In a major boost to non-fare revenue, Indian Railways has earned a record Rs 6,735 crore from scrap disposal in the financial year 2025–26, surpassing its annual target of Rs 6,000 crore by over 12 per cent. The performance reflects an aggressive push towards monetising redundant assets under cleanliness and efficiency drives across zones.
According to official data, the cumulative scrap sales stood at Rs 6,735.52 crore till March 30, with a sharp acceleration throughout the month helping the national transporter cross the target comfortably. A total of 5,053 auctions were conducted during the year, underlining the scale of disposal activity carried out through e-auction platforms.
Among the top-performing zones, South Central Railway (SCR), Western Railway (WR), Eastern Railway (ER) and Northern Railway (NR) emerged as standout contributors. SCR recorded scrap sales of Rs 641.92 crore against a target of Rs 510 crore, an overachievement of nearly 26 per cent, while WR earned Rs 639.96 crore against Rs 470 crore, exceeding its target by over 36 per cent, the highest among major zones.
Similarly, ER disposed of scrap worth Rs 595.57 crore against the target of Rs 545 crore, registering a growth of 9 per cent, followed by NR (Rs 589.62 crore), Southern Railway (Rs 531.17 crore), South Eastern Railway (Rs 459.89 crore), Central Railway (Rs 458.93 crore), East Central Railway (Rs 366.69 crore), West Central Railway (Rs 360.19 crore), North Central Railway (Rs 317.66 crore), North Western Railway (Rs 305.87 crore) and South East Central Railway (Rs 303.09 crore).
East Coast Railway (ECoR), headquartered in Bhubaneswar, also delivered a strong performance, generating Rs 290.22 crore in scrap revenue against a target of Rs 260 crore, marking an 11.62 per cent increase over the benchmark. The zone ranked among the top performers nationally.
Official sources said the achievement of Indian Railways was driven by a sustained “Swachhata Hi Seva” campaign and the “Mission Zero Scrap” initiative, which focused on clearing obsolete materials from divisions, workshops and loco sheds. The disposal included large volumes of condemned rails and permanent way materials, besides thousands of tonnes of ferrous scrap. The zones also auctioned decommissioned rolling stock, including electric and diesel locomotives, coaches and wagons.
In contrast, South Western Railway (SWR) fell short of its target, achieving Rs 154.96 crore against Rs 175 crore, registering a negative variation of 11.45 per cent.
Production units and workshops also posted impressive gains. Units such as Rail Coach Factory and Integral Coach Factory reported exceptionally high percentage gains over targets, driven by disposal of obsolete inventory and scrap generated during manufacturing.
Railway officials said the record performance highlights the growing importance of scrap monetisation as a revenue stream, alongside its role in improving operational efficiency and workplace safety. “Efficient scrap disposal not only generates substantial revenue but also ensures cleaner premises and better asset utilisation,” a senior official told Business Standard.
The record sales show the national transporter’s broader push towards financial prudence, sustainability, and a cleaner rail ecosystem, while reducing clutter and unlocking value from redundant assets.
The surge in scrap earnings is also linked to increased transparency in auction processes and better price discovery through digital platforms. With only 24 auctions remaining in the pipeline at the close of the financial year, the Railways appears poised to sustain momentum in FY27.
