The sources added that the IRCTC has returned about 40 food plaza locations to the railroads due to non-participation by bidders due to poor financial and operational feasibility.

In a March 8, 2022 order, the Railroad Council authorized zonal railroads to set up food units and multi-cuisine restaurants in empty or unused spots at train stations. However, the Indian Railway Catering and Tourism Corporation (IRCTC) has asked Indian Railways to reconsider its decision to build food plaza zones on the track, a mandate from the catering department of the national carrier.

The Railway Board said in the order that references had been received from Zonal Railways seeking permission to operate large static units, including food plazas, fast food outlets and multi-cuisine restaurants, given that many spaces allocated to IRCTC are still vacant which has led to to the failure to provide passenger services and loss of rail revenue, PTI reported.

The railways, according to PTI sources, earn about Rs 120 crore per year from static units, which include refreshment areas, janahaars, food plazas and fast food units. This reportedly amounted to around Rs 10 crore during FY 2020-21 mainly due to the pandemic. “There were no operations and also some unit closures. The railways had extended the benefits of reducing the license fee to be paid by its licensee-based catering companies as well. Two years of pandemic can’t be ignored as things nearly ground to a halt above the train station. The scope of work for the operation of the food plaza has been drastically curtailed,” the source told PTI.

The sources added that the IRCTC has returned about 40 food plaza locations to the railroads due to non-participation by bidders due to poor financial and operational feasibility.

IRCTC spokesman Anand Jha told PTI that about 300 food plazas are currently in use by the IRCTC and more than 75 more are expected to be completed in the coming months. “The IRCTC has asked the railways to reconsider its decision,” he said.


This post IRCTC vs Indian Railways on food units at stations across India – Know the inside details here was original published at “https://www.financialexpress.com/infrastructure/railways/irctc-vs-indian-railways-over-food-units-at-stations-across-india-know-inside-details-here/2462568/”

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