The Indian Railways has witnessed substantial improvements in its tendering process and revenue generation through the implementation of an E-auction system. The traditional manual and E-tendering methods, which typically took around 30-45 days for tender finalisation, have been efficiently replaced by the E-auction system, reducing the process to just one day.
The Mumbai Division of the Indian Railways has emerged as a trailblazer in the successful execution of several auctions through the E-auction system. As a result, various projects including station advertising through non-digital media and water vending machine installations have been allotted tenders with remarkable efficiency.
Digital advertising contracts
One of the notable achievements under the E-auction system is the tender for digital advertising contracts at prominent stations. The Vidyavihar station's digital advertising contract has been awarded through the E-auction process, promising revenue of Rs. 16,20,000 per year for the railways. Additionally, the Kings Circle station's digital advertising contract is expected to generate earnings of Rs. 4,00,000 per year, while the Aman Lodge advertising contract will yield revenue of Rs. 1,22,000 per year. The cumulative earnings from these digital advertising contracts are projected to amount to Rs. 21,42,000 per year, reaching a total of Rs. 64,26,000 over the three-year contract period.
Furthermore, the Mumbai Division has also successfully awarded the water vending machine installation contracts through the E-auction system. The Sandhurst Road station's water vending machine installation is estimated to generate revenue of Rs. 85,001/- per year for the railways, and the Masjid station's installation will bring in earnings of Rs. 78,786/- per year. Moreover, the installation of two water vending machines at Dadar station will yield revenue of Rs. 3,15,000 per year, while the installation of four machines at Thane station is expected to generate earnings of Rs. 8,15,000 per year. In total, the water vending machine installations are projected to accumulate earnings of Rs. 12,93,787 per year, amounting to Rs. 64,68,935 over the five-year contract period.
Significant revenue gains observed
The successful implementation of the E-auction system in the Mumbai Division of Indian Railways has not only expedited the tender finalisation process but has also resulted in significant revenue gains. The streamlined and transparent nature of the system has played a pivotal role in attracting bidders and ensuring fair competition, ultimately benefiting both the railways and the contractors. This accomplishment sets a promising example for other divisions and departments within the Indian Railways, encouraging them to adopt similar digital initiatives to enhance efficiency and revenue generation.
"The Indian Railways' ongoing commitment to leveraging technology and innovation in its operations signifies a progressive approach towards modernization. With the E-auction system's positive impact on time efficiency, transparency, and revenue generation, the Indian Railways continues to pave the way for transformative change in the country's railway infrastructure" said Dr Shivraj Manaspure chief public relations officer of CR.
