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Clarifications and Modifications to Non-Fare Revenue (NFR) Policies issued vide CC Nos. 01, 04, 05 and 50 of 2017 dated 10.01.2017 and 11.07.2017 respectively

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Summary

Clarifications and Modifications to Non-Fare Revenue (NFR) Policies issued vide CC Nos. 01, 04, 05 and 50 of 2017 dated 10.01.2017 and 11.07.2017 respectively EMD shall be fixed at 10% of the total value of the contract as decided by the

Text of the circular

GOVERNMENT = INDIA MINISTRY OF RAILWAYS RAILWAY BOARD

f 2018/NFR/47 New Delhi, dated 12.09.2018

The General Managers, All Indian Railways Metro Railway, Kolkatta

(Commercial Circular No.4@/2018)

Sub: Clarifications and Modifications to Non-Fare Revenue (NFR) Policies issued vide CC Nos. 01, 04, 05 and 50 of 2017 dated 10.01.2017 and

11.07.2017 respectively.

Background

Subsequent to the decentralization of bid process management and delegation of powers of implementation of NFR policies to the Zonal Railways, clarifications were sought by Zonal Railways, in the meetings held on 12.06.2018 and 07.08.2018.

In the backdrop of Chairman, Railway Board’s DO letter dated 12.07.2018 to General Managers of Zonal Railways vesting full powers in them and advising to move forward in a mission mode to generate Non-Fare Revenue, based upon feedback and experience gained from the exercise to award contracts for NFR policies, following clarifications and modifications are issued:

Common Clarifications and Modifications applicable on above policies:

1. Contract Tenure and Temporary Extension i.1 The license shall be awarded for minimum of 3 years and maximum of 5 years.

Nine months prior to the completion of existing contract, the tendering process

for awarding new contract must be initiated and tender must be finalised prior to completion of existing contract to avoid any revenue loss on this account.

1.2 There shall be no extension of contracts. However, in exigencies, if a new tender is not finalised within period of completion of the existing contract, competent authority

*

(a) may give an extension on pro rata basis for a maximum period of six months or till completion of tendering process whichever is earlier:

(b) — with Finance concurrence; and

(c) duly recording the reasons for such an extension.

1.3 Extension, if any, shall be subject to satisfactory performance of the contract.

with no breach of contractual obligations and compliance of all payment obligations by the Licensee.

1.4 In addition, if even after the first extension of 6 months to the contract, due to

certain exigencies, a further extension is required, the same may be granted

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|. (8)... fora maximum period of six months;

(b) by General Manager;

(c) with Finance concurrence;

(d) based upon personal recommendation of Divisional Railway Managers/ Chief Commercial Managers

that the new contract will be in place within the extension period.

1.5 Total period of extension shall not be more than one year. If there has been avoidable delay, suitable action should be taken.

2. Tendering Methodology

i)

Zonal Railways may engage the services of a Professional Media Market Evaluation Agency (PMMEA), if required, who shall invite open bids on behalf of the Zonal Railways after confirming the details about available sites which are in operation or have been identified but not under contract.

2.2 The contracts should be implemented through e-tendering and bidding should be through ascending/ forward e-Auction. However, tendering may be continued in traditional mode till e-tendering and e-auction modules are made available by CRIS.

3. Earnest Money Deposit (EMD), Security Deposit (SD) and Payment

3.1. EMD shall be fixed at 10% of the total value of the contract as decided by the Zonal Railways.

3.2 Zonal 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. This shall be taken in advance for the entire duration of the contract.

2

Zonal Railways shall receive License Fee in advance in instalments as decided by Zonal Railways in the manner set out in the License Agreement.

LoS) L.

4. Escalation clause

4.1 The license fee shall escalate by 10% each year after the end of the first 3 years of the contract.

5. Bid Process Management

5.1 Zonal Railways shall be responsible for:

5.1.1 Overall Bid Process Management;

5.1.2 Prepar

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