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| Circular number | Commercial Circular No.29/2014 |
|---|---|
| File number | No. 2012/TGIV/11/40 |
| Date | 2014-07-28 |
| Type | Commercial Circular |
| Topic | advertising |
| Currency | Historical — likely superseded |
| Official PDF | indianrailways.gov.in |
Clarification on Commercial Circular No.29/2014 regarding Commercial Publicity Contracts reserve price in case of three consecutive failures to finalise tenders due to
_ GOVERNMENT OF INDIA MINISTRY OF RAILWAYS (RAILWAY BOARD) No. 2012/TGIV/11/40 New Delhi Dt. 28/07/2014 Chief Commercial Managers, All Zonal Railways. Sub: Clarification on Commercial Circular No.29/2014 regarding Commercial Publicity Contracts. Instructions were issued to Railways vide Commercial Circular No.29/2014 for adopting the estimated value/assessed earnings potential of the concerned media as a base line for accepting all commercia! publicity contracts . Some of the Zonal Railways have sought clarification about applicability of this circular in case of commercia! publicity through vinyl wrapping of trains, and electronic media etc. In this regard, it is clarified that the guidelines contained in para 3 (i) to (v) of the Commercial Circular No.29/2014 shall be applicable to all audio- visual media including advertisement spaces available at stations, on passenger carrying trains (exteriors, interiors, on board), on wagons , on PRS/UTS tickets ete. This issues with the concurrence of Finance oom हे f Railway Board. (Dr. S.K.Ahirwar) Director Traffic Commercial (G) Railway Board GOVERNMENT OF INDIA MINISTRY OF RAILWAYS (RAILWAY BOARD) No. 2012/TGIV/11/40 New Delhi, Dt: 01/07/2014 The General Managers, All Zonal Railways. COMMERCIAL CIRCULAR No.29/2014 Sub: Commercial Publicity Contract. Ref.: (i) Board’s letter No 2005/TGIV/39/8/EOI dated 31/01/2012, Commercial Circular No. 8/2012. (ii) Board’s letter No. 2012/TGIV/11/40 dated 9/11/2012, Commercial Circular No. 70/2012. (iii) Board’s letter No. 2012/TGIV/11/40 dated 22/04/2013, Commercial Circular No. 31/2013. The existing provisions regarding bulk advertising rights under the above mentioned circulars inter-alia provide that the reserve price for the first year should be 1.5 times the highest annual commercial publicity earnings of the entire division/cluster of stations/station/zones of a station during any of the preceding three financial years, uniform enhancement of 10% in the license fee every year over the previous year (C.C.No.31/2013) and downward revision of reserve price in case of three consecutive failures to finalise tenders due to various reasons (C.C.No.8/2012). 2.0 Zonal Railways have reported that the practice of determining reserve price-on the basis of the aforementioned circulars to finalise tenders for awarding advertising contracts has not been fruitful and is not in consonance with the market dynamics. 3.0 Accordingly, in supersession of para 4 of CC No. 31/2013 relating to reserve price and CC No. 8/2012 regarding revision of reserve price, the following has been decided. (i) | Henceforth, the existing provision regarding fixing Reserve Price for all commercial publicity contracts is dispensed with. To overcome repeated failure of finalization of tenders on account of no bids or bids not matching the reserve price, the concept of notifying the estimated value/assessed earnings potential of a location in the open tenders (as being done in normal works contracts) shall be adopted. The assessment of earnings potential shall be determined and indicated in the bid document on the basis of Last Accepted Rates (LAR) inclusive of escalation if any inbuilt in the previous contract, the prevailing market conditions, any specific conditions influencing the earning potential prevailing at the location etc. (iv) For contracts Of Currency upto three years, there will be no €scalation in the license fee. In case of contracts where duration of contract period is more than three years, an annual escalation of license fee at the rate of 10% per annum on the license fee of the immediate preceding year shall be applicable from the fourth year onwards. (V) Notification for fresh tenders shall be done well in advance (say 4 months) before the expiry of the existing contract. Only in cases where new contract is not finalized due to unavoidable circumstances, the existing contract shall be considered for extension for a period of six months ata time
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