all the answers

Which of the following is a sub-component of 'Miscellaneous Goods' earnings?

<p>Trip charges (A)</p> Signup and view all the answers

Which revenue head includes earnings from 'Siding maintenance'?

<p>Miscellaneous (C)</p> Signup and view all the answers

What was the approximate growth in passenger earnings for South Central Railways from 2020-21 to 2021-22?

<p>205.0% (D)</p> Signup and view all the answers

According to the Indian Railways revenue data up to March 2022, which revenue category makes the second highest contribution?

<p>Passenger (C)</p> Signup and view all the answers

In the Indian Railways Budget 2021-22 'Rupee Comes' distribution, what is the combined contribution percentage of 'Passenger' and 'Other Coaching' revenues?

<p>31% (B)</p> Signup and view all the answers

Which of these is not a typical sundry earning?

<p>Shunting charges (D)</p> Signup and view all the answers

Based on departmental sundry revenue for the Financial Year 2021-22, which department generated the least revenue?

<p>Other Depts (Workshops and S&amp;T) (B)</p> Signup and view all the answers

What is the approximate percentage of total Commercial Department sundry revenue generated from 'Commercial publicity'?

<p>33% (D)</p> Signup and view all the answers

What is the typical duration for contracts under the new Non-Fare Revenue policies?

<p>Up to 10 years (B)</p> Signup and view all the answers

Among the sub-heads of Sundry Revenue within the Commercial Department, which has the highest share?

<p>Catering - D.E.F &amp; IRCTC (C)</p> Signup and view all the answers

Which entity serves as the single point of contact for Non-Fare Revenue opportunities within Indian Railways?

<p>Non-Fare Revenue Directorate (C)</p> Signup and view all the answers

Which of the following is NOT a focus of the Non-Fare Revenue policies?

<p>Passenger ticketing systems (B)</p> Signup and view all the answers

What type of process is used to ensure transparency in awarding Non-Fare Revenue contracts?

<p>E-Auction (B)</p> Signup and view all the answers

What is the primary focus of NFR policies in Indian Railways?

<p>Generating revenue from sources other than passenger and freight receipts (B)</p> Signup and view all the answers

Which of these locations is targeted for advertising under NFR policies?

<p>Inside stations, circulating areas, trains, and freight wagons (A)</p> Signup and view all the answers

What is the main objective of the 'New Innovative Non Fare Revenue Ideas Scheme' (NINFRIS)?

<p>To promote new ideas for enhancing non-fare revenue (A)</p> Signup and view all the answers

At which level is the ‘New Innovative Non Fare Revenue Ideas Scheme’ (NINFRIS) primarily executed?

<p>Divisional level on Zonal Railways (D)</p> Signup and view all the answers

Besides advertising, what other innovative methods are part of generating Non-Fare Revenue?

<p>Digital content and infotainment systems (D)</p> Signup and view all the answers

What does the policy emphasis on when choosing partners for Non-Fare Revenue projects?

<p>Both technical and financial capability (B)</p> Signup and view all the answers

What is the primary focus of the 'Out of Home' policy issued by the Railway Board?

<p>Monetizing advertising assets outside the station area. (A)</p> Signup and view all the answers

Which of the following is an example of advertising covered under the ‘Out of Home’ policy?

<p>Advertisements displayed on the exterior of a railway workshop. (A)</p> Signup and view all the answers

In which year were the powers for implementing the 'Out of Home' policy delegated to General Managers?

<p>2018 (A)</p> Signup and view all the answers

What was the initial role of RITES regarding the 'Out of Home' policy?

<p>Acting as the nodal agency for open bids. (C)</p> Signup and view all the answers

What type of advertisements are included under 'Rail Display Network'?

<p>Advertisements displayed inside the railway station buildings. (C)</p> Signup and view all the answers

Which of the following is NOT a segment of the 'minor earning segments'?

<p>Out of Home (D)</p> Signup and view all the answers

What is the objective of the ‘Out of Home Policy’ as stated in the text?

<p>To lay out conditions for monetizing advertising assets outside station areas. (D)</p> Signup and view all the answers

Which of the following best describes the 'Mobile Assets' earning segment?

<p>Vinyl Wrapping on the exterior and interiors of train coaches. (B)</p> Signup and view all the answers

Which of these was a later decision regarding the management of bids under the ‘Out of Home’ policy ?

<p>Decentralized process management to Zonal Railways. (D)</p> Signup and view all the answers

When was the policy regarding 'Co-Branding of Railway Stations' Introduced?

<p>2022 (C)</p> Signup and view all the answers

Flashcards

Passenger Earnings

The primary source of income for Indian Railways, including fares from first class, second class, and all AC classes.

Other Coaching Earnings

Earnings from services other than passenger transport, including parcels, luggage, special trains, and platform tickets.

Goods Earnings

Revenue generated from transporting goods like coal, cement, iron ore, and foodgrains.

Sundry Earnings

Various sources of revenue unrelated to passenger or freight services, like penalties, cloakroom charges, and miscellaneous income.

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Revenue Expenditure

Money spent on the day-to-day operations of Indian Railways, including salaries, fuel, and maintenance.

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Capital Expenditure

Investment in infrastructure projects like new lines, station development, and upgrading tracks.

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Earnings Budget

A plan outlining how much money Indian Railways expects to earn and how it will be used for revenue and capital expenditures.

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What is Non-Fare Revenue?

Revenue generated from sources other than ticket sales, including advertising, concessions, and real estate.

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What is the Objective of Non-Fare Revenue for Indian Railways?

A strategic goal for Indian Railways to increase financial sustainability by exploring and maximizing revenue streams beyond ticket fares.

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What is 'Advertisement in PRS Ticket & LED Screens' as a Non-Fare Revenue source?

The use of digital screens and advertising spaces within railway stations and train coaches to display advertisements and generate revenue.

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What are 'Robotic Massage, BMI Kiosk & RO Water Purification' as a Non-Fare Revenue source?

Offering paid services like robotic massage chairs, body mass index (BMI) kiosks, and water purification in train coaches.

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What are 'Exhibition at Stations & Market Contracts' as a Non-Fare Revenue source?

Generating revenue by partnering with businesses for promotional activities, product displays, and events within railway premises.

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What are 'Health ATM, Tex Plaza & Mobile Food Court' as a Non-Fare Revenue source?

Creating specialized spaces or zones within railway stations or train coaches to cater to specific needs, like healthcare or shopping.

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What are 'Advertisement on Pay-slips, Platform Raisers & Bottle Crushing Machines' as a Non-Fare Revenue source?

Leveraging advertisements on various platforms like pay-slips, platform raisers, and even bottle crushing machines.

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What are 'Digital Display Infotainment System & Projection Mapping' as Non-Fare Revenue sources?

Utilizing digital technology for display screens, advertising, and information dissemination to generate revenue.

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Why is Non-Fare Revenue Important for Indian Railways?

Expanding revenue streams beyond fare box revenue to ensure financial sustainability and support railway operations and debt repayment.

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Unsolicited Proposal

A type of agreement where a private company can propose a project to enhance railway revenue and share profits with the Indian Railways.

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Co-Branding of Railway Stations

A policy aimed at generating non-fare revenue by allowing private businesses to display their logos or brand names at railway stations, for a fee.

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Content on Demand

A system that provides entertainment content, such as movies and music, to passengers on trains, accessible through mobile devices.

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Revenue Sharing Agreement for Content on Demand

A policy that allows for a 50:50 revenue sharing agreement between Railtel and Indian Railways for a specific duration.

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Unsolicited Proposal Policy for Non-Fare Revenue

This policy allows for unsolicited proposals from private or public companies for projects that can generate non-fare revenue for the railways.

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Non-Fare Revenue (NFR)

Revenue earned by railways from sources other than passenger fares and freight charges. Examples include advertising, commercial services, and property rentals.

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Exploiting New Revenue Sources

A strategy to increase railway income by tapping into new sources besides traditional fares.

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NFR Directorate

A department within the Ministry of Railways dedicated to enhancing NFR through various initiatives and policies.

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Railway Advertising

Promoting products and services on trains, railway stations, and digital platforms to generate income.

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Commercial NFR Segment

Commercial activities conducted by the railways, such as catering, retail, and property leasing.

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Asset Monetization

Marketing of railway assets to create revenue, including facilities, land, and even the railway brand itself.

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New Ideas & Concepts for NFR

Developing and implementing new ideas and revenue-generating concepts within the NFR domain.

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Entertainment and Services NFR

Promoting entertainment and other services on trains, stations, and digital platforms to generate revenue.

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Unsolicited NFR Proposals

Generating income from unsolicited proposals and ideas that are not covered by existing NFR policies.

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Tariff Hike Approach to Revenue

The approach of increasing revenue by simply raising fares and freight charges.

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What is the 'Out of Home' policy?

A policy issued by the Railway Board to monetize advertising assets beyond the station area, such as circulating areas, bridges, railway colonies, and land along the track.

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What does the 'Out of Home' policy cover?

This policy outlines how advertisements can be displayed outside the Railway station building.

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What type of advertising is permitted outside the station?

The 'Out of Home' policy permits advertising through hoardings, uni-poles, glow signs, wall paintings, and digital boards.

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Who was initially responsible for managing the bidding process for 'Out of Home' advertisements?

Initially, RITES was responsible for inviting bids for the 'Out of Home' advertisement policy.

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How did the 'Out of Home' advertising bid process change in 2018?

In 2018, the bid process management was decentralized to Zonal Railways.

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How did the 2018 modification of the 'Out of Home' policy affect its implementation?

The 'Out of Home' policy was modified in 2018, delegating power to General Managers for its implementation.

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What did South Central Railway do to ensure standardized bidding for the 'Out of Home' policy?

South Central Railway formulated Standard Bid Documents (SBDs) for the 'Out of Home' advertisement policy.

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How were the SBDs used to implement the 'Out of Home' policy?

The SBDs were circulated among divisions to allow for the floating of tenders for 'Out of Home' advertisements.

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What is the main objective of the 'Out of Home' advertisement policy?

The policy outlines guidelines for advertising in railway areas, including circulation areas, bridges, and railway land.

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What is the purpose of having a policy for advertising in railway areas?

The policy aims to establish a framework for managing advertising revenue generated from areas outside the railway station building.

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What are Sundry Earnings?

Minor revenue sources for Indian Railways including rent, tolls, catering, parking, ATMs, pay-and-use toilets, commercial plots, and miscellaneous items.

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What is Abstract 'Z' Sundry Other Earnings (93)?

A specific category within the Indian Railways accounting system that encompasses various minor revenue sources.

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What is Non-Fare Revenue (NFR)?

Revenue earned from sources other than passenger fares and freight charges. Examples include advertising, commercial services, and property rentals.

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What is Exploiting New Revenue Sources?

A strategic approach by the Indian Railways to generate revenue from various non-traditional sources, such as advertising, commercial activities, and using railway assets.

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What is the Classification and Accounting of Sundry Earnings?

A systematic way to classify and account for different sources of revenue within Indian Railways, using specific codes and categories.

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What is the NFR Directorate?

A department within the Ministry of Railways focused on enhancing Non-Fare Revenue (NFR) through various initiatives and policies.

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What is Railway Advertising?

Promoting products and services through various platforms within the Indian Railways system, including trains, stations, and digital platforms.

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Examples of NFR

Advertising, commercial services, and property rentals are examples of non-fare revenue sources.

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Out of Home Advertisement Policy

A policy specifically aimed at monetizing advertising assets located outside the railway station buildings, encompassing circulating areas, bridges, colonies, and trackside land.

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Types of Advertisements Permitted in 'Out of Home' Policy

Hoardings, uni-poles, glow signs, wall paintings, and digital boards are permitted for displaying advertisements outside railway stations.

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Initial Management of 'Out of Home' Bids

RITES was initially appointed as the nodal agency responsible for managing bids for 'Out of Home' advertisements.

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Decentralization of 'Out of Home' Bid Management

In 2018, the 'Out of Home' advertisement bid process management was decentralized to Zonal Railways.

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Standard Bid Documents (SBDs) for 'Out of Home' Advertisements

South Central Railway developed Standard Bid Documents (SBDs) for the 'Out of Home' advertisement policy to ensure standardized bidding procedures.

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Out of Home Advertising Policy

A policy allowing private companies to advertise on railway properties, including stations, bridges, and circulating areas, under specific guidelines.

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Revenue Sharing for Content on Demand

A revenue sharing system where 50% of the earnings from Content on Demand services goes to Railtel and 50% to Indian Railways.

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What are the key aspects of the 'Out of Home' advertisement policy?

The 'Out of Home' policy details how advertising is handled in areas around the railways, ensuring a systematic approach to revenue generation.

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Key Aspects of the 'Out of Home' advertisement policy

This policy details how advertisements are handled in areas around railway stations, ensuring a systematic approach to revenue generation.

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What is the 'Out of Home' Advertisement Policy?

A policy specifically aimed at monetizing advertising assets located outside the railway station buildings, encompassing circulating areas, bridges, colonies, and trackside land.

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Non-Fare Revenue

Revenue generated from sources other than ticket sales, including advertising, concessions, and real estate.

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Objective of Non-Fare Revenue

A strategic goal for Indian Railways to increase financial sustainability by exploring and maximizing revenue streams beyond ticket fares.

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What types of advertisements are allowed under the 'Out of Home' policy?

Hoardings, uni-poles, glow signs, wall paintings, and digital boards are permitted for displaying advertisements outside railway stations.

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How has the management of 'Out of Home' bids changed?

In 2018, the 'Out of Home' advertisement bid process management was decentralized to Zonal Railways.

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What are Standard Bid Documents (SBDs) for 'Out of Home' advertisements?

South Central Railway developed Standard Bid Documents (SBDs) for the 'Out of Home' advertisement policy to ensure standardized bidding procedures.

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How is revenue shared for Content on Demand services?

A revenue sharing system where 50% of the earnings from Content on Demand services goes to Railtel and 50% to Indian Railways.

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Study Notes

Indian Railway Earnings

  • Indian Railways' major sources of earnings include Passenger Earnings, Other Coaching Earnings, Goods Earnings, and Sundry Earnings.
  • Revenue and capital expenditure are met from these earnings.
  • Revenue expenditure covers salaries, fuels, and maintenance.
  • Capital expenditure is for gauge conversions, new lines, station development, and tractions.
  • Earnings Budget is crucial for meeting revenue and capital expenditure.
  • Surplus earnings are contributed to the Indian government's contingency fund.

Sources of Passenger Earnings

  • Suburban passengers include First Class and General Class passengers.
  • Non-suburban categories include First AC, Second AC, Third AC, First Class, Sleeper Class, and Second Sitting.
  • Other income sources include parcels, luggage, special trains (excluding military), penalties, platform tickets, cloak room charges, postal haulage charges, cancellation/clerkage, identity cards, demurrage/wharfage, and miscellaneous charges.

Sources of Other Coaching Earnings

  • These earnings are 3% of total earnings.
  • Income comes from penalties imposed by Ticket Checking staff/Station Masters, platform tickets, cloak room charges, postal haulage charges,cancellation/clerkage, identity cards, demurrage/wharfage, and miscellaneous charges.

Sources of Goods Earnings

  • Goods earnings account for 75% of total earnings, primarily from commodities such as coal, cement, iron ore, foodgrains, fertilizers, petroleum products, container services, and raw materials for steel plants.
  • Additional income comes from miscellaneous goods earnings, demurrage/wharfage, stacking charges, siding charges, trip charges, and shunting charges.

Sources of Sundry Earnings

  • Sundry earnings account for 2% of total earnings.
  • These include rent and tolls, non-fare revenue (commercial publicity), catering, parking, ATMs, pay-and-use toilets, commercial plots, retiring rooms, cloak rooms, sale of time tables, commercial plots, AC waiting halls/lounges, and others.

Classification and Accountal of Sundry Earnings

  • Abstract "Z" (93).
  • Earnings are categorized under minor heads like Military, Telegraph, Rent & Tolls, Catering department, Overcharges & Profits, sale of stores, unclaimed/damaged goods, Gross & Trees, Maintenance charges, Siding maintenance, Interest, Reimbursement of Operating loss on strategic lines, and Refunds on earnings collected.

Service Head-Wise Originating Earnings on SCR (In CRS)

  • This section presents earnings data (in Indian rupees) for the years 2018-19, 2019-20, 2020-21, and 2021-22, categorized by service type (Passenger, Other Coaching, Goods, Sundries) and reflecting the total. Specific figures for each year are provided.

Non-Fare Revenue

  • Non-fare revenue excludes passenger and freight receipts.
  • It includes income from various sources like advertisements, inside stations, circulating areas of stations, trains, freight wagons, locomotives, digital content, and other innovative concepts to enhance revenue.

Objectives of Non-Fare Revenue

  • Monetizing railway assets and creating revenue-yielding activities.
  • Guidelines for the "New Innovative Non-Fare Revenue Ideas Scheme" (NINFRIS).
  • Implementation of the scheme at the divisional level across zonal railways.

New Ideas and Concepts

  • Display advertisements on passenger reservation system (PRS) tickets, robotic massage chairs, BMI kiosks, digital LED walls, RO water purification systems in coaches, mobile application-based suburban tracking, 3D product displays, mobile tower and small cell proposals.
  • Advertisements on pay slips, bottle crushing machines, advertising in EMU rakes (through public information system), on-board shopping in mail/express trains, exhibitions at stations (market contracts), and promotion of railway ticketing apps.
    • Health ATMs, station jingles, and mobile food courts
    • Publicity on panel trusses/ceilings, platform shelters, publicity rights on glass facades, and dual display infotainment systems.

Other Key Policies and Schemes

  • Content on demand (with 10-year contracts)
  • Unsolicited proposals
  • Co-branding of railway stations
  • Mobile assets
  • Baggage on-Wheels (introduced in Delhi Division, with door-to-door service based on app.)

E-Auction and Asset Management for Commercial Earning Contracts

  • E-Auctions: Open auction process, asset creation by asset holders, publicly displayed auction catalogues, financial turnover-based eligibility, self-declaration by bidders, reserve price set by the auction committee (not revealed to bidders), auto extensions of bids, maximum 10 auto extensions allowed, auto award to highest bidder (if the rate meets or exceeds reserve price), and instant 5% EMD deduction for winning bidder, no blockage of EMD for other bidders. Processes to verify turnover certificates completed later.
  • Benefits: Prevention of asset idling, increased competition, reduction in contract placement time, elimination of payment pilferages, standardization of auction processes using a standardized EMD/SD (5%) payment schedule, and defined late payment penalty terms. Real-time verification of eligibility for bidders, and standardized bidder registration using pan-India ID.

Pilot Launch Divisions and Assets

  • Identified divisions for pilot launch of e-Auction: NR, NER, ER, SER, WR, CR, SWR, SCR, SR.
  • Detailed list of assets identified for pilot projects in each Division has been provided.

Pre-requisites for Railway Users and Contractors

  • Assets identification, catalogue publishing, minimum 12-day notice period, and encryption certificates for authorized officers (using JAG/Sr. Scale/B.O). Specific RP encryption procedures are outlined.
    • Railway users require a digital certificate (DSC), online registration, 10,000 INR fees, SBI account, IREPS linked account, and lien marking of funds
  • Contractors need the same as railway users plus updating the turnover details in IREPS.

To Do List for Pilots and Other Divisions

  • Asset identification, catalogue publishing, wide publicity (advertisements, notices, and e-mail communications through IREPS), contractor meet with a 1-week schedule, training for railway users, asset register creation within a fortnight, and participation of other divisions if desired.

E-Auction over SCR

  • SCR undertook a phase-wise introduction of e-Auction for NFR and Commercial Earning Contracts.
  • Secunderabad emerged as the pilot division.
  • Details regarding the number of assets, auctions conducted, contracts awarded (Rs. 2.18 Cr) , and associated schedules are summarized over the period 01-07-2022 to 31-07-2022.

Division-wise List of Assets Identified for Pilot

  • A division-wise list of identified assets for the pilot e-auction program is provided. The assets are characterized by their type (e.g., SLR compartments, parking spaces, advertisement spots).

Other Important Information

  • There are new, innovative revenue-generating contracts and services, including "App-Based Bags-on-Wheels," in some locations.
  • Quick service restaurants and ATMs are also mentioned and could be part of a broader non-fare revenue strategy.
  • A summary of non-fare revenue trends over the past four years (2018-19 to 2021-22) and by each division, are included within the provided documents.
  • Additional information about the objective of this overall policy, and the key broad expectations from the proposed idea/model are summarized in previous chapters.

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