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| Circular number | Commercial Circular No. 14 of 2008 |
|---|---|
| File number | No. 2007/Touism/140/12 |
| Date | 2008-03-07 |
| Type | Commercial Circular |
| Topic | train-services |
| Official PDF | indianrailways.gov.in |
Policy on Luxury Tourist Trains being operated or to be operated in | ° State Tourism Departmerits or Indian Railway Catering & Tourism
GOVERNMENT OF INDIA (BHARAT SARKAR) MINISTRY OF RAILWAYS (RAIL MANTRALAYA) (RAILWAY BOARD) ~~ No. 2007/Touism/140/12, Ss New Delhi, dated 7/03/2008 _ General Manager, , _ All Indian Railways. (Commercial Circular No. 14 of 2008) Sub: Policy on Luxury Tourist Trains being operated or to be operated in | association with State Tourism Departments or IRCTC Railway Board has reviewed the policy for all the Luxury Tourist Trains which have been introduced in the last five years and the new trains which may be introduced in: future in association with State Tourism Departments or Indian Railway Catering & © - Tourism Corporation Ltd. The main features of the revised policy are as under 1... The capital investment for manufacturing of the rake including furnishing of © - the rake for all the new projects will be made by State Tourism Departments / Indian Railway Catering & Tourism Corporation Ltd. except those projects ' for which specific commitments have been entered into 2. ° State Tourism Departmerits or Indian Railway Catering & Tourism Corporation. Ltd. will be responsible for marketing, publicity and the © management of the train including on-board, off-board and other services 3, ‘The ticket tariff for the trains. will be fixed by State Tourism Departments / , Indian Railway Catering & Tourism Corporation Ltd. under intimation to’ - , Railway Board. 4... The operation of the train will be undertaken by the Railways including the. _ + - provision of loco, track, terminal facilities and other concurrent facilities ‘required for operation of the train 5. The scheduled safety mairitenance including periodical overhauling of the. — train will be undertaken by the Railways. The charges for maintenance and . periodic over hauling will be paid by State Tourism Department / Indian ...- . Railway Catering & Tourism Corporation Ltd. as a part of the haulage — ': charges 6. . The Railways. will charge haulage charges. for the trip by the train for the initial three years. After three years of operation of the train, Railway will " take additional charges, in addition to haulage charges, as a percentage of gross revenue in a graded manner linked to the occupancy of the train as per — 10. Al. The additional charges, in addition to the haulage charges will be payable to | _. the Railways from the fourth year onwards of operation of the train as under: . Occupancy of the train Share of the Gross So : revenue payable to Coe , . Railway . Upto 50% Oo a 5% - Upto 60% .. 6 Upto 70%... 1% Upto 80% - 8% — Upte90% . .... OM: Above 90 ci 10% Gross revenue will mean the total revenue generated by the operation of the train from business of operating the tourist train which shall include. the charges for train journey, on-board services, off-board services, sales of any ‘kind including food items, beverages, spa / gym, souvenirs, etc. However, in order to simplify the calculation of revenue from value added services i.e. sale of beverages / liquor, spa / gym, souvenirs, etc.; Railway may fix the value of earnings from these services as a percentage of total ticket revenue which may vary from 5% to 10% of. the total revenue generated from standard ticket _ - tariff.. This percentage will be based on the actual sales of these. services in the first two-three years of operation of the train Revenue sharing arrangement for first five years of train operation should be | included in the agreement. After 5 years, the same should be reviewed. : _ Additional charges payable to the Railways as per para 7 will be applicable for the fourth and fifth year and these charges will be reviewed by Railways at the end of the 4" year of the operation of the train and. the revised rates will be , -. applicable from the 6" year onwards ं ः .. State Tourism Departments / IRCTC will maintain proper records related to the revenue and occupancy of the train and the details shall be made available to the Railways every quarter from
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