report on takeover of mobile catering units

REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 2

Contents I. Executive Summary ............................................................... 6

Table 1- Trains Managed by Indian Railways .............................................................. 6

Table 2 Trains with IR pending contract finalization ............................................ 7

Table 3 IRCTC Managed Trains : through Licensing and

Departmental operation ................................................................................................................. 7

Objectives .................................................................................................... 8

Key to Success ............................................................................................ 8

II. Present Status of catering over IR ..................................... 9

Brief history of Catering on Indian Railways- Changing

framework .................................................................................................................................................. 9

Table 4 - Size of catering business over IR...................................................................... 11

Illustration 1 – Example – Chennai- New Delhi Rajdhani

Express ........................................................................................................ 12

Cash flow: ................................................................................................................................................... 12

Illustration 2 – Example – Chennai- New Delhi Tamil Nadu

Express ........................................................................................................ 12

Cash flow: ................................................................................................................................................... 12

Illustration 3 – Example – Chennai- Lucknow Express ................... 13

II (a) Service modes: .......................................................................................................................... 13

II (b) Service Delivery through PSU's – the case for IRCTC .............................. 14

Action initiated .................................................................................................................................... 14

II (c) Railway Budget 2016-17 ................................................................................................. 19

III.Sizing the Takeover ........................................................................... 19

Table5 - Distribution of trains with pantry cars/mini WCBs ......................... 20

Table 6 - Load density of 78 Base kitchens proposed by NDRB,

& 28 Cell kitchens for 347 trains .............................................................................................. 22

IV.Takeover process: Policy Pre-conditions concerning MOR .... 24


V.Proposed Financial rationalization planned on IRCTC run

trains .......................................................................................................... 30

VI.Types of Contract ............................................................................... 31

(a)Production contract ........................................................................... 31

(b)Service Contracts: ................................................................................33

(c) Quality control initiatives ............................................................... 34

VII. Technology: Issues in regulatory contract

management .......................................................................................35

VII (a) Available technology in the market .................................................................. 35

VII (b) Procurement of Hardware and software - Suggestions...................... 37

VII (c) Proposed Organization structure of IT for Catering

Monitoring and Revenue Management System ........................................................ 37

VII (d) Organizational structure of IT ............................................................................... 38

VIII. Regulatory management of unbundling contracts .............. 39

Table 7 Staff required for operation of PPP kitchens ............................................ 39

a. Production contracts………………………………………………………………39

b. Service Contracts……………………………………………………………………40

c.Inspections ............................................................................................. 40

d.Financial Management ..................................................................... 41

Table 8 :For pre-paid trains (RAJ/STB/Duronto) .................................................... 41

IXMarketing ............................................................................................. 42

X.Taking over from IR – Plan of Action ........................................... 43

Phase I – Partial Unbundling of Composite Contracts: ON IRCTC

trains .......................................................................................................... 43

MAP -1 Map showing distribution of IRCTC & IR base kitchens ................. 45

Phase II (Unbundling with 28 Cell Kitchens) ................................... 46

MAP -2 Map showing distribution of IRCTC & IR base kitchens

& Cell kitchens........................................................................................................................................ 47

Phase III (Unbundling along with 43 new Base Kitchens) ........... 48


MAP -3 Map showing distribution of present base kitchens/cell

kitchens and proposed base kitchens ................................................................................... 49

A.Production contract .................................................................................................................... 50

B.Service contract .............................................................................................................................. 53

Phase IV .................................................................................................... 54

Litigations expected ............................................................................... 54

XI.Staffing: ................................................................................................ 55

Table 10 Catering Cadre Sanctioned Strength/onroll position

(Including catg. staff working in other Deptt.) of IRCTC Staff as

on 25.04.2016 ............................................................................................................................................ 56

Justification of staff required for ROs/Zos ............................... 58

Table 12a – Work assigned to Control office.................................................................. 59

Table 12b – Work assigned to Station Officer ................................................................ 59

XI (a) Duties of a station officer, proposed grades and

infrastructure: ......................................................................................... 60

Pin-pointing of Post for Catering phase wise ........................... 62

Implementation ................................................................................ 63

Pinpointing of staff - Tables 13 to 18 - CO, EZ, NZ, SCZ, WZ & SZ……..66-71

Table 19 - Profitability of units before unbundling…………………………….72

Table 20- Profitability of units after unbundling - Ph I…………………….73

Table 21 Profitability of units after unbundling - Ph II…………………….74

XII. Taking over from Railways - sequencing ....................... 75

XII (a). Action to be initiated ............................................................... 76

XIII.Summary of Recommendations .................................................. 78


I. Executive Summary

irector/CS entrusted the work of preparing and execution of a master plan

for takeover of mobile business to a committee of 3 members on

04.04.2016.

Scope of committee entailed

Preparation of master plan for mobile catering take over; Base kitchen

locationing and sizing; finalization of unbundling documents and market

development of new players for production and service

Zero based catering staff review including pinpointing for management of

proposed mobile business

Analysis of departmental catering and suggestions for turnaround

The master plan has been worked out. IR operates catering in 284 trains through

licensees while IRCTC does so in 63 trains. The details are as under:

Table 1- Trains Managed by Indian Railways

Railway Double

Decker

Duronto Exp Jan

Shatabdi

Rajdhani Shatabdi Grand

Total

CR 25 1 26

ECoR 21 1 2 24

ECR 14 1 15

ER 11 1 1 13

NCR 1 1

NER 9 9

NFR 19 1 20

NR 2 6 2 9 13 32

NWR 1 10 1 12

SCR 14 14

SECR 3 3

SER 12 1 13

SR 1 33 3 1 38

SWR 13 1 14

WCR 2 2

WR 1 3 12 1 1 18

Grand Total 3 5 204 9 13 20 254

In addition, there are 30 trains with IR where catering contracts are yet to be

finalized, as detailed below:-

D


Table 2 Trains with IR pending contract finalization

Railway M/Exp Rajdhani Shatabdi Grand Total

CR 3 3

ECoR 2 2

ECR 1 1

NR 8 1 9

NWR 1 1

SECR 2 2

SER 6 6

SR 1 1

SWR 2 2 1 5

Grand Total 26 3 1 30

IRCTC operates catering in 63 trains– either departmentally or licensees managed

as under

Table 3 IRCTC Managed Trains : through Licensing and Departmental operation

RAILWAY Duronto M/Exp Rajdhani Shatabdi Grand Total

CR 2 6 1 9

ECoR 1 3 1 5

ECR 1 1

ER 3 6 1 11

NER 1 1

NFR 5 5

NR 5 1 6

SCR 2 2

SER 3 5 8

SR 1 6 1 8

SWR 1 1 2

WR 1 3 2 5

Grand

Total

14 41 4 4 63

Note : - (i) Departmental operation : 4 Rajdhani, 4 Shatabdi, 7 M/E , 14

Duranto, = 29 Trains. (ii) Temporary licensing :- M/E 34 trains

It is observed that the present status of catering in mobile units comprising 347

trains in all is by far short of parameters with respect to service quality as is evident

from various complaints and inspection reports. The main issue is quality of food


and services. Therefore, for operating catering services in trains, the concept of

unbundling of contracts of production and service into two distinct entities is

absolutely necessary.The former is entailed to focus on quality of production so as

to substantially reduce complaint in food quality. Therefore, the concession

document _ both production and service will be based on QCBS system of

evaluation, thereby involving tradeoff between revenue and quality of service.

Objectives

he main objective is aligned with the mission/vision of IRCTC, i.e, “ to give

customer delight in hospitality through best global practices and

technology”.

To this extent, the problems plaguing the customer is poor quality of food and

services, overcharging and behavior of catering staff, while IR & IRCTC are

plagued with non-compliance to orders issued to catering licencees, non-

adherence to principles of hygiene and food safety and non- reporting/ under-

reporting of revenue. The plans of takeover discussed in detail below offers ways

and means of removing such obstacles in order to deliver quality oriented

services on trains. Best global practices of foodsafety and technology infusion

into monitoring mechanism of food ranging from design of kitchens to setting

standards on procurement to packing and distribution are discussed in detail.

There is also an urgent need to have a distinct brand orientation and brand value

– which is achievable with the plan discussed in this report. 1

Key to Success

Near accurate identification of kitchen locations and their load density.

Selection of suitable kitchen operator and onboard service provider through an

appropriately designed Quality and Cost based (QCBS) tender document.

Market building of potential F&B stakeholders.

Enterprise wide two-way communication exercise with employees eliciting

suggestions, solutions to implementation issues through a participative process.

1 Shri. Devi Prasad Pande, advisor, IRCTC -Catering Methodology – A Concept note – p1

T


II. Present Status of catering over IR

The historical evolution of Catering policies is enumerated,below to serve as a

backgrounder.

Brief history of Catering on Indian Railways- Changing framework


Present size of business over IR is as below:

Table 4 - Size of catering business over IR

No Item Units

1. Rajdhani/ Shatabdhi /Duronto trains

(Prepaid Catering Services)

64

2. Mail/Express train with pantry cars 274

3. Trainside vending units 625

4. Food plazas/Fast food units 202

5. Other static units in stations 9,961

6. e-catering in stations 405

7. Total passengers carried – 372 Cr., earnings – Rs.42,190.

Cr. 8. Total catering earning – Rs.515 Cr.;

Approximate sales – Rs.4,292.Cr

Note (i) Approximate sales is extrapolated from earnings

(presently licence fee is 12% of sales).

(ii) Presently, mobile catering alone is within the ambit of this report as

static catering is by and large an operationally settled business.

(a) Types of mobile catering:

1. Premium units/Pre-paid units: -

Rajdhanis/Shatabdhis/Durontos and AC based Suvidha trains are of this

type where catering charges are collected along with ticket charges

and menus fixed by Railway Board (henceforth NDRB) for each service

(Morning tea, Breakfast, Lunch, Hi-tea and Dinner) is being served.

Apportionment cost of each of the above services are also fixed by

NDRB and bills as per pre-set services are sent to Railways for collection.

If operated by licencee, the licencee pays 15% of the apportionment

charges as licence fee in addition to lump sum concession fee. A


pictorial representation is attempted to defined cash flow as per the

licensing model by each train category.

Illustration 1 – Example – Chennai- New Delhi Rajdhani Express

(Stations shown are only indicative to serve as an example)

In each of the stations above, food is picked up and served to passengers as

per chart/occupation.

Cash flow:

In addition to the licence fee, licensee pays concession fee upfront for a year in

advance.

2. Postpaid services- Mail/Express trains: - The services in 274 pantry car

trains are of this type where tariff for certain standard items like Coffee,

Tea, Std breakfast and Std meals are fixed by NDRB and tariff for other ala-

carte items are fixed by Zonal Railways or IRCTC as the case may be

depending upon the administration of the service.

Illustration 2 – Example – Chennai- New Delhi Tamil Nadu Express (Stations shown are only indicative to serve as an example)

In each of the stations above, food is picked up or cooked in train and served

to passengers as per their order.

Cash flow:

New DelhiJhansiNagpurBalharshahChennai

Railway collects catering charges alongwith tickett

After giving food, licencee gets

certification from Train superindent

Makes bill as per certification andd

Submits to Railways

Railway pays after deducting licence fee at 15% of the

bill

New DelhiJhansiNagpurBalharshahChennai

Licensee collects orders from passengers

Prepares or picks up food

and serves

Collect tariff amounts from

passengers


Licencee pays quoted licence fee to Railways in advance. Licence fee may be

revised after sales assessment to present license fee or 12% of assessed sales

whichever is higher.

3. Train Side Vending units: - This type of service takes place in trains without

pantry car/mini pantry car and services are usually limited to one or two

per trip. For instance, in train no 12601 MAS-MAQ mail, only one dinner

service and breakfast on the next day is required, which does not require

continuous presence of pantry car staff in the train. Hence the dinner at

MAS would be licensed out to a contractor at an assessed licence fee and

breakfast next morning would be licensed out to another contractor,

usually a VRR/NVRR contractor enroute.

Illustration 3 – Example – Chennai- Lucknow Express (Stations shown are only indicative to serve as an example)

There will be four contractors for this train one each at each station. The

contractor at Chennai will serve food at Chennai and upto two or three

smaller stations beyond (not presently shown above). Likewise, staff of the

contractor at Balharshah will order will be elicited short of BPQ duly.

Conveying the same to Balharshah, food picked up from Balharshah for

rendering the service. All other contractors in stations shown will do

likewise.Once food is served, cash is collected from the customers

accordingly.

Cash flow:

Each of the Licencee pays quoted licence fee to Railways in advance.

II (a) Service modes:

The current mobile catering framework comprises of two main modes of

service delivery.

Model :- IRCTC provides catering services using its own kitchen or by

sourcing food from third parties. This mode is commonly referred to as

departmental catering.

LucknowJhansiNagpurBalharshahChennai

Licensee collects orders from passengers

Picks up food and serves

Collect tariff amounts from

passengers


Mode II: -Through a licensing mechanism in which train wise catering

contracts are awarded to private parties. This is the mode now being used

by Indian Railways.

However, the service mode of licensing had its own attendant problems

such as over-charging, under-delivery, non-regional cuisine, unruly

behavior of catering attendants etc. Main reasons for failure of service

delivery are:

1. Licence fee quoted by licencees is very high, and has no relation to the

possible sales on the train, leading to licencee cutting corners and hence

problems as above

2. Licencees want to grab maximum opportunities (a winner's curse bidding

situation) across and beyond the geographical limits of their area of

operation. Hence services suffered from poor regulation duly remote

controlled without proper checks and reporting systems. End result: Poor

quality of service delivery.

3. Though the SBD floated by Railways resembled QCBS system, it preferred

higher Annual Turnovers and higher total meals prepared and hence only

a few licencees qualified for financial bid opening, which effectively

created monopolies. Broad basing players into the business never seemed

to be the objective.

Ensuing concession documents should therefore emphasize on a quality

based choice process without sacrificing revenue while creating condition

to break open the presently rampant (barriers to entry) in the mobile

business

II (b) Service Delivery through PSU's – the case for IRCTC

Action initiated

As dissatisfaction with Indian Railway catering was growing few

committees were formed to study and report the reasons and possible

solutions, since both IR & IRCTC were operating mobile units

departmentally/ under departmental supervision/ licensed.


Under the Chairmanship of Shri.BibekDebroy, the committee2 submitted its

report in March15 and recommends that (a) IR needs to be left unfettered

to function according to commercial principles & social obligations and

their costs need to be cleanly separated from Commercial considerations

and (b) on-board catering3 sourced from large food chains and local

restaurants should be encouraged and departmental catering costs cut

down

One-man committee, chaired by Shri. E.Shreedharan recommended that

all catering services should be restored back to IRCTC with a revised

protocol of understanding for time bound improvements. IRCTC should be

in a position to bring in many innovations in service which is not possible

in the ambit of Railway system due to many constraints.

A committee under the chairmanship of Shri. Shanti Narain, appointed by

IRCTC, submitted its report to Board in the first week of September 2015

also recommended:

IR should transfer catering to IRCTC in phases

IRCTC should make every effort to establish a brand in catering

IRCTC should be given greater freedom in pricing which should be

market driven

IRCTC should continue to provide low cost meals through Jan

Aahars

Progressively all base kitchens should be managed by IRCTC or its

franchisees which will ensure uniform quality & branding

Ready to eat food should be part of meals when trains are running

inordinately late

IRCTC should expand NRC, e-catering & Food plazas/Food courts

Tendering process for award of Catering and other contracts should

follow the QCBS procedure.

2Report of High power committee, p 128 3Report of High power committee, p 148


A shared vision needs to be evolved between the stakeholders, i.e.,

MoR& IRCTC regarding the future of catering business

A two-member internal committee, appointed by CMD/IRCTC, to

suggest viable method of takeover process also recommended

unbundling of services, in addition to certain buy-ins from MoR.

Shri. Devi Prasad Pande, Advisor, IRCTC has also submitted a

concept note on Catering Methodology

Essentially, the import of recommendations of recently constituted

Committees on the subject stressed on creating capacity through PPP

for such a geographically and functionally disaggregated operation

like catering on IR. In this context, it would be appropriate to spell out

benefits of PPP by restructuring such contracts with respect to

redefining risk allocation amongst stake holders, provisions to

renegotiate contracts or otherwise during pendency, evolving

balanced dispute resolution mechanisms as brought out by a recently

constituted Committee headed by Dr. Vijay Kelkar. Broad concerns

and features regarding PPP express by the Committee are reiterated

below: -

Public Private Partnerships (PPPs) in infrastructure refer to the provision

of a public asset and service by a private partner who has been

conceded the right (“The Concession”) for the purpose, for a specified

period of time, on the basis of market determined revenue streams,

that allow for commercial return on investment.4 The PPP building

blocks suggested governs the following aspects: -

Success in deploying PPPs as an important instrument for creating

infrastructure will depend on a change in attitude and in the mindset of

all authorities dealing with PPPs ……” This attitude change requires (1)

moving away from a narrow focus on transactions to focusing on the

relationship an on service delivery for citizens, (2) building in an

4Dr.Kelkar committee report p ix


approach of “give and take” between private and public sector

partners, and (3) developing a mechanism for dealing with

uncertainties inherent in long-time contracts.

Classification and allocation of risks across stake holders: - The

dominant, primary concern is the optimal allocation of risks across PPP

stakeholders. Inefficient and inequitable allocation of risk in PPPs can

be a major factor in PPP failures. A rational allocation of risks can only

be undertaken in sector and project-specific contexts. This

arrangement has to only be developed by the project proponents

concerned in collaboration with other stakeholders While risk

allocation can be specific to the sector and project, the Committee

also emphasizes that a generic risk monitoring and evaluation

framework should be developed encompassing all aspects across

project development and implementation lifecycle. The Committee

urges all stakeholders to then use this framework and allocate risk

optimally in accordance with the basic principle that “the entity that is

best suited to manage the risk is allotted that risk.”5

Emerging risks during project operation: - PPP projects can become

distressed when risks emerge that may not have been contemplated

at the time of signing. This could give rise to a call for amending the

terms of the Concession Agreement to reflect new project realities

better. The Committee has suggested benchmarks to be applied to

each proposed renegotiation as well as set out a set of conditions that

should not be accepted as valid reasons for a request for amendment

of a concession agreement.

Dispute resolution: - The Committee recognizes the need for a

quick, equitable, efficient and enforceable dispute resolution

mechanism for PPP projects. It is suggested that PPP contracts have

clearly articulated dispute resolution structures that demonstrate

5Dr.Kelkar committee report -p x


commitment of all stakeholders and provide flexibility to restructure

within the commercial and financial boundaries of the project.

Benefits of PPP:

PPP benefits all stakeholders of the project including the

government, private entity and users of the service in various ways.

The various benefits from PPP mode include:

Better value for money than traditional procurement methods,

arising from optimal transfer of risk from the public to private sector;

the benefits of competition; the adoption of whole life costing of

services, innovations in designing, building and operation of assets;

and in improved efficiency.

Provision of better quality services through increased competition,

innovation in the provision of services, incentives to higher

standards and performance and enlargement of focus from only

creating an asset to delivery of a service, including maintenance of

the infrastructure asset during its operating lifetime.

Reduction in full life cycle cost as result of the transfer of operation

and maintenance responsibility to private parties

Faster delivery of individual projects from the creation of incentives

by linking payment to the provision of the asset or service,

particularly in relation to more complex capital projects.

Better utilization of assets through extended third party usage

Better regulation as government agencies can focus on the role of

regulator, planner and monitor rather than on day to day service

provision

Enhanced competitiveness through its opening up of effectively

sheltered sectors to competition (e.g. IR's mobile business now

plagued by restrictive competitive practices.)

Risk transfer, which is a fundamental element of successful PPPs

factored into concession agreement.


Potentially increased transparency in use of funds and reducing

opportunities for corrupt practices

Access to private sector finance which frees the public sector from

the need to meet financing requirements from its own revenues or

through borrowing.

II (c) Railway Budget 2016-17

It is in this context that the Railway Budget 2016-17 included the

following pronouncements as part of IR's attempt to redefine

catering services by inviting private investment to promote inter-

alia capacity creation as under: -

IRCTC would unbundle present catering services by creating a

distinction primarily between food preparation and food

distribution.

Explore the possibility of making mandatory catering services

optional in trains.

Local cuisine of choice will be made available to passengers

Adding 10 more IRCTC operated, mechanized, sophisticated base

kitchens to ensure fresh and hygienic supply of food on trains.

In light of the above facts, and in view of the budget

pronouncements, the concept of unbundling production contracts

from service contracts and treat them as two separate contracts

was born. The subject will be elaborated further in section X – "Take

over from IR – Plan of action"

III. Sizing the Takeover

A large number of trains crisscross IR and operate wholly or partly

on the Golden Quadrilateral while others traverse routes beyond

the GQ. Overall the distribution of pantry car based train over IR

network managed between IR and IRCTC are indicated in Table 5.


Table5 - Distribution of trains with pantry cars/mini WCBs

Type of

train

Departmental Licencee operated Total

Zonal

Railway

IRCTC Zonal

Railway

IRCTC

Rajdhani -- 6 15 -- 21

Duronto -- 17 2 -- 19

Shatabdhi -- 3 20 1 24

Mail/Express 4 14 248 8 274

Total 4 40 285 9 338

The takeover task at hand will involve 300 odd trains duly

supplemented by additional services year on year on account of

various reasons. The breakup of trains is as under

Trains runs by IRCTC currently

Trains proposed to be handed over in the face of embargo of NDRB

on finalization of contracts / voluntary exit / termination.

Potential trains due to be assigned by IR to IRCTC.

Newly introduced services / Temporary services from time to time

The above trains have been mapped over 78 potential base kitchens

involving an estimated meal offering of 5.5 lakhs per day. Section X which

details the takeover plan of action indicate the rationale of the need for

assignment of contracts of majority of 254 trains under the administrative

control of IR to justify the financial viability of the 78 potential base kitchens

to introduce investment through PPP during the roll out of the takeover

process. Suffice to say here that the unbundling exercise will not proceed


at the desired pace both in terms of viability as well as the final

segregation of service contracts unless compulsive assessment of a

majority of contracts presently with IR are madeover to IRCTC. A detailed

analyses of the takeover plan phase wise duly sequencing the process

countrywide has been attempted in section X

(In addition, there are 625 TSV trains without pantry cars and no services

at all. To identify stations where food can be supplied to these trains in

table 6, a density matrix was populated, and the load of each station

identified. As such, there are 04 base kitchens and 28 Cell kitchens which

need to be taken over wherever available/ to be constructed where not

available for successful takeover of all trains. Therefore, it is also decided

that once a critical mass (about 60%) of base kitchens on a particular

sector has been taken over/constructed, all other trains in the sector can

be taken over with “Partial unbundling”., viz., the train operator would be

bound to take supplies from IRCTC base kitchens where available and

arrange supplies from either Railway operated large catering units like

VRRs/NVRRs or from outside caterers who can supply quality food.) Table

6 enumerates the load density of all 78 base kitchens (including 28 cell

kitchens) over IR totally to approximately 5.69 lakh meals per day

distributed over presently at IRCTC Kitchens, Railway Kitchens including

Cell Kitchens and proposed kitchens, where base kitchens have to be set

up.


Table 6 - Load density of 78 Base kitchens proposed by NDRB, & 28 Cell kitchens

for all 347 trains

(Legend: Existing IRCTC kitchens, Ex. Railway kitchens, Proposed, Cellkitchens)

S.No.

Station Station Code

Grand Total

Proposed for FY 2016-17

1 New Delhi NDLS 43,000

2 Howrah HWH 16,000

3 Patna PNBE 8,800

Total requirement of Meals from 347 trains from IRCTC

Base kitchens 67,800

4 Nagpur NGP 24,200

5 Ballarshah BPQ 13,400

6 Mumbai Central BCT 4,600

7 Mumbai CSTM CSTM 6,600

Total requirement of Meals from 347 trains from IR

Base kitchens 48,800

8 Tatanagar TATA 10,400

9 Kota KOTA 14,800

10 Kanpur Central CNB 21,600

11 Secunderabad SC 8,600

12 Jhansi JHS 16,800

13 Itarsi ET 16,600

14 Vadodra BRC 16,600

15 Kharagpur KGP 7,200

16 Vizag VSKP 9,000

17 Bilaspur BSP 9,400

18 Ahmedabad ADI 10,800

19 Bhubaneshwar BBS 9,800

20 Chennai Central MAS 9,800

21 Mughalsarai MGS 8,000

22 Balasore BLS 6,200

23 Ludhiana LDH 6,400

24 Ambala Cantt UMB 7,200

25 Varanasi BSB 6,000

26 Sealdah SDAH 3,000

27 Yashwantpur YPR 3,000

28 Gaya GAYA 7,200

29 Jammu JAT 3,600

30 Mangalore Junction MAJN 8,200

31 Lucknow LKO/LJN 9,000


S.No.


Grand Total

32 Warrangal WL 5,600

33 Vizianagaram VZM 5,400

34 Katihar KIR 6,200

35 Allahabad ALD 7,000

36 Guwahati GHY 9,600

37 New Jalpaiguri NJP 12,600

38 Jaipur JP 6,200

39 Asansol ASN 4,200

40 Barauni BJU 7,800

41 Moradabad MB 6,000

42 Palakkad PGT 3,200

43 Gorakhpur GKP 4,600

44 Trivendraum Central TVC 4,600

45 Malda MLDT 3,000

46 Jodhpur JU 2,200

47 Amritsar ASR 4,400

48 Ajmer ALL 1,800

49 Khurda Road KUR 4,600

50 Ernakulam ERS 4,600

Total Requirement of meals for 347 Trains from proposed

Kitchens 337,200

51 HazratNizamuddin NZM 7,800

52 Arakkonam Junction AJJ 1,000

53 Tirupati TPTY 800

54 Gudur Junction GDR 3,800

55 New Tinsukia NTSK 200

56 Guntur GNT 600

57 Dindigul Junction DG 1,400

58 Cuddapah HX 1,000

59 Ongole OGL 2,600

60 Rajahmundry RJY 7,000

61 Kottayam KTYM 2,000

62 Mathura Junction MTJ 3,200

63 Guntakal Junction GTL 2,800

64 Delhi Junction DLI 1,800

65 Katpadi Junction KPD 5,400

66 Erode Junction ED 7,200

67 Bhusaval Junction BSL 14,400

68 Rourkela Junction ROU 3,400

69 ReniguntaJn RU 3,600

70 Dharmavaram Junction DMM 1,800

71 Hubballi Junction UBL 3,600


S.No.


Grand Total

72 Tiruchirappalli Junction TPJ 2,400

73 Hyderabad HYB 400

74 HAMMAMET ELU ELU 0

75 Vijayawada BZA 19,200

76 Chengalpattu Junction CGL 1,400

77 Bangalore City SBC 5,000

78 Pune PA 12,200

Total Requirement of meals from CK's 116,000

Grand Total 569,800

Total requirement of Meals from IRCTC Base kitchens 67,800

Total requirement of Meals from from IR Base kitchens 48,800

Total Requirement of meals for from proposed Kitchens 337,200

Total Requirement of meals from CK's 116,000

Grand Total of meals required from 4 Irctc Kitchens, 5 IR kitchens,42 Proposed Kitchens & 28 Existing Cell Kitchens for 60 IRCTC Trains + 30 Trains Proposed to be handed over to IRCTC and 254 Trains managed by IR (347 Trains Total)

569,800

IV. Takeover process: Policy Pre-conditions concerning MOR On the anvil of finalization of policy there is critical need to agree

on a revised protocol of understanding concerning the terms and

conditions under which the takeover process should be

implemented and regulated. Some areas of concern and suggestions

are indicated below:

1. Autonomy to IRCTC

to decide upon the mode of operation of the units; IRCTC would ensure

that all preparations would be supervised at base kitchens for the

entire gamut of operations from procurement to final supply to the

train, but the decision to operate the base kitchen departmentally or

through PPP model would be entirely with IRCTC. Extent of

departmental catering coverage is tradeoff between

a. Positive bottom-lines in Departmental operations through “hands on”

approach acting as a countervailing force for ensuring business

continuity / risk mitigation; and


b. Quality-Revenue stream balancing in wholesale outsourcing of

catering concessions through a suitable revenue/service model.

IRCTC will have to review the timing, quantum and the extent of its

takeover decisions while assessing constantly coverage trends in e-

catering which is essentially ‘Arm’s Length” with a strong set of co-

partners.

2. Operational/pricing Autonomy

Lack of autonomy for IRCTC in pricing and quantity of offerings has been

an inherent phenomenon which has circumscribed professionalization

of catering services. Autonomy in this regard has to be infused with a

subsidy ingrained for price of offerings provided below marginal cost of

service provision. The MOR has to provide this subsidy to IRCTC to

protect the “bottom of pyramid” customer segment to whom such

services are to be compulsorily provided. Cross subsidization between

market determined price offerings and controlled price offerings cannot

be borne by IRCTC. This is especially so for mobile units which covers

274 M/E trains garnering Rs.350 Cr. to IR approximately.

Both pricing and quantity decisions (except for Jantha Khana)

should be market driven and within the purview of IRCTC rather than

policy making body as it is a business decision6. Therefore, a strong

case exists for eliminating pricing as a policy making tool. Until that

is done, adequate inflation indexing mechanism can be introduced

by IRCTC to rein in input costs and therefore protect viability of the

business.

Independence in re-structuring contracts with due emphasis

towards quality rather than financial bidding, inclusion of inflation

indexing relating to input costs should be the norm. Controlled

pricing should be an element in offerings with full subsidy or any

6Shri.ShantiNarain committee report – p-37


appropriate accounting procedure from MOR, howsoever

structured, a’la uneconomic branch line cost sharing with State

Government or strategic lines funded by Central Government.

Selective implementation of “hands on” catering as a

countervailing force to balance the catering concessions awarded

as a business continuity/ risk mitigation strategy should be wholly

within IRCTC’s ambit.

Constraints evident in operations and infrastructure in mobile

catering so mutually identified have to be cracked by MOR/IRCTC

through policy/investments respectively in a calibrated process for

specific genre of trains so identified for takeover. This strongly makes

the case if need be, for takeover of trains category wise (Rajdhani,

Shatabdhi, Duronto & M/E trains in that order) in a time-bound

manner.

The development of base kitchens as production points on identified

routes as per pre-prepared grid-wise density matrix can assist IRCTC

to identify type of trains to be taken over in a phased manner. There

is no gainsaying the fact that without establishing base kitchens to

feed trains mobile catering cannot show perceptible improvement,

nor can the exercise of takeover be successful. Hence, a grid-wise

density matrix will assist to finalize investment in base kitchens

(“Hands on” or “Arm’s length”) against a timeline while rationalizing

the dovetailing of live contracts with fresh ones as per a revised

(QCBS/QBS) RFQ envisaged.

Fixation of menu and tariff – menu and costing should have some

correlation to input costs. Currently the tariff is decided by the

Ministry and remains as such.7

7 Advisor, IRCTC – p-1


The items served in meals need to be fixed as options, as is being

done in airlines ….Now that the option clause has been introduced

in the new scheme of things, it should be easy to implement.8

3. Sharable revenues and trade receivables:

As stipulated the magnitude of the mobile business hovering at Rs.500

Cr.approx., with notably subdued demand due to poor service

coverage is likely to generate substantial sharable revenue from all four

genre of trains. Hence transfer of working capital from Railways to

IRCTC, in turn to concessionaires has to be seamless for 90 odd premier

services where advance payments are received by Railways. The

payment cycle from Railway to IRCTC to concessionaire should not

exceed more than one month or even here there is a strong case for

advance payments to IRCTC immediately upon fare collection by

Railway sans cancellations as is the scheme in internet ticketing but in

the reverse.

4. Land licensing for infrastructure creation

Since catering is a public amenity, land for base kitchens should be

licensed to IRCTC at a nominal rate of Re.1/- per Sqft per annum. This

would ensure that the cost of Base kitchens would be mainly for

infrastructure creation. Such created infrastructure would be with

Railways after the lease period, say 15 years plus one extension of 5

years.

5. Draft catering policy of Railways

Draft catering policy of Railways require some changes/additions/deletions

as below:

Preamble: Improvement in catering services will entail revised protocol

of understanding for time bound improvement in the delivery of catering

services. In this context there is need to harness investible resources

8 ibid


available with PSU to expand Railway’s capacity in infrastructure via PPP

rather than giving preference to Departmental execution. 9

For unbundling the catering services, among the whole gamut of catering

services, both mobile and static, the former would be taken up for

management by IRCTC in the initial phase. In compliance of the above the

following guidelines relating to mobile service are issued in supersession of all

previously issued instructions on the subject.

Para 1.1 – Management of catering services on all new trains shall be done

by IRCTC who will be responsible for provision of quality of services to Rail

passengers.

Para 1.3 – IRCTC shall not award comprehensive tenders for provision of

catering services. However, IRCTC should unbundle the services of

production and distribution in order to mediate each of the unbundled

services through direct supervision but can outsource operations to reputed

service providers for development of infrastructure and management of

back end services. However, during the course of implementation of

unbundling, comprehensive or composite tender will be entailed until BKs are

up and about. Subsequently, progressive unbundling of catering services

can be unleashed (to be read alongside para 1.7 below).

Para 1.3 – A shared investment model will be duly structured along with

service providers to retain control and ownership in delivery of final catering

services (This is in tandem with reports of Debroy committee and Sreedharan

committee, which have adduced to the strategy of galvanizing private

investment to prop up capacity creation in Railways to enable service

delivery rather than preferring purely departmental execution.

Para 1.5 – “IRCTC shall manage” should be changed to “IRCTC will

Supervise”, as in para 1.3 above

Para 1.6- Limits pick up of food from IRCTC operated/Nominated base

kitchens to trains under management of IRCTC alone. This should be

changed to all trains irrespective of whether managed by IRCTC or by

Railways. – This would ensure viability of base kitchens

9Sreedharan Committee report- p 117, Debroy committee report – p 56


Para 1.7 – specifies that IRCTC should takeover mobile catering services in a

phased manner so that no comprehensive licensing of catering services is

done in the interim period. This may be changed to comprehensive licensing

would be resorted to in exceptional cases where unbundling is not feasible

during interim period. This change is proposed as unbundling is a new

concept and setting up / identifying the right kitchens will take some time,

and to maintain services in the interim period. This, however will be limited to

12 months from date of issue of policy.

Para 1.8 – IRCTC should be given leeway to decide local cuisines by hiring

professional chefs – tariff change if required (if tariff is untenable in view of

production cost) should also be approved by Railway Board expeditiously

Para 1.10 – CCMs of Zonal Railways have been bestowed unilateral powers

to perform due diligence and impose penalties which is not acceptable

without involving IRCTC and/or third party audit agency. Accordingly,

imposition of penalty as the outcome of joint check would rest with IRCTC,

the agreement signing authority. Para should be corrected to read “…. This

monitoring shall take the form of due diligence to be implemented by CCMs

alongside third party audit agencies and IRCTC representatives.

Para 2.1 – states that IRCTC will set up its own base kitchens – This should be

changed to read IRCTC will set up base kitchens as in para 1.3. The mode of

setting up kitchens as elaborated in para 1.3 is referred to here to clarify the

connotation of the word “Own”. Flexibility in investment sharing of services

entailing IRCTC supervision in the course of unbundling is the key.

Para 2.2 states that IRCTC shall set up kitchens from its own fund or loans –

should be changed to read its own funds or loans or a shared investment

model to create such an infrastructure. This change is proposed as policy is

to be modified in consonance with the spirit of Debroy Committee

recommendations indicating that “There is need to harness investible

resources available with PSUs to expand Railways capacity in infrastructure

via PPP rather than giving preference to Departmental execution alone.”

Para 2.5 – to be changed to read “IRCTC shall manage the base kitchens by

structuring production contracts as “Output based contracts” with well-

defined output parameters. Such production contracts should even remotely


not be and resemble labour supply contract. However, Supervision will

remain with IRCTC. – in line with spirit of Sreedharan Committee report.

Para 3.3 may be deleted as it has been covered in preamble

Para 3.4 There shall be no assignment of mobile catering contracts by the

zonal railways should be changed to “In the event of revised protocol of

understanding to conduct catering services by Ministry through IRCTC there

is bound to be redefinition of terms and conditions of business as defined by

IRCTC. Such terms and conditions have to be proposed to the participants of

existing contracts which are to be transferred to IRCTC through a

reassignment document for due consent to continue in the business with

IRCTC. If otherwise, an exit option to current licensees should be given as

defined in para 3.5 of the draft policy. – To have uniformity and to avoid

dichotomy in management, entire mobile catering should be transferred to

IRCTC as envisaged in the Budget announcement. Consequently, the

assignment of mobile contracts with a view to compulsorily link such

contracts to base kitchens would improve viability and investment for

upgradation in such base kitchens. Regulation will also become focused a

single agency, IRCTC would be accountable for final delivery of quality of

food and services.

V. Proposed Financial rationalization planned on IRCTC run

trains

Prior to takeover unbundling exercise, and over and above policy pre-

conditions request to NDRB as part of the takeover process, IRCTC need to

frame a proper turnaround plan for the existing mobile units to set the tone for

the takeover process for majority of the trains, presently with IR.

Ever since 2010 IRCTC has been engaged in primarily Dept. operations for

increasing number of trains leading to marginal operating margins over a

turnover of Rs.188 crore (approx.) spread over 29 dept. trains posting a pre-

operating margin of Rs.5.00 crore locking in 900 outsource and 250 regular

staff.

Adjusted for allocable expenditure competing with other segments in the

overall turnover, the margins in the dept. mobile catering business further


deteriorates to Rs.(-)24 crore. It is imperative that IRCTC tackle the operational

causes generating these losses which would mainly be to jettison staff cost of

900 odd outsource staff at Rs. 13 crore using the partial unbundling exercise

now being initiated and likely to be completed in by end of QE-2. Further, more

additional trains being transferred by the Railways will be inducted into the

partial unbundling exercise thereby improving turnover and bottom line.

Sensitive analysis to this effect will be initiated while simultaneously mapping

more and more trains on to the CK/BK to be handed over in the form of

assigned contracts by IR to IRCTC. Therefore, there is no gainsaying the fact

that catering bottom lines can only improve by increasingly offloading more

and more BKs/CKs on outsourcing without sacrificing regulatory presence of

IRCTC at BKs and on Trains enabled by released staff due to the unbundling

exercise. In essence, improving bottom lines through unbundling of IRCTC run

dept. train will have to go hand in hand with progressively offloading

increasing number of trains from IR to ensure the viability of BKs/CKs. assigned

to IRCTC. One cannot succeed without the other. IRCTC is therefore,

committed to a turnaround exercise on the above lines.

VI. Types of Contract

(a) Production contract

Based upon the type of base kitchen (mega, normal or mini) it is

planned to license the contracts the broad scope of which is given

below:

Procurement of Raw material (IRCTC approved brands/ standards)

Proper storage in temperature controlled spaces (Like air

circulated areas for vegetables, deep freezers (Walk-in or

otherwise, depending upon the load size of the kitchen) etc.)

Pre-cooking and cooking as per orders received (For this purpose,

there will be an interface with IRCTC through control offices- who

will collect orders from various train service contractors passing

through the station)


Packing (IRCTC approved packing material, design)

Temperature controlled trolleys for storing food in platform till train

arrival

Handing over to the service contractor in train

For the above the strength of the production agent is relied upon.

However, after packing, there is a need to identify the packets,

capture basic details like when prepared, who prepared, batch

size, etc. and also accountability in terms of count of meals

prepared and sent out of the kitchen. Here the innate strength of

IRCTC in IT is relied upon for the following:

Barcoding/RFID for (a) identification at any stage and (b) proper

accountal

The barcode reader at exit of the BK would be connected to IRCTC

server online

There will also be an IRCTC official present, supervising cooking,

packing and up to the point of handing over to the train for service.

In this case, the strength of reputed catering houses along with

strength of IRCTC in IT field is relied upon to produce, packed

hygienic food and offer it to trains.

The selection of licencee would be Quality cum Cost based

selection and the broad parameters for selection is as below:

Annual turnover

Financial standing

Experience

Experience in Production

Quality certifications

Plan to set up base kitchen

Equipment to be used in this project

Staff working in production related aspects


Staff working in other aspects

Staff proposed for this project

Domicile of the bidder’s business – subject to guidelines

However, till such time proper contracts are given and base

kitchens set up, IRCTC may also try out temporary contracts with

companies who have already running base kitchens with logistic

support to move prepared and packed food to Railway stations.

Tender document will list out the approximate number of food to

be served from the base kitchen and the tenderer is required to

quote margin for IRCTC on the tariff rate.

(b) Service Contracts:

It is planned to implement services in the trains through service

contracts as per unbundling scheme. For long distance trains, the

service contract would be from end to end and for short distance

trains with or without pantry cars, the services would be segmented

as in present system of Train side vending, i.e., the base kitchen

operator of a particular station, if interested and is able to operate

the services too, will be awarded the contract for that particular

station alone. The broad scope of a service contract is as below:

(The scope and mode is in tandem with Shri.E. Sreedharan

committee report which states that10 “Service contracts should even

remotely not be and not look like labour supply contracts”.)

In Premium trains food orders at designated kitchens enroute as per chart

and joining/ Non-Joining if any.

In mail/Express trains, takes order from the passengers and orders food at

designated base kitchens enroute.

Picks up food at the designated station

Stores the food in temperature controlled storage

Serves the food according to orders

10E.Sreedharan Committee report – p116


Gives a bill to every passenger, as the case may be

Order and bill details to be updated online on IRCTC servers

IRCTC will supervise order taking, pick up, temperature control of food,

service and issue of bills and taking over sales proceeds through an IRCTC

Official in the train

In addition, service provider will also take orders for e-catering from

designated stations enroute

Service provider would stock “ready to eat food” and serve the same to

the customers at times of inordinate delays due to breaches/fog etc., in

absence of base kitchens.

The performance of the service provider will be monitored by IRCTC

through IVRS/App based feedback system from customers.

The selection of licencee would be Quality cum Cost based selection

and the broad parameters for selection is as below:

Annual turnover

Financial standing

Experience

Experience in Service

Quality certifications

Equipment to be used in this project

Staff working in service related aspects

Staff working in other aspects

Staff proposed for this project

Domicile of the bidder’s business – subject to guidelines

(c) Quality control initiatives

IRCTC has a system of having each unit ISO 22000:2005 certified,

irrespective of whether the unit is operated departmentally or through

licencee. The certification and the surveillance audits would ensure

quality of products and services.

In addition, third party audits are conducted by CO even now, for all

operational units, on food safety & hygiene and customer satisfaction.

This should continue for all base kitchens and service contracts.


IRCTC will also post IRCTC supervisors in each vertical of base kitchen,

from procurement to storing to pre-cooking to cooking to packing.

VII. Technology: Issues in regulatory contract management

IRCTC has come a long way in integration of technology as has been

proved by the success in internet ticketing. This innate strength of IRCTC

should be leveraged to ensure that:

Train running status is informed to zonal controls, base kitchens and

service contracts in time which would enable the control to change

over base kitchen for a particular train if the train is delayed abnormally

Updation of passenger details (extract of chart) to the order

taking/billing machine with the service providers

Capture of orders taken by service providers for further transmission to

zonal control & concerned base kitchens

Capture of meals production throughputs duly co-related with

electronic order capturing on train will ensure financial safe guards.

VII (a) Available technology in the market

(I.) For production units

Indents can be made in special paper with OCR pen to read the

indent and automatically store the same

Receipt of goods – items received through waybill/ delivery

challan can be read through OCR and barcode generated for receipt.

Further information on barcode can go from handheld scanners in

the store to record place and time of storage.

Barcode will reside info on person involved in food preparation with date

/Time stamp. Useful to back track for customer redressal management.

Post cooking barcodes will reside info such as batch numbers with

packing details (weight- item wise)

The barcodes are scanned automatically when placed in the hot

food trolley

(II.) For service units

Barcodes are scanned once food is taken out of trolley (if necessary)

and stored in designated area


While giving the food, the barcode is scanned, and while taking

feedback from each passenger the information is captured for future use

Bills are made in a central location for each item served, with passenger

name (optional), seat no, train no & time

Data on bills is captured online and sent to IRCTC server

For hardware, smart phones (which are now available even at Rs.4,000/-)

with only app for order taking and billing enabled can be used. (SZ is

now using such machines with Near Field Communication for capture of

employee particulars and meals taken in AIL canteen at Chennai)

Another App would open the machine for taking order based upon

either one or a combination of employee’s voice print/ employee ID

(given by the service provider)/fingerprint. This would also prevent

misuse by other parties if the machine is lost.

Thus using proper technology and hardware, every aspect of production from

receipt of goods to dispatch food of and every aspect of service from

receipt of packed food to taking feedback from the passenger can be

automated and captured online that

(a) IRCTC’s financial interest is safeguarded

(b) In case of poor quality, the preparation and persons responsible can be

pinpointed

(c) In case of poor service, the staff who is responsible can be pinpointed

(d) Feedback is taken on each item served so that after analysis IRCTC and

its base kitchens/ service providers can take necessary course

corrections through an appropriate redressal machinery.

Further on the subject of technology, it is recommended that Linux and

MySql and other free sources can be tried instead of costly proprietary

software. The advantages are:

Software cost is very low

Since so many enthusiasts are working on different projects and adding

on to the public library, solutions are easily available for any change in

requirement from the software

Robust and virtually un-hackable

Support for enterprise is available


Support from web community is available

Android software is based on Linux or any other compatible system.

Cleartrip and many other ecommerce websites are running on Linux and

Mysql or we may use the time tested oracle system.

VII (b) Procurement of Hardware and software - Suggestions

Linux from Canonical has an enterprise division where Canonical

provides full assistance from start to finish and also provides technical

assistance while the project is operational. Compared to proprietary

software available, this is about 90% less costly.

MySQl from Oracle also has an enterprise edition and provides full

support from designing a database to administering the same

For hardware (billing as well as standalone computers, scanners,

barcode printers and readers etc) IRCTC should call for EOI from

manufacturers only and after due assessment of the machine’s

capability, empanel a few manufacturers for supply of hardware.

Hence, open source approach to link devices held by licensees to

IRCTC's monitoring devices should be the key to revenue protection for

IRCTC and licensee alike.

We may also use the software presently used in Rail tel/ Cris which may

be easy to implement the project.

VII (c) Proposed Organization structure of IT for Catering Monitoring

and Revenue Management System

The Technical team will be responsible for Architecture, Web-designing and

development for each vertical. The operational teamwill be coordinating

with the IT team for updation of the data. The data flow will be real time, virtual

information for data analysis, inventory control, quality control, complaint

management etc. While the IT team of catering will be under the control of

DCS, GGM/IT may be co-opted for hardware procurement data centre

support and server level support. The operational team will ensure testing of

software, operational reconciliation and recovery of information from

stakeholders. The technical team will constantly work on development and

enhancements. The resources can be drawn from the virtual cadre and this


will form as the ultimate DSS (Decision support system). It will be prudent to

invest on the hardware and software for building up a robust IT support

system which is the only way to address the revenue and other related issues

in the advent of taking over catering from Indian Railways. The investment of

substantial amount of 5 to 10 crores is to be set apart for this mission which

will give rich dividends in the long run.

VII (d) Organizational structure of IT

JGM/IT

Operations team

AM/Mobile

2 Supervisors

AM/Static

2 Supervisors

AM/e-catg

2 Supervisors

Technical team

AM(H/W)

2 Supervisors

AM(S/W)

2 Supervisors


VIII. Regulatory management of unbundling contracts

a. Production contracts

For management of kitchens, it is proposed to broadly designate kitchens as

Mega (10000 meals + per day), Normal (5000-10000 meals a day) and Mini

(Less than 5000 meals a day). Since the accountal will be computerized and

cooking through modern state of art machines, requirement of manual

intervention is minimal. However, for smooth operations and monitoring other

aspects of cleaning, hygiene etc the following officials are required at a very

bare level. In addition, based on the size of kitchen and load density, more

supervisory staff are required for each vertical of the kitchen – Procurement,

pre-production, production, packing and distribution.

Table 7 Staff required for operation of PPP kitchens

No Type of kitchen Executive

level

Supervisor

level

Workmen

level

Remarks

1. Mega E4/5 -1 S3- 3 Nil Since this will be a

more or less 24X 7

operations, one S

for each shift*

2. Normal E2/3 -1 S3-2 Two shifts

3. Mini E0/1 – 1 -- 2

* nos indicated are minimal for bare operations. In case the station has a high

turnover of trains which require Railneer, or high number of tourist trains etc ,

more staff would be required.

Main responsibilities of monitoring officials would be:

i. Communication with service contractors & control for updation of

requirement

ii. Ensuring that all IT related aspects of updation of requirement, capture of

sales and other details required.

iii. Quality checks of the food prepared and certification of quality and

temperature of food


iv. Hygiene and cleanliness of kitchens and staff, as per HACCP manual

For Departmental kitchens, the requirement would differ based on the size,

workload and operational hours.

b. Service contracts

For service contracts, for all end to end one supervisor is required in the mobile

unit to ensure that:

i. The staff are well groomed and presentable

ii. The staff are courteous to public

iii. Orders are taken from all passengers

iv. Orders are updated online and through communication to control and

BK operator

v. Food received in of proper quality, quantity and temperature

vi. Food received is stored in proper temperature and served in proper

temperature

vii. Bills are given to all who have partaken food and money collected is

deposited properly and the same is handed over to IRCTC office at the

end of his/her trip

viii. The food storage area and equipment are kept in good fettle; and in

case of requirement of repair, the same is attended to at the next station

ix. In smaller contracts – for service from one station to another like present

TSV contracts, monitoring can be limited to electronic surveillance

through the IT enabled technology discussed earlier, and one inspection

per month, if required.

c. Inspections

A. Since once the BK and service contracts commence, most of the

operations will be controlled and monitored through IT enabled services,

actual inspections can be by exception rather than rule, and limited to

exceptional occurrences if any.

B. From Railways also, inspections should be limited to HOD level and in case

of exceptions, the coordinating officer of Railways, viz., CCM/PS should

contact the in charge of BK/ Service unit/ controlling officer and arrange

for inspection by anyone lesser than an HOD.


C. Presently, there is an attitude on the part of Railway men including GRP

staff travelling in train that they are eligible for free food and beverages.

This is the starting point for less accountal leading to other problems in

trains and in static units. This should be stopped forthwith. Else, Railway

may print coupons and

give it to all staff for use in IRCTC operated units, which will be reimbursed

by Railways on a monthly basis.

d. Financial Management

Table 8 :For pre-paid trains (RAJ/STB/Duronto)

The model of operation of PPP base kitchens and service contracts is as below:

A. There is a selling price for each item in the menu (Let this be x)

B. Production contracts are to be finalized on a fixed rate for each item

which is lesser than the selling price of the item (let this be y, generally

be below 75% of x)

C. Service contracts are to be finalized on a percentage of sales to be given to

the contractor, where the percentage lies below

(x-y)/x % -( let this be z – generally below 15% of x)

D. Hence the earnings of IRCTC would be x-(y+z) – even if y = 75% (max) and z

= 15%(min) there is a 10% margin for IRCTC on all sales

Particulars 2AC/3AC SL Duronto

Lunch/ Dinner BF ET Lunch/Dinner BF ET

Selling price 112 66.50 40.00 71 34 18

Food Supply Cost

@ 75%) (Incl of

taxes)

84 49.88 30.00 53.25 25.50 13.50

Cost of service @

15% (Incl of taxes)

16.80 9.98 6.00 10.65 5.10 2.70

Net Margin of

IRCTC @ 10%)

11.20 6.65 4.00 7.10 3.40 1.80


E. The base kitchen load in table 6 is at a very conservative projection, and

even if the number of meals offtake is only according to projection, the 10%

difference is about Rs.7.0 Lakhs per day or Rs.25Cr per annum. For covering

all trains over IR, 50 base kitchens are not enough and more have to be

proliferated once the main trunk routes are covered.

F. We may also prescribe slabs of sales and margins expected – as sales

increase, the margins also increase (Say for production, if the offtake is only

300,000 meals a month the min margin would be 25% percent of selling price

and if the offtake increases by say 100,000, the margin would be increase by

2% or 3%. Similar slabs can be set for service contract also based upon

monthly sales amounts- as in addition to meals service contractor would also

sell PAD items etc)

G. Originating passengers on non-suburban trains in the fiscal 15 was 371.9 Crores

with an average lead of 267.7 Km per passenger11 – translating into approx. 5

hours of travel, i.e., at least one meal per person. At Rs.50/- per head, if all the

passengers are covered, the earnings would be 18,600 Cr on sale and at a

margin of 10% IRCTC stands to gain Rs.1860 Cr. Though covering all passengers

are not possible as of now, this is the potential of earnings at the present rate

of travel, which will only increase and not decrease.

H. Finance will work out the taxes applicable on each of the contracts and

responsibility of payment of same, for inclusion into software

IX Marketing

In order to ensure that the market consisting of a large number of Restaurants,

Hotels, industrial kitchens, institutional kitchens etc are aware of the plans of

IRCTC to set up base kitchens and service contracts for trains, constant dialogues

in a one-to – one basis with individual hoteliers/caterers and hoteliers/ catering

associations at national, regional and state should be contacted. Further

associations like chefs’ association, hotel managers’ association etc also should

be contacted.

Another possible lead is large scale catering equipment manufacturers who can

give leads to caterers as well as service providers for service contracts.

11 Indian Railway Statistical publication, 2014-15, Passenger earnings and average lead – p6


Frozen food/ semi-cooked food manufacturers are also to be contacted as

possible base kitchen contractors in future or work as ad-hoc measure suppliers

to trains till base kitchens are constructed and commissioned.

To this extent, CO has floated an EOI for consultants for base kitchens, with last

date of application as 25.05.2016.

South Zone has designed a brochure on opportunities in Indian Railway catering

explaining various opportunities in IR including FPs, FFUs and ELs in addition to

base kitchens and service providers for trains (Copy enclosed). SZ had also met

key officials of South Indian Hotel and Restaurateur’s association (SIHRA) and

meeting hoteliers and caterers on the leads provided by SIHRA. It is also reported

that most of the caterers are not very keen to participate as they have many

apprehensions in entering a purely governmental workplace and regimes of

licensing and connected hassles. The people met by SZ have been relieved of

their apprehensions, and advised that IRCTC will act as a single window system

into Railway system and they need not worry about hassles of licensing Raj.

Similar action should be undertaken at all zonal and regional levels to ensure

that good brands/ caterers/hoteliers participate in the process and the

objective of “giving customer delight in hospitality...” is adequately met.

X. Taking over from IR – Plan of Action

Phase I – Partial Unbundling of Composite Contracts: ON IRCTC trains

As of now IRCTC operates 3 base kitchens, at New Delhi, Howrah, and

Rajender Nagar, while Railways operate 4 base kitchens, Ballarshah,

Nagpur, Mumbai CST, Mumbai Central. The schema of unbundling will be

as under:

a. the trains with IRCTC would be partially unbundled i.e., trains with one or

two services would be taken up for partial unbundling

b. at least one IRCTC kitchen would be linked to such trains and the licensee

of the train would be directed to pick up only from these base kitchens/s

c. for subsequent services suitable conditions will be incorporated in the

contracts for sourcing of meals on IRCTC tying up from other sources.


d. As part of partial unbundling, wherever the IRCTC can supply food to the

trains and only one service is left over, such trains would be taken over in

the first phase.

e. First phase will end with taking over of 4 Railway operated base kitchens

and introducing partial unbundling/ full unbundling wherever possible with

the seven base kitchens. As far as staff are concerned, no staff from

Railways is required and staff at present redeployed in other verticals

would be utilized at various kitchens, either for supervision (in case of PPP

investment) or departmental operation. At the end of Phase-I, all the 34

trains with IRCTC at present would be either partially unbundled or fully

unbundled depending upon mapping of all services of a train to the

available base kitchens.


MAP -1 Map showing distribution of IRCTC & IR base kitchens


Phase II (Unbundling with 28 Cell Kitchens)

Phase II will involve

a) Takeover of cell kitchens (28 of them) in various stations over IR.

b) The takeover through a tri-partite agreement between IR, IRCTC and

licencee, where the present licencee would abide by the rules and

regulations of IRCTC.

c) The agreement with licencee by IR will be terminated, without any penal

action, and return of SD paid. At such places, IRCTC would finalize a new

licencee through a QCBS tender in quick time.

d) Phase II will end with taking over the 30 trains now with IR and other/new

trains, without proper contracts. These trains also will be mapped on to the

base kitchens/Cell kitchens/Outside kitchens available as stated in the tri-

partite agreement.


MAP -2 Map showing distribution of IRCTC & IR base kitchens & Cell kitchens.


Phase III (Unbundling along with 43 new Base Kitchens)

a) Tendering will start on the remainder of 43 base kitchens (out of 50 base

kitchens now proposed by IR) through proper QCBS documents.

b) The balance 254 trains (Mail/Exp trains) also need to be taken over, so as

to ensure viability of setting up and operating base kitchens.

c) Unless the proper advance assessment of meal throughput are done, the

exercise of setting up of base kitchens would be futile. Hence all the 254

mail/Express trains need to be handed over to IRCTC by Railways.

d) In addition, trains without pantry cars/TSV services would also be taken up

by IRCTC for service either through a properly selected service contractor

or through the base kitchen (Present arrangement of TSV by IR).

e) As far as taking over of 254 trains where there are at present 5 year

contracts extendable by another 5 years subsist; such trains would be

handed over to IRCTC through a tri-partite agreement such as the one

described in phase II.

f) The takeover through a tri-partite agreement between IR, IRCTC and

licencee, where the present licencee would abide by the rules and

regulations of IRCTC.

g) The agreement with licencee by IR will be terminated, without any penal

action, and return of SD paid. At such places, IRCTC would finalize a new

licencee through a QCBS tender in quick time.


MAP -3 Map showing distribution of present base kitchens/cell kitchens and

proposed base kitchens


The trains taken over phase wise will be unbundled progressively as

under: -

A. Production contract

i. Phase I:-

Base kitchens at New Delhi, Mumbai Central, Mumbai CST, Howrah,

Nagpur, Ballarshah, Rajender Nagar(Patna) will be taken up.

ii. Phase II : -

Cell Kitchens on IR will be taken over for mapping the 2nd and

subsequent services of trains

iii. Phase III : -

Tendering for 43 base kitchens proposed will be taken up along

with taking over of 254 IR's trains.

Table 9: Meals required from 4 IRCTC Kitchens, 5 IR kitchens,41 Proposed Kitchens & 28

Existing Cell Kitchens for 60 IRCTC Trains + 30 Trains Proposed to be handed over to IRCTC

and 254 Trains managed by IR (347 Trains)

S.No.

Station Stn. Code

Kitchen Zonal

Rly

Mea

l R

eq

uir

eme

nt

Fro

m6

3 tr

ain

s

Mea

l R

equ

irem

en

t Fr

om

30

trai

ns

Total

Me

al R

eq

uir

em

en

t fr

om

tra

ins

un

de

r 2

54

Trai

ns

Grand Total (347

Trains)

1 New Delhi NDLS Exisiting IRCTC BK NR 16,600 2,000 18,600 24,400 43,000

2 Howrah HWH Exisiting IRCTC BK ER 9,400 600 10,000 6,000 16,000

3 Patna PNBE Exisiting IRCTC BK ECR 2,400 1,200 3,600 5,200 8,800

Total requirement of Meals from IRCTC Base kitchens

28,400 3,800 32,200 35,600 67,800

4 Nagpur NGP Existing IR BK CR 6,000 4,400 10,400 13,800 24,200

5 Ballarshah BPQ Existing IR BK CR 5,400 400 5,800 7,600 13,400

6 Mumbai Central

BCT Existing IR BK WR 3,400 0 3,400 1,200 4,600

7 Mumbai

CSTM CSTM Existing IR BK CR 4,600 400 5,000 1,600 6,600

Total requirement of Meals from IR Base kitchens

19,400 5,200 24,600 24,200 48,800


S.No.

Station Stn. Code

Kitchen Zonal

Rly

Me

al

Re

qu

ire

me

nt

Fro

m 6

3

trai

ns

Me

al

Re

qu

ire

me

nt

Fro

m 3

0

trai

ns

Total

Me

al

Re

qu

ire

me

nt

fro

m t

rain

s

un

de

r 2

54

Trai

ns

Grand Total (347

Trains)

8 Tatanagar TATA Proposed SER 6,600 600 7,200 3,200 10,400

9 Kota KOTA Proposed WCR 4,200 400 4,600 10,200 14,800

11 Secunder

abad SC Proposed SCR 1,800 2,400 4,200 4,400 8,600

12 Jhansi JHS Proposed NCR 3,600 400 4,000 12,800 16,800

13 Itarsi ET Proposed WCR 3,200 0 3,200 13,400 16,600

14 Vadodra BRC Proposed WR 1,000 2,000 3,000 13,600 16,600

15 Kharagpur KGP Proposed SER 1,600 200 1,800 5,400 7,200

16 Vizag VSKP Proposed ECOR 1,000 1,000 8,000 9,000

17 Bilaspur BSP Existing IR BK SECR 3,200 1,800 5,000 4,400 9,400

18 Ahmedab

ad ADI Exisiting IRCTC BK WR 600 1,400 2,000 8,800 10,800

19 Bhubanes

hwar BBS Proposed ECOR 4,200 400 4,600 5,200 9,800

20 Chennai Central

MAS Proposed SR 3,200 200 3,400 6,400 9,800

21 Mughalsa

rai MGS Proposed ECR 1,600 1,400 3,000 5,000 8,000

22 Balasore BLS Proposed SER 2,200 0 2,200 4,000 6,200

23 Ludhiana LDH Proposed NR 400 1,800 2,200 4,200 6,400

24 Ambala

Cantt UMB Proposed NR 400 1,800 2,200 5,000 7,200

25 Varanasi BSB Proposed NR 1,600 400 2,000 4,000 6,000

26 Sealdah SDAH Proposed ER 1,600 0 1,600 1,400 3,000

27 Gaya GAYA Proposed ECR 1,600 400 2,000 5,200 7,200

28 Yashwant

pur YPR Proposed SWR 1,600 200 1,800 1,200 3,000

29 Jammu JAT Proposed NR 200 1,600 1,800 1,800 3,600

30 Mangalore Junction

MAJN Proposed SR 1,600 0 1,600 6,600 8,200

31 Lucknow LKO/LJN Proposed NR/NER 1,600 0 1,600 11,800 9,000

32 Warranga

l WL Proposed SCR 1,000 200 1,200 4,400 5,600

33 Vizianagar

am VZM Proposed ECOR 1,200 0 1,200 4,200 5,400

34 Katihar KIR Proposed NFR 1,200 0 1,200 5,000 6,200

35 Allahabad ALD Proposed NCR 800 400 1,200 5,800 7,000

36 Guwahati GHY Proposed NFR 800 200 1,000 8,600 9,600

37 New

Jalpaiguri NJP Proposed NFR 1,000 0 1,000 11,600 12,600

38 Jaipur JP Proposed NWR 600 200 800 5,400 6,200

39 Asansol ASN Proposed ER 600 0 600 3,600 4,200

40 Barauni BJU Proposed ECR 600 0 600 7,200 7,800

41 Moradaba

d MB Proposed NR 600 0 600 5,400 6,000

42 Palakkad PGT Proposed SR 400 0 400 2,800 3,200


S.No.

Station Stn.

Code Kitchen

Zonal Rly

Me

al

Re

qu

ire

me

nt

Fro

m 6

3

trai

ns

Me

al

Re

qu

ire

me

nt

Fro

m 3

0

trai

ns

Total

Me

al

Re

qu

ire

me

nt

fro

m t

rain

s

un

de

r 2

54

Tr

ain

s

Grand Total (347

Trains)

43 Gorakhpur GKP Proposed NER 400 0 400 4,200 4,600

44 Trivendraum

Central TVC Proposed SR 200 200 400 4,200 4,600

45 Malda MLD

T Proposed ER 400 0 400 2,600 3,000

46 Jodhpur JU Proposed NWR 200 200 400 1,800 2,200

47 Amritsar ASR Proposed NR 0 200 200 4,200 4,400

48 Ajmer ALL Proposed NWR 200 0 200 1,600 1,800

49 Khurda Road KUR Proposed ECOR 0 0 0 4,600 4,600

50 Ernakulam ERS Proposed SR 0 0 0 4,600 4,600

Total Requirement of meals for 347 Trains from proposed Kitchens

63,400 20,000 83,40

0 253,800 337,200

51 HazratNizamuddin NZM Existing CK NR 0 200 200 7,600 7,800

52 Arakkonam

Junction AJJ Existing CK SR 400 0 400 600 1,000

53 Tirupati TPTY Existing CK SCR 0 0 0 800 800

54 Gudur Junction GDR Existing CK SCR 400 0 400 3,400 3,800

55 New Tinsukia NTSK Existing CK NFR 0 0 0 200 200

56 Guntur GNT Existing CK SCR 0 0 0 600 600

57 Dindigul Junction DG Existing CK SR 0 0 0 1,400 1,400

58 Cuddapah HX Existing CK SCR 600 0 600 400 1,000

59 Ongole OGL Existing CK SCR 0 0 0 2,600 2,600

60 Rajahmundry RJY Existing CK SCR 1,200 200 1,400 5,600 7,000

61 Kottayam KTYM

Existing CK SR 600 0 600 1,400 2,000

62 Mathura Junction MTJ Existing CK NCR 0 0 0 3,200 3,200

63 Guntakal Junction GTL Existing CK SCR 1,000 0 1,000 1,800 2,800

64 Delhi Junction DLI Existing CK NR 0 200 200 1,600 1,800

65 Katpadi Junction KPD Existing CK SR 600 200 800 4,600 5,400

66 Erode Junction ED Existing CK SR 1,800 0 1,800 5,400 7,200

67 Bhusaval Junction BSL Existing CK CR 3,400 1,400 4,800 9,600 14,400

68 Rourkela Junction ROU Existing CK SER 200 600 800 2,600 3,400

69 ReniguntaJn RU Existing CK SCR 2,200 0 2,200 1,400 3,600

70 Dharmavaram

Junction

DMM

Existing CK SCR 0 0 0 1,800 1,800

71 Hubballi Junction UBL Existing CK SWR 0 400 400 3,200 3,600

72 Tiruchirappalli

Junction TPJ Existing CK SR 400 0 400 2,000 2,400

73 Hyderabad HYB Existing CK SCR 0 0 0 400 400

74 HAMMAMET ELU ELU Existing CK SCR 0 0 0 0

75 Vijayawada BZA Existing CK SCR 6,200 200 6,400 12,800 19,200


The load of meals for the IRCTC kitchens, IR kitchens, cell kitchens and

the proposed kitchens to effect unbundling 338 trains (63 IRCTC trains, 30

trains to be taken over and 254 trains to be assigned)

Once all base kitchens on a particular sector have been installed, all

the trains in the route will be taken over

Premature taking over is also possible for select trains, with some

supplies from base kitchens and balance supplies from large

production units available in the station like VRRs/Cell Kitchens/Food

plazas etc

Instead of Stop-gap arrangement through VRR/CK/FP, Frozen food

suppliers, industrial caterers, Airline suppliers near the station with

logistical support to bring the food to station in time will also be

explored.

B. Service contract

i. Service contracts for long distance trains and trains where continuity

in service is required (as in Rajdhani/Shatabdhi/Duronto), would be

designed for end-to-end coverage.

S.No.

Station Stn.

Code Kitchen

Zonal Rly

Me

al

Re

qu

ire

me

nt

Fro

m 6

3

trai

ns

Me

al

Re

qu

ire

me

nt

Fro

m 3

0

trai

ns

Total

Me

al

Re

qu

ire

me

nt

fro

m t

rain

s

un

de

r 2

54

Tr

ain

s

Grand Total (347

Trains)

76 Chengalpattu

Junction CGL Existing CK SR 200 0 200 1,200 1,400

77 Bangalore City SBC Existing CK SWR 200 2,000 2,200 2,800 5,000

78 Pune PA Existing CK CR 4,400 600 5,000 7,200 12,200

Total Requirement of meals from CK's 23,800 6,000 29,800 86,200 116,000

Grand Total 135,000 35,000 170,000 399,800 569,800

Total requirement of Meals from IRCTC Base kitchens 28,400 3,800 32,200 35,600 67,800

Total requirement of Meals from IR Base kitchens 19,400 5,200 24,600 24,200 48,800

Total Requirement of meals from proposed Kitchens 63,400 20,000 83,400 253,800 337,200

Total Requirement of meals from CK's 23,800 6,000 29,800 86,200 116,000

Grand Total of meals required from 4 Irctc Kitchens, 5 IR kitchens,41 Proposed Kitchens & 28 Existing Cell Kitchens for 60 IRCTC Trains + 30 Trains Proposed to be handed over to IRCTC and 254 Trains managed by IR (347 Trains Total)

135,000 35,000 170,000 399,800 569,800


ii. However, for trains with limited running hours/ continuity in services is

not required (as in TSV trains) service contracts will be driven by BK

operators in order to ensure viability of base kitchens. In other words,

composite contracts will be implemented & not strict unbundling.

Phase IV

From Phase I to Phase III, there would be some comprehensive contracts

given to trains either partially or fully depending upon the mapping of

services to the train timings and availability of base kitchens. Such

extensions of composite contracts would be limited to six months. Service

contracts would be completed for all such trains.

Litigations expected

It is expected that a number of cases will be filed by current disgruntled

contractors during any and all of the phases described above. However,

as commented upon by Shri.E.Shreedaran committee and Shri. Debroy

committee, the policy decision taken in 2010 was a retrograde step and

has to be corrected for leaving Railway to focus on its core activities as

planned by Cabinet in 1999 when the decision of hiving off catering

services to a new company to be formed was taken. Since the decision of

IRCTC setting up base kitchens and unbundling services into two distinct

production and service contract was announced during budget speech

and passed in parliament is tantamount to a policy decision.

Litigation involving Policy decisions are not usually entertained by the

Courts of this land as amply proved by a number of litigations on 2005

policy (based on which Catering was taken over by IRCTC) and 2010

Policy (based on which catering was given back to IR), which were set

aside by Courts. Hence any challenges to the policy decision to takeover

catering by IRCTC, on terms and conditions specified will not be

entertained by any Court. The cases will be jointly defended by IR and

IRCTC together as was done in earlier times (2005 & 2010). A


comprehensive legal advice will be elicited in this regard and submitted

to NDRB.

XI. Staffing:

IRCTC was formed consequent to a decision of Parliament in 1999 to have

a special vehicle to carry out the catering functions of Railways. The

company was formed to professionalize catering onboard trains and in

static units in stations over IR. As per the mandate IRCTC took over the units

in 2004-2005 and in order to have proper monitoring/

supervision/operation of units taken over, selected 403 catering

professionals through campus selection from IHMs, as Supervisors (S1). 658

workmen (both in production and service as on date) were also recruited

and posted to various units taken over.

Post handing over of catering units to IR consequent to catering policy

2010, these staff were suddenly rendered surplus and were transferred to

other verticals like Railneer, Tourism, IT etc so as to fill in vacancies in the

verticals. 108 supervisors and 23 workmen are working in other verticals as

of date.

With unbundling and setting up base kitchens in various stations, it is

proposed to set up station offices in all the stations where base kitchens

are planned and also at other strategically located stations where IRCTC

presence is required. To this extent, all the staff working in other verticals

now will be transferred back to catering progressively, to work as station

officers/ train service supervisors. No catering executive / supervisor

would work in desk jobs in ROs/ZO s. The financial commitment on

repatriating staff across operation points as also expenditure on

infrastructure is a minuscule component compared to the revenue stream

insight due to take over. Regulatory functions have to be strengthened

across stations for all our business including catering as point of presence

for Railway coordination also. Hence, the need for reviving station office

concept. Tables 10 & 11 depicts the sanctioned and on-roll staff including

and excluding catering employees in other departments as on 25.04.2016,

on the basis of which pin-pointing of staff required in ZOs and ROs is

presented.


Ca

teri

ng

CO

N

Z EZ

SZ

SC

Z W

Z To

tal

Vac

ancy

Typ

e Sa

nct

ion

ed

Stre

ngt

h

On

- R

oll

San

ctio

ned

St

ren

gth

On

- R

oll

San

ctio

ned

St

ren

gth

On

- R

oll

San

ctio

ned

St

ren

gth

On

- R

oll

San

ctio

ned

St

ren

gth

On

- R

oll

San

ctio

ned

St

ren

gth

On

- R

oll

San

ctio

ned

St

ren

gth

On

-R

oll

E8

0 0

0

E7

18

18

0

14

E6

1

2

1 4

E5

35

1

1

1

35

3

8 E4

4

6

7

5

1

1

24

E3

52

9

11

8

4

7

7

52

46

-2

E2

3

5

8

E1

70

3

9

3

3

2

3 70

23

40

E0

3

3

1

7

Tota

l Exe

. 17

5 21

0

32

0 22

0

17

0 10

0

13

175

115

60

S1-S

4 75

2 77

111

95

29

18

73

752

403

349

Wor

kman

13

18

24

20

5

253

43

26

10

7 13

18

658

660

Tota

l 20

70

101

0 31

6 0

348

0 72

0

44

0 18

0 20

70

1061

10

09

Tota

l Em

p.

2245

12

2 0

348

0 37

0 0

89

0 54

0

193

2245

11

76

1069

Con

sult

ant

2

3

2

0 7

Out

sour

ce

13

1

399

20

7

80

47

9 0

1296

G.T

ota

l 22

45

124

0 47

9 0

769

0 29

9 0

136

0 67

2 22

45

2479

Tab

le 1

0

Cat

erin

g C

adre

San

ctio

ned

Str

eng

th/

on

roll

po

siti

on

(In

clu

din

g c

atg

. st

aff

wo

rkin

g i

n o

ther

Dep

tt.)

of

IRC

TC

Sta

ff a

s o

n 2

5.04

.201

6


CO

N

Z EZ

SZ

SC

Z W

Z To

tal

Vac

ancy

Type

Sa

ncti

oned

St

reng

th

On

- Roll

Sanc

tion

ed

Stre

ngth

On

- Roll

Sanc

tion

ed

Stre

ngth

On

- Roll

Sanc

tion

ed

Stre

ngth

On

- Roll

Sanc

tion

ed

Stre

ngth

On

- Roll

Sanc

tion

ed

Stre

ngth

On

- Roll

Sanc

tion

ed

Stre

ngth

On

-Ro

ll

E8

0 0

0

E7

18

18

0

16

E6

1

1 2

E5

35

1

1

35

2

14

E4

1

5

6

5

1

1 19

E3

52

6

9

7

4

6

5 52

37

6

E2

2

4

3 9

E1

70

2

8

2

3

2

70

17

46

E0

3

3

1

7

Tota

l Exe

. 17

5 13

0

26

0 19

0

15

0 9

0 11

17

5 93

82

S1-S

4 75

2 32

84

80

23

11

65

752

295

457

Wor

kman

13

18

20

19

8

246

41

25

10

5 13

18

635

683

Tota

l 20

70

52

0 28

2 0

326

0 64

0

36

0 17

0 20

70

930

1140

Tota

l Em

p.

2245

65

0

308

0 34

5 0

79

0 45

0

181

2245

10

23

1222

Cons

ulta

nt

2

3

2

0 7

Out

sour

ce

13

1

399

20

7

80

47

9 0

1296

G.T

otal

22

45

67

0 43

9 0

744

0 28

9 0

127

0 66

0 22

45

2326

Tab

le 1

1 C

ate

rin

g C

ad

re S

an

ctio

ne

d S

tre

ng

th/o

nro

ll p

osi

tio

n (

Exc

lud

ing

ca

tg.

sta

ff w

ork

ing

in o

the

r D

ep

tt.)

of

IRC

TC S

taff

as

on

25.0

4.2

016


Justification of staff required for ROs/Zos Work in ROs

1. General admin/Documentation - 1 E5; 3-S2/E0 and 5 DEOs for e-

hub, Licencee, Dept, WVM & RN &other misc. matters (DEOs should

be better qualified – preferably with IT qualifications). While S2s/E0s

will handle files, voluminous clerical work including

payment/receipt particulars of all units, advices to licencees,

correspondence with ZO, Railways etc are involved for which

better qualified DEOs can work as clerks/typists.

2. Complaint management, RTI, Vigilance, PQ & CA-III work – One

E0/S4 – DEO if required will be drawn from general pool.

Work in ZOs

1. General Admin/Documentation – 1 E6, 4- E1/S3 and 6 DEOs as

above, with one E1/S3 for correspondence with CO, Railway

Zones, Divisions etc.

2. Complaint management, RTI, Vigilance, PQ & CA-III work – One

E0/S4 – DEO if required will be drawn from general pool.

Work in Control office:

It is proposed to have one E3/E2 as in charge – for decisions on

whether to change food supply point from one kitchen to another in

times of late running, co-ordination with other controls This is required

when around 375 trains criss-cross the country and all meals are

picked up from base kitchens. In addition, 3 – S3s will assist the control

work of co-ordinating with various sources like other controls, Railway

controls regarding running status of trains inclusive of tourist trains,

watering, stoppages if required etc. In addition, the MIS report of all

units like sales, complaints, WVM particulars etc will be handled by the

control office. Since the S3s to be posted in control are not familiar with

Railway operating/commercial controls, the present consultants will


be retained for a period of six months for training the S3 staff and

familiarizing the Railway controls regarding the new incumbents.

Given below is the work assigned to control office

Table 12a – Work assigned to Control office

1 WVM Sales documentation; handling complaints if any

2 FP/FFU Sales documentation; handling complaints if any

3 e-catering Co-ordination with service provider, AO and ZO

4 Ele.Spl Co-ordination with service provider, AO and ZO

5 Tourism spl Co-ordination with service provider, AO and ZO

6 Trains Co-ordination with service provider, AO and ZO

7 Base kitchen Co-ordination with service provider, AO and ZO

8

Co-

Ordination

With Railway controls and Railway operations (SMR

/TXR etc)

Work in Station offices

A station officer would be the IRCTC interface to the public visiting the station,

Railway officials in the station, in addition to monitoring the daily operations of

the units under his control.

The work to be assigned to a Station officer is given below

Table 12b – Work assigned to Station Officer

No Work Remarks

1 WVM

Pre-Commissioning & post commissioning- Field

and documentation

2 FP/FFU

Pre-Commissioning & post Commissioning-Field

and documentation

3 e-catering Monitoring, food supply, documentation

4 Elec.Spl

Ordering, monitoring, food

supply,documentation

5 Tourism Spl Monitoring

6.

Tourism

Product

Reckee - tourism destinations, hotels, marketing

etc.

7.

Tourism Rly

Liaison

Ticketing, refund, train/coach orders co-

ordination etc.

8 Trains Monitoring, Documentation

9 Base kitchen Monitoring, Documentation

10

Co-

Ordination With Rly officials; control

11 Rail Neer Distribution


XI (a) Duties of a station officer, proposed grades and infrastructure:

The station officer would be interface for public as well as

Railways to IRCTC in all aspects, hence he/she would:

In places where base kitchen is set up, supervise base

kitchen operations from procurement to supply of packed

food to service contractor in train

Ensure Railneer supply to all trains passing through the

station

Ensure supply of e-catering food

Ensure supply of e-bedrolls, e-wheel chair etc wherever

implemented

Ensure e-retiring room bookings are honored by

Railways and refunds if any are processed in time

Ensure that any requirement of the tourist trains like

watering, time adjustment if required etc

Monitor projects (FP/FFU/EL etc) in the station area and

coordinate with licencee, Railway authorities and IRCTC

zonal/Regional office as the case may be.

In stations where presence of station officer or staff are required

for two shifts or more (Major stations – with or without base

kitchen) IR would have to allot at least 200 SqFt space for the

station office. Station office would be equipped with computer

system, fax facilities, communication (Telephones and net

connectivity) and basic furniture (table, chairs and almirahs for

storing records).

In smaller stations where only one station officer is posted, and

there is no space in station for allotment to station office, the

employee posted would be permitted to lease a

house/apartment as per his eligibility + 10%, with a room

earmarked as station office and equipment and furniture


arranged for this room. The leased premises should be within

half a kilometer distance from station so that any emergency

can be attended to by the SO within a short time.

It is proposed to set up around 80 to 90 station offices initially

with staff as follows:

Large station offices – in major stations (HQs of Divisional/Zonal

Railways) where base kitchens are planned – E3/E2 as in charge

and Supervisors /DEO to assist as per shifts required for

operations in the stations.

Medium station offices – In stations other than major, where

base kitchens are to be set up – E2/E1 as incharge and

supervisors to assist as per shifts required for operations.

Small station offices – Though no base kitchen planned and not

a major station, but required due to importance of station in

terms of pass through trains during wee hours (like KPD etc) or

tourism importance (Like Hospet etc) One Supervisor will be

posted - This will be mostly home-offices as described above,

in case the station cannot provide space for the SO.

In order to ensure smooth implementation of the unbundling

process and effective supervision onboard the trains managed

by IRCTC, as also to position supervisors / station officers at all

the nominated stations, the following will be the positioning of

catering staff as recommended by the Committee: -

1. All Zones will conduct a zero base review of the

requirement of Catering Staff for implementation of the

takeover process as per the sequencing proposed.

a. Pending issuance of policy guidelines from Railway

Board, the process of unbundling of IRCTC train and

trains to be handed over to IRCTC for which tenders

have not been finalized will be taken up for partial

unbundling as proposed in the preceding paragraphs.


The Zones must prepare the plan of surrender of

outsource staff of such trains taken up of partial

unbundling and also for redeploying the IRCTC staff to

the required area of operation

2. Zones will identify staff for posting to stations offices in

their Zones and for supervision on all IRCTC trains

(departmental and licensee managed). The list of

station Offices proposed and the broad duty list has

been discussed in the report.

3. The supervisors / workmen working in offices for

administrative work should be forthwith released for

posting as station officers / supervision on train

4. The balancing of catering staff in excess in some Zones

with augmenting of staff in Zones with a shortage of

catering staff should be done immediately to ensure

positioning of station officers in the identified locations

and for onboard supervision of IRCTC trains.

5. The present sanction and utilization of catering staff in

catering and in other verticals is at Table 10 & 11. The

requirement of staff for implementation of Phase-I of

takeover i.e. Control Offices to be manned by

Supervisors, SOs to be posted at 68 stations and manning

of on-board supervision of the presently operated 81

trains is as under: -

Pin-pointing of Post for Catering phase wise

1. Pin- pointing of post for managing catering activity in

Zonal and Regional offices.

2. Posting of Regular experienced staff at Control office and

station offices – phasing out consultants gradually.


3. Catering Staff required for managing the existing

activities i.e. 100% supervision on board the licensee

operated trains with identification of excess staff

available in the Zones/ Corporate office including posting

of regular staff for (1) and (2) above.

4. Phase – 1 – staff required for on board supervision of

additional trains taken over by IRCTC and unbundling of

departmental units. The base kitchen at NDLS and HWH

has to be operationalized on PPP model. The Central

Kitchen at Noida is proposed to be wound up and activity

merged with base kitchen NDLS the former will take on

interim load until the latter is set up on PPP.

5. Phase – II – Staff required for supervision of Cell kitchens

to be taken over along with IR base kitchens wherever

station officers are not available.

6. Phase – III- Staff required for on board supervision of 254

trains taken over from Railway and supervision of 43

kitchens proposed to be set up by IRCTC. It is expected

that except for a partial number of trains in phase III

complete regulatory coverage can be effected for all

trains in phase I, II and III included utilizing the existing

strength of supervisory and workman staff for regulating

functions at Base kitchen and on trains.

Implementation

1. The Zones will be circulated the tentative pin-pointing of

posts done by the Committee for comments.

2. The number of posts pinpointed for managing the

catering activity in the Corporate office, Zonal offices and

Regional offices is non – negotiable.


3. The excess staff identified and working in catering

department will be shifted to the Zone/offices deficient of

manpower to manage the existing activity.

4. Zones must do the road map and process of sanction of

posts, if need be, for managing the activity in the time

frame of implementation of the three phases in the

takeover of catering activities from the Railways.

5. The catering staff working in other verticals who would be

required for managing the catering in future phases, has

to be planned and HRD informed for taking action for

providing replacement to the concerned vertical. The

decision to extricate catering staff out of other

department will be increased after ascertaining the status

of staffing decision in filling up resources in departments

where catering staff are working.

6. Rail neer would be a separate and distinct vertical and

hence sanctions and manpower planning must be done

to augment staff in case of withdrawal of catering staff.

7. The control office and station office are to be treated as

common pool and their salaries charged to Rail Neer and

WVM- 30%, Tourism- 30% and catering – 40%.

8. The salary of TADK should be charged to the vertical the

controlling officer is working and the salary of consultants

should also be charged to the vertical proportionate to

the work done.

9. The excess staff in the Zones pending implementation of

all the phases of takeover will use the regular staff in lieu

of the outsource staff.

10. In order not to cause dislocation in transfer of excess staff,

the Zones may seek 3 options (preferred places of

posting) from Supr. & Workmen and consider


accommodating them as per the request to the extent

possible. If the Zones do not take pro-active action in

easing out surplus in time bound manner, Corporate

Office may issue necessary office orders.

11. It should be ensured that permanent staff (IRCTC staff) are

nominated for Supervision of all the verticals in Mega

kitchens and Supervisor are available in all the shifts of

activity in large kitchens and the general supervision

should be done by the SOs at the Cell Kitchens/Small

Kitchens

12. 5% RG/LR can be factored for Supr. and Workmen

in field units.

13. Each Zone must also factor the staff requirement of

having one batch of skeleton staff (2Supr. + 6 Workmen

and 20 outsource) with block stock/service ware etc. to

be in readiness for emergent operation of train

departmentally.


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-20

-20

To

tal

17

89

81

66

37

01

34

13

62

77

28

81

02

98

-72

-82

RG

fo

r S

Os

etc

.#

Sp

are

sta

ff f

or

tra

in#

No

te:

- *

*1

4 S

tati

on

off

ice

s w

ith

Su

pr.

An

d 1

eca

h a

t S

BC

& U

BL

of

E0

/E1

Rly

CK

/9

52

Rly

.

Tra

in

&

MA

S/

BK

# F

or

ma

nn

ing

th

e e

xis

tin

g l

ice

nse

e &

De

pt

tra

ins

$ f

or

ma

na

gin

g 1

me

ga

BK

/MA

S &

52

tra

ins

pre

sen

tly

wit

h R

lys.

2S

up

r+3

W+

10

O/S

ad

de

d i

n t

he

ex

isti

ng

re

qu

ire

me

ntO

n B

oa

rd &

Off

Bo

ard

Su

pr.

Ex

isti

ng

Sta

ff

E3

/E4

12

10

08

87

10

Ex

cess

Sta

ff I

ncl

.

Oth

er

de

pt.

Ex

cess

Sta

ff

ex

cl.

Oth

er

de

pt.

-1-1

Ta

ble

18

Pin

Po

inti

ng

of

sta

ff a

t S

ou

th Z

on

e

88

70


Table 19 -Profitability of Departmental units (before unbundling)

S.n

oT

ra

in N

o.

Tra

in N

am

eT

yp

e o

f

Tra

inIn

co

me

HR

Co

st

Exp

en

dit

ur

e`

Po

rfit

&

Lo

ss

All

oc

ab

le

HR

/A

dm

in

Po

rfit

&

Lo

ss

Inc

om

eH

R C

os

tE

xp

en

dit

ur

e`

Po

rfit

&

Lo

ss

All

oc

ab

le

HR

/A

dm

in

Po

rfit

&

Lo

ss

Zo

ne

112

262-6

1H

WH

-CS

TM

D

uro

nto

Exp

1368.9

612

7.11

1287.8

81.16

208.6

5-1

27.4

913

48.4

813

1.42

1272.0

976.3

9248.3

9-1

72

EZ

212

259-6

0S

DLA

H-N

DLS

D

uro

nto

Exp

686.8

916

9.9

2745.3

4-5

8.4

510

4.6

9-1

63.14

697.0

514

5.6

6708.5

9-1

1.54

128.4

-139.9

4E

Z

312

245-4

6H

WH

-YP

R

Duro

nto

Exp

1849.4

7227.0

416

43.7

9205.6

8281.88

-76.2

1669.4

619

3.3

115

34.2

913

5.17

307.5

1-1

72.3

4E

Z

412

273-7

4H

WH

-ND

LS

D

uro

nto

Exp

462.2

371.91

396.8

265.4

170.4

5-5

.04

457.6

577.7

6458.9

7-1

.32

84.3

-85.6

2E

Z

512

281-

82

BB

S-N

DLS

D

uro

nto

Exp

262.6

190.17

345.4

5-8

2.8

440.0

2-1

22.8

6265.19

68.0

1283.11

-17.9

248.8

5-6

6.7

7E

Z

612

847-4

8H

WH

-DIG

HA

Duro

nto

Exp

161.97

29.8

917

0.2

3-8

.26

24.6

9-3

2.9

515

5.2

122.5

915

5.4

9-0

.28

28.5

9-2

8.8

7E

Z

712

222-2

1H

WH

-PA

D

uro

nto

Exp

644.11

108.7

9582.5

361.58

98.17

-36.5

9626.2

181.44

600.0

926.12

115.3

5-8

9.2

3E

Z

822201-

02

SLD

H-P

uri

Duro

nto

Exp

205.5

260.6

231.55

-26.0

331.32

-57.3

519

6.5

447.3

2215

.26

-18.7

236.2

-54.9

2E

Z

912

269-7

0M

AS

-NZ

M

Duro

nto

Exp

577.5

511

8.19

575.6

41.91

88.0

3-8

6.12

653.2

515

0.3

5696.14

-42.8

912

0.3

3-1

63.2

2S

Z

1012

243-4

4C

HN

-CB

E

Duro

nto

Exp

218

.46

31.56

193.6

124.8

533.3

-8.4

5501.72

101.35

446.6

655.0

692.4

2-3

7.3

6S

Z

1112

213

-14

DE

E-Y

PR

D

uro

nto

Exp

193.6

47.2

8207.8

-14.2

29.5

1-4

3.7

1247.2

472.5

6245

2.2

445.5

4-4

3.3

SZ

1222207-0

8M

AS

-TV

C

Duro

nto

Exp

71.35

23.8

382.0

9-1

0.7

410

.87

-21.61

108.9

149.7

612

8.2

3-1

9.3

220.0

6-3

9.3

8S

Z

1312

285-5

6S

C-N

ZM

Duro

nto

Exp

545.7

710

0.3

540.0

35.7

483.18

-77.4

4569.8

987.9

3538.5

531.34

104.9

7-7

3.6

3S

CZ

1412

220-2

1S

C-L

TT

D

uro

nto

Exp

122.9

764.2

815

6.5

1-3

3.5

418

.74

-52.2

813

4.3

758.0

115

2.2

8-1

7.9

124.7

5-4

2.6

6S

CZ

1512

223-2

4LT

T-E

RN

D

uro

nto

Exp

217

.17

64.9

231.01

-13.8

433.1

-46.9

4253.6

268.9

4240.3

813

.24

46.7

2-3

3.4

8W

Z

1612

227-2

8B

CT

-IN

DB

D

uro

nto

Exp

105.2

842.5

412

8.3

5-2

3.0

716

.05

-39.12

111.31

37.9

712

3.3

2-1

2.0

120.5

-32.5

1W

Z

1712

239-4

0B

CT

-JP

D

uro

nto

Exp

227.7

253.0

3228.5

3-0

.81

34.7

1-3

5.5

2243.5

851.19

226.0

817

.544.8

7-2

7.3

7W

Z

1822209-1

0B

CT

-ND

LS

D

uro

nto

Exp

354.0

751.74

274.11

79.9

653.9

626

401.51

49.8

6285.8

811

5.6

373.9

641.67

WZ

1912

293-9

4LT

T-A

LD

D

uro

nto

Exp

376.8

259.8

2262.3

311

4.4

957.4

357.0

6330.2

656.8

2286.4

743.7

960.8

3-1

7.0

4W

Z

To

ta

l8

,65

2.5

21,5

42

.90

8,2

83

.52

36

91,3

18

.74

-9

49

.74

8,9

71.4

51,5

52

.25

8,5

96

.88

37

4.5

71,6

52

.52

-1,2

77

.95

113

109-1

0K

OA

A-D

GH

AM

ail E

xp

20.8

59.3

727.13

-6.2

83.18

-9.4

613

.24

8.9

318

.94

-5.7

2.4

4-8

.14

EZ

2D

igha E

xp

Mail E

xp

79.9

629.8

293.0

2-1

3.0

612

.19

-25.2

565

28.2

78.8

4-1

3.8

411

.97

-25.8

1E

Z

313

413

-14

MLD

T-D

LI

Mail E

xp

106.6

749.9

613

0.0

2-2

3.3

516

.26

-39.6

199.6

546.2

813

1.83

-32.18

18.3

6-5

0.5

4E

Z

412

501-

02

GH

Y-N

DLS

Mail E

xp

113.7

331.55

115.2

1-1

.48

17.3

3-1

8.8

140.3

16.2

248.6

8-8

.38

7.4

2-1

5.8

EZ

515

651-

52

GH

Y-J

AT

Mail E

xp

58.0

221.71

59.5

9-1

.57

8.8

4-1

0.4

117

.43

9.9

223.5

3-6

.13.2

1-9

.31

EZ

612

627-2

8S

BC

-ND

LS

Mail E

xp

609.0

5208.6

3642.2

5-3

3.2

92.8

3-1

26.0

3663.5

4271.59

728.6

4-6

5.1

122.2

2-1

87.3

2S

Z

712

067-6

8G

HY

-JT

TN

Jan S

habdi E

xp

19.5

10.9

225.8

5-6

.35

2.9

7-9

.32

8.4

15.3

411

.49

-3.0

81.55

-4.6

3E

Z

To

ta

l1,0

07

.78

36

1.9

61,0

93

.07

-8

5.2

915

3.6

-2

38

.89

90

7.5

73

86

.48

1,0

41.9

5-13

4.3

816

7.1

7-3

01.5

5

112

301-

02

HW

H-N

DLS

R

ajd

hani E

xp

1661.79

297.3

715

86.7

675.0

3253.2

8-1

78.2

516

21.38

265.3

316

12.9

48.4

4298.6

5-2

90.2

1E

Z

212

309-1

0R

JP

B-N

DLS

R

ajd

hani E

xp

1086.7

516

7.3

611

17.9

8-3

1.23

165.6

3-1

96.8

610

68.4

717

8.6

911

22.3

9-5

3.9

219

6.8

1-2

50.7

3E

Z

312

953-5

4B

CT

-NZ

M A

ugust K

ranti

Rajd

hani E

xp

1909.9

3351.59

1906.8

43.0

9291.1

-288.0

119

64.6

3340.8

919

72.3

8-7

.75

361.88

-369.6

3W

Z

412

951-

52

BC

T-N

DLS

R

ajd

hani E

xp

1925.9

4357.4

319

34.5

3-8

.59

293.5

4-3

02.13

1984.6

6343.3

419

53.0

631.6

365.5

7-3

33.9

7W

Z

512

957-5

8A

DI-N

DLS

R

ajd

hani E

xp

1287.9

295.7

812

45.3

442.5

619

6.2

9-1

53.7

313

47.6

8270.8

212

79.0

468.6

4248.2

4-1

79.6

WZ

612

277-7

8H

WH

-Puri

Shata

bdi E

xp

575.6

552.9

8511

.73

63.9

287.7

4-2

3.8

2482.5

950.8

2451.55

31.04

88.8

9-5

7.8

5E

Z

712

025-2

6P

A-S

C

Shata

bdi E

xp

582.3

383.6

491.36

90.9

788.7

52.2

2524.0

967.7

6372.11

151.98

96.5

455.4

4W

Z

822414

-13

NZ

M-M

AO

Rajd

hani E

xp

136.8

633.3

117

1.43

-34.5

721.54

-56.11

00

00

00

To

ta

l9

,16

7.1

51,6

39

.42

8,9

65

.97

20

1.1

81,3

97

.86

-1,1

96

.68

8,9

93

.50

1,5

17

.65

8,7

63

.47

23

0.0

31,6

56

.58

-1,4

26

.55

To

ta

l18

,82

7.4

53

,54

4.2

818

,34

2.5

64

84

.89

2,8

70

.20

-2

,38

5.3

118

,87

2.5

23

,45

6.3

818

,40

2.3

04

70

.22

3,4

76

.28

-3

,00

6.0

6

FY

20

14

-15

Ta

ble

19

F

Y 2

015

-16


Table -20 Profitability of departmental (After unbundling)- Phase I

SN

Tra

in N

oT

rain

Na

me

Ty

pe

of

tra

in

Tu

rno

ve

r (1

5-1

6)

P &

L (

15

-16

)LF

@ 1

5%

CF

(e

sti

ma

ted

)T

ota

lR

ly S

ha

re

Su

p C

ost

(Av

g.4

00

00

PM

).

Est.

P &

LT

ota

l Im

pa

ct

Su

pe

rvis

ion

(S-1

& A

bo

ve

)

112278-77

PU

RI-

HW

H S

hata

bdi

Expre

ss

Shata

bdi

575.6

523.8

257.5

72.8

860.4

49.0

74.8

046.5

822.7

61

212025-26

Pune-S

C S

hata

bdi

Expre

ss

Shata

bdi

582.3

32.2

258.2

32.9

161.1

49.1

74.8

047.1

744.9

51

312259-60

SD

AH

-N

DL

S, D

uro

nto

Expre

ss

Duro

nto

686.8

8-163.1

468.6

93.4

372.1

210.8

24.8

056.5

0219.6

41

422201-02

SD

AH

-P

UR

I, D

uro

nto

Expre

ss

Duro

nto

205.5

1-57.3

520.5

51.0

321.5

83.2

44.8

013.5

470.8

91

512273-74

HW

H-N

DL

S, D

uro

nto

Expre

ss

Duro

nto

462.2

3-5.0

446.2

22.3

148.5

37.2

84.8

036.4

541.4

91

612281-82

BB

S-N

DL

S, D

uro

nto

Expre

ss

Duro

nto

262.6

1-122.8

626.2

61.3

127.5

74.1

44.8

018.6

4141.5

01

712269-70

MA

S-N

ZM

Exp

Duro

nto

577.5

5-86.1

257.7

62.8

960.6

49.1

04.8

046.7

5132.8

71

812285-86

SC

-N

ZM

Exp

Duro

nto

545.7

7-77.4

454.5

82.7

357.3

18.6

04.8

043.9

1121.3

51

922413-14

MO

A-N

ZM

(fit for

14-15)

Rajd

hani

136.8

6-56.1

113.6

90.6

814.3

72.1

64.8

07.4

163.5

21

Tota

l4,0

35

-542

404

20

424

64

43

317

859

9

ML

FQ

uote

d L

F

(Esti

mate

d)

10

13413-14

13483-84

ML

DT

-D

LI

Fara

kka

Expre

ss (

Via

Sultanpur)

Fara

kka E

xpre

ss (

Via

Faiz

abad)

Mail/E

xpre

ss

106.6

7-39.6

132.0

037.3

369

10

19.2

018.1

357.7

44

11

13107-08

13109-10

Maitre

e E

xpre

ss -

Bangla

desh R

ake

Maitre

e E

xpre

ss -

India

n

Rake

Mail/E

xpre

ss

20.8

5-9.4

612.0

013.0

425.0

44

4.8

08.2

417.7

01

12

12857-58

HW

H-D

IGH

A,

Tam

ralipta

Expre

ss

Mail/E

xpre

ss

65

-25.2

513.0

016.2

529.2

54

4.8

011.4

536.7

01

13

18001-02

HW

H-D

IGH

A, K

andari

Expre

ss

Mail/E

xpre

ss

0.0

00.0

04.8

0-4.8

0-4

.80

1

14

15651-52

GH

Y-JA

T, L

ohit

Expre

ss

Mail/E

xpre

ss

58.0

2-10.4

112.1

815.0

827.2

64

4.8

010.2

820.6

91

15

12501-02

ND

LS

-G

HY

,

P.S

.K.E

xpre

ss

Mail/E

xpre

ss

113.7

3-18.8

127.6

433.3

360.9

79

14.4

018.9

337.7

43

16

12067-68

GH

Y-JT

TN

, Janshata

bdi

Expre

ss

JanS

hta

bdi

19.5

-9.3

212.2

013.1

825.3

84

4.8

08.3

817.7

01

17

12627-28

SB

C-N

DL

S K

arn

ata

ka

Expre

ss

Mail/E

xpre

ss

609.0

5-126.0

380.8

2111.2

7192.0

929

24.0

087.2

7213.3

05

Tota

l993

-2

39

190

239

429

64

82

158

397

17

Gra

nd

To

ta

l5

,02

8

-7

81

5

93

26

0

85

3

12

5

47

5

1,2

56

2

6

Pro

po

sed

un

bu

nd

lin

g o

f d

ep

artm

en

ta

l tra

ins (

tem

p b

asis

) t

o r

ed

uce lo

sses -

Ph

ase -

I


Table 21 -Profitability of departmental (After unbundling)- Phase II

SN

Train

No

Train

Nam

eT

ype o

f

train

Turnover

(15-1

6)

P &

L

(15-1

6)

LF

@

10%

CF

(esti

mate

d)

Tota

lR

ly S

hare

Sup C

ost

(Avg.3

6000

PM

).

Est.

P &

L

Tota

l

Im

pact

Supervis

ion

(S-1

&

Above)

112262-61

HW

H -

CS

TM

Duro

nto

Expre

ss

Duro

nto

1368.9

6-127.4

9136.9

06.8

4143.7

421.5

614.4

0129.3

4256.8

33

212245-46

HW

H -

YP

R D

uro

nto

Expre

ss

Duro

nto

1849.4

7-76.2

0184.9

59.2

5194.1

929.1

314.4

0179.7

9255.9

93

312847-48

HW

- D

IGH

A D

uro

nto

Expre

ss

Duro

nto

161.9

7-32.9

516.2

00.8

117.0

12.5

54.8

012.2

145.1

61

412222-21

HW

H -

PA

Duro

nto

Expre

ss

Duro

nto

644.1

1-36.5

964.4

13.2

267.6

310.1

49.6

058.0

394.6

22

512243-44

MA

S -

CB

E D

uro

nto

Expre

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II


XII. Taking over from Railways - sequencing

1. Once the policy directives are issued, cell kitchens and base

kitchens available should be taken over and refurbished/

renovated and fitted with modern equipment as required based

upon the load density. This may be done either departmentally

or through PPP investment, through a properly designed QCBS

tender document. The licencee based CKs and BKs should be

taken over only through a tri-partite agreement which permits

the current licencee to operate till end of natural tenure,

provided licencee is willing to implement IRCTC instructions on

design, fixtures, accountal through IT enabled services etc. If the

licencee is not willing to do so, there should be an exit clause in

the tri-partite document. The document should also provide for

non-adherence to instructions from IRCTC once the licencee

agrees to adhere to the instructions.

2. Identify kitchen spaces in the top triangle of the Golden

Quadrilateral wherever CKs / BKs are not available.

3. Once at least 50% of the base kitchens needed in a particular

sector is ready, tie up with other licencees (like flight kitchens,

frozen food suppliers, industrial/ institutional kitchens with

wherewithal to supply food to the station in time) preferably

following QCBS system or if not possible, after thorough

inspection of available kitchens and facilities and logistical

support. This however will be an ad-hoc measure till such time a

proper space is taken up from Railways and base kitchen

established in the space.

4. Once Step 3 has been completed, takeover the trains in that

particular sector for operation. Even trains in the sector without

any catering facilities at present may be catered to in the TSV

model through the BK/CK/Industrial kitchen operator of a

particular station


5. In the meanwhile, for the present 63 trains with IRCTC and 30 trains

with IR without proper licenses, identify CKs/BKs / outside industrial

kitchens and tie up with them as in step 3, even though many of

the 93 trains above are not in the main trunk sectors.

6. Once step 5 is over, the 30 trains from IR may be taken up for

operation through properly identified (Through QCBS document)

service contractors. 63 IRCTC trains also may be moved to this

model of operation.

7. In the 8-12 months’ period for # 1 to #7 above will take to

complete, identify BK spaces in other stations in the lower triangle

of Golden Quadrilateral and other sectors which are not part of

GQ and initiate steps to identify BK operators through proper

tender document and set up BKs in such stations.

8. Within 18 to 24 months from date, there would be base kitchens

set up all over the country in all sectors and all trains irrespective

of whether it has a pantry car or not would be served food.

9. In the intervening 24 months, Railways may be approached to set

up mini pantries which will be under lock and key with IRCTC in

alternate coaches at least, so that food supplied from Kitchens

can be kept in proper temperature and served

10. While the staff review is being completed, strengthening of control

offices, with proper equipment and mixed staffing (Railway

experienced consultants for Railway co-ordination and training

younger IRCTC staff and IRCTC staff for operating computers, and

dissemination of information to and fro service providers and base

kitchens) implemented in the control offices.

XII (a). Action to be initiated

a) In IRCTC

In view of the above, the committee recommends the following

action to be initiated immediately:


1. Dissemination of information of the unbundling and ensuing

contacts to the market in each zone and region, and obtaining

views of the market players in order to fine-tune the production

and service contract documents. The caterers met will form a

ready pool of responders to bid documents when they are

published.

2. Packaging of food: Present day packing in aluminium casseroles

and setting 4 to 5 casseroles per meal is time consuming and there

are chances that packets mix up and one customer gets two

sambhars and yet another two rice packets, which would lead to

complaints. Therefore, a unified packing system in food grade

plastic with thermal sealing is to be designed. QC department

may do so. The packets should be amenable to conventional /

microwave heating. There is need to connect with IIP/ADI and

other stake holders in packaging including manufacturer,

research institutions etc. to re-visit the present casserole issues

with reference to food grade technological

upgrades/developments in the sector.

3. Legal and finance department may vet the production and service

documents in consultation with vigilance & catering department so

that the documents are without flaws, and reflect the processes and

thoughts outlined in this document

4. IT department to identify software/hardware and suppliers of them

in consultation with catering department.

5. Food transfer/transport/major upgrades have occurred in the

industry. Quality Control department should go over drive as

connecting with manufacturer, end clients like industrial base

kitchens, air-lines to explore "food transfer" issues linking trains to

Base kitchens in conjunction with prospective operators of Base

kitchens.


6. IT solutions: - This is major area from a view point of efficient

operations, consumer complaintredressal and revenue protection.

The catering team to explore extant of F&B based software

prevalent as per industry standard, other IT tools for connectivity to

capture food

7. movement, billing etc. with industry until in-house team is nurtured

for this purpose. GGM/IT to play an advisory role to assist.

8. Third party liaison should be stepped up with the regulatory bodies

including top end research institutes.

b) With Railways

1. Co-ordination with IR to repair PC equipment wherever available

and not working and to fix new equipment designed for holding

packages designed as in #2 above.

2. Communication to be initiated with Railways as specified in para –

Takeover process of base kitchens and mode of operation (P -15)

XIII. Summary of Recommendations

The focus of this working report is to set up the framework for

the takeover of IR catering in a time bound manner.

The report commenced to set the magnitude of the task

spelling out the distribution of 284 trains by IR and 63 by IRCTC

respectively followed by another 625 TSV units which will in the

final analysis be targeted by the takeover process. Along the way

the historical perspective of the evolution of e-catering policies

was enumerated followed by a brief on nature of trains types –

pre-paid and post-paid services.

A perspective of policy solutions deliberated by various

recently appointed committees indicated that in order to trigger '

Capacity – Creation ' in e-catering on IR recourse is to be sought

to PPP duly redefining risk allocation, dispute resolution etc. which


is the key to generate resources without engaging into

departmental operations and fritter resources to create capacity

in e- catering. The case was made that PSUs are best suited to do

so and set up systems in position for the effective delivery of e-

catering services.

Subsequently, a case has been made that for the takeover

process to succeed in terms of policy prescriptions there is need to spell

out certain pre condition to MOR for the takeover to be successfully

implemented. The issues Inter-alia stressed on pricing /operational

autonomy to IRCTC, shareable revenues, buyins on the impending

catering Policy etc. On the subject of the takeover process proposed

financial rationalization to turn around the existing departmental

business, detailing of production /service conditions, technology infusion

etc. have beentouched upon.

The report concludes with: -

(a) Roll out plan of the takeover including addressing possible legal fall

outs

(b) Staffing issues within IRCTC involving staff review and repositioning

(c) Sequencing of takeover process

The recommendations spelt out below are the outcome of the

points summarized above and are as indicated: -

Takeover process has to be sequenced after agreement on buy-ins

with MOR on issues such as contract assignment, price regulation,

land licensing etc.

Sizing the Task :-

The core of the takeover process began with an assessment of

mobile trains over the length and breadth of IR network involving 385

trains with pantry services traversing 16 Zonal Railways. Specific

corridors or grids were identified and within such grids stations were

' Load sized ' for meals correlating passing trains with the number of

meals services of such trains. By an approximate assessment 347


trains involve nearly 5.95 lakh meal offering per day (Table-9) over

78 Base kitchens/ Cell kitchens with latter ranging anywhere from

1000 mpd (meals /per day) to 30,000 mpd (meals /per day).

The emphasis on the design of concession documents should be

more tilted towards addressing the quality issues rather than

revenues even though the latter has to be sustainable enough to

ensure viability. The case for QCBS based concession documents

becomes imperative to ensure quality partners both in production

and service areas.

Other support Issues:

The takeover implementation process will involve background

activity to address stakeholders in F&B trade in the following

areas:-

Packaging Industry:IRCTC should poll and collaborate with

industry players, manufacturers, research institutes like IIP/ADI to

set out how services will be showcased where-in economy and

environmental sustainability will be the key. RTE solutions will also

form part of the initiative as it may play the role of a 'distress

offering ' in times of disaster / delay in train services also. However,

there is no gainsaying the fact that RTE answers passenger

concerns on 'hygiene ' especially on trains as it exist today.

IT Solutions :will form part of an end to end solution across the food

supply chain production through to transportation and delivery

both with a view to address issues of customer redressal and

revenue protection.

Liasion :with third party food audit agencies who will assist /

oversee regulatory function to be more organized and focused to

garner customer confidence. Collaboration with national institute

like CFTRI, NIN Hyderabad, DFRL, NCL, IHMs etc.

report on takeover of mobile catering units

Documents