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Showing posts with label rail neer sales. Show all posts
Showing posts with label rail neer sales. Show all posts

Wednesday, 25 November 2015

08:19

Only Rail Neer at Railway Stations gets Bombay High Court nod

Only Rail Neer at Railway Stations gets Bombay High Court nod

Mumbai: The Bombay High Court recently upheld a circular issued by Indian Railwaysdirecting contractors and caterers having stalls on platforms and railway stations to stock and sell only ‘Rail Neer’ — packaged drinking water supplied by the IRCTC.

While dismissing the petition filed by Indian Railway Caterer’s Association, a division bench of justice SC Dharmadhikari and justice BP Colabawala on Monday said: “Good, clean, hygienic food and drinking water is an objective the railways want to achieve. Therefore, they procured the packaged drinking water under the brand “Rail Neer” manufactured by the IRCTC. We do not see how the petitioners can complain. Their right to deal with and carry on business with railways is in no way being affected.”

The association claimed that by compulsion, the railways are monopolizing supply of drinking water. Further, the compulsion to procure and supply drinking water only from the catering corporation is violative of mandate of Article 19(1)(g) of the Constitution of India. The restriction placed is not reasonable and violative of mandate of Article 14 of the Constitution of India. It was also argued that as petitioners’ members will not be able to stock and supply packaged or bottled drinking water of the brands duly approved by the railways, the choice of consumers will also be restricted.

Additional solicitor general appearing for the railways opposed the plea saying that “There is a clear policy evolved by the railways as regards to supply/sale of packaged drinking water to commuters, since 2001. The implementation was in phases. Now, the railways are confident that the demand for packaged drinking water could be met departmentally or from the sources such as IRCTC alone. Therefore, the right to carry on business of stall owners is neither interfered nor restricted. None can claim a fundamental right to sell food products or drinking water of the choice of licensee and not of the authorities like the railways.”

Singh also informed the court that since the stall owners had stocked up bottle water of other brands, the railway can consider its representation and allow them to clear the stock until then it would not impose penalty or take coercive action against them.

The court after going through the arguments and affidavits held that: “The consumers or passengers are not before the Court complaining about lack of choice, deficient quality of drinking water or drinking water being provided at a price which is not affordable. In such circumstances at the instance of traders and licensees, we cannot take cognizance of the submissions canvassed before us.”

Sunday, 25 October 2015

06:52

Railways withdraws 'Rail Neer only' circular, stalls sell other brands as well

Railways withdraws 'Rail Neer only' circular, stalls sell other brands as well

The railways, after causing lakhs of commuters severe hardship with its knee-jerk 'Rail Neer only' water policy at suburban stations for the past one week, has finally started getting a grip on the situation by Friday. Faced with the fact that Indian Railway Catering and Tourism Corporation's (IRCTC)'s Ambernath Rail Neer plant cannot supply the entire demand for packaged drinking water (PDW) emanating from Mumbai's stations, WR authorities early Friday morning allowed stalls to sell other brands as well.

In a reply to dna's query, GC Agarwal, WR general manager, said that IRCTC had written to WR that it will be able to supply Rail Neer to 14 mandated stations (stations where Railway Board has stipulated that only Rail Neer be sold) while the rest of the stations can sell other brands approved by the railways. These mandated stations include Churchgate, Marine Lines, Grant Road, Dadar, Bandra Terminus, Bandra, Kandivli, Borivli among others.
A query sent to CR authorities, including general manager SK Sood, on whether the 'Rail Neer only' circular was one issued in haste elicited no response.

On their part, IRCTC authorities told dna that they would revving up production at its Ambernath plant by November 1. Speaking to dna, Sandip Dutta, chief spokesperson of IRCTC, said, "By November 1, all three shifts will be operated at the Ambernath plant and we will be able to take production to full capacity of 16,000 cases (each case has 12 bottles) per day. Currently, the production level is around 10,000 cases."

Prior to the CBI raid on two top Northern Railway officials charged with conniving with private PDW manufacturers to thwart supply of Rail Neer, the production at the Rail Neer plant was around 3,000 cases.

Officials agreed that the 'Rail Neer only' circular was a knee-jerk one by both WR and CR and was also done without a realistic assessment of the demand for PDW, especially during October when Mumbai tends to experience high temperatures and energy-sapping humidity. While IRCTC's Ambernath plant at full capacity per day can produce 1,92,000 bottles, the total demand for PDW during the summer from Mumbai (both WR and CR) is around 3 lakh bottles per day. Apart from this, a circular issued in August last year (circular number 32 of 2014) mandated that all passengers of Rajdhani, Duronto and Shatabdi trains must compulsorily be given a complimentary bottle of Rail Neer. If the journey is above 20 hours, then the passenger must get two bottles of Rail Neer. This itself adds up to several thousand bottles per day.

"It is possible the CBI raids and previous complaints by the IRCTC that both WR sand CR are not taking their entire quota of Rail Neer being produced at Ambernath plant caused the officials in the commercial department to implement the 'Rail Neer only' circular in haste. What it has done is cause lots of problems to commuters and also revenue loss to railways. Several people willing to pay Rs15 for PDW were turned back at stalls since there was no supply itself," said an IRCTC official.

Numbers game:
Rail Neer daily production capacity - 6.14 lakh bottles
Rail Neer production in 2013-14 - 10.45 crore bottles
Rail Neer production in 2014-15 - 11.8 crore bottles
Rail Neer production target 2015-16 - 16 crore bottles
Rail Neer revenue for 2013-14 - Rs88 crore
Rail Neer revenue for 2014-15 - Rs96 crore
Rail Neer revenue estimate 2015-16 - Rs120 crore

Source :DNA INDIA.

Saturday, 30 May 2015

11:04

IRCTC Rail Neer demand goes up 50% this summer

IRCTC Rail Neer demand goes up 50% this summer

New Delhi: Indian Railway Catering and Tourism Corporation’s (IRCTC) bottled water – Rail Neer – which accounts for almost a fifth of the total bottled water sold on trains, has seen a 50 per cent rise in sales as temperatures soar. The company is seeing sales of 36,000 cartons daily, against 20,000-22,000 cartons during winters. Each carton has 12 one-litre bottles.

IRCTC has four Rail Neer plants at Nangloi (Delhi), Danapur (near Patna), Palur (near Chennai) and Ambarnath (near Mumbai). “Another plant at Amethi, with a capacity to produce two lakh litres a day, is ready for commissioning,” AK Manocha, CMD, IRCTC, told.

Private suppliers

Interestingly, despite high demand, all Rail Neer bottles, which are produced by Indian Railways’ own subsidiary, are not being entirely picked up, as some zones are resorting to sourcing water from other vendors.

For instance, the Ambarnath unit near Mumbai, which can supply water to Western and Central Railways, operates at 30 per cent capacity due to lack of demand.

This may be attributed to private firms supplying water to some railway zones at ₹1.20 discount against rates charged by IRCTC, which supplies at ₹10 a litre, which the Railways sell for ₹15 a litre.

However, Manocha attributes the marginally higher price at certain places to IRCTC being a government company, which has to be fully tax compliant. It pays an excise duty of ₹2.30 a bottle, and this brings in a huge price gap.

However, there are many zones, such as North Eastern Railway, North Central Railway, North Western Railway, which absorb a lot of capacity. Also, there is demand from Eastern and South Eastern Railway, which IRCTC partly supplies from Danapur. Similarly, Southern and South Western Railway also source Rail Neer.

Also, the pricing of Rail Neer is a function of the location of factories, which is mostly decided on political rather than commercial considerations and adds to transportation costs to the destination.

10% growth

The company has a capacity to produce 14 crore one litre bottles a year, of which 10 crore were produced. IRCTC earned almost ₹100 crore from Rail Neer sales, registering 10 per cent growth.

More Rail Neer plants at Bilaspur, Nagpur and Parassala are likely to be commissioned by December 2015. Projects where land is yet to be made available include Ambala, Lalitpur, Ahmedabad, Nashik and Vijayawada.