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Commercial Publicity contracts — Reserve price & Rate of Escalation on Licence fee

Commercial Circular No. 70 of 2012 · 2012-11-02
Historical — likely supersededCircularadvertising
Historical — likely superseded. This circular predates 2020 and has probably been replaced. Treat it as a record of what the rule was, not what it is. The official Railway Board PDF always prevails over anything shown here.

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Circular numberCommercial Circular No. 70 of 2012
File numberNo. 2012/TGIV/11/40
Date2012-11-02
TypeCommercial Circular
Topicadvertising
CurrencyHistorical — likely superseded
Official PDFindianrailways.gov.in

Summary

Commercial Publicity contracts — Reserve price & Rate of Escalation on Licence fee that the Reserve price for the first year should be 1.5 times the highest annual

Text of the circular

GOVERNMENT OF INDIA 
MINISTRY OF RAILWAYS 
(Railway Board) 
No. 2012/TGIV/11/40 
New Delhi Dt. 2/11/2012 
The General Managers, 
All zonal Railways. 
COMMERCIAL CIRCULAR No. 70 OF 2012 
Subject: Commercial Publicity contracts — 
Reserve price & Rate of Escalation on Licence fee 
Reference 1 
Board's letter No. 2005/TG 1V/39/8/E01 dated 31/01/2012, 
Commercial Circular No. 8/2012. 
2 
Board's letter No. 2005/TG IV/39/8/E01 dated 27/04/2010, 
Commercial Circular No. 24/2010. 
3 
Board's letter No. 2005/TG IV/39/8/E01 dated 30/07/2009 
,Commercial Circular No. 34/2009. 
4 
Board's letter No. 2005/TG IV/39/8/E01 dated 18/12/2008 , 
Commercial Circular No. 74/2008 
5 
Board's letter No. 2005/TG IV/39/8/E01 dated 07/02/2008, 
Commercial Circular No. 9/2008 
6 
Board's letter No. 2005/TG IV/39/8/E01 dated 01/06/2007, 
Commercial Circular No. 58/2007 
7 
Board's letter No. 2005/TG 1V/39/8/E01 dated 23/10/2006, 
Commercial Circular No. 90/2006 
8 
Board's letter No. 2005/TG IV/39/8/E01 dated 01/05/2006, 
Commercial Circular No. 36/2006 
Railways have been advised to give Bulk Advertising Rights on an entire 
Railway Division and the guidelines in this regard have been issued vide 
Board's letters referred to above. 
2. 
The extant instructions inter-alia provide that the reserve price for the 
first year should be three times the actual publicity earnings of the entire 
division during any of the preceding three financial years and the licence fee in 
the second, third, fourth & fifth year should be enhanced by 10%,15%,20% & 
25% respectively over that of the previous year.

3.
Suggestions were received from zonal Railways that the existing 
provisions for enhancement in the escalation of the reserve price by 
10%,15%,20% & 25% respectively over that of the previous year may be 
revised so that there is a uniform rate of 10% escalation. 
4.
The proposal has been examined in the light of repeated failure of 
Tenders brought out by the zonal Railways. Accordingly, it has been decided 
that the Reserve price for the first year should be 1.5 times the highest annual 
commercial publicity earnings of the entire division during any of the 
preceding three financial years and the licence fee in the second, third, fourth 
& fifth year should be enhanced by a uniform rate of 10% over that of the 
previous year. 
5.
Other existing instructions in this regard will continue to be applicable. 
6.
This also disposes of the proposal received from Central Railway vide 
letter No. C.465.CP.Policy.123 dated 25/09/2012. 
This issues with the concurrence of Finance Directorate of Ministry of 
Railways . 
(R.C.Pandey) 
Deputy, Director, Traffic General II 
Railway Board 
No. 2012/TGIV/11/40 
New Delhi Dt. j /11/2012 
Copy to: 
FA&CAO, All Zonal Railways 
Director(Audit),All Zonal Railways 
F(C) Branch, Railway Board. 
For Financial Commissioner, Railways. 
Copy to: 
The Chief Commercial Managers, All zonal Railways.

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