Railways Unveils New Catering Policy-2010
Published on July 24, 2010 by INVC · 550 Comments
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INVC,,
Delhi,,
The Railway Minister, Mamata Banerjee, while presenting the Railway Budget 2010-11, has announced that the Catering Policy is under revision and will be finalized as early as possible. As a follow up to this announcement, the Ministry of Railways has unveiled the new Railway Catering Policy-2010, here today. The salient features of the Policy are as follows:
- The policy will have an inclusive approach where from the least advantaged passenger to the relatively affluent will be provided catering services in a socially responsible manner.
- IRCTC will be only responsible for running of food plazas, food courts, fast food units within the ambit of this policy.
- Management of all major and minor units including mobile units except Food Plaza, Food Courts and Fast Food Units to be departmentalised. Departmentalisation of mobile catering services including base kitchens in phases.
- A specialized team of ex-cadre of supervisors and officers upto Senior Scale will be formed which will be filled by incumbents from existing Railway cadres.
- For provision of services through departmental staff of zonal railways, trained personnel from reputed Institutes of Hotel Management /Catering Institutes/Food Craft Institutes, etc. would be involved.
Quality Assurance
- Standard Bidding Document to be formulated professionally with emphasis on quality through adequate weightage.
- To ensure quality, hygiene, cleanliness and use of standard ingredients for food served on trains a grid of mega, medium and small base kitchens would be set up and meals for mobile catering would be picked up from these railway specified, supervised and controlled base kitchens.
Monitoring
- Monitoring mechanism through inspections and quality checks. A detailed system for complaint redressal including setting up of complaint monitoring cell, website and toll free numbers.
- Departmentally Managed Units shall serve as beacon of excellence and define the quality paradigm for the licencee catering units.
- Upgrade the skills of the staff and modernization of units by inducting appropriate technology and methods.
Measures to control monopoly – Ceiling Limit
- MINOR UNITS: – A maximum of two minor catering units at a station and a maximum of 10 units per Zonal Railway. In case of suburban section, ceiling limit of 2 units per division.
- MAJOR UNITS: – All mobile catering units shall be managed departmentally progressively. However, when it is licencee managed catering services the ceiling shall be as under:
- Food Plazas/ Fast Food Units/ Food Courts: A maximum of two units per Division and a maximum 10% of all the units over Indian Railways.
- Refreshment Rooms:- A maximum of two units per Division and a maximum 10% of all the units over Indian Railway.
- Premium Franchisees outlets including stand-alone beverage vending machines:- A maximum of 10% of all the units over each Railway.
- Mobile Units and Base Kitchens:- All mobile units and Base Kitchen shall be managed departmentally progressively in a phased manner. During the interim period licencee operated units will be allowed to hold a maximum of 10% of all major units over Indian Railways.
Renewal
Renewal to be stringent. Renewal will be based on satisfactory performance of the licencee, payment of all dues/ arrears, Annual Performance Reports on catering for the period of tenure for the contract (a minimum cut off criteria for grant of renewal, to be notified by the zonal railways in advance). Imposition of fine/warnings on more than 5 occasions will result in non-consideration of the renewal proposal.
Licence fee
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General Minor Units at ‘A’, ‘B’ and ‘C’ Category stations & Food Plazas and Refreshment Rooms.
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Minimum licence fees / minimum reserve price (in case of tendered units) fixed realistically, equitably in order to have a fair, just and equitable fixation of licence fees without adversely affecting the quality of service. Based on the following factors (i) category of station, (ii) type of licence, (iii) number of originating passengers, (iv) number of trains stopping (day & night), (v) duration of stoppages (vi) location of the unit at the station, (vii) approximate licence fees of a similar type of unit at a similar category of station in proximity. In case of Static Units on Category ‘A1’ and ‘A’ stations of Metro cities, and ‘C’ Category stations having high purchasing power, the fixation of minimum licence fee will apart from all other factors take into account the Circle rates notified by the competent authority of the State Government as fixed from time to time. The zonal railways shall evolve a formula based on the above parameters for fixing the licence fees for the units falling within their jurisdiction. A Committee comprising three SA Grade officers from Commercial, Finance and Civil Engineering shall be nominated by the General Manager which shall fix the formula for each category of stations. The formula so fixed by the zonal railway shall be applicable to the entire zonal railway. Apart from the above zonal railways may include and consider any other factor/s unique to the unit/units.
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All Minor Units at ‘A’, ‘B’ and ‘C’ category stations
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All Minor Units at ‘D’, ‘E’ and ‘F’ category stations
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All Milk Stalls
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7% of sales turnover
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Mobile Units -
Rajdhani/ Shatabdi/ Duronto trains
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15% of actual sales turnover + one time bid amount.
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Mobile Units - Other Mail Express trains
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12% of actual sales turnover + one time bid amount.
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Base Kitchens
- Grid of mega, medium and minor Base Kitchens to be set up on railway premises.
- Departmental or through engagement of professionals under departmental supervision.
- Meals for mobile units to be picked up only from nominated base kitchens on transfer rate basis.
- On-board services to be departmentalized. During non-availability of departmental staff, service contracts under departmental supervision.
- Meals for static units on stations to be taken on transfer rate basis from base kitchens available or areas earmarked for setting up of kitchens on railway premises.
Management
- Management of all mobile catering units and base kitchens to be departmentalize in phases. Two Packet Systems of Tendering will be followed by zonal railways while selecting the successful bidder for award of major contracts and GMU at A, B & C category stations by the Zonal Railway.
- Allotment of Special Minor Units and General Minor Units at D, E, F category stations will be allotted by DRMs by calling applications. In the eligibility criteria weightage will be given to previous experience in catering business.
- AVMs – Allotment by zonal railways under two packet bidding system.
- Milk stalls at ‘A’, ‘B’ and ‘C’ stations – allotment by zonal railways by calling of applications.
- Milk stalls at ‘D’, ‘E’ and ‘F’ stations – No Change.
Allotment
- Allotment of all major units (except food plaza & base kitchens) will be for a period of 5 years. There will be no renewals.
- General Minor Units at A, B & C category stations will be for a period of 5 years. Renewal will be every 3 years.
- General Minor Units at D, E & F category stations will be for a period of 5 years with renewal after every 5 years for a further period of 5 years.
- Special Minor Units at A, B, and C category stations will be for a period of 5 years with a renewal every 3 years.
- Special Minor Units at D, E, F category stations will be for a period of 5 years, however, have a provision for renewal after every 5 years for a further period of 5 years.
- Allotment of Food Plazas will be for 9 years with an extension of 3 years on satisfactory performance.
- Milk stalls at ‘A’, ‘B’ and ‘C’ stations – 3 years and renewal every 3 years.
- Milk stalls at ‘D’, ‘E’ and ‘F’ stations – 5 years and renewal every 5 years.
Menu & Tariff
- Rajdhani/Shatabdi/Duronto trains fixed by Railway Board. -
- Standard meals, beverages and packaged drinking water, Janta Meals fixed by Railway Board.
- Jan Ahar items by zonal railways.
- A-la-carte items by zonal railways.
- Food Plaza, Food Courts and Fast Food Units by IRCTC.
- Emphasis on regional cuisines.
Reservation
- 25% for minor units in A, B & C categories of stations.
- 49.5% for allotment in D, E & F categories of stations.
- No reservation for major units.
Train Side Vending
Train Side Vending will be provided from a suitable unit of a nominated station/stations enroute. For this purpose arrangements will be made through static units by either segmentation of run or end to end basis as practicable.

Tags: Railways Unveils New Catering Policy-2010
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