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Amendment to the Policy for ‘Commercial Earning and NFR Contracts’ awarded through e-Auctions

FREIGHT MARKETING CIRCULAR No. 12 of 2024
Circularnfr-eauction

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Circular numberFREIGHT MARKETING CIRCULAR No. 12 of 2024
File numberNo. 2022/TC(FM)/10/04
TypeFreight Marketing Circular
Topicnfr-eauction
DirectorateTraffic Commercial (Freight Marketing)
Official PDFindianrailways.gov.in

Summary

Amendment to the Policy for ‘Commercial Earning and NFR Contracts’ awarded through e-Auctions The Principal Chief Commercial Managers, All Indian Railways.

Text of the circular

2022/TC(FM)/10/04 = FREIGHT MARKETING

CIRCULAR No. 12 of 2024
/3092712/2024 —

भारत सरकार /GOVERNMENT OF INDIA
रेल मंत्रालय / MINISTRY OF RAILWAYS
(रेलवे बोर्ड / RAILWAY BOARD)

No. 2022/TC(FM)/10/04 New Delhi, dated 0£.04.2024

The General Managers,
All Zonal Railways.

(Amendment No. 02 to FM Circular No. 11 of 2022)

Sub: Amendment to the Policy for ‘Commercial Earning and NFR Contracts’
awarded through e-Auctions.
Ref: i. Freight Marketing Circular No. 11 of 2022, issued vide Railway Board’s
letter of even no. dated 13.06.2022.
ii. Freight Marketing Circular No. 12 of 2023, issued vide Railway Board’s
letter of even no. dated 06.07.2023.

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‘Policy’ and ‘Standard Conditions of Contract’ for Commercial Earning and NFR
contracts awarded through e-Auctions, were issued vide Railway Board’s above referred FM
Circular No. 11 of 2022.

2. An issue of revocation of termination of contract has been highlighted by a Zonal
Railway, wherein the contract could not be reinstated in the e-Auction portal.

3. The matter pertaining to revocation of contract cancellation based on appeal, has been
deliberated upon, and the Competent Authority has approved following modifications in the
FM Circular No. 11 of 2022 (i.e. Policy for Commercial Earning and NFR contracts awarded
through e-Auctions):

(i) Para 19.4 is added as under:

“Efforts must be made to initiate the process of re-auctioning of the assets (terminated

on account of action taken in terms of para 19.2) immediately so as to avoid opportunity
loss to Railways. However, finalization of auction to take place only after disposal of
the appeal”

(11) Para 25.2 is modified as under:

“DRM/concerned PHOD/CHOD may take decision on such appeal duly considering the
merits of the case, including earlier defaults of the contractor, as well as the
documentary evidences, if any, submitted by the contractor. DRM/concerned

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2022/1TC(FM)/10/04 = pRFIGHT MARKETING
/ CIRCULAR No. 42. of 2024

PHOD/CHOD shall take a considered decision, so as not to give any undue benefit to
a habitual defaulter. Decision (i.e. revocation/ rejection of the appeal) of
DRM/concerned PHOD/CHOD shall be final, which shall also be uploaded (along with
specified date of such order) on the e-Auction portal, so as to bring transparency in
the system. The appeal should be decided within 14 days from the date of submission

of appeal”
(iii) Para 25.3 is added as under:

“In case, the punitive action of termination of contract on any grounds (including
failure to deposit full amount of lump-sum freight/ rent/ license fees), is revoked by the
Appellate Authority, the contractor shall be allowed to reinstate the contract subject to
deposition of total lump-sum freight/ rent/ license fee alongwith penalty at the maximum
rate defined in para 19.1 or 19.3 (as the case may be) of the Policy, for the subsequent
days beyond the grace period detailed in para 19.1 or 19.3 (as the case may be) upto the
date of revocation.”

4. These instructions shall come into force with immediate effect.

5. This issues with the concurrence of Finance Directorate of Ministry of Railways.

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(Ashutosh Mishra)

Joint Director Freight Marketing
Railway Board

6. Receipt of this letter may please be acknowledged.

No. 2022/TC(FM)/10/04 New Delhi, dated 0% .04%.2024
Copy forwarded to:

1. The Deputy Comptroller & Auditor General of India (Railways) Room No. 224, Rail Bhawan

with 36 spares.
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2. Principal Financial Advisors, All Indian Railways.
For Member (Finance)/Railway Board

No. 2022/TC(FM)/10/04 New Delhi, dated 0% .042024
Copy forwarded for information and necessary action to:

1. The Principal Chief Operations Managers, All Indian Railways.

Page 2 of 3

/3092712/2024

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2022/TC(FM)/10/04 — FREIGHT MARKETING
: CIRCULAR No. 12. of 2024

The Principal Chief Commercial Managers, All Indian Railways.

The Chief Passenger Transportation Managers

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