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| Circular number | Commercial Circular No. 05 of 2017 |
|---|---|
| File number | No. 2017/NFR/3/1 |
| Date | 2017-01-10 |
| Type | NFR Policy |
| Topic | advertising |
| Official PDF | indianrailways.gov.in |
Policy on advertisement through Mobile Assets kkk e Indian Railways shall assess the train advertising plan on the
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 Page 2 of 4 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. Package size
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