Co-branding of Railway Stations

By Nageswara Rao 9492432160

● Source: Commercial Circular No. 7 of 2022

● Part of NFR - Non Fare Revenue
● Objects:
A. Generate NFR
B. Allowing co-branding / station branding / semi-naming rights at
stations or prefixing / suffixing of brand names / logos to the
names of Railway Stations
C. Eligible: Government organizations and reputed business
houses
D. Not eligible: Advertising agencies
E. Activity should be a form of advertisement only, not tantamount
to change in the name of the Railway station.
F. All the above activities denoted as co-branding of Railway
station.
Salient features:
● Brand name should not exceed two words.
● Purely a form of advertisement
● Does not tantamount to change in the name of the Railway Station
● Shall not be permitted on the Railway Tickets, PRS, Websites, route
maps, in announcements through PA (Public Address) systems on the
RDN (Railway Display Network)
 ● The name of the Railway Station shall be its original name only.
● Zonal Railways may consider clubbing of Railway Stations for bidding
in clusters.
Permitted Locations:
● All places wherever the name of the Railway Station is displayed.
● Subject to the availability of space
● Subject to the conditions of OOH (Out Of Home)
● The quantum / location of space to be allotted in Circulating area -
decided by Zonal Railways / Divisions
● Do not conflict with spaces already awarded under the provisions of
the existing NFR policy.
● Does not adversely impact clear visibility of the Station name that is
essential for train operations.

Not permitted Locations - Negative List

● Heritage buildings
● Railway Stations named after eminent personalities, national leaders,
martyrs etc.
● Surrogate advertisements
● Advertisements of drugs, alcohol, cigarettes, tobacco items etc.
● Prohibited items advertisement.
● Threatens the public image of Indian Railways / Central / State
Government
 ● Negative list as per local Outdoor advertisement policy
● Branding by Political parties, religious institutions, outfits and individual
personalities.
● Advertisements banned by the Advertising Council of India or by Law

Other aspects of Policy:

● The prefix or suffix - in different font / color and small in size

compared to Station Name and IR logo.
● Either Brand Name or Logo. Not permitted both.
● Brand name should not be more than two words. In case, Brand
name has more than two words, only Logo should be used.
● The Licensee should pay the requisite advertising tax if any by the
Local Government authorities.

Contract terms & conditions:

● Awarded through EOI (Expression Of Interest) / Open Bidding

● RP (Reserve Price) - Arrived duly considering relevant parameters
such as prevailing circle rates, practice followed in other NFR
Contracts.
● Brand name / logo - would be approved by PCCM.
● Sub-letting shall not be permitted.
● Tenure: Minimum period - 1 year. Maximum period - 3 years.
 ● Delegation of Powers - as per MSOP - Model Schedule Of Powers.
● EMD - 2 % of Tender Value.
● License Fees - Half yearly basis - paid in advance.
● Licensee shall be liable to pay applicable GST under RCM (Reverse
Charge Mechanism) to the Tax authorities.
● The Station would be handed over for co-branding activities on “as is
where is basis”
● Security arrangements responsibility by the Licensor i.e., Indian
Railways
● SBD - Standard Bid Document

Other features:

● Tender / Bid should be open for a period of 45 days from the date fixed
for opening of the same.
● Security Deposit: Within 30 days from the date of issue of LOA - Letter
Of Acceptance.
● Purely License basis
● If work is not commenced within 45 days from the date of issue of
LOA, IR shall be forfeit the EMD
● Open to Central & State Government institutions, PSUs, reputed
private companies, Banks, Financial entities, excluding Advertising
agencies.
●
● Breach of conditions if any, the Licensee would be liable to pay
the damages @ 5 % of his License Fees subject to minimum of
Rs. 5,000 per irregularity along with legal actions as per
Agreement.
● Conditional offer by the Tenderers - out rightly be rejected and EMD is
forfeited.
● EMD of the successful tenderer - converted into SD with the issue of
LOA.
● EMD of unsuccessful tenders shall be refunded within 30 days from
the date of LOA without any interest.
● SD - equivalent to 6 months License fee calculated for the final
year of the Contract - in the form of irrecoverable PBG -
Performance Bank Guarantee from a commercial Scheduled Bank
within 21 days from the date of LOA.
● Extension of submission of SD - Beyond 21 days and up to to 60
days from the date of issue of LOA. But penal interest 18% per
annum beyond 21 days.
● If contractor fails to submit the PBG even after 60 days from the date
of LOA, the consequences are:
1. The Contract is terminated.
2. Forfeiting the EMD and other dues if any paid to the Contractor.
3. The failed Contractor shall be debarred from participating in
re-tender for that work.
● Validity of PBG - Should cover the license tenure plus 180 days.
 ● PBG shall be released subject to:
A. After successful completion of the License period
B. Issue of No Claim Certificate by the Licensee
C. Appeal for release of PBG - shall be submitted within 6
months of the completion of the Contract
● PBG - should be sent to Indian Railways directly by the issuing Bank
under Registered Post with Acknowledgement Due.
● First installment of License fees - 6 Months one - have to be paid
in advance within 10 days of the issue of LOA.
● Termination of License - IR reserves the right to terminate without
assigning any reason by giving 30 days’ notice
● The date of commencement of the License - 30 days from the date of
issue of LOA.
Penalty:
The Licensee shall be liable to pay @5% of the Annual License Fee
subject to a minimum of Rs.5,000/- for violation of each of the following
acts and omissions in addition to legal action.
1. Not following the instructions by the Indian Railways
2. Any staff of licensee found in drunken condition/indulging in
improper conduct;
3. For any staff of the licensee found creating nuisance on duty;
4. Any other violation as decided by the competent authority.
Material for MCQ

1. NFR stands for Non Fare Revenue

2. Co-branding of Railway Stations - part of NFR
3. Advertisement Agencies are not eligible for Co-branding of Stations.
4. Brand name should not exceed two words
5. OOH stands for Out Of Home (part of NFR)
6. PA System stands for Public Address System
7. Permitted either Brand name or Logo. Not permitted Both.
8. Brand Name or Logo - Approval of PCCM is required
9. EOI stands for Expression Of Interest
10. RP stands for Reserve Price
11. Sub letting shall not be permitted
12. Contract Minimum and Maximum period - 1 Year and 3 Years
respectively.
13. EMD - 2% of Tender Value
14. License fees - payable half years (in advance)
15. SBD stands for Standard Bid Document. Modifications can be done
by GM to suit local conditions
16. Tender / Bid should be open for a period of 45 days from the date of
opening the Tender / Bid.
17. SD - within 30 days from the date of LOA
18. Purely License Basis. Not on Lease basis Click here for differences
between Lease and License
19. EMD forfeit - If work is not commenced within 45 days from LOA
20. LOA stands for Letter Of Acceptance / Award
21. Breach of conditions - @5% of Annual License fees subject to a
minimum of Rs.5,000/- per each irregularity
22. If a conditional offer is received, outrightly be rejected and EMD is
forfeited.
23. EMD of successful Tenderer converted into SD.
24. EMD of unsuccessful Tenderers - Returned within 30 days from the
date of LOA
25. SD - 6 Months License Fees of Final year
26. SD - form of irrecoverable PBG from a commercial Scheduled Bank
-within 21 days from the date of LOA. Beyond 21 days and up to 60
days extension is permitted with penal interest of 18% per annum.
27. Contractor fails to submit PBG even after 60 days from the date of
LOA, the consequences are
● Contract is terminated
● Forfeit of EMD & other dues if any
● Failed contractor debarred from participating in re-tender for that
work.
28. Validity of PBG - License tenure period plus 180 days.
29. PBG stands for Performance Based Guarantee
30. First installment of License fees - 6 Months one - have to be paid in
advance within 10 days of the issue of LOA.
31. Termination of the Licensee by IR - Notice period is 30 days
32. Penalty - @5% of License Fees subject to a minimum of Rs.5000
for each act

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