7th Pay Commission News Center



Indian Railways unveils new Railway Catering Policy-2010

According to a PIB release, Mamata Banerjee, Union Minister of Railways, has unveiled the new Railway Catering Policy-2010 in New Delhi recently. The salient features of the policy are:

•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.

•Indian Railway Catering and Tourism Corporation Ltd (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 will be done in a phased manner.

•A specialised team of ex-cadre of supervisors and officers up to 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 mechanism through inspections and quality checks. A detailed system for complaint redressal will be set up 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.

•Upgrading the skills of the staff and modernisation 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 two 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 per cent of all the units over Indian Railways.
Refreshment Rooms: A maximum of two units per Division and a maximum 10 per cent of all the units over Indian Railways.
Premium franchisees outlets including stand-alone beverage vending machines: A maximum of 10 per cent of all the units.
•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 per cent of all major units over Indian Railways.

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 five occasions will result in non-consideration of the renewal proposal.

Licence fee
General Minor Units at ‘A’, ‘B’ and ‘C’ Category stations & Food Plazas and Refreshment Rooms. 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 and 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.

All Minor Units at ‘A’, ‘B’ and ‘C’ category stations

All Minor Units at ‘D’, ‘E’ and ‘F’ category stations

All milk stalls Seven per cent of sales turnover

Mobile Units -

Rajdhani/ Shatabdi/ Duronto trains 15 per cent of actual sales turnover + one time bid amount.

Mobile Units - Other Mail Express trains 12 per cent of actual sales turnover + one time bid amount.

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 departmentalised. 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 of all mobile catering units and base kitchens to be departmentalised 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 of all major units (except food plaza and base kitchens) will be for a period of five years. There will be no renewals.
•General Minor Units at A, B & C category stations will be for a period of five years. Renewal will be every three years.
•General Minor Units at D, E & F category stations will be for a period of five years with renewal after every five years for a further period of five years.
•Special Minor Units at A, B, and C category stations will be for a period of five years with a renewal every three years.
•Special Minor Units at D, E, F category stations will be for a period of five years, however, have a provision for renewal after every five years for a further period of five years.
•Allotment of food plazas will be for nine years with an extension of three years on satisfactory performance.
•Milk stalls at ‘A’, ‘B’ and ‘C’ stations – three years and renewal every three years.
•Milk stalls at ‘D’, ‘E’ and ‘F’ stations – five years and renewal every five 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 fixed by IRCTC.
•Emphasis on regional cuisines.

•25 per cent for minor units in A, B & C categories of stations.
•49.5 per cent 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 en-route. For this purpose, arrangements will be made through static units by either segmentation of run or end to end basis as practicable.
Source -  hospitalitybizindia

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