The railways ministry has asked the Indian Railway Catering and Tourism Corp (IRCTC) to set up budget hotels at all major stations either directly or through the public-private partnership (PPP) route.
"IRCTC follows the two packet open competitive bidding system to grant licenses. Tender for each site is separately issued by IRCTC," Minister of State for Railways E Ahamed told the Rajya Sabha on Friday.
The ministry will give land on license to IRCTC for 30 years on a revenue-sharing ratio of 40:60 between the railways and IRCTC, the minister said.
Apart from that, there is a nominal land license fee to ensure that the total earning for the railways is not less than 2.5 per cent of the market value of the land, Ahamed added. The detailed contract conditions with the licensee are framed by IRCTC.