Guwahati: Indian Railways has taken steps to bring Commercial Earning and Non-Fare Revenue contracts under the ambit of electronic auction through the Indian Railway e-Procurement System (IREPS), in line with the prevailing e-auction of scrap sales.

Railway Minister Ashwini Vaishnaw launched an e-auction for commercial earning and non-fare revenue (NFR) contracts in Rail Bhavan today. This will not only increase railway earnings, but also bolster efforts being made by the government for ease of doing business. 

Speaking on this occasion, Shri Ashwini Vaishnaw said this policy is in line with the vision of the Prime Minister to change the experience of the common man through the use of technology.

Salient Features of New System:

• The Auction will be conducted online through the ‘E-Auction Leasing’ module of IREPS: www.ireps.gov.in
• Policy for e-Auction and Standard Conditions of Auction, issued by Railway Board:
  • The earlier system of physical registration of contractors Division-wise has been done away with,
  • Only financial criteria – based on self-declaration of past turnovers by contractors
  • Financial turnover criteria rationalized and standardized – No turnover requirement upto Rs. 40 lacs annual contract estimates
  • One-time online self-registration of contractors
  • No geographical restrictions for participation in any auction of any Division

• All assets will be fed in the system for better monitoring and ensuring issuing contracts in advance – reduce asset idling
• Auction catalogues with all details of the assets will be published online on the IREPS portal, a minimum of 15 days in advance
• Auctions will be conducted online- bidders will be able to participate from anywhere in India
• A minimum of 30 minutes will be given for auction so that all interested contractors can submit their bids.
• Auction of consecutive Lots in any catalogue will be closed after gap of 10 minutes
• In case any bid is received within the last 2 minutes of auction closing time, then the closing time for the lot will be extended automatically for 2 minutes. 10 such auto extensions will be permitted to ensure adequate time for all bidders to submit their bids.
• The Reserve Price of the lots will not be disclosed and the bidders will be free to offer any bid according to true commercial potential of the assets as per their assessment.
• Bids will be auto-decided.
• If the Highest bid (H1) is equal to or above the Reserve Price then the contract will be finalized on the same day after the auction closing.
• The bid sheet and contract agreement will be signed digitally.
• The payment schedule for the contract will be generated immediately.
• All payments by the contractor will be made online
• The entire process will be online & paperless

Benefits:

1. The online mode makes potential bidders from distant locations across the country participate in the bidding process.
2. Online payment to Railways post award of contract. Till now provision of daily manual payment in the parcel leasing contract is there, which is a tedious process. Now it is made online.
3. Better Monitoring: After mapping, the portal prompts when an earning contract of a particular asset is nearing completion and compels to start a fresh auction, thus making idle time of the asset minimal.
4. Standardization of eligibility conditions pan-India.
5. Simplification of processes.
   1. Drastically reduces the time taken in finalization of Tenders and will prevent revenue loss on this account.
6. Quick re-award of contract in case of failure of any contractor
7. Breaks the cartel among bidders.  Bidders’ identities will be masked from each other and from IR.
8. Will increase revenue earning by fetching true commercial potential of assets due to higher competition amongst bidders.
9. Will minimize assets’ idling, resulting in maximization of potentials from the assets.
10. No eligibility criteria upto 40 lacs will help in promoting start-ups.