Railway Canteens

Railway Canteens

Key Information

Item Details
1. Controlling Ministry Ministry of Railways, Railway Board (Traffic Commercial Directorate)
2. Policy Name “Catering Policy 2017” (amended 2021) – basis for all canteen & stall licences
3. Licence Issuing Authority IRCTC (Indian Railway Catering & Tourism Corporation) on behalf of Zonal Railways
4. Licence Validity 1 year; renewable annually up to 5 years (max 5-year tenure at one stretch)
5. Licence Fee (Base) ₹15,000 per annum per unit + GST (non-AC); ₹25,000 for AC/retiring rooms
6. Security Deposit ₹1 lakh (refundable) + one-month licence fee as advance
7. Monthly Royalty 12 % of gross monthly sale or minimum guaranteed amount (MGA), whichever is higher
8. Eligible Vendors FSSAI-licensed individuals, SHGs, ex-servicemen, widows of railway staff, SC/ST/OBC/Minority, start-ups
9. Allotment Mode 100 % e-auction through IRCTC portal (no manual tenders)
10. Pref. Category 25 % units reserved for Divyang (PWD), 15 % for women, 10 % for ex-servicemen
11. Menu Price Cap IRCTC fixes MRP; no item can be sold above 50 % of open-market MRP
12. Quality Audit Third-party hygiene audit every 6 months; rating displayed on “Food on Track” app
13. Penalty for Overpricing 1st offence ₹10,000; 2nd ₹25,000; 3rd cancellation + forfeiture of deposit
14. Digital Payment Mandatory 100 % digital billing through IRCTC “Canteen Wallet” QR code
15. GST on Sale 5 % (composition scheme) collected by licensee & deposited monthly
16. Power Tariff Non-domestic; charged at railway tariff rate, not domestic rate
17. Water Charges ₹500 per 1,000 ltr or actual, whichever is higher
18. Fire & Safety Licensee must obtain NOC from Chief Safety Officer & maintain 2 kg CO₂ extinguishers
19. Exit Clause 30-day notice either side; unscheduled closure invites 3-year ban from re-bidding
20. Grievance Redressal 24×7 toll-free 139 & RailMadad portal; IRCTC to resolve within 72 hrs

Important Points

  • Only IRCTC can grant or cancel canteen licences on Indian Railways.
  • Licence is station-specific; moving the outlet to another platform/area is prohibited.
  • No sub-letting or partnership is allowed; violation leads to black-listing.
  • Food must be prepared in IRCTC-approved base kitchens; on-station cooking is banned except for tea/coffee kiosks.
  • Single-use plastic is totally banned; only biodegradable packaging allowed.
  • CCTV & weighing scale are compulsory; footage to be retained for 30 days.
  • Working hours: 06:00–22:00 hrs; extension needs Divisional Railway Manager’s approval.
  • Weekly off is not permissible; canteen must remain open all days except force-majeure.
  • Licensee must display FSSAI licence, menu-rate board, grievance number & QR code in bold.
  • Rationability: one canteen per 200 passengers average daily footfall (ADFH) as per policy.
  • E-tender security deposit is forfeited if the successful bidder refuses to accept the allotment letter within 7 days.
  • Any complaint endorsed by a Member of Parliament is treated as “VIP complaint” and closed within 48 hrs.

Practice MCQs

1. Which body is authorised to issue railway canteen licences as per the latest Catering Policy? IRCTC (Indian Railway Catering & Tourism Corporation)
2. What is the maximum continuous tenure a licensee can hold a canteen at one stretch? 5 years
3. The base annual licence fee for a non-AC railway canteen is ––––. ₹15,000 + GST
4. What percentage of gross sale is taken as monthly royalty from canteen operators? 12 %
5. Which category is given a 25 % reservation in allotment of canteen stalls? Divyang (Persons with Disabilities)
6. Overpricing beyond the MRP cap attracts what penalty on the first offence? ₹10,000
7. How is the allotment of railway canteens carried out since 2017? 100 % e-auction through IRCTC portal
8. Which mobile app displays hygiene ratings of railway canteens? Food on Track
9. What is the GST rate applicable on sales made by a railway canteen under the composition scheme? 5 %
10. If a successful bidder refuses to accept the allotment letter, what happens to his EMD? It is forfeited