E-auction of assets brings in Rs844 crore for the railways in three months

6 Sept 2022 , 11:46 AM

The railways has made Rs844 crore since going live with its commercial earning and non-fare revenue contracts three months ago, with contracts for advertisements on its property, parking spaces, parcel space leasing, and pay-and-use restrooms emerging as the top revenue-generating assets.

Railway Minister Ashwini Vaishnaw launched an e-auction for commercial earnings in June to support startups and small business owners. This scheme enables speedy contract completion and re-award in the event of contract failure.

There are no geographical limits on bidders and candidates registering for and participating in any e-auction across the Indian Railways because the bidding procedure is conducted online. Additionally, the eligibility requirements have been loosened by the Railway Ministry.

The division in Bengaluru has so far made the most money using the e-auction platform, having sold a contract for the leasing of delivery trucks for Rs34.52 crore.

Through e-auction, the Mumbai division of Western Railways has so far granted contracts for 53 assets totaling Rs73.3 crore.

The e-auctioning of parking spaces in Gandhidham Junction and Himmatnagar, both in the Ahmedabad division, is another example of success.

While Gandhidham Junction (GIMB) received 24 bids, the greatest of which was Rs12.6 lakh per year (38%) above the standard bidding price), the other station received 26 bids, the highest of which was Rs62,500 per year (72% above the standard bidding price).

The Delhi division's lease assets have been fully converted to e-auctioning. As a consequence, contracts for 12 of the 274 SLR compartment assets that were up for lease through an e-auction were successfully awarded.

Since bidders' identities will be kept a secret from one another and from the Indian Railways, the online manner of contract giving is also a way to undermine the cartels in the industry.

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