E Auction & Asset Management of Commercial Earning Contracts or NFR Non Fare Revenue

Commercial Earning Contracts – NFR Non-Fare Revenue – 

E Auction & Asset Management

M.Nageswara Rao 9492432160

Source: Railway Board Letter No. 2022/TC(FM)/10/04 dated 11.04.2022

Salient features: 

• Pilot Project – 13 Divisions in IR

• Introduced E Auction instead of Tendering system

• Through IREPS

• Tender Committee not required

• Asset creation by Asset holder

• Auction catalogues – Published on IREPS in public domain

• Eligibility criteria is Financial Turnover (Self declaration & documents uploaded by bidders)

• Bidders’ identity masked. Only H1 rate will be visible.

• Auto decision – On the spot award to H1, if rate is equal to or more than RP.

•  Minimum Notice period – 12 days

• Standard Conditions of Contract issued by Railway Board. 

Financial Turn Over:  

• Eligibility criteria for Commercial Earning Contracts through E Auction. 

• Verification of Turn Over Certificates – done after awarding Contract to H1

• Self-Declaration plus Documents uploaded by the Bidders

Auto Extension: 

• Every 2 minutes

• If any fresh bid received within last 2 minutes

• Maximum – 10 times

RP Reserve Price:

• Fixed by ACO – Auction Conducting Officer

• Not to be disclosed to the Bidders.

• Vetting not required. 

EMD / SD

• 5 % 

• Instant deduction of 5 % of EMD of H1. 

• No blockage of EMD of other Bidders

• Forfeiture of EMD in case of wrong declaration of Financial Turnover.

ACO – Auction Conducting Officer

• JAG or Sr. Scale (Independent charge), if JAG is not available.

• For encryption of RP – Reserve Price 

• RP fixed by ACO and to be kept confidential 

 

Bidders pre requisites

• DSC – Digital Signing Certificate

• One time registration in IREPS

• Online payment of Rs.10000 towards one time registration

• Having Current Bank Account in SBI – State Bank of India

• Lien marking funds – for EMD 

• Updating Financial Turnover details in IREPS

Advantages:

1. Prevention of Assets idling

2. Increased competition

3. Removal of entry barriers

4. Reduction in cycle time for placement of Contracts

5. Elimination of pilferages in payments

6. Unique code for each Asset to prevent duplication

7. Linkage of Asset code ID with Auction lots

8. System generated Bid Sheet and Contract

9. Contract can be placed within 15 days from the awarding the Contract.  

Examples of Commercial Assets to be auctioned:

1. Parcel category - SLR Compartments, Parcel Vans

2. Parking category – Premium, Radio Taxi, Access Controlled, Two-wheeler, Four-wheeler and Mixed

3. Advertising - Out of Home.  

****