Tuesday 5 July 2016

Railways plans airport-style makeover across stations


Long queues at enquiry windows and announcements over loudspeakers at railway stations will soon be a thing of the past. The Indian Railways have mooted a plan to fully digitise its railway stations and bring all passenger-related information on big LED screens. The idea is to convert railway stations into silent zones like the airports and mop up revenue through advertisement simultaneously. The directorate
of non-fare revenue of the Indian Railways has devised a business model wherein private agencies will be roped in for installing LED screens and the railways will share revenue with the company. Once implemented, all passenger-related information - arrival and departure of trains, availability of tickets and others - will be displayed on these big screens that will be put up at every major points on railway stations. Commercial advertisement will flash simultaneously. Railways plan to increase its advertisement revenue up to `10,000 crore by exploiting its real estate and rolling stock. At present the railways collect a meagre `300 crore from advertisements.
As per the plan, railways will install about 100,000 networked large screens across 2,000 stations connected using multi-path protected optical fibre network, with a screen in front of each train coach, in the concourse, circulating area, foot over-bridges, waiting rooms and lounges. "All passenger-related information will be available on these screens in different languages. Gradually the station buildings will be converted into silent zones like airports," said a senior rail ministry official.
"While the needs of passengers will be fulfiled through the passenger information system, there will be opportunities for revenue earning through advertisements," he said. A pilot project will be implemented involving about 10 stations, including the ones like Delhi, Jaipur, Varanasi and Bhopal, among others. All 2,000 stations will be equipped with LED screens over the next two years. The official said all sign boards, whether located inside or in open spaces, will be visible day and night from long distances and displays will be environmentally protected.
According to railway officials, the initiative will significantly improve the financial health of the railways which is also facing a burden of `31,000 crore after implementation of the 7th pay commission recommendations. "As of now, the Indian Railways earn less than five per cent of our revenues through non-tariff sources. Globally, railway systems earn 10 to 20 per cent of their revenue from non-tariff sources," said the official.
This assumes greater significance as Railway Minister Suresh Prabhu is not keen on increasing passenger fares or freight tariffs.
Instead, he has been focusing on generating revenue from other sources mainly; advertising, modified parcel leasing policy, export of railway equipment, land monetisation and cutting of working expenses. For this purpose, railways has created a new directorate to carry out advertisements in rail coaches, along the track and near stations in a big way to increase the revenue substantially from non-tariff sources. The project is proposed to be implemented by a consortium involving railways, RailTel, advertisers and display screen manufacturers.
Revenue-sharing model will be adopted for the project which will be a win-win for all concerned.

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