In what could be a stellar example of red tapism and bureaucratic tangle ensuring the shoddy state of railways, a city-based restaurateur had to quit a multi-brand food plaza project at Chennai Central railway station though a contract was awarded in 2014.
IRCTC had awarded a contract to Ratna Cafe to set up a `96 crore facility, but Southern Railway intervened saying it was not consulted. The issue was raised in the Lok Sabha, ministers intervened, but officers stood their ground. Around 26 months after Ratna Cafe got the tender, bidding `8.10 crore per year for 12 years, it sent a letter to IRCTC stating it was 'forced to withdraw from the project'. Now, the station with a footfall of more than three lakh daily, is left with just three small eateries.
The entire episode goes against the railway ministry's move to generate non-fare revenue, modernise stations, and encourage public-private partnership. The hurdle: Officers who operate by the book and refuse to look at public interest.
Passengers will have to wait longer for getting a variety of food options in one plaza, like it was in February 2015. All because of the bureaucratic tussle between Southern Railway (SR) and Indian Railways Catering and Tourism Corporation (IRCTC) over control of the site on which the plaza was to come up. When Ratna Cafe won the tender in December 2014, railway authorities asked the contractor to get the plaza ready by April 2015. Trouble began when IRCTC said it could not offer the site because SR wanted the space for passenger movement. SR alleged that IRCTC had not informed it before floating the tender. IRCTC cried foul.
A year later, in mid-2016, SR and IRCTC agreed on an alternate site. But nine months later, IRCTC revised the conditions of floor space use. This is when Ratna Cafe threw in the towel. "We are being pushed to the wall and you are engaging in an unfair bargain which is not acceptable to us. No reasonable justification was given for the inordinate delay in handing over a site," it wrote in the withdrawal letter.
Senior railway officials say the events are testimony to the bureaucratic rigmarole that private investors face despite assurances of transparent clearances from the Centre. A senior SR official termed it an 'embarrassment' to the railways. "For IRCTC, this is a major project, but for SR, it is one of the many projects. Policy decisions should be taken after close consultations with officials from all departments," he said. A K Manocha, CMD of IRCTC, did not respond to calls and messages.
A senior officer said officials could take initiative to set up facilities. "There are two ways of working in a government organisation, officers can look at an issue in spirit or go by the book. Most follow the rules and do not bother that people are being deprived a facility." The result: No officer is ready to put his/head on the line to ensure that people get the best facilities.
Another official who has followed the Ratna Cafe issue said, "Officials are worried about vigilance cases, so they insist on water-tight documentation."
Bureaucracy has also stymied other private public partnership projects, including those to keep stations and tracks clean. Straitjacketed rules forced private contractors to give up. A few years ago, a contractor to remove garbage from the tracks and platforms at Central station abandoned work. Five years ago, railway officers took part in a conference where private companies from abroad demonstrated vacuum machines to remove plastic water bottles from tracks at stations. But the officers did not make any attempt to purchase the equipment. Sources said enterprising officers could not invite the companies for fear of audit. This lack of initiative is also the reason why suburban stations, which cater to 10 lakh commuters per day, have hardly any amenities.
IRCTC had awarded a contract to Ratna Cafe to set up a `96 crore facility, but Southern Railway intervened saying it was not consulted. The issue was raised in the Lok Sabha, ministers intervened, but officers stood their ground. Around 26 months after Ratna Cafe got the tender, bidding `8.10 crore per year for 12 years, it sent a letter to IRCTC stating it was 'forced to withdraw from the project'. Now, the station with a footfall of more than three lakh daily, is left with just three small eateries.
The entire episode goes against the railway ministry's move to generate non-fare revenue, modernise stations, and encourage public-private partnership. The hurdle: Officers who operate by the book and refuse to look at public interest.
Passengers will have to wait longer for getting a variety of food options in one plaza, like it was in February 2015. All because of the bureaucratic tussle between Southern Railway (SR) and Indian Railways Catering and Tourism Corporation (IRCTC) over control of the site on which the plaza was to come up. When Ratna Cafe won the tender in December 2014, railway authorities asked the contractor to get the plaza ready by April 2015. Trouble began when IRCTC said it could not offer the site because SR wanted the space for passenger movement. SR alleged that IRCTC had not informed it before floating the tender. IRCTC cried foul.
A year later, in mid-2016, SR and IRCTC agreed on an alternate site. But nine months later, IRCTC revised the conditions of floor space use. This is when Ratna Cafe threw in the towel. "We are being pushed to the wall and you are engaging in an unfair bargain which is not acceptable to us. No reasonable justification was given for the inordinate delay in handing over a site," it wrote in the withdrawal letter.
Senior railway officials say the events are testimony to the bureaucratic rigmarole that private investors face despite assurances of transparent clearances from the Centre. A senior SR official termed it an 'embarrassment' to the railways. "For IRCTC, this is a major project, but for SR, it is one of the many projects. Policy decisions should be taken after close consultations with officials from all departments," he said. A K Manocha, CMD of IRCTC, did not respond to calls and messages.
A senior officer said officials could take initiative to set up facilities. "There are two ways of working in a government organisation, officers can look at an issue in spirit or go by the book. Most follow the rules and do not bother that people are being deprived a facility." The result: No officer is ready to put his/head on the line to ensure that people get the best facilities.
Another official who has followed the Ratna Cafe issue said, "Officials are worried about vigilance cases, so they insist on water-tight documentation."
Bureaucracy has also stymied other private public partnership projects, including those to keep stations and tracks clean. Straitjacketed rules forced private contractors to give up. A few years ago, a contractor to remove garbage from the tracks and platforms at Central station abandoned work. Five years ago, railway officers took part in a conference where private companies from abroad demonstrated vacuum machines to remove plastic water bottles from tracks at stations. But the officers did not make any attempt to purchase the equipment. Sources said enterprising officers could not invite the companies for fear of audit. This lack of initiative is also the reason why suburban stations, which cater to 10 lakh commuters per day, have hardly any amenities.