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Commercial Earning Contracts E auction NFR.docx

No. 2022/TC(FM)/10/04 · 2022-04-11
Currency not verifiedCircularnfr-eauction
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Circular numberNo. 2022/TC(FM)/10/04
Date2022-04-11
TypeNFR Policy
Topicnfr-eauction
CurrencyCurrency not verified

Summary

●Eligibility criteria for Commercial Earning Contract through

Text of the circular

Commercial Earning Contracts – NFR Non-Fare Revenue –
E Auction & Asset Management
M.Nageswara Rao 9492432160
Source: Railway Board Letter No. 2022/TC(FM)/10/04 dated 11.04.2022
Salient features:
●Pilot Project – 13 Divisions in IR
●Introduced E-Auction instead of Tendering system
●Through IREPS
●Tender Committee not required
●Asset creation by the Asset holder
●Auction catalogs – Published on IREPS in the public domain
●The eligibility criteria is Financial Turnover (Self-declaration &
documents uploaded by bidders)
●Bidders’ identity is masked. Only the H1 rate will be visible.
●Auto decision – On the spot award to H1, if the rate is equal to or
more than RP.
●Minimum Notice period – 12 days
●Standard Conditions of Contract issued by Railway Board.
Financial TurnOver:
●Eligibility criteria for Commercial Earning Contract through
E-Auction.
●Verification of Turn Over Certificates – done after awarding
Contract to H1
●Self-Declaration plus Documents uploaded by the Bidders

Auto Extension:
●Every 2 minutes
●If any fresh bid received within the last 2 minutes
●Maximum – 10 times
RP Reserve Price:
●Fixed by ACO – Auction Conducting Officer
●Not to be disclosed to the Bidders.
●Vetting is not required.
EMD / SD
●5 %
●Instant deduction of 5 % of EMD of H1.
●No blockage of EMD of other Bidders
●Forfeiture of EMD in case of the wrong declaration of Financial
Turnover.
ACO – Auction Conducting Officer
●JAG or Sr. Scale (Independent charge), if JAG is not available.
●For encryption of RP – Reserve Price
●RP fixed by ACO and to be kept confidential
Bidders pre requisites
●DSC – Digital Signing Certificate
●One time registration in IREPS
●Online payment of Rs.10000 towards one-time registration

●Having Current Bank Account in SBI – State Bank of India
●Lien marking funds – for EMD
●Updating Financial Turnover details in IREPS
Advantages:
1. Prevention of Assets idling
2. Increased competition
3. Removal of entry barriers
4. Reduction in cycle time for placement of Contracts
5. Elimination of pilferages in payments
6. Unique code for each Asset to prevent duplication
7. Linkage of Asset code ID with Auction lots
8. System generated Bid Sheet and Contract
9. The contract can be placed within 15 days from the awarding of
the Contract.
Examples of Commercial Assets to be auctioned:
1. Parcel category - SLR Compartments, Parcel Vans
2. Parking category – Premium, Radio Taxi, Access Controlled,
Two-wheeler, Four-wheeler, and Mixed
3. Advertising - Out of Home.
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