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…

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Summary

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

Text of the circular

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

Related circulars

• Related: Commercial Circular No. 08 of 2022
• Related: cc 35/2010
• Related: Commercial Circular No. 20 of 2017
• Related: Commercial Circular No. 56 of 2005
• Related: Commercial Circular No. 52 of 2018

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