Mumbai: In a move to promote sustainable development and to transform the passenger experience while generating non-fare revenue, the Central Railway will now replace the traditional Brown Kraft Paper Bags used for providing bed-sheets and hand towels to passengers in AC coaches with eco-friendly, durable, and reusable bags.
The conventional Brown Kraft Paper Bags have long been a source of significant expenses for the Indian Railways. Often torn upon removal, they result in wastage and littering within the compartments. Recognising the need for change, M/s Aadhar Corporation Limited proposed the solution that not only reduces tree cutting but also provides passengers with bags they can take home for long-term use. Although initially more expensive than the traditional kraft covers, the supplier generously offered to provide these bags to Central Railway free of cost, requesting exclusive advertising rights in return.
CR to save ₹1.5 crore annually
Embracing this innovative proposal, Central Railway implemented the project on a sponsored basis, initially on trains departing from Mumbai. The success of this initiative has been nothing short of remarkable, with nearly one crore bags to be provided annually to Central Railway by M/s Aadhar Corporation Limited. This arrangement is expected to save the Railways an annual expenditure of ₹1.5 crore previously spent on purchasing paper bags. Additionally, passengers now receive their linen bed-sheets in a goody bag, further enhancing their travel experience.
The impact of this initiative is evident as passengers overwhelmingly choose to take the reusable bags home, finding various uses for them. Not only has this led to improved cleanliness within the railway compartments, but it has also sparked innovative activities among the passengers.
Seller selected open tender process
The recognition for this outstanding proposal was demonstrated when Central Railway's Mumbai Division invited an open tender through E-Tender. M/s Aadhar Corporation Limited emerged as the winner for the Tender for Procurement and Supply of Linen Covers with Advertisements in Reserved Coaches of Mail/Express Trains of Mumbai Division, Central Railway. The open E-Tender on Earning Model spans over a five-year period, with a license fee of ₹1,11,111 per annum, subject to a 10% escalation in the fourth and fifth years. The total contractual value of this endeavor amounts to ₹5,89,999 over the five-year period. As part of the agreement, the licensee will supply one crore linen covers to Central Railway each year, resulting in a savings of ₹7.5 crore for the Railways during this period.
The supplier will also secure Advertisements on linen bags are from Directorate of Tourism (DoT), Government of Maharashtra.
This initiative not only marks Central Railway's commitment to embracing innovative ideas to enhance revenue generation beyond passenger fares but also showcases their dedication to improving the overall passenger experience and reducing expenditure on conventional packages. With this pioneering collaboration, Indian Railways continues to champion modern thinking and progress, paving the way for a brighter and more sustainable future in rail travel.
