The Ministry of Railways permitted the Indian Railway Catering And Tourism Corp. to go for long-term tenders for a period of seven years through clustering of trains.
The ministry, in a circular, has made an addition to Para 1 and Para 3, or the Catering Policy, 2017, in order to allow IRCTC to have seven-year tenders, the company announced in an exchange filing on Monday.
However, the tenders will be for 5+2 years, with the stipulation that the performance in the first five years be satisfactory.
In addition, the company has also been advised not to go ahead with the proposed long-term tenders for catering on trains, which were to be for a period of 5+5 years. This was to ensure smooth implementation of the Yatri Seva Anubandh policy for providing passenger services on trains.
Shares of IRCTC closed at Rs 701.3, down by 0.86% as compared with a 0.21% decline in the benchmark BSE Sensex on Monday.
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