Trains may sport brands

Railways initiate project for ad revenues of Rs 4,000 cr.

While the railway ministry has been unabashedly wooing investors through the public private partnership (PPP) model, its zonal railway officials have overlooked protocol and issued tenders seeking co-branding opportunities from corporate houses without the knowledge of the Railway Board.

This has precipitated a pilot project that, if fully exploited, could fetch the Railways revenues of Rs 4,000 crore.

Last week, South-Western Railway invited limited tenders from companies to lease out advertising space on train exteriors. The deal allows companies to put the names of their brands alongside the names of trains. The plan is to target the summer special trains that ply in that zone.

Following this, the railway ministry launched a co-branding pilot project. Ministry officials declined to comment on the project, but sources close to the development say talks have begun with companies like Airtel and Britannia to consider co-branding opportunities.

Meanwhile, the ministry has also asked South-Western Railway officials to take "in principle" approval from the Railway Board for its initiative.

PepsiCo, Coca Cola and Dabur are said to have evinced interest in the project, which could give them the opportunity to sell their brand names to wider audiences and income levels.

Discussions between companies and the railways are focused on a distance-fixed fee format.