RAILWAYS

IRCTC cancels all mobile catering contracts

Indian Railways has directed its catering and ticketing arm to cancel all the existing contracts of mobile catering services providing cooked food to passengers. The decision was taken in the backdrop of a new normal of serving ready-to-eat in special trains.

“IRCTC is directed to terminate all existing contracts of mobile catering (currently kept in abeyance) involving scope of work of providing cooked food to passengers prepared from base kitchens as per the existing terms and conditions,” Indian Railways declared in a regulatory filing on Monday.

“IRCTC is further directed to treat this case as an exception arising out of pandemic situation and not to treat the case as contractor’s default and hence not impose any fine for not providing catering services and also return the Security Deposit (SD) and advance license fee in full after considering/adjusting valid dues, if any,” the filing further added.

Following the coronavirus outbreak, the Indian Railways had stopped all railway traffic and associated services. As train services gradually resumed, in the form of special trains, Indian Railway Catering and Tourism Corporation (IRCTC) had allowed ready-to-eat meals to be served to passengers.

Source
business today
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