Cash-strapped Central Railway ready to offer advertising rights on its assets to investors
Mumbai : In a bid to provide hitch-free local commute of millions of Mumbaikars without burdening their wallets, Central Railway’s top boss SK Sood is turning to alternate ways of generating funds. In a unique initiative, the CR general manager has urged the corporate houses to come forward and invest in railways for advertising rights on railway assets including the much-awaited AC local trains.
With the suburban operations incurring heavy losses to the tune of Rs 700 crore, CR is unable to get the required funds from the Central government for upkeep of system. To create necessary funds for providing better trains, improved tracks, Sood has turned to corporate houses who’s employees are also heavily depend on the suburban services to reach their offices.
Sood, during a press meet, said, “We will appreciate funds from corporate houses which could be utilised for improving the condition of suburban services. I am ready to give advertising rights for over 25-years on my trains to those corporate houses which are willing to come forward for funding the suburban system.”
He further stated that if they so demand, he will not hesitate in naming those services after these houses apart from giving several other benefits to their employees like free passes. The city’s first AC local train is expected to be introduced by the year end and Sood is looking at giving advertising rights for this and other trains to corporate houses. CR is looking at replacing the female first class compartments of trains on harbour line with AC coaches.
While in another event on Monday, Sood released a broacher calling for investment in the rolling stocks, freight terminus for various benefits under public-private partnership. The revenue generated by the railways from advertising has declined from about Rs 100 crore to Rs 30 crore over the past months. The BMC objected to the hoarding put up in railway premises facing the roads is one of the prime reason for decline in the revenue.
Iram Siddique
