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Indian Railways has added a new category under its 2017 catering policy to allow premium single-brand food outlets such as McDonald's, KFC, Pizza Hut, Baskin-Robbins, Haldiram's, and Bikanerwala at railway stations. The decision aims to improve food options and strengthen non-fare revenue, which has remained around 3 percent of total income. Licences will be allotted through e-auctions for five years, with financial terms aligned with the current policy. The move comes as more than 1,200 stations are undergoing redevelopment, creating space for modern commercial facilities.
Indian Railways has updated its catering framework by creating a new category called Premium Brand Catering Outlets under the existing 2017 catering policy. This category has been added alongside tea stalls, milk bars, and juice bars, allowing recognised single-brand food chains to operate at railway stations. The Railway Board issued a circular confirming that brands such as McDonald's, KFC, Pizza Hut, Baskin-Robbins, Haldiram's, and Bikanerwala will now be permitted to run outlets either directly or through franchise operators. Advertisement
The new outlets will be allotted through an e-auction system instead of nomination. A dedicated section for premium brands will be introduced on the e-auction platform, and each licence will be valid for five years. The minimum licence fee and financial conditions will stay consistent with the norms in the 2017 catering policy. Railway zones have been asked to frame station-wise contract conditions to ensure that these outlets fit into the existing station layouts without affecting quota-based reservations for OBCs, SCs, STs, displaced persons, and families of freedom fighters.
Railways has noted that these outlets will only be approved at stations where demand is assessed to be adequate and where they do not disrupt the planned commercial layout. This change comes at a time when more than 1,200 stations are under redevelopment across the country, including major hubs in Delhi, Mumbai, and Ahmedabad. These upgraded stations are being designed with larger concourses, wider circulation areas, and improved commercial zones, making them suitable for organised food service brands.
One of the major objectives of the move is to strengthen non-fare revenue. In FY 2023-24, non-fare revenue was approximately INR 588.07 crore, and it increased to around INR 686.86 crore in FY 2024-25. Despite this growth, it still forms only about 3 percent of total railway income, leaving substantial scope for expansion through organised retail and food services.
The Railway Board has also emphasised that the introduction of premium brands must be aligned with individual station requirements and infrastructure plans. This approach is expected to help standardise food quality, provide passengers with more reliable options, and create additional commercial activity at stations undergoing modernisation.
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