Railway catering towards ending licensing raj

A government-appointed panel led by Central Railway Chief Commercial Manager RD Sharma has recommended catering services to be given back to IRCTC from the Indian Railways, in a bid to end licensing raj.

It has drawn attention to the present state of catering system in the country where, while on one hand, IRCTC is increasing its income earned by licensing out the catering services to private players, its departmental losses have ballooned, on the other hand.

The Hindu takes a look at the history of catering service in the Railways and a few related numbers.

* IRCTC to be prohibited from completely licensing out catering to private players and enhance revenue

* IRCTC may outsource operations like support staff, service staff, cooks, transportaion, packaging etc. but its managers will be on board to supervise services.

* Present private licensees to be given out two options: Exit out contract without liability or accept new model of catering.
Source: Report of the Committee led by RD Sharma, Chief Commercial Manager, Central Railway

Compiled by: Somesh Jha

Graphic: B. Srinivasan

Posted by on March 28, 2016. Filed under Economy. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.