'IRCTC is directed to terminate all existing contracts of mobile catering (currently kept in abeyance) involving scope of work of providing cooked food to passengers prepared from base kitchens as per the existing terms and conditions,' Railway Ministry said in a statement
Ministry of Railways on Monday directed its catering business, Indian Railway Catering and Tourism Corporation (IRCTC) to cancel all existing mobile catering contracts.
"IRCTC is directed to terminate all existing contracts of mobile catering (currently kept in abeyance) involving scope of work of providing cooked food to passengers prepared from base kitchens as per the existing terms and conditions," Railways Ministry said in a regulatory filing. Impact of directive is being assessed, it added.
"IRCTC is further directed to treat this case as an exception arising out of the pandemic situation and not to treat the case as contractor's default and hence not impose any fine for not providing catering services and also return the Security Deposit (SD) and advance license fee in full after considering/adjusting valid dues, if any," the ministry further stated.
Indian Railways' statement comes amid the issue of mobile catering being raised in a petition by members of Indian Railways' Mobile Caterers Association (ICRMCA) in the Madras High Court on 19 January, 2021. In that order, the Madras HC had directed the Indian Railways to consider the representation by IRMCA to restore their services, which have been suspended since lockdown was announced in March 2020. The court observed that the authorities should give sufficient opportunity to members of the association to put forward their contentions and pass orders within four weeks.
Pursuant to this, the Ministry of Railways said that it examined the representation submitted by IRMCA dated 04.01.21. along with other relevant documents including tender documents, policy instructions etc. "In addition, a meeting with the of IRMCA was also held in Ministry of Railways on 11 february, 2021, to hear their plea regarding the issue including their grievances. In the meeting there was unanimous request that they should be permitted to resume work (same reduced scope of work) on the trains held by them with license fee (as in the case of' static units), or they may be allowed to operate under new the trains scope of work. i.e service of static units." the ministry further stated.
Earlier in January, IRCTC had announced that it will resume its e-catering services from next month (February).
Due to onset of the COVID-19 pandemic and the consequent unprecedented lockdown, e-catering services were suspended on March 22, 2020.
IRCTC, the catering and tourism arm of the Indian Railways, had said that it was going to restart its e-catering services for passengers travelling in the special trains that are currently operating.
IRCTC had started this unique service in the year 2014 whereby passengers could order an array of food of their choice from reputed brands as well as popular regional and local delicacies on phone or online while travelling on trains and get the same delivered to their seats at the railway station.
During the pre-COVID period, IRCTC had started clocking 20,000 e-catering orders per day.
On Monday, IRCTC's scrip on BSE closed at an all-time high of ₹1,972.00 after trading 12.07% higher.
Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.