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| Circular number | Commercial Circular No. 29 of 2014 |
|---|---|
| File number | No. 2012/TGIV/11/40 |
| Date | 2014-07-01 |
| Type | Commercial Circular |
| Topic | advertising |
| Official PDF | indianrailways.gov.in |
Commercial Publicity Contract (iii) The period of contract for all commercial publicity contracts shall be upto
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/EO] dated 31/01/2012, Commercial Circular No. 8/2042. (ii) Board’s letter No. 2012/TGIV/4 1/40 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. . ह) 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 detéiiined and indi¢ated 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. (ii) Tender Committee shall assess the reasonableness of the rates quoted by the highest bidder vis-a-vis LAR, market condition, any specific conditions influencing the earning potential prevailing at the location etc. (iii) The period of contract for all commercial publicity contracts shall be upto three years except in cases of contracts which involve installation of capital intensive infrastructure like video walls, electronic billboards, sculptures etc. where the period of contract can exceed three years and can upto a maximum period of ten years. The period of contract shall be finalized before initiating the tender process in consultation with associate finance. (iv) For contracts of currency upto three years, there will be no escalation 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 and maximum upto one year subject to the willingness of the party. The extension shall be granted with the approval of DRM/ADRM at Divisional level and GM /CCM at the Zonal level as the case may be (in accordance with the SOP mentioned in Commercial Circular No.74/2007), after prior concurrence of associate finance. In such cases, the license fee applicable for the extended period shall be escalated by 10% on the license fe
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