Indian Railways: Station Food and Milk Stalls to Be Allotted Exclusively Through Transparent E-Auctions

In a major policy overhaul aimed at modernizing station services and eliminating arbitrary allotment practices, the Railway Board has officially amended its nine-year-old catering policy. Moving away from legacy systems and recommendation-based quotas, the newly revised framework mandates that all food stalls, milk booths, and General Minor Units (GMUs) across designated railway stations must now be allotted strictly through a competitive e-auction process. This sweeping reform is designed to democratize access, eliminate favoritism, and invite fair participation from small business owners and entrepreneurs looking to set up commercial ventures within the railway network.New E-Auction Mandate for Milk Stalls and GMUs Across Key Station CategoriesUnder the updated guidelines, the allocation of milk stalls across all categories of railway stations, alongside General Minor Units (GMUs) at A-One, A, B, and C category stations, will transition entirely to digital online bidding. Zonal railways have been instructed to formulate specific contract terms using established benchmarks, such as the standard bidding document issued for milk stalls on May 28, 2018, and the GMU framework established on January 10, 2018. To streamline financial compliance, the policy outlines clear security deposit rules: bidders are required to submit 10 percent of the annual bid value as Earnest Money Deposit (EMD), while successful bidders must deposit 10 percent of the total license fee as a security deposit—with the initial EMD adjusted accordingly and the remaining balance payable online within two weeks of the e-auction conclusion.Empowering Small Businesses and Upgrading Passenger ConvenienceThe transition to digital e-auctions marks a monumental leap forward in governance, aligning passenger railway services with modern, transparent digital infrastructure. By entrusting the Center for Railway Information Systems (CRIS) with the technical integration of the e-auction module into the official online bidding system, the Railways ensure a level playing field for applicants. Beyond boosting transparency and corporate accountability, the policy directly benefits millions of train passengers by encouraging high standards of vendor competition, better service quality, and diverse food options at railway stations nationwide.