Rlys floats tender for consultant to monetise customer data, may withdraw it over privacy concerns
New Delhi(PTI): The Railways has floated a tender to hire a consultant to monetise its passenger and freight customer data with the aim to generate revenue up to Rs 1,000 crore, but sources said it may be withdrawn amid concerns over privacy issues.
While many on social media, including advocacy groups have raised concerns over violation of data privacy issues, government sources have clarified that the consultant would advise the Indian Railway Catering and Tourism Corporation (IRCTC) on steps to improve its existing business and plan strategies to monetise future opportunities.
While the Railways has not officially commented on the tender, highly placed sources said it will be withdrawn "considering the fact that the Data Protection Bill has not been finalised".
According to the tender document, the data to be studied will include information captured by the transporter's various public facing applications such as "name, age, mobile number, gender, address, e-mail ID, class of journey, payment mode, login or password" and other details.
The IRCTC has more than 10 crore users, of which 7.5 crore are active users.
The document also stated that the consultant, once finalised, will be provided the details of applications and the data collected thereon for conducting the study for 'Monetization of Digital Data of Indian Railways'.
The consultant shall study the data of passenger, freight and parcel businesses of the Indian Railways such as PRS, NGeT, NTES, UTS, Rail Madad, FOIS, TMS, e-CRM, and PMS, as well as vendor-related data from applications like IREPS, VMS and IPAS.
The document titled 'The Scope of Work for Project A: For study of Monetization of Digital Data of Indian Railways(IR)' said the consultant would also be provided access to the digital data systems which generate behavioural data such as flow of passengers, class of journey, frequency of journey, travel time, booking time, age group and gender, payment mode, number of destinations and booking modes.
The objective of the exercise, it said, is for the IRCTC to leverage its data assets and market position to drive strong growth in revenues. This can be achieved by improving customer experience, expanding the portfolio of products being offered to the customers and/or developing new business lines and partnerships, the document stated.
"IRCTC envisages a revenue generation potential of Rs 1,000 Cr through Monetization of its Digital Assets. IRCTC wishes to engage a consulting firm to help in identification, design, and development and roll-out of data monetization opportunities," it said.
While the Railways is yet to officially respond, sources close to the development said the IRCTC does not "sell its data and neither has any intention to do so". They said the consultant is being hired to advise the IRCTC on steps to improve its existing business and plan out strategies to monetise future businesses. It will also focus on how the IRCTC could adopt new business opportunities.
"IRCTC will also develop new businesses on its own platform and will need assistance from market leaders. IRCTC does not store any financial data of its customers at its end, as at the time of online payment for its various services, control is passed on to the respective payment gateway or bank for the payment," the sources said.
The document also said that the consultant will study various Acts or laws, including the IT Act, 2000 and its amendments, user data privacy laws, including the General Data Protection Regulation and the current 'Personal Data Protection Bill, 2018', and accordingly, propose the business models for monetisation of digital assets.
The consultant would also prepare a roadmap for data monetisation of the digital data collected at various customer-facing and vendor-related applications which include zonal railways, divisions, and other units like CRIS, and PSUs like IRCTC, Railtel, etc.
Tasks listed for the appointed consultant include segregation of monetisable data sets, identification of market potential internationally, and preparation of a roadmap for data monetisation of the digital data.
Internet Freedom Foundation, a Delhi-based non-governmental organisation advocating digital rights and liberties, has raised concerns over the tender and outlined its pitfalls in a series of tweets.
"Hey train travellers, your data will soon be monetised by the govt. & that too, in the absence of a data protection legislation! ...A profit maximisation goal will result in greater incentives for data collection, violating principles of data minimisation & purpose limitation. Past experiences from the misuse of Vahan database amplify fears of mass surveillance & security risks," it said.
"IRCTC, a government-controlled monopoly, must not prioritise perverse commercial interests over the rights and interests of citizens. And given the recent withdrawal of the Data Protection Bill, 2021, such monetisation becomes even more concerning," the NGO added.
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Karnataka: SP’s gunman among two arrested for extorting money from rice smuggler
Ballari (Karnataka) (PTI): An armed police constable serving as the district superintendent of police’s personal gunman, along with his accomplice, was arrested for allegedly extorting money from a rice smuggler, police said on Friday.
Devaraj, who had been serving as the SP’s gunman for the past four and a half years, was identified as the mastermind behind the incident.
Following an investigation, Devaraj and his accomplice Sairam were arrested on May 6, while efforts are underway to nab a third accused, Gadilinga, a practising advocate in Ballari, who is absconding, police said.
The matter came to light after a complaint was filed by Sharabappa, a habitual offender allegedly involved in illegal rice transport, they added.
According to police, the incident occurred on the intervening night of April 27 and 28, when a group of masked men intercepted Sharabappa’s rice-laden vehicles near the Moka forest area.
The accused allegedly introduced themselves as members of an “SP squad”, threatened to seize the vehicles and file criminal cases, and demanded money to avoid legal action.
Police said the accused initially demanded Rs 5 lakh and later extorted around Rs 3 lakh from the complainant.
Investigation revealed that Devaraj was the main person involved in demanding and collecting the money, while Sairam and Gadilinga were also involved in the offence. Sairam was allegedly involved in similar activities earlier as well.
Devaraj and Sairam were arrested under Sections 308(2) (extortion) and 3(5) (common intention) of the Bharatiya Nyaya Sanhita.
Police also seized the extorted cash, the four-wheeler, and mobile phones allegedly used in the crime. Efforts are underway to trace Gadilinga.
Addressing a press conference, Ballari Superintendent of Police Suman D Pennekar described the incident as a serious offence that has tarnished the image of the police department.
"There is no official ‘SP squad’ or ‘DSP squad’ operating in the district. Such labels are often misused by impostors or corrupt individuals to commit extortion," the SP clarified.
She said no involvement of other police officers has been found so far.
Departmental proceedings have been initiated against Devaraj, and suspension proceedings are underway. The SP added that strict action will be taken against anyone involved in such offences.
Police said Sharabappa, the complainant, is a known habitual offender involved in illegal rice smuggling, and several cases have already been registered against him in the Moka and Peddihalli areas. A separate case has also been registered against him in connection with rice smuggling on the night of the incident.
Authorities are also exploring the possibility of initiating externment proceedings against him under applicable legal provisions.
The SP urged the public to report any extortion attempts by persons claiming to be part of an “SP squad”, assuring that the identity of informants will be kept confidential.
