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Rail Divisions tasked to decide on license fee relief & relaxation on case-by-case basis

By Rajiv Raghunath - December 28, 2020

90 days dies non period to be added to end of contract period; pre-condition of applying relief only to contact in force in ‘December 2020, and beyond’ removed

The Railway Board in a notification dated December 24, 2020 issued to the general managers of Indian Railways and Metro Railway Kolkata on ‘Further relief due to Covid-19 pandemic to NFR contracts’ as a one-time relaxation has directed that railway “Divisions may decide the relaxation on license fee on quarterly basis taking into consideration eyeballs/footfalls, on case to case basis, subject to submission of an undertaking assuring ‘no exit at least till the period of relaxed license fee’.” The relief may not be extended to NFR licensees who are not willing to submit such an undertaking.

With regard to the 90 days ‘dies non’ period from March 25, 2020 to June 22, 2020, an equivalent number of days shall be added at the end of the executed contract period and “accordingly the contract period shall be extended by the Divisions”, the notification states. The licensee shall pay the fee for the extended period as per terms agreed upon in the existing contract.

Also, the Board cites that the earlier condition stating the relief will be extended to only contracts valid in “December, 2020 and beyond” has been deleted.

The Divisions may decide to charge license fee on a monthly basis up to March 31, 2020 wherever required.

The DRMs may consider extension of a contract by one year after expiry of the extended 90 days for NFR contracts expiring by December 31, 2021. “This one year extension shall be granted without escalation of license fee by the DRM.

“If warranted further extension on expiry of extended one year may be granted by the General Manager with escalation of license fee which should not be less than 5% of last paid license fee. During this extended period the payment of license fee by the contractor shall be on quarterly basis.”

The security deposit equivalent for six months has been reduced to three months, whereby the three months equivalent amount may be adjusted for any outstandings with regard to license fee payments.





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