Co-branding of Railway Stations - part of NFR Non Fare Revenue

 Co-branding of Railway Stations

By Nageswara Rao 9492432160

• Source: Commercial Circular No. 7 of 2022 

• Part of NFR - Non Fare Revenue

• Objects:

1. Generate NFR  

2. Allowing co-branding / station branding / semi-naming rights at stations or prefixing / suffixing of brand names / logos to the names of Railway Stations  

3.  Eligible: Government organizations and reputed business houses 

4. Not eligible: Advertising agencies 

5. Activity should be a form of advertisement only, not tantamount to change in the name of the Railway station. 

6. All the above activities denoted as co-branding of Railway station. 

Salient features: 

•  Brand name should not exceed two words. 

• Purely a form of advertisement

• Does not tantamount to change in the name of the Railway Station

• Shall not be permitted on the Railway Tickets, PRS, Websites, route maps, in announcements through PA (Public Address) systems on the RDN (Railway Display Network) 

• The name of the Railway Station shall be its original name only. 

•  Zonal Railways may consider clubbing of Railway Stations for bidding in clusters. 

Permitted Locations: 

•  All places wherever the name of the Railway Station is displayed. 

• Subject to the availability of space

• Subject to the conditions of OOH (Out Of Home) 

• The quantum / location of space to be allotted in Circulating area - decided by Zonal Railways / Divisions 

• Do not conflict with spaces already awarded under the provisions of the existing NFR policy. 

•  Does not adversely impact clear visibility of the Station name that is essential for train operations. 

Not permitted Locations - Negative List

•  Heritage buildings

• Railway Stations named after eminent personalities, national leaders, martyrs etc. 

• Surrogate advertisements

• Advertisements of drugs, alcohol, cigarettes, tobacco items etc. 

• Prohibited items advertisement. 

• Threatens the public image of Indian Railways / Central / State Government

• Negative list as per local Outdoor advertisement policy 

• Branding by Political parties, religious institutions, outfits and individual personalities. 

• Advertisements banned by the Advertising Council of India or by Law

Other aspects of Policy: 

 

•  The prefix or suffix  - in different font / color and small in size compared to Station Name and IR logo. 

• Either Brand Name or Logo.  Not permitted both. 

• Brand name should not be more than two words.  In case, Brand name has more than two words, only Logo should be used. 

• The Licensee should pay the requisite advertising tax if any by the Local Government authorities. 

Contract terms & conditions: 

• Awarded through EOI (Expression Of Interest) / Open Bidding 

• RP (Reserve Price) - Arrived duly considering relevant parameters such as prevailing circle rates, practice followed in other NFR Contracts. 

• Brand name / logo - would be approved by PCCM. 

• Sub-letting shall not be permitted. 

• Tenure:  Minimum period - 1 year. Maximum period - 3 years. 

• Delegation of Powers - as per MSOP - Model Schedule Of Powers. 

• EMD - 2 % of Tender Value.

• License Fees - Half yearly basis - paid in advance. 

• Licensee shall be liable to pay applicable GST under RCM (Reverse Charge Mechanism) to the Tax authorities. 

•  The Station would be handed over for co-branding activities on “as is where is basis” 

• Security arrangements responsibility by the Licensor i.e., Indian Railways

• SBD - Standard Bid Document

Other features: 

  

• Tender / Bid should be open for a period of 45 days from the date fixed for opening of the same.  

• Security Deposit: Within 30 days from the date of issue of LOA - Letter Of Acceptance.

• Purely License basis 

• If work is not commenced within 45 days from the date of issue of LOA, IR shall be forfeit the EMD

•   Open to Central & State Government institutions, PSUs, reputed private companies, Banks,  Financial entities, excluding Advertising agencies. 

•  Breach of conditions if any, the Licensee would be liable to pay the damages @ 5 % of his License Fees subject to minimum of Rs. 5,000 per irregularity along with legal actions as per Agreement. 

• Conditional offer by the Tenderers - out rightly be rejected and EMD is forfeited. 

• EMD of the successful tenderer - converted into SD with the issue of LOA. 

•  EMD of unsuccessful tenders shall be refunded within 30 days from the date of LOA without any interest. 

• SD - equivalent to 6 months License fee calculated for the final year of the Contract - in the form of irrecoverable PBG - Performance Bank Guarantee from a commercial Scheduled Bank within 21 days from the date of LOA.   

•  Extension of submission of SD - Beyond 21 days and up to to 60 days from the date of issue of LOA. But penal interest 18% per annum beyond 21 days.   

• If contractor fails to submit the PBG even after 60 days from the date of LOA, the consequences are: 

1.  The Contract is terminated. 

2. Forfeiting the EMD and other dues if any paid to the Contractor. 

3. The failed Contractor shall be debarred from participating in re-tender for that work.  

• Validity of PBG -  Should cover the license tenure plus 180 days. 

•  PBG shall be released subject to: 

1. After successful completion of the License period

2. Issue of No Claim Certificate by the Licensee

3. Appeal for release of PBG - shall be submitted within 6 months of the completion of the Contract

• PBG - should be sent to Indian Railways directly by the issuing Bank under Registered Post with Acknowledgement Due. 

• First installment of License fees - 6 Months one - have to be paid in advance within 10 days of the issue of LOA. 

• Termination of License - IR reserves the right to terminate without assigning any reason by giving 30 days’ notice 

• The date of commencement of the License  -  30 days from the date of issue of LOA. 

Penalty: 

The Licensee shall be liable to pay @5% of the Annual License Fee subject to a minimum of Rs.5,000/- for violation of each of the following acts and omissions in addition to legal action. 

1.  Not following the instructions by the Indian Railways 

2. Any staff of licensee found in drunken condition/indulging in improper  conduct;

3.  For any staff of the licensee found creating nuisance on duty;

4. Any other violation as decided by the competent authority. 

Material for MCQ

1. NFR stands for Non Fare Revenue 

2. Co-branding of Railway Stations - part of NFR 

3. Advertisement Agencies are not eligible for Co-branding of Stations.

4. Brand name should not exceed two words 

5. OOH stands for Out Of Home  (part of NFR) 

6. PA System stands for Public Address System 

7. Permitted either Brand name or Logo. Not permitted Both. 

8. Brand Name - Approval of PCCM is required

9. EOI stands for Expression Of Interest 

10. RP stands for Reserve Price

11. Sub letting shall not be permitted

12. Contract Minimum and Maximum period - 1 Year and 3 Years respectively. 

13. EMD - 2% of Tender Value

14. License fees - payable half years (in advance) 

15. SBD stands for Standard Bid Document. Modifications can be done by GM to suit local conditions

16. Tender / Bid should be open for a period of 45 days from the date of opening the Tender / Bid. 

17. SD  - within 30 days from the date of LOA

18. Purely License Basis.  Not on Lease basis Click here for differences between Lease and License 

19. EMD forfeit - If work is not commenced within 45 days from LOA

20. LOA stands for Letter Of Acceptance / Award 

21. Breach of conditions - @5% of License fees subject to a minimum of Rs.5,000/- per each irregularity

22. If a conditional offer is received, outrightly be rejected and EMD is forfeited. 

23. EMD of successful Tenderer converted into SD. 

24. EMD of unsuccessful Tenderers - Returned within 30 days from the date of LOA

25. SD - 6 Months License Fees of Final year 

26. SD - form of irrecoverable PBG from a commercial Scheduled Bank -within 21 days from the date of LOA.  Beyond 21 days and up to 60 days extension is permitted with penal interest of 18% per annum. 

27. Contractor fails to submit PBG even after 60 days from the date of LOA, the consequences are 

• Contract is terminated

• Forfeit of EMD & other dues if any

• Failed contractor debarred from participating in re-tender for that work. 

28.  Validity of PBG - License tenure period plus 180 days. 

29. PBG stands for Performance Based Guarantee

30. First installment of License fees - 6 Months one - have to be paid in advance within 10 days of the issue of LOA. 

31. Termination of the Licensee by IR - Notice period is 30 days

32. Penalty -  @5% of License Fees subject to a minimum of Rs.5000 for each act

 

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