PRESENTATION

ON
SUNDRY, NFR AND EARNING
CONTRACTS

Shri B D CHRISTOPHER. IRTS

Dy.CCM/FS/SCR 1
 EARNINGS ON INDIAN RAILWAYS
 Major source of Earnings on Indian Railways –
 Passenger Earnings
 Other Coaching Earnings
 Goods Earnings
 Sundry Earnings
 Revenue and Capital Expenditure on Indian Railways are being met
from the above major source of Earnings.
 Revenue Expenditure is met for Salaries, Fuels, Maintenance, etc.
Capital Expenditure is met for Gauge Conversions, Construction of
New Lines, Station Development, Tractions, etc.
To meet Revenue and Capital Expenditure on Indian Railways,
Earnings Budget has a prominent role.
Surplus Earnings will be contributed to the contingency fund of
Government of India.
2
 SOURCE OF EARNINGS ON INDIAN RAILWAYS

Suburban
Passenger Earnings  First Class and General class passengers.
(20% of total earnings to Non-Suburban
end of Mar, 2022)  First AC, Second AC, Third AC, First Class, Sleeper Class and
Second Sitting passenger earnings.

Parcels
Luggage
Special Trains (other than Military)
Special Trains (Military Specials)
Other Coaching Earnings
Penalties imposed by Ticket Checking staff/Station Masters.
(3% of total earnings to
end of Mar, 2022) Platform tickets
Cloak Room charges
Postal Haulage charges
Cancellation and Clerkage charges.
Identity Cards
Demurrage/Wharfage
Miscellaneous
3
 SOURCE OF EARNINGS ON INDIAN RAILWAYS

Freight earnings
- commodities viz., Coal, Cement, Iron Ore, Foodgrains, Fertilizers,
Petroleum Products, Container services, Raw Material for Steel
Goods Earnings Plants (RMS) and others.
(75% of total Miscellaneous Goods earnings
earnings to the end - Demurrage/Wharfage
of Mar, 2022) - Stacking charges
- Siding charges
- Trip charges
- Shunting charges

Rent & Tolls

Non Fare Revenue (Commercial Publicity)
Sundry Earnings Catering
Parking
(2% of total earnings ATMs
to end of Mar, 2022) Pay & Use Toilets
Commercial Plots 4
CLASSIFICATION AND ACCOUNTAL OF SUNDRY EARNINGS

 Abstract “Z” Sundry Other Earnings (93)

Sundry Earnings: Minor Head-100(Military Telegraph

earnings), 200 (Rent & Tolls), 300(Receipts from Catering
department), 400(Overcharges & Profits recovered on work
done on outside parties and sale of stores), 500(Sale
proceeds-Unclaimed & damaged goods, Gross & Trees on
the line), 600(Miscellaneous-Advertisement fees, Interest &
Maintenance charges viz., Siding maintenance etc.) 700
(Reimbursement of Operating loss on strategic lines) and
800(Refunds on earnings collected).

5
SERVICE HEAD-WISE ORIGINATING EARNINGS ON
SCR (in CRS.)
2018-19 2019-20 2020-21 2021-22
Commodity Actuals Actuals Actuals Actuals
(Full year) (Full year) (Full year) (Full Year)

Passenger 4058.74 4119.44 975.26 2974.62

Other Coaching 318.40 314.08 170.90 375.66

Goods 10954.69 9029.32 8498.41 10615.68

Sundries 345.03 307.55 263.27 300.08

Total 15676.86 13770.39 9907.84 14266.04

 SERVICE HEAD-WISE ORIGINATING EARNINGS
(SCR)
(In Crs)
To end of Mar

Commodity 2020-21 2021-22 % Variation

Actual Actuals over last year

Passenger 975.26 2974.62 205.00%

Other Coaching 170.90 375.66 119.8%

Goods 8498.41 10615.68 24.9%

Sundries 263.27 300.08 14.0%

Total 9907.94 14266.04 44.00%7

 INDIAN RAILWAY REVENUE TO THE END OF MAR-2022
in Crs

SUNDRY
OTHER COACHING 6020
4888 3%
3%

PASSENGER
39104
20%

GOODS
141116
74%

8
GOODS PASSENGER OTHER COACHING SUNDRY
 SOUTH CENTRAL ORIGINATING REVENUE
TO THE END OF MAR-2022 IN Crs

OTHER COACHING; 375.66; 3%

SUNDRY; 300.08; 2%

PASSENGER;
2974.62; 21%

GOODS; 10615.68;
74%

GOODS PASSENGER OTHER COACHING SUNDRY

 INDIAN RAILWAYS – BUDGET 2021-22
RUPEE COMES

SUNDRY;
0.0600000000000001; 6%

PASSENGER; 0.28; 28%

OTHER COACHING;
0.03; 3%

GOODS;
0.640000000000003;
63%

10
PASSENGER OTHER COACHING GOODS SUNDRY
NON-FARE REVENUE

11
 EARNINGS OF INDIAN RAILWAYS
EARNINGS OF
INDIAN
RAILWAYS

OTHER
PASSENGER GOODS SUNDRY
COACHING

HEAD WISE DEPARTMENTWISE

ACCOUNTS/PERSONNEL
RENT & TOLLS
& OTHERS

LAND LEASING COMMERCIAL

CATERING ENGINEERING

DEPOSIT WORKS

SALES

ADVERTISEMENTS

INTREST & MAINTENANCE

CHARGES

MISC
 SUNDRY EARNINGS
COMMERCIAL EARNINGS UNDER
SUNDRY EARNINGS

NFR PAY & USE TOILETS

PARKING CLOAK ROOMS

CATERING COMML PLOTS

MISC STALLS SALE OF TIME TABLES

RETIRING ROOM AC WAITING HALL/LOUNGES

ATM OTHERS
 NON FARE COMPONENTS
Mobile Assets Z-612
OOH Z-613
RDN Z-611
COD Z-614
Unsolicited Z- 616
NINFRIS Z-617
App Based Cab Z-248
Old Commercial Publicity Contracts Z-618
Other NFR Contracts such as sponsorship of activities &
events at stations, branding etc) Z- 615
 Department wise sundry revenue for the Financial
Year 2021-22
A/cs & Person-
Revenue
Department
(in Cr) 1 nel & Others
(Medical, Elec-
8% 2 trical, Workshop
A/cs & Personnel & % & S&T)
Others (Medical, 22.91
Electrical, Workshop & Commercial
S&T)
Commercial 36.82 58% 21% Engineering

Engineering 63.34
Other Depts
Other Depts (Workshops (Workshops and
2.53
and S&T) 1 S&T)

Misc 174.47 %
Misc
Grand Total 300.07
Sub Heads of Sundry Revenue of Commercial Department
to the End of Mar-22 (In Crs) Revenue
Reven Rents from retiring
Head ue rooms
(in Cr) 1%
Rents from retiring Catering - D.E.F & IRCTC
0.46
rooms
Catering - D.E.F & Commercial publicity
12.13
IRCTC 32% 33%
Commercial STD/PCO booths
3.76
publicity (NFR)
STD/PCO booths 0.01 Time tables
Time tables 0.01
License fee from stn 2.15 18% 10% License fee from stn stalls
stalls
Parking contracts 6.46 6% Parking contracts
Lease of land 11.84 0% 0%
(Commerical Plots) Lease of land (Commer-
Grand Total 36.82 ical Plots)
 • In pursuant of the Budget announcement, for increasing
the Non Fare Revenue, Ministry of Railways has announced new
policies on various initiatives within the Non-Fare Revenue space.
These policies will look into different areas ranging from advertising
in trains and other areas such as bridges and other assets, setting
up of ATMs at platforms to digital content for passengers.

• Salient Features of the Policies:

• The policies are based on feedback from the key players in the
industry. Some of the key inputs considered in the policies are:
● Long Term Contracts – up to 10 years
● Single Point of Contact within Indian Railways –
Non Fare Revenue Directorate
● Credibility of Partner – including a technical and
financial capability model
● Transparent Process – E- Auction
● Better media planning for Railway assets – Allowing
zone/train/station wise packages
 Non-Fare Revenue
Non-Fare Revenue is the income from various
sources, excluding passenger and freight receipts.
NFR policies primarily deals with advertisement on
• Inside the stations
• Circulating area of stations
• Trains
• Freight Wagons
• Locomotives
• Digital content on trains and platforms
• Infotainment systems
• Other innovative ideas that can help the railways
increase its earnings.
 OBJECTIVES OF NON FARE REVENUE
• In order to monetize assets of Indian Railways and undertake revenue
yielding activities, Indian Railways has decided to promote new ideas
and concepts for enhancement of non-fare revenue.

• Guidelines on ‘New Innovative Non Fare Revenue Ideas Scheme’

(NINFRIS) have been issued. The scheme is to be executed at the
Divisional level on Zonal Railways.

• The scheme has been very recently issued on 21.05.2018.

• Receiving, Examining and Implementing of New Ideas and Concepts by

Zonal Railways is an on-going process.
OBJECTIVES OF NON FARE REVENUE
New ideas and concept received under
Non-Fare Revenue by the Railways are as follows:
• Display of Advertisement in Passenger Reservation System (PRS) Ticket,

• Robotic Massage Chair with Foot Massager and Body Mass Index Machines,

• BMI Kiosk (Body Mass Index) at various Station/Workshops,

• Light Emitting Diode (LED) Digital Wall/Screens,

• Reverse Osmosis (RO) Water Purification in Train Coaches,

• Micro smart stay Lounge,

• Mobile Application Based Suburban Tracking System,

• Three Dimensional (3D) Product Displays for products & Services,

• Mobile Tower & Small Cell units proposal,

• Projection Mapping Technology,

• Vinyl Wrapping on Platform Raisers,

• Advertisement on Pay slips,

OBJECTIVES OF NON FARE REVENUE

New ideas and concept received under Non-Fare

Revenue by the Railways are as follows:
• Advertisement on Pay slips
• Advertisement Rights on Bottle Crushing Machines
• Advertising in EMU Rakes through Public Information
System
• On Board Shopping in Mail/Express Trains
• Exhibition at Stations, Market Contracts
• Promotion of Railway Ticketing App (Unreserved
Ticketing System on Mobile),
• Heritage Café
 OBJECTIVES OF NON FARE REVENUE

New ideas and concept received under Non-Fare Revenue

by the Railways are as follows:
• Health ATM
• Jingles at various Stations
• Tex Plaza at Station and Setting up of a mobile food court at Railway
Station
• Publicity on panel Truss and Ceiling of platform shelter
• Publicity rights on glass façade at Railway Station
• Dual display infotainment system
• To generate revenue from Non Fare Revenue sources
• Indian Railways has fixed an annual target of Rs.1200 crore for Budget
Estimate 2018-19.
Fare and non fare revenue share

• This Project Aim to maximize the revenue of Non Fare box revenue and
make a Indian Railways more economical sustainable as fare-box
revenue are not sufficient to sustain the operations and repayment of
loans. Major sources of revenue for Metro Projects are:
1. Fare Box – which accounts to almost 80-90 %
2. Non-Fare Box – which accounts to 10-20%

• The problem with Fare Box System is that we are not able to recover
the cost, also the actual ridership is low than that planned. So, mostly it
goes into loss. So, there is a need to improve the non-fare box revenue
share where fares are very dynamic and gesture low revenue.
 SCOPE OF NON FARE REVENUE
Although Indian Railways enjoy the highest captive eyeballs in a
Railway system internationally, earns less than 5%
of its revenues through non-tariff sources. Many of the
world railway systems generate 10% to 20% of their
revenues from non-tariff sources.

IR typically has focused on increasing revenues

through tariff hikes. It wants to change this and
challenge the conventional thinking by exploiting new
sources of revenue so that every asset, tangible or non-
tangible, gets optimally monetized
 SEGMENTS OF NON FARE REVENUE

Advertisement on Advertisement
Coaches, outside the
Locomotives & Railway station
Wagons building

Mobile Out of Advertisements

Entertainment Assets Home through Digital
Services Content Rail Dis- Screens / Static
Onboard on de- play media inside the
(Trains) & mand Network Railway Station
Off board
(Stations)
NINFRISUnsolicited
NFR

Unsolicited proposals
New ideas & not covered in any
concepts not existing policy
tested before at
Divisional Level
 NON FARE REVENUE
 In pursuant of the Budget announcement by Hon’ble MR in 2016, for
increasing the Non Fare Revenue (NFR), Ministry of Railways has set up NFR
directorate and announced new policies on various initiatives within the same
space.
NFR Segment Description
Commercial
Circular No.
Major Earning Segments
Out of Home Display of advertisements outside the Railway station building 04/2017
Mobile Assets Vinyl Wrapping on exterior/through panels in interiors of 05/2017
coaches
Rail Display Network Display of advertisements Inside the Railway station building 50/2017
Minor Earning Segments
Content on Demand On board (trains) and of board (stations) entertainment 01/2017
services
Unsolicited Proposals Any new concept/offers submitted by outside agencies 02/2017

Co- Branding of Station branding / semi-naming of railway station or 07/2022

Railway Stations prefixing / suffixing brand names / logos to the names
of ' railway stations

New & Innovative To promote and new ideas for passenger convenience and NFR Dir. Letter
 Out of Home Policy

 Out of Home Policy is issued by Railway Board vide Commercial

Circular No 04 of 2017.
 The objective of this policy is to lay out the various conditions in
monetising advertising assets apart from the station area Such as
circulating area, Road over Bridges(ROB) Road under Bridges (RUB)
Level Crossing gates, Railway Colonies, Railway workshops,
Production units railway land along the track etc.

 Display of advertisements outside the Railway station building will be

covered under this Policy.
 Advertisements out side Railway station is permitted through
Hoardings Uni-Poles/Uni-Structures, Glow signs Boards ,Wall
paintings ,Digital boards etc.

 Initially RITES was appointed Nodal agency for inviting open bids on
behalf of Zonal Railways .
 Further Non fare Revenue directorate vide letter dt 22.03.2018 has
decided to decentralized the Bid process management to Zonal
Railways.
 Out of Home Policy
 In the Year 2018 vide Commercial Circular No 50
of 2018 Railway Board has modified the policy
and powers were delegated to General
Managers for effective implementation of the
policy.

 Accordingly South Central Railway has prepared

Standard Bid Documents (SBDs) with
concurrence of headquarter finance and
approval of General manager for Out of Home
advertisement policy.

 SBDS were circulated among Division for

floating the tenders under Out of Home policy.
 OUT OF HOME (OOH) ADVERTISEMENTS

CIRCULATING AREA LEVEL CROSSING GATE UNI POLES

 Mobile assets Policy

Policy is issued by Railway Board vide Commercial Circular No 05 of 2017.

 The objective of this policy is to facilitate the Indian Railways to offer combined
train packages consisting of internal and external advertisement

 Through this policy licensees shall be allowed to advertise through vinyl

wrapping of train exterior which will be as per extant specification laid down by
RDSO .

 Vinyl wrapping will be permitted on windows of air conditioned coaches also

subject to 70 % visibility being achieved. Vinyl wrapping on windows of non-AC
coaches will not be permitted.

 The licensees shall be allowed to advertise inside the coaches up to 250 sqft at
locations Exteriors and Laminated Advertisements on panels in the Interiors of
coaches of Mail Express, MEMU, DEMU, EMU and Passenger trains.

 Indian Railway has appointed RITES as consultant for over all bid process
management. Further Non fare revenue directorate railway board vide letter dt.
16.02.218 has decided to decentralized the bid process management to zonal
Railways.
 Mobile assets Policy

 In Railway Board has modified the policy and powers were

delegated to General Managers for effective implementation
of the policy.

 Accordingly South Central Railway has has prepared

Standard Bid Documents (SBDs) with concurrence of
headquarter fiancé and approval of general manager for
Mobile assets policy.

 SBDS were circulated among Division for better clarity in

floating the tenders the Year 2018 vide Commercial Circular
No 50 of 2018 under Out of Home policy.

.
 Innovative Schemes for Central & State Govt
Departments
 Trains will be allotted without tendering system to Central & State Government
Departments and Agencies including PSUs for advertising on exteriors of
various Trains.
 Scheme Offers Fixed Rate of:
 Rs.25 Lakhs per year per Rake for Local Trains / Short Distance Trains
EMU/DMU/ME.
 Rs.50 Lakhs per year per Rake for other Coaching Trains for
advertisement up to Window level and Rs 1 Crore for advertisement on Full
body per rake /year. .
 Further to the above, fixed rates are also fixed per coach basis as detailed
below: Exterior Vinyl Wrapping of one or Display of Advertisement inside the
Type of the train more coaches coaches
(per coach per year) (per Sft per coach per year)
EMU/DMU/MEMU
(Whole Coach wrapping Rs 1.5 Lakhs Rs 400/-
permitted)

Mail / Express
(Below window sill level Rs 2 Lakhs Rs 6000/-
permitted)
 Advertisements on Mobile assets

One Rake of Telangana Express allotted to M/s Singareni Collieries

Corporation Limited on Lumpsum rates @ Rs 50 Lakhs per annum. 33
 Rail Display Network
 RDN Policy is issued by Railway Board vide Commercial Circular No 50 of
2017.
 The main objective of this policy is to integrate the existing rail passenger
information at railway station across India. Under RDN information will be
provided related to arrivals departures and running status of trains including
expected delay and other relevant information like platform numbers, coach
guidance etc.. This will also provide information pertaining to passenger
comfort, amenties and passenger safety message. The entire exercise shall
be cost neutral to Railways.
 The proposed Rail Display Network shall be utilized to display railway
information will not be less than 50 % in terms of time and/or space which
shall be detailed in tender document.

 Display of Advertisements through various media at earmarked areas

Inside the Station Building .

 Advertisement is permitted through Digital & static media. i.e. through

LED/LCD/Plasma screens, Digital video walls, Operation of Public Address
System and playing of Jingles through Public Address System, Wall
Paintings etc.
 Rail Display Network
 RDN shall be the exclusive advertising medium at the stations which
includes station building concourses platforms FoBs but excluding
circulating area.

 Ministry of Railways have appointed RailTel as nodal agency for bid

process management of RDN. Till date RailTel has not finalised a pan India
licensee for RDN.
 Once RailTel finalised a pan India licensee for RDN all the live contracts
awarded by Zonal Railways will be handed over to RailTel.
In the Year 2018 vide Commercial Circular No 50 of 2018 Railway Board
has modified the policy and powers were delegated to General Managers
for effective implementation of the policy.
Accordingly South Central Railway has has prepared Standard Bid
Documents (SBDs) with concurrence of headquarter fiancé and approval
of general manager for Mobile assets policy.
SBDS were circulated among Division for better clarity in floating the
tenders under RDN policy.
 RAIL DISPLAY NETWORK (RDN)
ADVERTISEMENTS

CONCOURSE PLATFORMS ESCALATORS

 RAIL DISPLAY NETWORK (RDN)

Train Arrival & Departure Screens CIBs and Fare repeaters

Contract Conditions as per Standard Bid Documents
Contract Conditions for OOH, Mobile Assets & RDN as per Standard
Bid Documents.

Type Conditions as per Standard Bid Documents

1. The Bidder should have minimum Two (02) years experience in
advertising field during the past 10 years from the date of issue of
Tender Notification.
Eligibility criteria 2.In any one of the financial years out of the Three (03) preceding
financial years, the licensee should have achieved a turnover from
advertising business which is equal to or more than the First (1st) year
Reserve Price in this Tender Notification
Contract Period 5 Years
EMD 2% of Tender Value
Security Deposit 50% of 5th year L.F
Payment of License Fee Half Yearly
Escalation in License
10% from 4th year
Fee
After 2 years with 4 Months advance notice period
Exit by Licensee
 Content on Demand
 Content on Demand Policy is issued by Railway Board vide
Commercial Circular No 01 of 2017.

 The objective of this policy is to detail the various conditions to

monetise entertainment based services on trains and stations.

 RailTel is appointed as nodal agency for floating ,awarding and

managing the contracts for Content on demand policy.

 Entertainment services should be provided through audio and

video system and be made available on all personal devise and
should support the prevalent technology/ mobile platform.

.
 Content on Demand
 The licensees / service provider shall promote advertisements
through the contend service provided within the permissible limits
as per relevant ministry of Information & Broadcasting.

 The period of Contract shall be 10 years.

 At present a total of 2610 rakes is included for Content on demand

service.

 216 M/E trains and 9 MMTS rakes were included from South Central
Railway for providing content on demand services on board.

 The revenue sharing from Content on Demand Contracts between

Railtel and Indian Railways shall be on 50:50 basis
 Unsolicited proposal

 Unsolicited proposal Policy is issued by Railway Board vide

Commercial Circular No 02 of 2017.

 The objective of this policy is to allow unsolicited proposals by

enabling private and public sector participation in the
conceptualisation of an earning project or scheme and
permitting finalisation of the same.

 This policy will be applicable for all departments receiving

unsolicited proposals for enhancement of revenue of the
railways, especially the non-fare revenue such as advertising,
short-term land licensing etc where no policy exist.

 The proposal received under this policy should not cover under
any other policy of Railway board.

.
 Unsolicited proposal

 The selection of agency will be done for 5 years initially.

 If the project/ scheme is found to be successful subsequent selection of

agency will be done by open tendering process.

 All the proposals received in this policy should be finalised within model
time frame which is D+165 days.

 Right of first refusal will be given to proponent in case proponent is not

the highest bidder.

 Short term proposal will also be considered under this policy.

 The period of short term proposal is not exceeding 3 months.

.
 Co- Branding of Railway Stations
 The objective of this policy is to generate non-fare revenue by allowing co-
branding / station branding / semi-naming rights at railway stations, or prefixing
/ suffixing of brand names / logos to the names of railway stations to
government and reputed business houses (not advertising agencies).

 The idea is to permit the licensee (the brand owner) to prefix or suffix the brand
name or logo to the name of the railway station .

 In order to maximize the revenue from co-branding of stations, clubbing of

stations in cluster may be considered.
 Co-branding shall be permitted at all the places in the station building area
wherever the name of the railway station is displayed .

 Contracts shall be awarded by means of EOI/Open bidding.

 The tenure of the co-branding license shall be for a minimum period of 01 (one)
year up to 03 (three) years.
 New Innovative Non Fare Revenue Ideas Scheme

 NINFRIS Policy is issued by Non Fare revenue directorate vide Lr No

2018/NFR/25/new innovative idea scheme dt 21.05.2018.

 The objective of this policy is to promote new ideas and concepts related
to passenger convenience and enhancing Non Fare Revenue.

 The focus of this policy shall be on all new and innovative ideas, concepts
themes, that have not been tested before at divisional level and with
potential to enhance Non fare Revenue.

 DRMs of the Division shall have full powers for executing innovative ideas/
concepts for generation of NFR on their division.

 Care should be taken that projects/ scheme taken up under NINFRIS

scheme should not infringe upon any other NFR policies.

.
 New Innovative Non Fare Revenue Ideas Scheme

 The branch officer of Commercial department should be the nodal officer

for handling such proposals.

 Proposal should be accompanied by a non refundable application fee of

Rs One Thousand only (Rs 1000/-)

 The tenure of the such NFR initiative shall be one year or part thereof, but
can be extended by further one year with the approval of DRM.

 As per Commercial circular No 51 of 2019 General Managers may fix the

tenure of proposal under NINFRIS up to maximum of 5 years in case of
capital intensive NINFRIS proposals.
.
 Few NINFRIS contracts awarded over SCR

Pochampally Handlooms

Pearls, Bangles & Cosmetic Stall Health Kiosk

FEW NINFRIS CONTRACTS
Few NINFRIS AWARDED
contracts awarded overOVER
SCR SCR

Cell Phone Store Fish Spa

Robotic Massaging Chairs

FEW NINFRIS CONTRACTS
Few NINFRIS AWARDED
contracts awarded overOVER
SCR SCR

3D Hologram Media Player

Baggage Sanitisation kiosk Bounce Bikes

 Indian Railways introduces App-Based Bags-
on-Wheels service in Delhi Division of NR

Delhi division recently achieved a milestone by awarding a new innovative

contract under New Innovative Non-Fare Revenue Ideas Scheme (NINFRIS) for
App-Based Bags-on-Wheels services. It would be the first of its kind service
available for the railway passengers in India.
Indian Railways introduces App-Based Bags-on-Wheels service in Delhi
Division of NR
• Using BOW APP (will be available for Android & iPhone users), passengers will raise
their demand for carrying their luggage to railway station or to their home. Luggage will
be picked up by the contractor in a secured manner and will be delivered to the
coach/home as per booking preference of passenger.

• The firm will provide door-to-door service to railway passengers on a nominal fee for
hassle-free and smooth handling & transportation of luggage from the passenger’s
home to passenger’s Coach in Train and vice-versa. It would be very helpful for
passengers, especially Senior Citizens, Divyangjan and Lady Passengers travelling
alone.
• The unique feature of this service would be that the delivery of the luggage would be
ensured prior to departure of the train to provide ease of travelling experience to
passengers. Initially firm will provide its services for the passengers boarding trains
from New Delhi, Delhi Jn., Hazrat Nizamuddin, Delhi Cantt., Delhi Sarai Rohilla,
Ghaziabad and Gurgaon railway stations.
• The service will not only be beneficial for passengers but will also enhance the scope
of earning for Railways with straightaway NFR revenue of Rs. 50 Lakh p.a. along with
10% revenue sharing for the period of one year. Indian Railway passengers have
witnessed Palace on Wheels, but now they may have a feel of Bags-On-Wheels .
QUICK SERVICE RESTAURANTS
VINYL WRAPPING OF TRAINS
ATMs AT RAILWAY RAIL DISPLAY NETWORK
STATIONS SCREENS
 Non Fare Revenue trends for last 4 years
(Amt Rs in Cr.)
Railways 2018-19 2019-20 2020-21 2021-2022
CR 58.79 80.35 20.92 39.34
ER 8.23 9.84 5.15 29.80
ECR 5.92 9.21 2.94 6.44
ECoR 16.27 11.11 6.86 5.24
NR 32.46 25.92 8.62 14.30
NCR 2.14 2.06 1.59 2.56
NER 5.46 3.16 1.72 4.33
NFR 4.58 4.98 2.50 3.08
NWR 6.92 7.30 3.83 4.48
SR 27.89 27.38 14.06 17.68
SCR 17.67 14.12 3.42 4.50
SER 8.04 5.30 2.97 3.41
SECR 2.17 4.07 1.27 4.23
SWR 12.79 7.89 1.44 4.12
WR 71.24 103.38 22.98 27.55
WCR 6.59 8.57 1.37 6.38
MR 21.29 26.87 11.55 19.45
Total 308.44 351.49 113.19 196.89
 Sub Heads under NFR Revenue to the End of
Mar-22 in Crs (SCR)
Revenue
Head (in Cr)
Advertisement 0.58
Advertisement from 1.21
Stations
15 13 Advertisement
Advertisement from
Advertisement on
0.01 % % Stations
Coaches/Wagons/ Advertisement on
Hoarding Coaches/Wagons/
Hoarding
Advertisement Through Advertisement
0.52
Hoardings (out of 19% 27%
Through Hoardings
(out of Home)
Home)
Advertisement
Advertisement through through Interactive
0.01
Interactive Services 0% Services
Other NFR Activities
Other NFR Activities 15 11% including NINFRIS
% 0%
0.69 Unclassified Earnings
including NINFRIS
ATM's
Various NFR unclassified
Earnings from 0.84
Advertisement Fees
ATM's 0.67
Grand Total 4.52
REVENUE COMPARISON :
Hon'ble Minister of Railways had announced during the Railway Budget 2016-17 that "Although we
captive eyeballs in a railway system internationally, we earn less than 5% of our revenues through non-
tariff sources. Many of the world railway systems generate 10% to 20% of their revenues from non-tariff
sources. Over a period of the next five years, we will strive to reach this world average by monetizing
assets and undertaking other revenue yielding activities."

Country Major Operations ( national level ) Indicative NFR Percentage

Germany Deutshe Bahn 34

Japan Japan Railway Company 30

Hong Kong MTR Corporation Limited 29

Russia Russian Railways 12

France French national Railway Company 10

Spain Renfe Operadora 7

India Indian Railways <5

 Metro Cases on Non Fare Revenue Contribution
Density Metro Length of
Area (sq. Non- Fare PT Share (in Revenue Sources
Sr. No Name of Cities Population (persons/ sq. Fare Box Ridership Metro Rail
km) Box %) of Non Fare Box
km) (Million) (in km.)

Property Rental
(22%), Property
Development
1 Hong Kong 80.6 13,15,392 16,320 37% 63% 4.63 37.6 175 (45%), Station
Commercial (24%),
Advertisement and
Mis (9%)

Advertisement
(48%) ,ATM,
Shops(14%),
2 Delhi 1483 138,50,507 9,339 88% 12% 1.92 16 189.7 Telecom
business (16%),
Rents (10%), Mis
(12%)
Advertisement
(15%). Rents (19%),
SMART fleet
3 Singapore 714.3 5,32,000 744 89% 11% 2 25.2 138.9 operation (29%),
Engineering
Services (25%),
Miss (12%)
Advertisement
(19%),
Property
Development
4 London 1572 78,25,200 4,977 83% 17% 3.33 14 404 (25%), Congestion
pricing (12%),
Grant (22%) Miss
(22%)
Advertisement
(25%),
5 New York 783.8 81,75,133 10,429 70% 30% 4.51 15.3 394.3 Property
Development
(70%), Miss
58 (5%)
 E-Auction & Asset
Management
for
Commercial Earning
Contracts
 Commercial earning contracts through e-
Auctions
• E-Auctions instead of Tenders:
– Open Auction through IREPS

– Asset creation by asset holder

– Auction catalogues to be published on IREPS- in public

domain

– Eligibility criteria based on Financial turn over

• Self declaration + document upload by bidders

– RP- to be fixed by ACO, not to be disclosed to bidders

 Commercial earning contracts through e-
Auctions
• E-Auctions instead of Tenders:
– Bidders identity masked, only H1 rate will be visible

– Auto extension of 2 minutes- if any bid received within last 2

minutes
• Maximum 10 auto extensions allowed

– Auto decision- on the spot award to H1, if rate is equal or above RP

– Instant deduction of 5 % EMD of H1, no blockage of EMD of other

bidders

– Verification of turn over certificates to be done later on

Sequential Closing of Auction for different lots

Lot 1

Lot 2

Lot 3

Lot 4

Lot 5
0 10 20 30 40 50 60 70 80 90 100

Normal Closing Auto Extension Zone

 Objectives

• Maximizing Revenues:
– Prevention of Asset Idling
– Increased Competition/ Removal of entry barriers
– Reduction in cycle time for placement of contracts
– Elimination of pilferages in payments
• Standardization:
– Standard Conditions of Contract
 Benefits of e-Auctions: Prevention of Asset
Idling
• Asset Identification / Registration- Asset Master
– Unique code for each Asset to prevent duplication

• Identification / Reporting of Idle Assets

– Linkage of Asset ID with Contract / Auction Lots

• Asset Utilization Reports

 Benefits of e-Auctions: Prevention of Asset
Idling
• Asset Identification / Registration- Asset Master
– Unique code for each Asset to prevent duplication

• Identification / Reporting of Idle Assets

– Linkage of Asset ID with Contract / Auction Lots

• Asset Utilization Reports

 Benefits of e-Auctions: Increased
Competition

• Open Auctions :
– No requirement for pre-registration for any asset class
– No Geographical restrictions for bidders
– No entry barriers
• Eligibility Criteria- Past Turnover based:
– Based on Self Declaration
– Eligibility based on turnover required for lot vs. contractor’s
turnover
– Forfeiture of EMD in case of wrong declaration
• Likely to fetch true commercial potential of the assets
Benefits of e-Auctions: Reduction in cycle
time
• Min. Fifteen days notice required for auctions
• Auto Decision:
– Reserve Price vs. Highest Bid Received- Auto decision,
No TC
– RP fixation by ACO, Vetting not required
• System generated Bid Sheet
• System Generated Contract
 Contract can be placed within 15 days from asset creation
 Benefits of e-Auctions: Elimination of
Pilferages in payments
• System Generated Demand Notice for payment
• System generated delay penalty calculation
• Online Payments through Payment Gateways-
No cash, no paper
• System Driven Monitoring of Payments
– Alerts / Reports for non-receipt of payments
– Payment details / report will be available to all stake holders in
real time
 Benefits of e-Auctions: Standardization

• Standardization of processes for conduct of auctions

– EMD/ SD – 5%, Payment time, late payment penalty, etc.
standardized
– Bidder Registration valid pan-India

• Standard Conditions of Contract

– Issued from RB
– Uniform Across Zones / Divisions
 Pilot Launch – 11 Divisions identified
Zone Divisions Assets Identified by Divisions
NR Lucknow, Delhi
NER Varanasi, Lucknow
ER Asansol
SER Chakradharpur
WR Ahmedabad
CR Mumbai CST
SWR Bangalore
SCR Secunderabad
SR Chennai

Category Sub- Category

Parcel SLR Compartments, Parcel Vans
Parking Premium, Radio Taxi, Access Controlled, Two-Wheeler, Four-
Wheeler, Mixed
Advertising Out of Home
 Pre-requisites for Railway Users

• Identification of Assets:
– Creation of asset master

• Publishing the Auction catalogues:

– Minimum 12 days’ notice period prescribed for Auctions

• Encryption Certificate for Auction Conducting Officer:

– Minimum JAG or Sr. Scale (B.O.) if JAG is not available
– For RP encryption
– If not available already
– RP to be fixed by ACO and to be kept confidential
 Pre-requisites for Contractors

• Digital signing certificate (DSC)

• Online Registration on IREPS, if not already registered
• Online Payment of One Time Registration Fee (Rs.
10,000)
• Current Account in SBI
• Integration of SBI Bank Account with IREPS Account
• Lien Marking of Funds
• Updation of Turnover Details in IREPS
 To do list for Pilot
• Asset identification and catalogue publishing:
– Division-wise list of assets identified
– Auction catalogues Published
• Wide Publicity:
– Advertisements in Newspapers- by each Division
– Notices on Railway websites
– Notice on IREPS- displayed
– e-Mail/ SMS sent to all contractors registered in IREPS
• Contractors’ meets:
– All 11 divisions should organise - within a week
 To do list for all other Divisions

• Training for Railway users:

– Participation in training sessions organised by CRIS

• Preparation of Asset register:

– All Divisions should complete assets’ entry within a
fortnight

• Willing Divisions (other than 11), may also

participate in pilot
 E-Auction over SCR
• E-Auction of NFR and Commercial Earning Contracts has started over SCR in
phase wise.
• Secunderabad Division has been nominated as pilot Division for
implementation of E- Auction. The division has so far scheduled 9 Auctions
(49 Assets) and awarded 7 contracts worth of Rs:2.18 Cr.
• Other Divisions has also started Scheduling of Auctions, the details of
Auctions scheduled for the period 01-07-2022 to 31-07-2022 is as
below

No of Auction No of Assets in
Assets No of Assets Awarded Upcoming Auctions
Sl.No Div schedules the Auction
created Auctioned Contracts Schedules
conducted Schedule
1 SC 692 9 49 7 8 53
2 HYB 270 - - - 6 27
3 BZA 322 - - - 7 85
4 GTL 331 - - - 11 180
5 GNT 405 - - - 11 80
6 NED 192 - - - 3 40
Total 2212 9 49 7 46* 465*

*The figure tends to change as and when Divisions schedule more Auctions.
Division-wise list of assets identified for Pilot
Division Auction Details

DLI (NR) 3 (SLR)

LKO(NR) 2 (SLR)

Lucknow (NER) 0

Varanasi (NER) 0

ADI (WR) 3 (2 SLR, 1 Parking)

Mumbai (CR) 17 (4 SLR, 3 Parking, 10 Advt)

SC (SCR) 3 (SLR)

Bengaluru 7 (1 parcel, 5 parking, 1 Advt)

(SWR)
Madras (SR) 8 (SLR)

ASN (ER) 1 (Advt)

CKP (SER) 7 (5 SLR, 2 parking)

Back
THANK YOU

77