Sunday, September 4 2005 15:54 Hrs (IST) - World Time -

Jaipur: The Rajasthan Tourism Development Corporation (RTDC), which has been in the eye of a storm over its decision to outsource some services of the prestigious Palace on Wheels from the Taj group, has dropped the idea, a senior official said today (Sept 4, 2005).

The RTDC Board of Directors, which met here last night (Sept 3, 2005), found the sole bidding as 'non-profit making and against the interest of the corporation,' Managing Director Rakesh Saini told PTI.

The bidder quoted a higher rate of weekly expenses, which the Board did not accept, Saini said, adding, RTDC used to bear Rs. 11,016 per week per passenger while Taj group's bid crossed Rs 35,000 per week per passenger.

Saini, however, said there was neither any pressure from RTDC employees union, which had gone to court over the issue, nor due to High court's stay on outsourcing.

"RTDC just completed the bidding work and found it financially non-viable in the interest of the State Government and employees," he said.

On the transfers of employees of Palace on Wheels, leading the agitation, Saini said, "It was a routine process and no one should feel harassed."

Saini also ruled out inviting fresh bids saying there was no reason now to revive outsourcing or invite fresh bids as the winter season was about to begin.

Palace-on-wheels, which is rated among the most expensive luxury trains in the world, has occupancy of 104 passengers. As it begins its run this season from September 7, Saini said, "It would have only 60 passengers on the first trip with the occupancy going up by October."

The RTDC had invited proposals for outsourcing catering, bar and tours off-board train in July, which triggered a spate of protests among its employees' union, who threatened to stop the train on Sep 10, 2005. On Friday (Sept 2, 2005), the High Court granted a status quo on outsourcing activities on writ filed by Union.