Bidder located anywhere in India need to registeronly o­nce for participating in auctions of any field unitof Indian Railways through the portal

During last o­ne month Pilot, 80 earning contractswere finalized collectively fetching 128 Cr to theRailways

Standardization of eligibility conditions pan-India

Indian Railways has taken steps to bring Commercial Earning and Non-Fare Revenue contracts under theambitofelectronicauctionthroughIndianRailwaye-ProcurementSystem(IREPS),inlinewithprevailing e-auction of scrap sale. Shri Ashwini Vaishnaw launched e-auction for Commercial earning,Non-Fare Revenue (NFR) contracts in Rail Bhavan today. This will not o­nly increase Railways earning butalsobolster effortsbeing takenby theGovernmentfor easeof doingbusiness.

Speaking o­n this occasion, Shri Ashwini Vaishnaw said, “This policy is in line with the vision of Hon’blePrime Minister to change the experience of common man by the use of technology. With this new policy,tedious process of tendering would get simplified. Also, it would give opportunities for youth to join the e-auction process. This policy enhances ease of living, promotes transparency and adds to Digital IndiainitiativesinRailways.”

Earning Assets: Parcel Van, Pay & Use Toilets, Advertisement rights o­n station circulating area andcoaches,ACwaitingrooms,Cloakrooms,Parkinglots,PlasticBottlecrushers,ATMs,Stationco-branding, Video screens for content o­n demand etc. These assets will be mapped location-wise in the portalonce,andthesystemwillrememberforeverifitiscoveredforearningornot.Thiswillimprovemonitoringofassetsonreal timebasisandwillminimizeasset-idling.

Present System: Participation in present e-tendering requires physical registration with the concerned fieldunit.ThismakesdifficultforpotentialbiddersfromtherestofIndiatocompete.Ittakestimeinfinalizationduetorequirementof physicalmeetingoftendercommitteemembers.

E-Auction: Bidder located anywhere in India need to self register o­nce for participating in auctions of anyfield unit of Indian Railways through the portal. Remotely bid can be placed for management rights of anasset after depositing earnest money (EMD) electronically. Successful bidder would be able to receiveacceptance o­nline and through e-mail in very short span of time. Except requirement of financial turnover,as such all the eligibility criterions have been removed. Further, financial requirement has been relaxed tothegreatextant.ThereisnofinancialturnoverrequirementforannualcontractsuptoRs.40lacs

Pilot Run: Pilot was launched in 11 Divisions of 9 Zones: total 80 contracts of total value of 128 Croreswerefinalised during thepilot launch.

SuccessStoriesduringPilotRun:

1.Ahmedabad Division had conducted e-Auction for 2 lots Gandhidham Junction &Himmatnagar(GIMB and HMT) of Parking o­n 04th June 2022. For Gandhidham Junction (GIMB) 24 bids werereceived with the highest o­ne being ₹ 12,60,000 (Per Annum)which is 38% above ConventionalBidding Price. For HMT 26 Bidswere received with the highest o­ne being ₹ 62,500 (Per Annum)whichis72% abovepriceof conventionalbidding.

2.On 06.06.22, e-auction was conducted for Mixed Parking near Gorakhpur Airport, in which highest bidof Rs. 8,47,458 was received against estimate of Rs. 5,31,000 which is 59.60% higher than the price ofconventionalbidding.

3.Parkingsite–AnandViharTerminal,ContractPeriod-3year,TotalBidsReceived-74,OfferPriceper

annum-75lakh.Totalearning-Total2.25Cr.Offerreceivedwas127.33%higherthantheconventionalbidding price.

SalientFeaturesofNewSystem:

●TheAuction willbeconducted online through ‘E-Auction Leasing’ module ofIREPS:www.ireps.gov.in

●Policy for e-Auction and Standard Conditions of Auction issued by Railway Board: Earlier systemof physical registration of contractors Division-wise has been done away with,Only financialcriteria – based o­n self-declaration of past turnovers by contractorsFinancial turnover criteriarationalizedandstandardized–NoturnoverrequirementuptoRs.40lacsannualcontractestimatesOnetimeonlineself-registrationofcontractorsNogeographicalrestrictions forparticipationinanyauctionof anyDivision

●Allassetswillbefedinthesystemforbettermonitoringandensuringissuingcontractsinadvance

–reduceassetidling

●AuctioncatalogueswithalldetailsoftheassetswillbepublishedonlineonIREPSportal,minimum15 days inadvance

●Auctionswillbeconductedonline-bidderswillbeabletoparticipatefromanywhereinIndia

●Minimum 30 minutes will be given for auction so that all interested contractors can submit theirbids.

●AuctionofconsecutiveLotsinanycataloguewillbeclosedaftergapof10minutes

●In case any bid is received within last 2 minutes of auction closing time, then the closing time forthe lot will be extended automatically for 2 minutes. 10 such auto extensions will be permitted toensureadequatetimefor allbidderstosubmittheirbids.

●ReservePriceofthelotswillnotbedisclosedandthebidderswillbefreetoofferanybidaccordingtotruecommercialpotentialoftheassetsaspertheirassessment.

●Bidswillbeautodecided.

●IfHighestbid(H1)isequalorabovetheReservePricethenthecontractwillbefinalizedonthesameday afterauctionclosing.

●Bidsheetandcontractagreementwillbesigneddigitally.

●Paymentscheduleforthecontractwillbegeneratedimmediately.

●Allpaymentsbythecontractorwillbemadeonline

●Entireprocesswillbeonline&paperless

Benefits:

1.Onlinemodemakespotentialbiddersfromdistantlocationacrosscountrytoparticipateinthebiddingprocess.

2.OnlinepaymenttoRailwayspostawardofcontract.Tillnowprovisionofdailymanualpaymentinparcelleasingcontractisthere,whichisatediousprocess.Nowitismadeonline.

3.BetterMonitoring:Aftermapping,portalpromptswhenanearningcontractofaparticularassetisnearingcompletionandcompelstostartfreshauction,thusmakingidletimeoftheassetminimal.

4.Standardizationofeligibilityconditionspan-India.

5.Simplificationofprocesses.DrasticallyreducesthetimetakeninfinalizationofTendersandwillpreventrevenue losson thisaccount.

6.Quickre-awardofcontractincaseoffailureofanycontractor

7.Breaksthecartelamongbidders.Bidders’identitywillbemaskedfromeachotherandfromIR.

8.Willincreaserevenueearningbyfetchingtruecommercialpotentialofassetsduetohighercompetitionamongstbidders.

9.Willminimizeassets’idling,resultinginmaximizationofpotentialsfromtheassets.

10.Noeligibilitycriteriaupto40lacswillhelpinpromotingstart-ups.