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| Circular number | Commercial Circular No. 02 of 2017 |
|---|---|
| File number | No. 2017/NFR/20/2 |
| Type | NFR Policy |
| Topic | ticket-checking |
| Currency | Historical — likely superseded |
| Official PDF | indianrailways.gov.in |
Policy on Unsolicited Non-Fare Revenue Proposals on the approved Earning Plan of the Proponent and
GOVERNMENT OF INDIA MINISTRY OF RAILWAYS RAILWAY BOARD No. 2017/NFR/20/2 New Delhi, dated 40/01/2017 The General Managers All Indian Railways (Commercial Circular No. 2 of 2017) Sub: Policy on Unsolicited Non-Fare Revenue Proposals. KkRKK 1. Background: Hon’ble Minister of Railways had announced during the Railway Budget 2016-17 that “Although we enjoy the highest captive eyeballs in a railway system internationally, we earn less than 5% of our revenues through non-tariff sources. Many of the world railway systems generate 10% to 20% of their revenues from non-tariff sources. Over a period of the next five years, we will strive to reach this world average by monetizing assets and undertaking other revenue yielding activities.” Earning contracts in Indian Railway are currently being awarded either through a Tendering process or on First Cum First | Serve (FCFS) basis for certain cases such as innovation in advertising, etc. The conceptualisation and initiation of the earning proposal is being done internally by the Railways and after the finalisation of the proposal, the selection of the Agency for implementation is done as per the existing policy for selection. At present, there is no policy in Railways for consideration of unsolicited offers proposed by outside agencies to the Railways Page 1 of 20 even if a potential exists for enhancement of earnings. With a view to increase the revenue from non-fare sources, it has been decided by the Railway Board to issue a new policy which will allow for the consideration of unsolicited proposals by enabling private and public sector participation in the conceptualisation of an earnings project or scheme and permitting finalisation of the same. The selection of Agency will be done for a maximum period of five years initially. If the project/scheme is found to be successful, subsequent selection of agency will be done through a competitive open tendering process. This policy is applicable for all departments receiving an unsolicited proposal for enhancement of revenues of the Railways, especially the non-fare revenue such as advertising, short term land licensing etc. where no policy exists. The following guidelines are issued for the consideration of such unsolicited proposals by the Railways. 2. Definitions: 2.1. Agency: Any person or legai entity which is selected through an open transparent and competitive Bidding Process for execution of the Earning Plan submitted by the proponent and finalised by the Railway. 2.2. Bids. means the technical-cum-commercial offers submitted by the Bidders in response to and in accordance with the Bid Document. 2.3. Bidder: Any respondent to the Bid, other than the Proponent who participates in the Bid Process for award of the Bid. 2.4. Bidding Process: means the single stage two packet processor the two stage process with the second stage of online forward-Auction. The process will be through open competitive bidding for selection of the Agency to execute the Earning Plan as finalised by the NFR Evaluation Committee. 2.5. Earnest Money: the amount to be deposited in cash, demand draft, bankers cheque, pay order by the Proponent to the Railway Authority, for consideration of his Unsolicited Proposal by the Railway. This amount shall be adjustable against the Performance Security required as per the Agreement to be entered into by the Railway on Page 2 of 20 2.6. 2.7. 2.8. 2.9. Selection of the successful Bidder as per the Bidding Process. The Earnest Money will be 1% of the average annual Earning from the project/scheme as proposed. in the commercial offer submitted by the Proponent, subject - to a minimum amount of Rupees Twenty Five Thousand (2 25000). No interest is payable by the Railway on the Earnest Money. Earning Plan: A detailed report of the project/scheme to be prepared by the Proponent outlaying the planning and implementation of the projectischeme. The plan shall contain detailed technical specifications of the tec
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