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
Question:01 Which body is authorised to issue railway canteen licences under the 2026 Catering Policy?
A) Indian Railways (IR)
B) IRCTC (Indian Railway Catering & Tourism Corporation)
C) Rail Land Development Authority (RLDA)
D) Zonal Railway Commercial Departments
Show Answer
Correct Answer: B
Explanation: As per the latest Catering Policy 2026, IRCTC is the sole authorised agency to grant licences for railway canteens across Indian Railways.
Question:02 What is the maximum continuous tenure a licensee can hold a canteen at one stretch?
A) 3 years
B) 5 years
C) 7 years
D) 10 years
Show Answer
Correct Answer: B
Explanation: As per Indian Railway Catering Policy, the licensee is allowed to run the canteen continuously for a maximum of 5 years at one stretch before any mandatory change-over or re-tendering.
Question:03 The base annual licence fee for a non-AC railway canteen is ––––.
A) ₹10,000 + GST
B) ₹12,000 + GST
C) ₹15,000 + GST
D) ₹18,000 + GST
Show Answer
Correct Answer: C
Explanation: As per Indian Railways Catering Policy 2026, the minimum annual licence charge for a non-AC canteen is fixed at ₹15,000 plus applicable GST.
Question:04 What percentage of gross sale is taken as monthly royalty from canteen operators?
A) 8 %
B) 10 %
C) 12 %
D) 15 %
Show Answer
Correct Answer: C
Explanation: Indian Railways levies a monthly royalty of 12 % of the gross sales from its canteen operators.
Question:05 Overpricing beyond the MRP cap attracts what penalty on the first offence?
A) ₹5,000
B) ₹7,500
C) ₹10,000
D) ₹12,500
Show Answer
Correct Answer: C
Explanation: As per the 2026 Railway Catering Penalty Rules, the first-time offence of overcharging above the MRP cap is penalised with a flat fine of ₹10,000.
Question:06 [How is the allotment of railway canteens carried out since 2017?]
A) Through manual tender by zonal railways
B) 100 % e-auction through IRCTC portal
C) Lottery system among eligible vendors
D) Direct nomination by Railway Board
Show Answer
Correct Answer: B
Explanation: Since 2017, railway canteens are allotted exclusively via 100 % e-auction conducted on the IRCTC portal, ensuring transparency and fair competition.
Question:07 Which mobile app displays hygiene ratings of railway canteens?
A) RailMadad
B) IRCTC eCatering
C) Food on Track
D) RailSaarthi
Show Answer
Correct Answer: C
Explanation: Food on Track is the official Indian Railways mobile app that shows real-time hygiene ratings of railway canteens and food plazas across stations.
Question:08 What is the GST rate applicable on sales made by a railway canteen under the composition scheme?
A) 3 %
B) 5 %
C) 12 %
D) 18 %
Show Answer
Correct Answer: B
Explanation: Railway canteens opting for the GST composition scheme charge a concessional GST rate of 5 % on their sales.
Question:09 If a successful bidder refuses to accept the allotment letter, what happens to his EMD?
A) It is refunded in full
B) It is adjusted against the next tender
C) It is forfeited
D) It is converted into security deposit
Show Answer
Correct Answer: C
Explanation: As per standard railway tender conditions, refusal to accept the allotment letter after being declared the successful bidder leads to forfeiture of the Earnest Money Deposit (EMD).
BETA
