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Implementation of CoD project by Railtel

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Implementation of CoD by RailTel- Mechanism for payments to Railways (ii) Revenue Share - Revenue share to IR shall be in the range of 10% to 45% depending upon the

Text of the circular

GOVERNMENT OF INDIA MINISTRY OF RAILWAYS RAILWAY BOARD 2016/NFR/7/2/CoD New Delhi, Dated: 29.06.2020.

The Chairman cum Managing Director, The General Manager RailTel Corporation of India Ltd.

All Zonal Railways NBCC Building Office Tower-2 VIth Floor Plate-A, East Kidwai Nagar

The Chief Commercial Manager(NFR) New Delhi 110023

Northern Railway, Baroda House New Delhi

Sub: Implementation of CoD by RailTel- Mechanism for payments to Railways

Ref: (i) This office letter of even no. dated 11.07.19, 20.09.19, 15.10.19, 27.11.10 & 27.04.2020.

(ii) RailTel’s letter No. RCIL/CO/2020/NTP/Rly Projects/COD Implementation/0101/Vol- dated

11.04.2020

It is advised that streaming Audio and video Digital Entertainment Content services are planned to be provided in 5867 Mail/Express and Suburban trains and video content services are planned on all wi-fi enabled Railway Stations. These shall be provided under Content on Demand (COD) project which has been entrusted to Railtel who have selected Digital Entertainment Services Provider (DESP) for implementation. The procedures to be followed by Railtel and IR in respect of the two components of

earnings accruing to Railways from DESP are as follows:

(i) Minimum Guarantee — IR share based on COD agreement works out to Rs. 31.5 cr p.a. RailTel will advise the amount due to the Railways on a quarterly basis, based on which PFA, Northern Railway will raise invoice on RailTel with GST as applicable on reverse charge mechanism. RailTel will release the payment within 15 days from the end of the previous quarter. In case RailTel fails to pay the Railways’ share within the stipulated time then they shall be liable to pay an interest @2% for

every month or part thereof, of delay. In this regard a statement of ZRs Minimum Guarantee share

shall be sent in due course

(ii) Revenue Share - Revenue share to IR shall be in the range of 10% to 45% depending upon the revenue slabs on a monthly basis. Zone-wise monthly accrual of revenue will be calculated: and.

communicated by RailTel to PFA/Northern Railway (designated nodal Railway) on a monthly basis, based on which NR will raise a Tax Invoice to RailTel with GST on reverse charge mechanism as applicable on behalf of all Zonal Railways. RailTel shall make payments of Indian Railway’s share to PFA/Northern Railway. On receipt of IR share from RailTel, PFA/NR will make the requisite

reapportionment to the Zonal Railways respectively. ‘

2. The apportionment over Zonal Railways will be done taking into account the ownership of trains (primary maintenance). The adjustments between the Railways shall be done through book adjustments.

The amount receivable towards Minimum Guarantee Fee as well as Revenue Share will be subject to GST payment on Revese Charge basis. Northern Railway will raise consolidated Fee Invoice towards Revenue share against RailTel. The statement should also contain Railway-wise share to be distributed to other Railways by Northern Railway from the amount so increased through book adjustments (issue of inter-

railway transfer certificate).

3. Digital Entertainment Service Provider (DESP) shall develop generation which shall be monitored by RailTel (Ref para 4 of L to M/s Margo Network Pvt. Ltd which has also been forwarded to form the basis of revenue accountal. sng

Scanned by CamScanner

4 Earnings from COD shall be accounted for under head Z-614 of sub head 610 Abstract “Z” Sundry

earnings, in the monthly MCDO.

ach quarter/each year.(ref para 3.2 of LoA dated d and paid for within 10 days

atement of reconciliation for € RailTel with

f above reconciliation shall be settle /year. Accordingly, IR share shall be reconciled by

all be paid to IR.

5. DESP shall prepare a st

14.01.2020) Adjustment arising out 0 from the end of corresponding quarter PFA, Northern Railways and any outstanding dues sh

hall be the Nodal Officer for any communication on the matter.

6. CCM (NFR), Northern Railway s e Directorate of

s with the ap

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