IRCTC to rope in private sector to setup six water plants for Rail Neer
Updated: Dec 14, 2013 12:29:50pm
New Delhi, Dec 14 (KNN) In order to meet the daily drinking water requirement of millions of railways passengers, the Indian Railway Catering and Tourism Corporation (IRCTC) is planning to rope in the private sector to setup six additional water plants.
Indian railways is the world's largest railway networks comprising 115,000 km (71,000 mi) of track over a route of 65,000 km (40,000 mi) and 7,500 stations. As of December 2012, it transported over 25 million passengers daily (over 9 billion on an annual basis).
Daily water bottles requirement by Indian Railways is about 30 lakh bottles per day according to industry estimates. However, IRCTC is able to provide about 4 lakh bottles of Rail Neer, the Indian Railways' bottled water a day.
With a view to deal with the shortage, IRCTC is planning to issue tenders to the public for setting up new plants under a ‘Design-Build-Operate- Transfer’ Public Private Partnership (PPP) model.
Through this move, the contribution of Rail Neer in the total revenue share of IRCTC is expected to rise by more than Rs 100 crore.
According to a media report quoting an IRCTC spokesperson, these plants would have a capacity of around 75,000 bottles a day. The six new plants would come up in Parassala near Thiruvananthapuram, Ahmedabad, Nagpur, Vijayawada, Nashik and Farakka. It might take another two years for the plants to be functional.
Under this model, IRCTC would provide land for the plant. The private player would set up the plant and run it. The cost of setting up each plant is between Rs 8 – Rs 10 crore. IRCTC would buy the bottles from private partners at a discounted rate and in turn sell it to the Indian Railways with a small margin. Distribution would be the responsibility of the private partner.
Currently, IRCTC has three plants in Delhi, Danapur (Bihar) and Plaur (Tamil Nadu). The capacity of these plants is between 1-1.8 lakh bottles a day. (KNN/SD)
Indian railways is the world's largest railway networks comprising 115,000 km (71,000 mi) of track over a route of 65,000 km (40,000 mi) and 7,500 stations. As of December 2012, it transported over 25 million passengers daily (over 9 billion on an annual basis).
Daily water bottles requirement by Indian Railways is about 30 lakh bottles per day according to industry estimates. However, IRCTC is able to provide about 4 lakh bottles of Rail Neer, the Indian Railways' bottled water a day.
With a view to deal with the shortage, IRCTC is planning to issue tenders to the public for setting up new plants under a ‘Design-Build-Operate- Transfer’ Public Private Partnership (PPP) model.
Through this move, the contribution of Rail Neer in the total revenue share of IRCTC is expected to rise by more than Rs 100 crore.
According to a media report quoting an IRCTC spokesperson, these plants would have a capacity of around 75,000 bottles a day. The six new plants would come up in Parassala near Thiruvananthapuram, Ahmedabad, Nagpur, Vijayawada, Nashik and Farakka. It might take another two years for the plants to be functional.
Under this model, IRCTC would provide land for the plant. The private player would set up the plant and run it. The cost of setting up each plant is between Rs 8 – Rs 10 crore. IRCTC would buy the bottles from private partners at a discounted rate and in turn sell it to the Indian Railways with a small margin. Distribution would be the responsibility of the private partner.
Currently, IRCTC has three plants in Delhi, Danapur (Bihar) and Plaur (Tamil Nadu). The capacity of these plants is between 1-1.8 lakh bottles a day. (KNN/SD)
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