Transcript Works Programme Brief Overview 2.3.09

Works Programme
Brief Overview
2.3.09
Role of Finance
Financial as well as advisory roles.
Advises on all matters involving finances
- Projects big and small or
- Day-to-day expenditure.
Scrutiny from point of view of
- Financial prudence and
- Financial proprietary.
Role of Finance ..contd.
Compliance with all the rules, the guidelines
issued from time to time by Rly Bd., GM etc and
Compliance with powers delegated under SOP.
Highlighting abut possible unnecessary/avoidable
expenditure
Focus on financial viability and the achievability or
otherwise of the projected benefits
Role of Finance ..contd.
Scrutiny of Estimates,
Verification of Briefing Notes,
Vetting of Indents, Agreements etc.
Review of financial progress of the works
sanctioned vis-à-vis new works proposed.
Scope and type of working of Finance differs
from Headquarters to Division mainly
depending on the value of works being
executed by Construction/Open line
Organisation.
Receipts
Other
Chg
Pass
Misc.
Receipts
Goods
Receipts
Subsidy
Safety
Surcharge
Sundry
Expenditure
Appropriation
to DRF
Operating
Expenses
to
DF,SF,CF
(Excess)
Appropriation
to PF
Misc.Exp
Railway
expenditure
Appropriation
Appropriation
to SRSF
Dividend
OLWR
Where the Rupee came from
3% 4%
28%
2%
63%
Passenger
Earnings
Other Coaching
Earnings
Goods Traffic
Earnings
Sundry Other
Earnings
Misc.Receipts
Where the Rupee went
5%
7%
Miscellaneous
7%
Pension Fund
8%
Fuel
3%
4%
12%
7%
18%
28%
1%
Spl.Rly.Safety
Fund
Staff Wages &
Allowances
Capital Fund
Development
Fund
Lease Charges
Stores
Depreciation
Reserve Fund
Dividend
Plan Outlay
Appropriation
to DF,SF,CF
Appropriation
to SRSF
OLWR
Appropriation
to DRF
Railway Plan Outlay
Market Borrowings
IRFC, Wagon investment
Schemes, PPP
Capital from
General Exchequer
Contribution from
General Exchequer
To SRSF
Traffic
Potential
DRF
CF
DF
SF
E
X
C
E
S
S
SRSF
Plan
Size
National
Economy
Infrastructure
Capacity
Total
Receipts
Less
Total
Expenditure
Plan
Size
OLWR
Strings
Borrowings
Market
Repayment
of interest
and
Capital
component
Dividend Liability
Budgetary
Support
Central
Govt
Subsidy Dividend Relief
Sources of Plan Expenditure
• Internal Generation (DRF, SRSF, SF, DF,CF, OLWR)
• From General Exchequer
(Budgetary Support + Contribution from General Exchequer for
SRSF)
• IRFC Borrowings
• PPP
• Wagon Investment Scheme
FINANCING OF THE PLAN
2007-08
A. INTERNAL GENERATION
CAPITAL FUND
8219
26.5%
DRF
6070
19.6%
DF
2257
7.3%
SF
1051
3.4%
SRSF
1882
OLWR
60
0.2%
TOTAL : INTERNAL GENERATION
19539
63.0%
B. BUDGETARY SUPPORT (incl MTP)
5721
18.5%
C. MARKET BORROWING
IRFC
5240
16.9%
WIS
500
1.6%
RVNL
PPP
TOTAL : MARKET BORROWING
5740
18.5%
TOTAL PLAN OUTLAY
31000
100.0%
2008-09
9200
8500
2840
1300
NIL
60
21900
7100
24.5%
22.7%
7.6%
3.5%
0.2%
58.4%
18.9%
6907 18.4%
500
1.3%
293
0.8%
800
2.1%
8500 22.7%
37500 100.0%
Planhead wise distribution
Track Renewals
Rolling Stock
GC
Investment in RVNL, DFC
DL
Repayment of Leased Assets
S&T
New Lines
Traffic Facilities
Workshops incl Pus
Bridge Works
RSW - ROBs
RSW - LCs
Passenger Amenities
Computerisation
Other Specified Works
Electrification
M&P
Stores Suspense
Other Elec Works
Amenities for Staff
Misc Advances
Staff Quarters
Manufacturing Suspense
Rly Research
Restoration of lines
Total - P lanheads
4360.00
3718.50
2704.31
2450.00
2002.00
1677.00
1607.90
1580.20
804.50
649.00
602.60
550.69
500.00
493.30
325.00
319.70
302.00
300.00
281.24
233.80
206.00
201.17
160.50
67.59
60.00
30.00
26187.00
14.06%
12.00%
8.72%
7.90%
6.46%
5.41%
5.19%
5.10%
2.60%
2.09%
1.94%
1.78%
1.61%
1.59%
1.05%
1.03%
0.97%
0.97%
0.91%
0.75%
0.66%
0.65%
0.52%
0.22%
0.19%
0.10%
84.47%
Plan Summary
Total - Planheads
CRRM
Other Credits/Recoveries
MTP
Transfer to SRSF
MTP Credits
Grand Total
Net Outlay ie e xcl transfe r to SRSF
Borrowings through IRFC
Wagon Investment Scheme
Borrowings through RVNL
26187.00
-1641.60
-7.40
24538.00
723.00
1165.00
-1.00
26425.00
25260.00
5000.00
500.00
240.00
31000.00
84.47%
-5.30%
-0.02%
79.15%
2.33%
3.76%
0.00%
85.24%
0.00%
81.48%
16.13%
1.61%
0.77%
100.00%
WHY PWP ?
RELATIVE PRIORITIES
CATEGORY OF WORKS
CLASSIFICATION OF EXPENDITURE
CATEGORY OF EXPENDITURE
PROCESSING OF NEW WORKS
NODAL DEPARTMENTS
Nodal Departments = Operating Nodal Departments for Traffic Facilities, Electrical for
Other Electrical Works; S&T and IRISET for S&T; Commercial for Passenger
Amenities; Mechanical for Workshops; Engineering for Bridges and Staff Amenities.
For Staff quarters, individual departments submit proposals to Engineering. Sr.DPO to
co-ordinate with Engineering in finalizing the proposals duly furnishing information
relating to occupancy of existing quarters and the demand for additional quarters
After obtaining Administrative approval of the competent authority, the Nodal
departments submit their requirements to Sr.DEN/Coord for preparation of rough
drawing and abstract estimate for obtaining finance concurrence.
Plan Head
Controlling PHOD/HOD
Finance
New Lines, Gauge Conversion ,
Doubling
COM
FA&CAO/CN
Traffic Facilities
COM
FA&CAO
Road Safety Works-LCs
PCE
FA&CAO
Road Safety Works – ROB/RUB
CBE
FA&CAO
Computerisation
FA&CAO/S&W
FA&CAO
Workshops
CME/CEE
FA&CAO
OEW/Elec Projects
CEE
FA&CAO
Passenger Amenities
CCM, CE(P&D)
FA&CAO
Staff Quarters & Amenities
CPO
FA&CAO
S & T Works
CSTE
FA&CAO
Track Renewal, Bridges, OSW
PCE
FA&CAO
Machinery & Plant
CME
FA&CAO/S&W
Rollling Stock
CME/CWE
FA&CAO/S&W
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TIME SCHEDULE FOR PWP 2008-09
Submission of new proposals costing > Rs.5 crores by
PHOD/ HODs to PCE.
04.05.2007
Submission of new proposals costing > Rs.30 lakhs and < 29.06.2007
Rs.5 crs by PHOD/HODs to PCE
Submission of requirement of funds for the ‘Works in
Progess’ and New works for 2008-09 by HODs to PCE.
25.04.2007
Meeting of PHODs/DRMs with GM for selection of new
works > Rs.5 crores
2nd week of
May, 07
Forwarding the justifications with approved plans and
estimates for selection of new proposals costing above
Rs.5 crores each, duly vetted by FINANCE, to PCE.
Last week of
May, 07
TIME SCHEDULE FOR PWP 2008-09
 Selection of new proposals under Staff Amenities and ‘Staff Quarters
plan heads by CPO in consultation with representative of Orgranised Labour
15.06.2007
 Selection of new proposals under Plan head ‘Passenger Amenities’
and ‘Other Railway Users Amenities’ by CCM/PS and CE/PD
29.06.2007
 Meeting of PHODs/DRMs by GM for selection of new proposals > 30 lakhs
1st week of August, 07
 Last date for forwarding justifications with detailed plans and estimates
for the selected works by PHOD/HODs to PCE with the concurrence
of FA&CAO.
27.08.2007
 Submission of PWP 2008-09 to Railway Board
12.09.2007
Types of Works
• LUMPSUM WORKS
• LIST OF APPROVED WORKS
• ITEMISED WORKS UNDER PINK BOOK
• OUT OF TURN WORKS
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Proposals for PWP - Checklist
• Administrative approval of Competent Authority.
• Initial finance vetting of the respective Associate
Finance.
• Justification duly indicating the present facility and
the proposed work.
• Allocation of Expenditure and source of funding.
• Compliance with Policy guidelines and all extant
instructions, duly furnishing copies of the same.
• The estimates should be based on the last accepted
rates/ latest P.O/ rate analysis, giving necessary
references for verification.
• The quantities for major value items being supported
with rough sketches and calculations
Contd…
Proposals for PWP – Checklist 2
• In case of structural changes involving demolitions
or major modifications to the existing facilities, the
age and condition of these facilities should be
commented upon in detail.
• The assumptions/projections included in the ROR
(wherever necessary) are supported with necessary
field data and reports.
• Details of Throw forward and permissible cost of
each Plan Head.
• Certification by the executive that the facilities
proposed are barest minimum
• Staff Quarters, views of Personnel Officer on
necessity, demand for quarters duly considering the
overall occupancy pattern.
Finance Concurrence must spell out ...

The merit and the justification of the proposal
indicating low cost alternatives available and
considered.

Reasonableness of the rates and
particularly for the high value items.

Comments regarding the reasonableness of the
assumptions
made
in
the
forecast
of
earnings/benefits that are expected to accrue
from the proposed investment.

Correctness
technique.

The cost proposed is within the ceiling limit
prescribe for the Planhead.
of
ROR
calculation
quantities
under
DCF
Vetting should not contain expressions like ...

Vetted subject to rates and quantities being
certified as reasonable by the executives’

For want of time the Rates and Quantities have
not been checked.

Vetted in principle even though financial viability
is not proved
(Authority : AM/Budget’s letter
No. F(X)II/2005/WP/1 dated 20.09.2005
addressed to FA&CAOs.)
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