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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 3
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 4
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 6
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 7
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 8
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 9
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 10
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 11
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 12
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 13
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 14
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.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 15
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 16
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 17
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 18
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.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 19
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.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 20
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 21
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.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 22
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 23
S.No.
Station Station Code
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 24
S.No.
Station Station Code
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 25
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 26
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 27
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 28
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 29
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 30
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 31
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)
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 32
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 33
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 34
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.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 35
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 36
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 37
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 38
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 39
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 40
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.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 41
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 42
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 43
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.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 44
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.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 45
MAP -1 Map showing distribution of IRCTC & IR base kitchens
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 46
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.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 47
MAP -2 Map showing distribution of IRCTC & IR base kitchens & Cell kitchens.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 48
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.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 49
MAP -3 Map showing distribution of present base kitchens/cell kitchens and
proposed base kitchens
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 50
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 51
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 52
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 53
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 54
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 55
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.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 56
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 57
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 58
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 59
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 60
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 61
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.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 62
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.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 63
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 pin- pointed for managing the
catering activity in the Corporate office, Zonal offices and
Regional offices is non – negotiable.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 64
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 65
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.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 66
Tota
l
Grad
eSc
ope
of
Wor
kNu
mbe
rSc
ope
of
Wor
kNu
mbe
rSc
ope
of
Wor
kNu
mbe
rSc
ope
of
Wor
kNu
mbe
rNu
mbe
rIn
Cat
g.
Othe
r
than
Catg
.
Tota
l
Exce
ss
Staf
f
Incl.
Othe
r
dept
.
Exce
ss
Staf
f
Excl.
Othe
r
dept
.
E8Ad
mn
1Ad
mn
1Ad
mn
10
33
03
00
E6/E
5Ov
eral
l I/C
1Ov
eral
l I/C
10
02
20
20
0
E3/E
43
2Ov
eral
l I/C
10
67
613
71
E0 -
E23
20
Over
all I
/C1
64
26
0-2
Supe
rviso
r4
32
312
3245
7765
20
Wor
kmen
02
00
220
424
2218
Outs
ourc
e/
Cons
ulta
nt2
71
111
110
110
0
Tota
l14
185
542
7957
136
9437
Exist
ing S
taff
Proc
Cent
ral C
ontro
l
Tabl
e 13
Pin
-poi
ntin
g of
Cat
erin
g Of
ficia
ls at
Cor
pora
te O
ffice
Ex.Lo
unge
/
FP-
FFU/
RR/E
.Cat
g. In
cld.
Adm
in at
IRCA
/
Stat
ic
Units
/Qul
ity/
MCD
O
Dept
. & Li
c.
Mob
ile
units
/Bas
e
Kitc
hens
/N
RC/
Pant
ry
Procurement
LCS
DCS
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 68
Sco
pe
of
Wo
rkZO
BK
/ND
LSN
RC
&
Oth
er
CK
/
NO
IDA
RO
-CD
GR
O-J
PR
O-L
KO
SOs*
*C
NL
Off
ice
Staf
f
Re
q f
or
Exis
itin
g
Act
ivit
ie
s #
PH
-1P
H-2
PH
-3$
In C
atg.
Oth
er
than
Cat
g.
Tota
l
Exce
ss
Staf
f In
cl.
Oth
er
de
pt.
Exce
ss
Staf
f
exc
l.
Oth
er
de
pt.
Gra
de
AB
CD
EF
GH
IJ
KL
MN
OP
QR
E8A
dm
n1
00
00
00
01
11
11
01
00
E6/E
5O
vera
ll I/
C1
00
11
10
04
44
40
11
-3-4
Ex.L
ou
nge
/
FP-F
FU/R
R/E
.Cat
g. In
cld
.
Ad
min
at
IRC
A/
Stat
ic U
nit
s/Q
ual
ity/
Pro
ject
s/M
CD
O
1
De
pt.
& L
ic. M
ob
ile
un
its/
Bas
e K
itch
en
s/N
RC
2
RN
Dis
trib
uti
on
/WV
Ms/
Co
-
ord
inat
ion
wit
h S
os,
CN
L
& R
Os
1
E0 -
E2
Ass
itan
ce t
o E
3/E4
32
22
22
26
122
2323
2612
214
-8-1
0
Sup
erv
iso
r
Qu
alit
y/C
om
p/
Mgm
t./R
TI/R
eve
nu
e
Mgm
t./E
. Cat
g/P
Qs
and
oth
er
refe
ren
ces/
NR
C
512
1410
22
29
481
5353
128
8427
111
303
Wo
rkm
en
040
1520
00
00
010
841
4114
119
87
205
9790
Ou
tso
urc
e/
Co
nsu
ltan
t5
450
202
22
01
147
1111
1113
10
131
-16
-16
Tota
l19
100
3253
88
816
637
414
514
532
444
040
480
106
66
RG
fo
r SO
s e
tc.#
Spar
e s
taff
fo
r tr
ain
#
13 S
Os
13 L
ic.
IRC
TC
Trai
ns
O/S
of
BK
+
Clo
sure
of
CK
&
NR
C
0 C
K
54 R
ly
Trai
ns
& 1
4
BK
s
# Fo
r m
ann
ing
the
exi
stin
g li
cen
see
& D
ep
t tr
ain
s
$ fo
r m
anag
ing
1 m
ega
BK
/ND
LS &
54
trai
ns
pre
sen
tly
wit
h R
lys.
3
No
te: -
**1
3 St
atio
n o
ffic
es
wit
h S
up
r. A
nd
1 e
cah
at
ND
LS G
KP
, JA
T, B
SB, A
LD, C
NB
of
E0/E
1/E3
011
1212
10 2Su
pr+
3W+1
0 O
/S a
dd
ed
in t
he
exi
stin
g re
qu
ire
me
nt
1
Tab
le 1
5
Pin
-Po
inti
ng
of
Staf
f at
No
rth
Zo
ne
On
Bo
ard
& O
ff B
oar
d S
up
r.Ex
isti
ng
Staf
f
E3/E
41
11
11
13
176
1314
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 69
Sco
pe
of
Wo
rkZ
OS
Os*
*C
NL
Off
ice
Sta
ff
Re
q f
or
Ex
isit
in
gA
ctiv
it
ies
#
PH
-1P
H-2
PH
-3In
Ca
tg.
Oth
er
tha
n
Ca
tg.
To
tal
Gra
de
AB
CD
E
FG
HI
JK
LM
E8
Ad
mn
10
01
11
11
01
00
E6
/E5
Ov
era
ll I
/C0
00
00
00
00
00
0
Ex
.Lo
un
ge
/
FP
-FF
U/R
R/E
.Ca
tg.
Incl
d.
Ad
min
at
IRC
A/
Sta
tic
Un
its/
Qu
ali
ty/
Pro
ject
s/M
CD
O
1
De
pt.
& L
ic.
Mo
bil
e
un
its/
Ba
se K
itch
en
s/N
RC
1
RN
Dis
trib
uti
on
/WV
Ms/
Co
-
ord
ina
tio
n w
ith
So
s, C
NL
&
RO
s
1
E0
- E
2A
ssit
an
ce t
o E
3/E
42
21
55
56
20
2-3
-3
Su
pe
rvis
or
Qu
ali
ty/C
om
p/
Mg
mt.
/RT
I/R
ev
en
ue
Mg
mt.
/E.
Ca
tg/P
Qs
an
d
oth
er
refe
ren
ces
26
42
12
13
04
61
17
18
-3-1
0
Wo
rkm
en
01
01
19
92
92
51
26
15
14
Ou
tso
urc
e
/ Co
nsu
lta
nt
20
17
31
32
28
20
82
99
To
tal
10
10
61
15
53
51
88
12
89
13
72
21
3
RG
fo
r S
Os
etc
.#
Sp
are
sta
ff f
or
tra
in#
12
CK
- 3
So
s
14
Rly
.
Tra
ins
& 2
ne
w B
Ks
# F
or
ma
nn
ing
th
e e
xis
tin
g l
ice
nse
e &
De
pt
tra
ins
3
Ta
ble
16
Pin
-Po
inti
ng
of
sta
ff a
t S
ou
th C
en
tra
l Z
on
e
Ex
cess
Sta
ff I
ncl
.
Oth
er
de
pt.
Ex
cess
Sta
ff
ex
cl.
Oth
er
de
pt.
4E
3/E
4
2S
up
r+3
W+
10
O/S
ad
de
d i
n t
he
ex
isti
ng
re
qu
ire
me
nt
4
No
te:
- *
* 8
Sta
tio
n o
ffic
es
wit
h S
up
r. A
nd
1 e
cah
at
BZ
A,
GT
L &
RU
E1
/E2
/E3
On
Bo
ard
& O
ff B
oa
rd S
up
r.E
xis
tin
g S
taff
10
47
18
10
44
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 70
Sco
pe
of
Wo
rkZ
OR
O-A
DI
RO
-
BP
L
SO
s*
*
CN
L
Off
ic
e
Sta
ff
Re
q f
or
Ex
isit
in
gA
cti
vit
i
es #
PH
-1P
H-2
PH
-3$
In C
atg
.
Oth
er
tha
n
Ca
tg.
To
tal
Gra
de
AB
CD
EF
GH
IJ
KL
MN
O
E8
Ad
mn
10
00
00
11
11
10
10
0
E6
/E
5O
ve
rall
I/C
10
11
00
33
33
10
1-2
-2
Ex
.Lo
un
ge
/
FP
-FF
U/R
R/E
.Ca
tg.
Incld
.
Ad
min
at
IRC
A/
Sta
tic U
nit
s/Q
ua
lity
/
Pro
jects
/M
CD
O
1
De
pt.
& L
ic.
Mo
bil
e
un
its/B
ase
Kit
ch
en
s/N
RC
2
RN
Dis
trib
uti
on
/W
VM
s/C
o-
ord
ina
tio
n w
ith
So
s,
CN
L
& R
Os
1
E0
- E
2A
ssit
an
ce
to
E3
/E
44
12
24
11
41
31
31
54
04
-10
-10
Su
pe
rvis
or
Qu
ali
ty/C
om
p/
Mg
mt.
/R
TI/
Re
ve
nu
e
Mg
mt.
/E
. C
atg
/P
Qs a
nd
oth
er
refe
ren
ce
s/N
RC
54
22
10
45
25
24
79
76
58
73
21
13
Wo
rkm
en
02
00
00
42
52
52
14
41
05
21
07
65
63
Ou
tso
urc
e
/ Co
nsu
lta
nt
45
22
01
31
91
91
08
34
00
34
02
12
1
To
tal
19
12
88
14
64
37
14
61
32
27
65
22
12
53
49
78
5
RG
fo
r S
Os e
tc.#
Sp
are
sta
ff f
or
tra
in#
T/O
of
4
Rly
/B
Ks
NR
C
clo
s
ure
&
BK
/B
CT
on
PP
P
46
Rly
.
Tra
ins &
6
ne
w B
Ks
13
9 O
/S
su
rre
nd
ere
d i
n
Jun
-16
# 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
/N
GP
& 4
6 t
rain
s p
rese
ntl
y w
ith
Rly
s.
28
20
Ta
ble
17
P
in-P
oin
tin
g o
f sta
ff W
est Z
on
e
No
te:
- *
*1
4 S
tati
on
off
ice
s w
ith
Su
pr.
An
d 1
eca
h a
t N
GP
, B
RS
, E
T,
KO
TA
E1
/E
2
On
Bo
ard
& O
ff B
oa
rd S
up
r.E
xis
tin
g S
taff
E3
/E
41
10
06
66
6
Ex
ce
ss
Sta
ff
Incl.
Oth
er
de
pt.
Ex
ce
ss
Sta
ff
ex
cl.
Oth
er
de
pt.
8
10
2S
up
r+3
W+
10
O/S
ad
de
d i
n t
he
ex
isti
ng
re
qu
ire
me
nt
NR
C
&
BC
T
0
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 71
Sco
pe
of
Wo
rkZ
OR
O-E
RS
RO
-SB
CR
O-M
AS
SO
s**
CN
L
Off
ice
Sta
ff R
eq
for
Ex
isit
ing
Ac
tiv
itie
s #
PH
-1P
H-2
PH
-3$
In C
atg
.
Oth
er
tha
n
Ca
tg.
To
tal
Gra
de
AB
CD
EF
GH
IJ
KL
MN
OP
E8
Ad
mn
10
00
00
10
00
10
10
0
E6
/E5
Ov
era
ll I
/C1
11
10
04
44
40
22
-2-4
Ex
.Lo
un
ge
/
FP
-FF
U/R
R/E
.Ca
tg.
Incl
d.
Ad
min
at
IRC
A/
Sta
tic
Un
its/
Qu
ali
ty/
Pro
ject
s/M
CD
O
1
De
pt.
& L
ic.
Mo
bil
e
un
its/
Ba
se K
itch
en
s/N
RC
2
RN
Dis
trib
uti
on
/WV
Ms/
Co
-
ord
ina
tio
n w
ith
So
s, C
NL
&
RO
s
1
E0
- E
2A
ssit
an
ce t
o E
3/E
44
22
22
11
31
31
31
46
06
-7-7
Su
pe
rvis
orQ
ua
lity
/Co
mp
/
Mg
mt.
/RT
I/R
ev
en
ue
Mg
mt.
/E.
Ca
tg/P
Qs
an
d
oth
er
refe
ren
ces
32
22
14
45
44
74
97
92
36
29
-25
-31
Wo
rkm
en
00
00
00
60
52
52
16
24
12
43
-17
-19
Ou
tso
urc
e/
Co
nsu
lta
nt
42
22
01
23
01
01
01
02
10
02
10
-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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 72
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 73
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 74
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
ss
Duro
nto
218.4
6-8.4
521.8
51.0
922.9
43.4
44.8
018.1
426.5
91
612213-14
DE
E -
YP
R D
uro
nto
Expre
ss
Duro
nto
193.6
-43.7
119.3
60.9
720.3
33.0
54.8
015.5
359.2
41
722207-08
MA
S -
TV
C D
uro
nto
Expre
ss
Duro
nto
71.3
5-21.6
17.1
40.3
67.4
91.1
24.8
02.6
924.3
01
812220-19
SC
- L
TT
Duro
nto
Expre
ss
Duro
nto
122.9
7-52.2
812.3
00.6
112.9
11.9
44.8
08.1
160.3
91
912223-24
LT
T -
ER
N D
uro
nto
Expre
ss
Duro
nto
217.1
7-46.9
421.7
21.0
922.8
03.4
24.8
018.0
064.9
41
10
12293-94
LT
T -
AL
D D
uro
nto
Expre
ss
Duro
nto
376.8
257.0
637.6
81.8
839.5
75.9
34.8
034.7
7-2
2.2
91
11
12301-02
HW
H-N
DL
S R
ajd
hani
Expre
ss
Rajd
hani
1661.7
9-178.2
5166.1
88.3
1174.4
926.1
714.4
0160.0
9338.3
43
12
12309-10
RJP
B -
ND
LS
Rajd
hani
Expre
ss
Rajd
hani
1086.7
5-196.8
6108.6
85.4
3114.1
117.1
29.6
0104.5
1301.3
72
13
12953-54
BC
T -
August K
ranth
i
Expre
ss
Rajd
hani
1909.8
4-288.0
8190.9
89.5
5200.5
330.0
89.6
0190.9
3479.0
12
14
12951-52
BC
T -
ND
LS
Rajd
hani
Expre
ss
Rajd
hani
1925.9
3-302.1
3192.5
99.6
3202.2
230.3
314.4
0187.8
2489.9
53
Tota
l 11,8
09
-1
,354
1,1
81
59
1
,240
186
120
1,1
20
2
,474
25
Gra
nd
To
tal
(Ph
.I +
II)
16
,83
7
-2,1
35
1
,77
4
31
9
2,0
93
2
45
1
,59
5
3,7
30
5
1
To
tal
Ne
t M
arg
in o
f IR
CT
C
Ph
.I4
75
Ph
-II
1,1
20
To
tal
1,5
95
Ad
d s
et
off
Lo
sse
s o
f D
ep
tt C
atg
.-2
,13
5
Ne
t Im
pe
ct3
,73
0
Less
HR
Co
st o
f D
ire
ct E
mp
loy
ee
s D
ep
loy
ed
in
Ex
isti
ng
Tra
ins
11
60
.42
Ne
t P
osi
tiv
e i
mp
act
2,5
70
Pro
po
sed
un
bu
nd
lin
g o
f d
ep
artm
en
tal tr
ain
s (
tem
p b
asis
) to
red
uce lo
sses P
ha
se -
II
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 75
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 76
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:
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 77
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.
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 78
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 79
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
REPORT ON TAKEOVER OF CATERING UNITS FROM INDIAN RAILWAYS - MAY 2016 80
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.