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Policy on advertisement through Mobile Assets kkk

Commercial Circular No. 05 of 2017 · 2017-01-10
Circularadvertising

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Circular numberCommercial Circular No. 05 of 2017
File numberNo. 2017/NFR/3/1
Date2017-01-10
TypeNFR Policy
Topicadvertising
Official PDFindianrailways.gov.in

Summary

Policy on advertisement through Mobile Assets kkk e Indian Railways shall assess the train advertising plan on the

Text of the circular

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

No. 2017/NFR/3/1 New Delhi, dated 10/01/2017

The General Managers
All Indian Railways

(Commercial Circular No. 5 of 2017)

Sub : Policy on advertisement through Mobile Assets
kkk

Preamble

Hon’ble Minister of Railways announced in his Railways Budget
Speech 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.

Indian Railways has vast physical infrastructure which is ripe for
commercial exploitation through advertising. We intend to give
Special focus to exploiting advertising potential of our stations,
trains and land adjacent to tracks outside of big stations. In all, we
target to increase the advertising revenues by more than 4 times
the current revenues”

Objective

Pursuant to the aforementioned announcement, in order to
increase the revenue generated from advertisement in 2016-17, a
new policy on advertisement through mobile assets of Indian
Railways is necessitated. The objective of this policy is to facilitate
the Indian Railways to offer combined train packages consisting of

Page 1 of 4

internal and external advertisement. This will help in realizing
economies of scale and give more marketing flexibility, thereby
leading to higher realization of earnings for Indian Railways.

Components of the Tender Tender

e The licensee shall be allowed to advertise through vinyl
wrapping of train exterior which will be as per extant
specification laid down by RDSO, which presently is detailed

in specification no. RDSO/2010/CG-08 with drawing CG-
40076 for “Fleet graphic film on exterior of Indian Railway
coaches”

e The licensee shall be allowed to advertise inside the coaches
up to 250 square feet at locations specified by Railway
authorities which will not cover the Safety and passenger
related instructions

न. Vinyl wrapping will be permitted on Windows of air-
conditioned coaches also, subject to 70% visibility being
achieved. Vinyl wrapping on windows of non-AC coaches will
not be permitted.

न. No digital advertising shall be allowed. |

e The license fee shall escalate by 10% each year after 2 years

e The license shall be awarded for 5 (five) years starting from
the Effective Date. The contract shall be further extendable
by 5 (five) years subject to satisfactory performance and the
Licensee is not in breach of its obligations under the License
Agreement. The licensee should have complied with all its
payment obligations under the License Agreement)

° The Licensee shall submit the advertising plan for each train.

e Indian Railways shall assess the train advertising plan on the
basis of aesthetics, feasibility, safety and security, standards
and specifications of the materials used and their technical
or operational considerations. The Railways shall provide its
comments on the same condition within 15 days of the
receipt of the advertising plans. For the avoidance of doubt
any delay in approval of the advertising plan by the Railways
shall not be construed as deemed approval

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Detailed instructions and Contract agreement will be
contained in the RFP document

Viny! wrapping of the trains shall be done at the primary
maintenance base during the lie over period

There will be no prefixing and suffixing of corporate brand
names in the train names

Security Deposit and Payment

Indian Railways shall receive security deposit for an amount
equivalent to the 6 (six) months License Fee for each year of
the License Term by way of an irrevocable bank guarantee
Indian Railways shall receive License Fee in advance in
equated monthly installments in the manner set out in the
License Agreement.

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