ADB Urges Metro Rail to Explore Non-Fare Revenue Options

19 Aug 2024 CW Team

While the development of metro rail systems is crucial to meeting the mobility needs of rapidly growing urban populations in a sustainable and low-carbon manner, the cost of financing these projects is substantial. Governments often struggle to secure the necessary initial capital to create the infrastructure, and generating sufficient funds to cover operating and maintenance costs poses a significant challenge.

According to ADB, relying solely on fare income is insufficient, as ticket prices must be kept low to attract a high ridership. To achieve financial sustainability, metro rail companies must explore additional revenue streams beyond ticket sales, such as advertising, leasing space, property development, and shopping at stations.

In terms of advertising revenue, options like digital screens at stations, including jumbo-sized LCD or LED panels, should be considered. Another attractive option is 'train wrap' advertising, where the entire train is covered in advertisements. Additionally, 'pouring rights,' which allow beverage sales on all station premises, and 'station naming rights,' where a corporation or entity pays to name a station for a certain period, can generate substantial income.

Transit stations could also serve as ideal venues for hosting corporate events, conferences, festivals, and exhibitions. Furthermore, property development at stations could yield significant cash flows if properly planned. This would involve developing property above and adjacent to stations, as well as at maintenance depots. Acquiring sites at prices before the construction of the metro project could also be advantageous.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The Asian Development Bank (ADB) has found that metro rail companies in India can significantly enhance their financial sustainability by aggressively exploring non-ticket sale revenues through avenues such as advertising, leasing space, property development, and shopping at stations.While the development of metro rail systems is crucial to meeting the mobility needs of rapidly growing urban populations in a sustainable and low-carbon manner, the cost of financing these projects is substantial. Governments often struggle to secure the necessary initial capital to create the infrastructure, and generating sufficient funds to cover operating and maintenance costs poses a significant challenge.According to ADB, relying solely on fare income is insufficient, as ticket prices must be kept low to attract a high ridership. To achieve financial sustainability, metro rail companies must explore additional revenue streams beyond ticket sales, such as advertising, leasing space, property development, and shopping at stations.In terms of advertising revenue, options like digital screens at stations, including jumbo-sized LCD or LED panels, should be considered. Another attractive option is 'train wrap' advertising, where the entire train is covered in advertisements. Additionally, 'pouring rights,' which allow beverage sales on all station premises, and 'station naming rights,' where a corporation or entity pays to name a station for a certain period, can generate substantial income.Transit stations could also serve as ideal venues for hosting corporate events, conferences, festivals, and exhibitions. Furthermore, property development at stations could yield significant cash flows if properly planned. This would involve developing property above and adjacent to stations, as well as at maintenance depots. Acquiring sites at prices before the construction of the metro project could also be advantageous.

Resources

08 Sep 2025

IGBC Launches 32nd Chapter in Ranchi to Drive Green Building Growth

The CII Indian Green Building Council (IGBC) has launched its 32nd Chapter in Ranchi to accelerate Jharkhand’s transition towards sustainable and resilient urban infrastructure. The launch event, held on September 6 at Radisson Blu Hotel, brought together government officials, industry leaders, and sustainability experts. Sunil Kumar, IAS, Principal Secretary, Urban Development & Housing Department, Government of Jharkhand, said, “The launch of the IGBC Ranchi Chapter marks a significant step in Jharkhand’s urban development journey. The state is committed to creating a policy e..

Real Estate

08 Sep 2025

Mindspace REIT Marks Five Years With 14.8 Per Cent Annualised Returns

Mindspace Business Parks REIT, owner and developer of a Grade-A office portfolio, has completed five years since its listing on the Indian bourses in August 2020. Despite debuting during the global pandemic, the REIT has delivered 14.8 per cent annualised total returns, expanded its portfolio, and reinforced occupier trust. Key achievements over five years include: Portfolio expansion of 30 per cent to 31.0 msf through acquisitions and new developments. Gross leasing of 25.2 msf, with occupancy sustained at 93.7 per cent. Cumulative distribution of Rs 55.9 billion to unitho..

Real Estate

08 Sep 2025

Great Value Realty Secures RERA Nod for Ultra-Luxury Ekanam Project

Great Value Realty, one of North India’s most trusted developers, has received RERA approval for its flagship ultra-luxury residential project, Ekanam (RERA No. UPRERAPRJ15109/2019). The announcement was made during the Great Partners Meet at Noida. Built on the only available land parcel in Sector 107, Noida, Ekanam embodies the company’s philosophy, “Great is the New Norm,” promising excellence in design, quality, and sustainable community living. With seamless connectivity to Noida Expressway, DND Flyway, metro stations, and proximity to the upcoming Jewar Airport, the project ..