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| Circular number | No. 2018/Catering/600/01 |
|---|---|
| Date | 2022-01-15 |
| Type | Rates Master Circular |
| Topic | catering |
Management of Food Plaza/Food Court/Fast Food Units by IRCTC- Charging of land license fee and revenue share from Food Plaza/Fast Food Units /FoodCourt being set up by IRCTC Food Plazas, Fast Food Units and Food Courts and realise
Yra NTY GOVERNMENT OF INDIA AIE MINISTRY OF RAILWAYS (RTd dis RAILWAY BOARD) No. 2018/Catering/600/01 New Delhi, Dated:15.1.2022 Principal ChiefComnercial Managers, All Indian Railways. Chairman and Managing Direetor, IRCTC,StatesmanHouse Building. Barakhambha Road. New Delhi. Sub-Management of Food Plaza/Food Court/Fast Food Units by IRCTC- Charging of land license fee and revenue share from Food Plaza/Fast Food Units /FoodCourt being set up by IRCTC. Ref- 0)Commercial Cireular No. 20 of 2017-Catering Policy 2017. (ii) Master Circular on Policy for Management of RailwayLand issucd vide Board's Letter No. 2021/LML/25/5 dated 04.10.2022. During the course of examination, it was found that out of the 406 sites allotted to IRCTC for setting up and operation of Food Plaza/Food Courts/Fast Food Units, land license agreement has been done in respect of 18 no. of units only. Further, discrepancy in applicability of land license fee in respect of such units has also been noticed. The issue has been examined in consultation with L&A and Finance Commercial Dtes and following is advised: 1. For Food Plazas, Fast Food Units & Food Courts, annual land license fee is to be charged in terms of Board's letter no. 2021/LMU/25/5 dated 04.10.2022 i.e. @6% ofmarketvalue of land with annual escalation of 6% w.e.f. 04.10.2022. For the period prior to 04.10.2022. annual land license fee is to be charged in terms of Board's letter no. 2005/1LML/IS8 dated 10.02.2005 and 08.06.2005ie. @6% (open area) and @75% (covered area) of the market value of railway land with 7%annual increasc. 2. Land license fee is to be levied w.c.f. the date the land/space is handed over to IRCTC irrespective of the date of commencement of services. 3. Land license agreement for the remaining Food Plazas, Fast Food Units, Food Courts has to be signed between Zonal Railways and IRCTC with immediateeffect in terms of Catering Policy 2017.No unit should be operated wthout a land license agreement. 4. In addition to land license lee, Railway shall collect the revenue share as stipulated in para 12.4 of the Catering Policy 2017. 5. Zonal Railways shall calculate the land license fee and revenue share in respect of cach Food Plazas, Fast Food Units and Food Courts and realise the same from IRCTC. Further, all pending liabilities should also be recovered. 6.IRCTC shall not sub-lease/sub-license/mortgagetransfer/relinquishment of railway land to third party for the pupose of setting up of Base Kitchcns/Kitchen Units/Food Plaza/Food Court Fast Food Units as stipulated in para 3.8.11 of the C'atering policy 2017 to be read along with para 5.2 of Board's I.ctter No. 2021/LML/25/5 dated (04.10.2022. 7.Other relevant conditions of Master Circular on Policy for Management of Railway Land IsSucd vade Bvurd's Letler No. 2021/LML/25/5 dated 04.10.2022 shali be applicable. his 18sues wilh concurrence of Finance Commereial and Land & Amenities Direetorates of Ministry of Railways. (Sumeet Singh) DTCG asDir.(T&C) RailwayBoard No. 2018/Catering/600/01 New Delhi, Dated:.I1.2022 Copy to: PFA/All Indian Railwaysfor information & necessary action please. For Member Finance, Railway Board
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