Step off a metro at Rajiv Chowk or Kashmere Gate station and the exit is no longer just an exit. There’s coffee, a quick bite, an ATM, a locker to stash a bag, a mall a few steps further on. Across Delhi, metro stations have quietly stopped being places you pass through and started becoming places you stop at. For the Delhi Metro Rail Corporation, that shift is not incidental; it is a revenue strategy.
For metro operators, the expansion of commercial activity is also emerging as an important way to diversify revenue beyond passenger fares. Delhi Metro Rail Corporation (DMRC), for instance, has been using property development, advertising, commercial leasing and technology-enabled services to strengthen its non-fare revenue streams.
Anuj Dayal, Principal Executive Director, Corporate Communications, DMRC, told financialexpress.com, that “Property Development is being looked at as a viable Revenue stream/source, so that in a city like Delhi and its peripheries, fares can be kept reasonable without compromising on the quality of service.”
He added that commercial development is planned around passenger needs.
“Delhi Metro’s vision is – Commuting Experience in Delhi Metro to be Customer’s Delight. Therefore, providing best services is always the priority. Property Development is done in such a way that it complements the convenience of the passengers.”
Non-fare revenue becomes a second pillar
DMRC said rising operating costs and the social sensitivity around periodic fare increases make alternative revenue sources increasingly important.
“Despite Delhi Metro being among the most efficiently run metro systems in the world, DMRC’s operating costs are bound to increase with the passage of time. Periodic fare revisions, while necessary, are socially sensitive. Non-fare commercial and property revenues must, therefore, form the second revenue pillar of DMRC’s financial model.”
DMRC said non-fare box revenue currently accounts for approximately 20% of its fare box revenue, or traffic earnings. The organisation has attributed a significant role to such supplementary income in maintaining operational profitability, except during the Covid-affected financial years of 2020-21 and 2021-22.
The corporation generates non-fare revenue through several channels, including advertising inside trains and stations, train wrapping, station co-branding, commercial spaces, ATMs, kiosks, water vending kiosks and telecom infrastructure. Its digital platform and property development activities also contribute to the revenue pool.
The Property Development and Property Business departments have been involved in monetising metro assets through commercial leasing and development initiatives. DMRC has also been making available vacant property development areas to interested parties through a transparent process.
From transit points to mixed-use urban spaces
Commercial activity is not a new concept for Delhi Metro. DMRC said it has integrated mixed-use development into its station premises since Phase I, although the scale and nature of development depend on the availability of space.
“DMRC has made mixed-use of its station premises since Phase I. However, planning and design depends on availability of space. Property Development is always integrated after ensuring all necessary passenger amenities adhering to global norms.”
Station planning has since expanded to include commercial facilities, multimodal connectivity and passenger-focused amenities. In Phase IV, DMRC said station planning is also incorporating Transit-Oriented Development (TOD) principles to improve integration with surrounding urban areas.
However, the corporation said commercialisation remains secondary to the basic requirements of safety, accessibility and efficient passenger movement.
The types of businesses that work best also vary according to location, passenger demand and operational feasibility. Retail outlets, food and beverage kiosks, digital advertising, telecom infrastructure and property development are among the stronger commercial formats for DMRC.
Examples include the Shastri Park IT Park, food and beverage outlets at Kashmere Gate, the multi-level parking facility at Janakpuri West, shopping complexes at Nehru Place and Akshardham, and the multiplex-cum-shopping facility at Dwarka Sector 21.
Can metro stations become neighbourhood hubs?
The growing commercial footprint raises the possibility of metro stations becoming neighbourhood destinations, similar to station-led urban development seen in cities such as Japan, Hong Kong and Singapore.
Dayal said the potential exists, although the approach would have to account for the characteristics and constraints of each city.
“Yes, but each city has a different challenge. DMRC is steadily transforming many of its stations into vibrant urban spaces by integrating retail outlets, food kiosks, parking, and other commuter amenities alongside seamless multimodal connectivity.”
With more than 400 km of operational network and millions of passenger journeys, Delhi Metro stations provide businesses with a large and consistent customer base. Stations and areas such as Nehru Place, Millennium City Centre and Dwarka Sector 21 have already developed commercial components including retail spaces, food courts, offices and multiplexes.
DMRC also cited the Taj Vivanta Hotel at Dwarka, Pacific Mall at Subhash Nagar and the office building at Bhai Veer Singh Marg as examples of property development around the metro network.
At the same time, Dayal said transit-oriented development needs to be carefully planned given Delhi’s space constraints and commuter-focused travel behaviour. Better pedestrian connectivity and curated businesses could help select stations develop into community destinations without affecting the primary transport function.
Technology to drive the next revenue phase
Technology is expected to play a larger role in how metro operators generate non-fare income and add services for passengers. DMRC is already using or experimenting with digital lockers, smart vending, EV charging and battery-swapping facilities.
“Infact, the next phase of Delhi Metro station development is expected to build on these commuter-centric services already introduced by DMRC. A number of initiatives such as, tech-enabled digital lockers (“Smart Boxes”), smart vending, EV charging, battery swapping, etc., are acting as the core drivers transforming Delhi Metro stations from mere transit stops into multi-functional urban micro-hubs.”
DMRC’s Metro Sarthi app is also being developed as an integrated mobility and services platform. It allows users to access metro ticketing and other first- and last-mile mobility options, while also providing access to services such as monument and event ticketing, tourist experiences, Noida Metro tickets and DTC bus ticketing through ONDC.
The strategy is aimed at embedding more everyday services into the passenger journey while creating additional commercial opportunities for the metro operator.
Balancing commercialisation with commuter needs
Despite the growing emphasis on non-fare income, DMRC said passenger convenience remains the primary consideration when deciding what commercial activities can operate within the network.
“Commuter convenience continues to be the primary focus of Delhi Metro’s operations, with revenue generation playing a critical role in keeping the system solvent.”
DMRC said it is pursuing initiatives such as station co-branding and licensing of retail spaces to reduce dependence on fare increases and support the long-term financial sustainability of the network.
The next stage of metro development could therefore see stations play a dual role: providing efficient public transport while functioning as carefully planned commercial and community spaces. For operators, the challenge will be to increase non-fare earnings without allowing commercial activity to compromise the passenger experience that the metro system is designed to deliver.