Shortage of Rail Neer: Sell of Water Bottle of suspicious brand at Railway Stations

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Recently, the CAG reported in a Parliament about sell of food and water in Rail Neer, which is unfit for human health. The one more issue was raised in a Parliament regarding the unavailability of Rail Neer.

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As per the news article in The Tribune India Newspaper, The Railway’s Packaged Drinking WaterRail Neer’ is out of stock. So, vendors are selling bottle water of other suspicious brand which can be dangerous for human health. IRCTC under the Ministry of Railways, produces around 6.14 lakh bottles of Rail Neer (1 litre capacity) Packaged Drinking Water every day at three plants located at Palur in Chennai, Nangloi in Delhi and Danapur in Bihar, to fulfill the requirement of 30 lakh bottles but the demand of bottled water has increased these days due to the increased temperature and the IRCTC has failed to meet the requirement.

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One of the vendor told that, the railway authorities directed them to sell the water bottles of other brands due to the shortage of Rail Neer. But, Passengers and CAG officials are concerned about the purity of these unknown brands as it is related to human health. CAG officials said that, it is Railways responsibility to direct the vendors to sell the good brand water bottles to the passengers. Concerned Passenger Satnam Singh said that, even the purity of Rail Neer has also been questioned.

On the account of this, Railways commercial manager MR Khan said that, they received the supply of Rail Neer now and they will start selling it. He further added that, the first preference will be always given on serving the Rail Neer water bottles in the trains.

Rail Neer meets just 25 % Demand

Rail Neer 

Rail Neer is a brand by Indian railways, run under it’s other group venture called IRCTC. For the first time, it was very easy and assuring for the citizens to book their tickets from their computers. This is what we know about IRCTC. Second division, is catering, where it serves food to the passengers. Under this also comes the need to supply packaged drinking water to these passengers. So it started 4 bottling plants at different locations. One of them has recently started its operations at Ambernath, Dist Thane, near Mumbai, in the Central Railway Route. The other three plants are already in operation at Delhi,  Danapur Bihar and one at plaur, TN.

It still lacks supply by 25 %

Still, the demand supply gap is almost 3/4 th. Meaning, Railway is supplying just 25 % of its need. And it doesn’t cope up the national demand at all. Bisleri, the leader rules this by contributing 60 % market share.

To meet the demand of water, Railway has also decided to install vending machines at various stations, and for bottled water, it decided to go with 6 additional packaged drinking water plants at the following locations

  • Ahmedabad (West Zone)
  • Nasik (West zone)
  • Thiruvanantapuram (south)
  • Vijaywada (south east)
  • Nagpur (central zone)
  • Farakka (East)

The Model

These plants will be built on the PPP model. IRCTC will provide land and will lift the production at a discounted price. The entrepreneur will invest in the plant, the expected investment is expected to be Rs 8 to 10 Cr. Refer to this article for details. 

So, what is in it for you?

As an entrepreneur, this is a never before opportunity. Why am I saying so?

First…. recently, there was probe where two senior officials are under serious inquiry by the CBI .The charge on them was making hindrances in the way of IRCTC to sell by offering special treatment to private sellers. So, be assured that you will observe a transparent market when you deal with government as well. Read details over here…

Second…. IRCTC will also provide similar opportunities for setting up water vending machines too! Ideal will be setting up a packaged drinking water plant and also run a few water vending machines like water ATM. This will enhance your brand like anything.Besides the IRCTC also you can profit from the PPP Model.If you are a social entrepreneur,  Read this article how a small village solves its pure water issues @ just 50 paise a litre !

Who knows, you’ll become a second Bisleri.. ?