NFR - Non Fare Revenue

NFR  - Non Fare Revenue

 

·         Part of Sundry Earnings

 

·         NFR consists of

 

1.       Advertisement on Trains, Railway Bridges & other Assets

2.       Setting up of ATM and other stalls at Railway Stations

3.       Digital Content on Trains and Platforms

4.       NINFRS (see below for detailed article)

 

·         Concept – 2010-11 year

 

·         NFR Directorate – 2014 year

 

·         NFR policy switched from Centralized governance (Railway Board) to Decentralizing (Divisions) in the year 2018

 

·         Earnings contracts period is reduced from 5 to 10 years to 3 to 5 years

 

·         NFR Target for 10 years (from 2010-11) is Rs.15000 Crores (Rs. 1500 Crores per year)

 

·         But 2018-19 year NFR is Rs. 33 Crores (against target of Rs. 1200 Crores)

 

·         Share of Sundry Earnings

 

	Indian Railways	World wide
Sundry Earnings share	8 %	15 to 20 %

 

 

Simplification of Earnings Contracts (except Parcels & Catering)

Tender Amount	Tender Committee
Up to Rs. 50 Lakhs	No T C. Direct Acceptance by SG/JAG/Sr.Scale  (Independent charge) – subject to conditions
Rs. 50 Lakhs to Rs. 2 Crores	2 Member TC ( Comml & Finance)
Rs. 2 Crores and above	3 Member TC (Comml, Finance & User dept)

 

 

Contract Amount	TAA – Tender Acceptance Authority
Up to Rs. 5 Crores	Sr.DCM
Rs. 5 to Rs. 10 Crores	ADRM
Rs. 10 Crores to Rs.100 Crores	DRM
Rs. 100 Crores and above	PCCM

 

Extension of Contract	By
6 Months (2 spells of 3 months each)	Sr.DCM
Above 6 Months (Concurrence required)	DRM/CCM/PCCM

 

Direct Acceptance – Earnings Contracts

Railway Board letter - Direct Acceptance

ü    Constituting the Tender Committee is not required for awarding of the Earning Contracts up to Rs. 50 Lakhs by SG or JAG or Sr.Scale (Independent charge)

 

ü  Earning contracts are finalized expeditiously without prolonged Tender Committee Proceedings thereby avoiding loss of Revenue to Railways.

 

Requisites of Direct Acceptance of Tenders

 

ü  By SG or JAG or Sr.Scale Officers(Independent charge)

ü  Up to value Rs. 50 Lakhs

ü  Tender Committee not required

ü  Tendering through E-Tender and Open Tender mode only

ü  Minimum Notice Period – 21 days

ü  H 1 cannot be bypassed

ü  Negotiations if any, with H 1 only

ü  Reasonable Speaking Order by TAA – Tender Accepting Authority (about Tender evaluation & Acceptance)

ü  LOA  - Letter Of Award/Acceptance should be vetted by Finance (Object is to comply the above requisites or not)

 

NINFRIS  - New, Innovative Non Fare Revenue Ideas Scheme

·         New scheme - to increase Non Fare Revenue

 

·         Announced by Ministry of Railways in 2018. 

 

 

·         Object:  Promote new ideas and concepts for enhancement of NFR (Non Fare Revenue) and improve passenger convenience on IR

 

·         To classify an idea/concept as innovative - a similar proposal should not have been implemented on the concerned Division before. 

 

·         Replication - Divisions are encouraged to report success of such ideas and give wide publicity for possible replication across Indian Railways. 

Salient features:

ü  At Divisional level

ü  DRM – Divisional Railway manager -Full powers.

ü  Nodal Officer – Branch officer of Commercial Dept (Sr.DCM / DCM)

ü  Committee of Branch Officers of Commercial Dept, Finance Dept and Dept holding the assets to be used scrutinizes the proposals received and recommended to DRM for approval.

ü  Terms & conditions of the Agreement are accepted by the such committee with the approval of DRM

ü   Savings in expenditure if any, is added notionally as “deemed earnings” for the purpose of evaluation of project.

ü  Token non Refundable application fees Rs. 1000 – should be accompanied to each proposal.  Object of levying such fees is to avoid non serious ideas/concepts.

ü  Based on the importance  of the proposal, DRMs are authorize to decide the EMD – Earnest Money Deposit of not less than Rupees 10,000 /-

ü  Projects may be executed directly by the Divisions using their own manpower or through any Railway PSU or outside agencies such as NGO – Non Governmental Organisation, SHG – Self Help Group, Cooperative society etc.

ü  Period – One year or part there of.   Can be extended beyond one year with the approval of DRM. If Extended, Licence fees for extended period may be decided depending on the realization of the earnings of the Project.

Safeguards/Precautions

·         Should not be political or religious in nature.

 

·         No permanent structure should be constructed

 

·         Not violating the norms of aesthetics, environmental concerns, decongestion, safety and security, free movement of passengers, sanitation standards, temporary structures, fire, safety etc as prescribed under Railway rules.

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