The Hindu Business Line : Rlys plans to check revenue under-reporting by catering units

THE Railways has deputed officials to examine the actual business done by small shops across stations or `static catering units' to review the licence fee of catering units and check under-reporting of revenues.

The small units have to pay up 12 per cent of their gross revenues as licence fees to the Indian Railways. "However, a cursory glance at the licence fees paid by them make it clear that these units are grossly under-reporting their revenues," said a senior official.

In the Eastern Railways, for example, 142 stalls in suburban stations pay a licence fee of Rs 1 lakh a year, which means each stall pays only Rs 2 a day.

This is less than the cost of cup of tea. "They must be selling much more than this a day," said an official.

Similarly, 80 stalls at A and B class stations pay a total licence fee of Rs 6.8 lakh, which implies that each stall pays Rs 23 a day. There are certain stalls at some stations which pay a licence fee of Rs 5 a month and this is not the lowest, said the official, adding, "licence fees at some stations are so low that they are not worth mentioning."

"We plan to open a small unit in every station and invite competitive bids for them. The amount settled will be considered as the base for similar catering units in that particular station," said a highly placed official.

Indian Railways will also carry out similar exercises for phone booths and pantry cars operated by contractors to gauge the potential revenue of these units.

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