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Pune News : Central Railway Revolutionises Passenger Experience : Goes Eco

Dec 06, 2023

Central Railway in collaboration with M/s Aadhar Corporation Limited, proudly announces a groundbreaking initiative that transforms the passenger experience while generating non fare revenue. In a visionary move, Central Railway has replaced the conventional paper bags used for providing bed-sheets and hand towels to passengers in AC coaches with eco-friendly, durable, and reusable bags.

Traditionally, the use of Brown Kraft Paper Bags incurs significant expenses for Indian Railways. However, these bags often torn upon removal, leads to wastage and littering within the compartments. M/s Aadhar Corporation Limited suggested ceasing the use of conventional paper bags and hence reducing tree cutting done for producing them and instead proposed providing passengers with eco-friendly, durable, and reusable bags which they could take home after their journey for long-term use. Although these bags were initially more expensive than the conventional kraft covers, the supplier offered to supply them to Central Railway free of cost. In return, he requested exclusive rights for advertising on these bags.

Embracing this innovative proposal, Central Railway implemented the project on a sponsored basis, initially on trains departing from Mumbai. Today, this initiative has proven to be a resounding success, with nearly one crore bags to be provided annually to Central Railway by M/s Aadhar Corporation Limited. This arrangement will save expenditure of ₹1.5 crore annually previously spent on purchasing paper bags. Moreover, passengers now will receive linen bed-sheets in a goody bag, enhancing their travel experience.

The success of this initiative is evident as passengers overwhelmingly choose to take the reusable bags home, utilizing them in various ways. Alongside this positive outcome, the introduction of the new bags has contributed to improved cleanliness and innovative activities within the railways.

In recognition of the outstanding proposal, Central Railway’s Mumbai Division had invited an open tender through E-Tender in which M/s Aadhar Corporation Limited got 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 five years, 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 endeavour is ₹ 5,89,999/- over the five-year period. The licensee will supply one crore linen covers to Central Railway each year resulting in savings of ₹7.5 crore for Railways in this period of 5 years. The supplier would get advertisements from various agencies. Maharashtra Tourism from Maharashtra Tourism Development Corporation (MTDC) is one of them.

Recognising the need for change, the Railway Ministry embraced the concept of Non Fare Revenue, encouraging innovative ideas to enhance revenue generation beyond passenger fares. This pioneering collaboration not only provides an innovative source of non fare revenue but also enhances the overall passenger experience and significantly reduces Indian Railways’ expenditure on procurement of conventional packages. Indian Railways continues to embrace modern thinking and passion for progress, paving the way for a brighter and more sustainable future in rail travel.