Transcript WELCOME [ctara.gov.in]

WELCOME
TO THE
PRESENTATION on
National Rail Vikas Yojana
Government of India has conceived a massive investment plan for rail sector to
eliminate capacity bottlenecks on Golden Quadrilateral and Diagonals to provide
strategic rail communication links to ports, construction of mega-bridges for improving
communication to the hinterland and development of multi-modal transport corridors.
This initiative has been given the name of National Rail Vikas Yojana. Hon'ble Prime
Minister announced the Yojana in his speech delivered on the Independence Day in 2002
and formally launched it on 26th December, 2002. National Rail Vikas Yojana comprises
the following investment planning components:
 Strengthening of Golden Quadrilateral and Diagonals connecting the 4 metro cities i.e.
Delhi, Mumbai, Chennai and Kolkata.
 Providing Rail based port-connectivity and development of corridors to hinterland
including multi-modal corridors for movement of containers.
 Construction of 4 mega bridges at Patna and Munger on river Ganga, at Bogibeel on
river Brahmputra and at Nirmali on river Kosi.
About Rail Vikas Nigam Limited
Rail Vikas Nigam Limited (RVNL), is a Special Purpose
Vehicle created to undertake project development,
mobilization of financial resources and implement
projects pertaining to strengthening of Golden
Quadrilateral and Port Connectivity.
It is the first major non-budgetary initiative for creating
rail transport capacity ahead of demand and on a
commercial format. RVNL has been registered as a
company under Companies Act 1956 on 24.1.2003.
It is a wholly owned Government company under the
provisions of Section 617 of Companies Act. Certificate
of Incorporation was obtained on 24.1.2003.
About RVNL
RVNL is assigned the following functions:
Arranging financial resources for the Projects. For this purpose, the RVNL
would be authorized to approach the Financial Institutions, Banks, Domestic
Market and the Bilateral and Multilateral Funding Agencies.
Undertaking project development and execution of works.
Creating Project specific SPVs for individual works, if required.
Commercialization of projects wherever considered necessary and feasible.
The concerned Zonal Railways will undertake the operation and maintenance of
the Railway Projects on completion of their execution by the RVNL under a
specific financial arrangement.
For providing a revenue stream to RVNL, the projects may be done by RVNL on
BOT concept, where Ministry of Railways is to pay Access Charge/User Charge.
Creating Rail Transport ahead of
Demand – A model SPV.
First major non-budgetary initiative for creating Rail
infrastructure on commercial format.
Strengthening of Golden Quadrilateral and Diagonals.
Providing Rail Based connectivity and development of
corridors to hinterland including multi model corridors of
for movement of containers.
Construction of 4 mega bridges at Patna and Munger on
river Ganga, at Bogibeel on river Brahmaputra at Nirmali
on river Kosi.
Funding model of ADB has got abilities to better contract
management to avail the benefits of ‘Economy's of Bulk
Purchase’ and ‘Hassle free Funds Flow’.
Corporate Mission
Creating state of Art rail transport capacity to meet growing demand.
Executing projects on fast track basis by adopting international project execution,
construction, management practices and standards.
To make the Project implementation process, efficient both in terms of cost and
time.
Adhering to sound business principles and prudent commercial practices to
emerge India’s top rail infrastructure PSU.
To implement Rail Infrastructure Project on commercial format through various
Public Private Partnership models.
To achieve International Quality Standards through innovations.
To implement Rail Infrastructure Projects on commercial format through various
Public Private Partnership Models.
To achieve project completions in target time and with best quality.
Involving private sector in financing the construction of projects and development
of efficient models of Public Private Partnerships with joint venture SPVs with
equity participation by Strategic & Financial Investors including funding options
from external multilateral agencies like the Asian Development Bank.
Corporate Vision
To emerge as most efficient rail infrastructure provider with sound
financial base and global construction practices for timely completion of
projects.
Rail Vikas Nigam Limited was set up with twin objectives of mobilization
of private and market funds and implement Railway Projects on fast track
basis.
RVNL has gained significant hands on experience in private
partnerships, dealing with multilateral agency like ADB, understanding
their procedures and guidelines and utilization of multilateral funds for
Railway Projects and execution of large contracts involving significant
planning and project management and delivery of projects in a time
bound
manner
The experience gained by RVNL is unique. Challenge before Cont’d…..
Indian
Railways is to execute large number of projects on fast track basis to
quickly augment capacity on the over saturated network.
Corporate Vision
Keeping in view, likely manifold increase in construction activity and need to
implement projects in a tighter time schedule, RVNL will have to play a key
role in removing capacity bottlenecks and implementation of projects. Based
on the experience gained so far, RVNL need to be assigned the following role
in future:
RVNL will be assigned large capacity creation programmes viz. removal
of capacity bottlenecks on High Density Network,
RVNL will play a greater role in creating capacity on Golden Quadrilateral
and can be assigned the projects as an outcome of studies being
undertaken by RVNL for Freight Corridors on North South, East West,
East Coast Corridors, etc.
RVNL will be assigned with large Railway Electrification Projects.
RVNL will undertake construction of Mega Bridges. Such bridges are
ideal candidate for multilateral funding as the same does not involve
any
Cont’d…..
ROR issue.
Corporate Vision
Projects to be implemented with multilateral funding such as ADB
and World Bank.
Projects to be implemented through Public Private Partnership
through various models.
Construction of about 1000 kms of track every year.
Expenditure of about Rs.3,000 cr. every year.
Full operationalisation of RVNL as Railway Administration under
Railways Act, 1989 Section 3(32b) as per cabinet approval.
To bring global construction technology in railway construction, to
deliver best quality and to have cost effective design, construction
to reduce the life cycle cost of project.
Assignment of critical Railway Development Activities, requiring
new skills and techniques.
Corporate Objectives
To undertake and execute successfully the project development
pertaining to “Strengthening of Golden Quadrilateral, Port and
Hinterland connectivity” and other viable Railway projects.
To mobilize financial and human resources for project implementation.
Timely execution of projects.
To maintain a cost effective organizational set up.
To encourage public private participation in rail related projects
managed by RVNL.
To be an infrastructure Project Management Company committed to
sustainable development and environment friendly construction of rail
related projects in the country.
To acquire, purchase, license, concession or assign rail infrastructure
assets including contractual rights and obligations.
Management Board
Models of Project
Implementation
Sources of Finance
RVNL is presently implementing: about Rs.12,900 Cr.
• 7 Projects through ADB funding.
• 11 Projects through IRFC borrowing
• 9 Projects through Capital Fund of Railways.
•11 Projects through RVNL Equity.
•7 Projects through Project Specific SPVs.
•1 Project through full funding of Min. of Shipping.
Physical size of RVNL Projects.
RVNL is implementing four types of Projects under the initiative of
Golden Quadrilateral and Port connectivity
Doubling of Lines:
1811 Km
Gauze Conversion:
1585 Km
New Lines:
493 Km
Railway Electrification:
1906 Km
The Task of fixing of consultant and undertaking of Traffic and Financial
Studies of 4 Dedicated Freight Corridors Viz: Delhi – Chennai (NorthSouth) Kolkata –Mumbai (East- West) Khrgapur-Vijayawada (East –
Coast) and Goa- Chennai (Southern Corridor)
The task of fixing of consultant or undertaking study and preparation of
bidding document and bidprocess management for setting “Agri Retail
Logistics Chain” on vacant Railway Land
Models of Project
Implementation
RVNL is implementing rail projects primarily
through following models:

Formation of Project Specific SPVs having equity and debt
financing.

Build Own Transfer (BOT) route, wherein the entire financing
is arranged by the private developer through equity and debt
route.

Private Railway, wherein the project is funded as part of the
port project.

Projects are implemented either through the construction
units of Zonal Railways or by award of EPC contract by RVNL
and funds are raised by RVNL directly.
Projects to be implemented
through SPVs
The following projects are being planned for implementation through
creation of Project specific Special Purpose Vehicle (SPVs) having
equity participation by both strategic and financial investors.
•
Haridaspur – Paradeep New Line & RE (Orissa)
•
Bharuch – Samni – Dahej Gauge Conversion (Gujarat)
•
Surat – Hazira New Line (Gujarat)
•
Obuvallirapalle – Krishnapatnam New Line (Andhra Pradesh)
•
Arsikeri Hassan – Mangalore Gauge Conversion (Karnataka)
•
Gandhidham – Palanpur Gauge Conversion (Gujarat)
•
Angul - Sukinda New Line & RE(Orissa)
Projects to be implemented
BOT/EPC Contracts
The project implementation through BOT Model requires financing
and construction of the project by the private developer. RVNL will
pay Access Charge to the developer for a fixed period of time. In case
of EPC contracts, the financial resources will be raised by RVNL and
the private firms will undertake construction. The following projects
are identified:
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Delhi – Rewari Gauge Conversion of 2nd Line
Rewari – Phulera – Ajmer Gauge Conversion
Junction Cabin – Palwal 4th Line
Thanjavur – Villupuram Gauge Conversion
Daund – Gulbarga Doubling
Punskura – Kharagpur 3rd Line
Bhildi – Samdari Gauge Conversion
Panvel – JNPT Doubling
Bhopal – Bina 3rd Line
Daitari – Banaspani New Line and Banaspani-Jakhpura RE and
many more
Projects being developed as
PPP Model - Railways
OBVP- KP New BG line connecting to a Private Port
Company having strategic Partners with GOAP,
MMTC, Krishnapatnam Port Company and Brahmani
Steels on this system.
Projects through ‘Private
Public Partnerships’-Concepts
Ministry of Railways is introducing the PPP models through
‘RVNL SPV’ to provide additional infrastructure which was
previously the responsibility of Railway Board.
In view of increase in infrastructural demand in the economy
PPP can also be made attractive financially encourage private
sector involvement.
A regulatory system is required to ensure that infrastructure
provided is in the public interest and satisfy the partners.
Without changing the ownership arrangements (rests with the
Railway Board) Private sector is allowed to participate either on
BOO, BOT,BOOT and DBFO (Design Build Finance and
Operate) with an explicit out put specification.
Inviting Private Finance Initiative may result in periodic
payments (Lease charges) throughout/at the end of the Project
period and the leverage is given.
Projects through ‘Private
Public Partnerships’- Issues.
The rationale for deciding to pursue PPP for a particular Project
is the key area to understand whether it is viable and there
exists a macro fiscal device which can generate value for
money at the end.
The processes and procedures that guide and aid the decisions
to go for PPPs for a particular project and ensure adoption of a
scheme that are best value for money for the partners.
The procedures and processes that are available to provide a
post project (decision) evaluation in different areas like New
line, GC, RE, and Doubling etc.,
Whether it is real “merit and worth” to sustain the Private
participants to sustain over the total period.
Will of the management to pursue the PPP regulation,
guidance, pre decision process, post project appraisal and can
contribute to objective planning.
Projects being developed as
Private Railways
Vallarpadiam - Idapalli New Line (Kerala)
Projects being implemented
through ADB Funding
Talcher-Cuttak-Paradeep Doubling with Second Bridge over
river Mahanadi at Birupa.
Gooty – Renigunta Patch Doubling
Bilaspur – Urkura 3rd Line
Rajatgarh – Barang
Cuttack – Barang Doubling
Khurda – Barang 3rd Line
Aligarh – Ghaziabad 3rd Line
Raichur – Guntakal Doubling
Renigunta – Guntakal Railway Electrification
Pune - Guntakal Railway Electrification
Pattabiram-Tiruvallur 4th Line & Tiruvallur-Arakkonam 3rd Line
Doubling
Salient features of ADB funded Projects.
Execute the projects through its Equity, borrowings and by forming
Joint ventures SPVs enable to handle large and composite contracts
to avail the advantage of ‘Economy’s of Large scale.
Project Management is also outsourced to contain the cost of
Establishment in the Book Value of the Assets.
Undertakes the projects from the stand point of establishing financial
viability, bankability and its structuring to make it amenable to private
funding duly avoiding Budgetary support.
Project Costs are established through technical surveys, updating of
project cost and finalization of technical parameters and design.
Cost of Establishment (including the Cost of Project Management
Consultancy) being the Human Capital in the assets created by the
RVNL there is a ‘Cap’ on the Cost of Establishment being 2.5% of the
Cost of the Project.
Projects are funded based on overall development of the region which
can enhance the ‘Line Capacity such as Doubling, New Lines, Gauze
Conversion, RE etc,’ so that higher volumes of traffic is generated.
Framing and Evaluation of Technical Bids.
Irrespective of the system of submission of Bids either in TWO PACKET
or SINGLE PACKET which is decided on the merits of each case
‘Evaluation of Technical Bid’ is the KEY selection process.
Technical experience which is in accordance with the ITB has to be
established by the bidders with the proof of documentation.
The Key factors such as Capacity to take up the Major Bridges, Track
Linking, Electrification of Line, Building of Sub-stations, arrangement of
solid state inter locking (S&T) works etc., are evaluated in detail.
The Bid selection on the basis of Technical Personnel and their
experience is also given equal importance on the related Key factors.
Capacity of the Agency with regard to availability of his Plant &
Machinery such as Mobile Welding Plants, Road vehicles, Machinery,
and workshops available with regard to their capacity and present Load
with in the period of execution of Project.
Unless the Bid is certified as substantially qualified the same is
rejected due to non fulfilling the ‘Technical suitability’ and the merits of
financial bid should not influence the selection. (in case of Two Packet
system the financial bids are not opened and entire bid is rejected)
Framing and Evaluation of Financial Bids.
Besides Bid Security and Performance Security other Financial criterion
such as Worth of the Bidder is to be established for framing and
selection of bids for assessing the financial capacity.
Average Annual turnover of the bidder for the last 5 years and
commitments for the next 3 years of the bidder are also ensured to see
that the bidder has capacity towards working capital to take up the
work.
Audited Balance sheets and Revenue Accounts are verified that the
bidder is solvent and is a running concern and has financial interests to
sustain in the trade.
The Bid selection on the basis of quotation of rates on each Schedule
or phase of work in co relation with the workability of rates to see that
execution is ensured with out termination is given equal importance on
the related Key factors of work.
Capacity of the Agency with regard to existing commitments, and Net
Worth of the firm with regard to his capacity on the present Liability
with in the period of Project completion.
For the selection of bids the L1 need not be a successful bidder unless
it is established his Technical bid substantially qualified to execute the
work as per the project objectives.s
Special features of RVNL Contracts.
The Contract Management is unique in RVNL contracts and each
contract is governed by the its own Special/Particular conditions of the
contract.
As a policy Global Tenders are called inviting International Participants
having Multinational experience and the value of bids can be quoted in
INRs/ American dollars.
A pre bid meeting will be conducted inviting all possible participants
about the modalities of implementation and execution of the Project
along with the Technical details of the Project.
A 3 Tier system of Bid evaluation is in place to ensure that Bid selection
and choice of Agency is arrived at based on the critical Technical
evaluation.
The in- built system of Bid evaluation ensures that selection is more
transparent and the Agency has got equal responsibility to complete
the works as per Targets failing in which payable compensations equal
to revenue losses are laid.
To balance the losses to the Agency on delays due to non availability of
Land, Designs from the employer, and other site arrangements the
‘Employer’ is also bound to pay the compensations as per the
conditions.
Particular conditions of RVNL Contracts.
The Contract
conditions should stipulate the “Minimum Interim
Certificate” by not less than Rs.6/7/8 Crores of the contract value.
Contract shall be insured covering the Employer’s risk to the extant of
40% value of the Contract.
Work has to be certified for its completion by the PMC which is directly
under it supervision and the release of the payments.
Defects notification period provides guarantees to the employer for the
defective work and the responsibility of the Agency to make good the
work as per the directives of the employer.
The cost of the PMC contract shall be regulated to the 3.5 to 4.0% of the
value of the each contract.
The validity of the PMC shall be so regulated that it shall cover the
currency of the main contract including the ‘Defect Liability period’.
The built in conditions shall take into account the Custody of the
Materials at the site and insurance coverage includes Physical Work in
Progress with the employer.
Features of PMC Contracts of RVNL.
The selection of PMC ahead of the award of Main contract is to ensure
that consultant engineer has full knowledge of work that is being
executed and the constraints and properly redressed .
The process of selection of PMC Engineers based on their experience
and technical qualification is the criterion for their employment..
It is the responsibility of the PMC to certify the work which is directly
under its supervision and the release of the payments.
The clauses provide certain penalties on the part of the PMC for not
maintaining the time schedule for the completion of the main work by
the contractors .
The payments to PMC contract shall be regulated and ensured that
supervising engineers are paid in accordance with their actual
attendance and as per the progress of the main work.
The rates of the PMC contract shall include the all kind of service taxes
that are levied by the Govt. and are inclusive of their employees PF,
Pension Gratuity etc..
Bottlenecks of RVNL Projects.
For any infrastructure Project, land acquisition is a bottleneck, the State
Governments and Zonal Railways have to be interacted through the
separate NGOs which indicates additional expenditure.
Compensation Payments for Land acquisition is another factor during
the execution period where the capitalization of expenditure on land
needs to be regulated by early acquisition.
The projects funded by ADB have to be closely monitored have to be
placed in time during the financial year for realization of moneys from
ADB involving R&R issues.
Managing the work with the executives of the Zonal Railways with
regard to clearance of Designs and Drawings obtaining the Blocks and
Power Blocks in case of RE works.
Targets and limitations set on D&G charges to the extant of 2.5% of the
project may not be workable situation as at present the same is about
3.93% of the total Project Cost. (In Rlys. It is about 10.5%)
Financial Resource Mobilization for the Projects being executed
through JV SPVs will be a problem for cash inflows and shall be based
on clear MOUs
Completed Projects
1
2
3
4
5
6
7
8
9
Pakni-Solapur Doubling
Diva-Kalyan 5th & 6th Line
Panvel-Jasai JNPT Doubling
Gurup-Saktigarh Extn. of 3rd Line
Pullampet-Balapalle Ph I of GootyGandhidham-Palanpur Gauge Conversion
Kharagpur (Nimpura)-Bhubaneswar
Bhubaneswar-Kottavalasa Elect
Talchar-Cuttack-Paradeep doubling with 2nd bridge on rivers
Birupa and Mahanadi
10 Daitari-Banspani New line
11 Pakni-Mohol Doubling
12
Panskura-Haldia Ph I Doubling
13
Barauni-Tilrath Bypass Doubling
14
Arasikere-Hassan-Mangalore Gauge Conversion
15
Cuddalore-Salem Gauge Conversion
16
Delhi-Rewari Gauge Conversion
Projects in Progress
1 New-Delhi-Tilak Bridge 5th & 6th Line
2 Attipattu-Korukkupet 3rd Line Doubling
3 Pattabiram-Tiruvallur 4th Line
4 Gooty-Renigunta Patch Doubling
5 Renigunta-Guntakal Electrification
6 Tomka-Banspani RE
7 Bilaspura-Urkura 3rd Line Doubling
8 Pune-Guntakal Rly.Electrification
9 Raichur-Guntakal Doubling
10 Palwal-Bhuteswar 3rd Line Doubling
11 Aligarh-Ghaziabad 3rd Line Doubling
12 Sambalpur-Titlagarh-Doubling
13 Panskura-Kharagpur 3rd Line Doubling
14 Rajatgarh-Barang Doubling
15 Raipur-Titlagarh Doubling and many more
About RVNL Vigilance
Vigilance Unit, Rail Vikas Nigam Limited is
the nodal section for handling all vigilance
matters of the Rail Vikas Nigam Limited.
The Chief Vigilance Officer heads this unit.
The CVO is assisted by two Assistant
Managers. The vigilance unit works under
the Ministry of Railways and coordinates
with Central Vigilance Commission (CVC).
Role of Vigilance
The role of vigilance in RVNL is multifarious. It
undertakes preventive vigilance, punitive
vigilance and system improvement. The
Vigilance Unit also arranges Vigilance
Awareness programmes. The Vigilance Unit
organizes
Vigilance
Awareness
Week
celebrated every year as per guidelines of
CVC. Vigilance Bulletins are also published
regularly providing information on vigilance
awareness.
Physical Plan
Financial Plan