Works Programme

Brief Overview

2.3.09

Financial as well as advisory roles.Financial as well as advisory roles.

Advises on all matters involving finances Advises on all matters involving finances

- Projects big and small or - Projects big and small or

- Day-to-day expenditure.- Day-to-day expenditure.

Scrutiny from point of view of Scrutiny from point of view of

- Financial prudence and - Financial prudence and

- Financial proprietary.- Financial proprietary.

Role of Finance

Compliance with all the rules, the guidelines Compliance with all the rules, the guidelines issued from time to time by Rly Bd., GM etc and issued from time to time by Rly Bd., GM etc and

Compliance with powers delegated under SOP.Compliance with powers delegated under SOP.

Highlighting abut possible unnecessary/avoidable Highlighting abut possible unnecessary/avoidable expenditureexpenditure Focus on financial viability and the achievability Focus on financial viability and the achievability or otherwise of the projected benefits or otherwise of the projected benefits

Role of Finance ..contdRole of Finance ..contd..

Scrutiny of Estimates, Scrutiny of Estimates, Verification of Briefing Notes, Verification of Briefing Notes, Vetting of Indents, Agreements etc.Vetting of Indents, Agreements etc. Review of financial progress of the works Review of financial progress of the works sanctioned vis-à-vis new works proposed. sanctioned vis-à-vis new works proposed. Scope and type of working of Finance differs Scope and type of working of Finance differs from Headquarters to Division mainly from Headquarters to Division mainly depending on the value of works being depending on the value of works being executed by Construction/Open line executed by Construction/Open line Organisation. Organisation.

Role of Finance ..contdRole of Finance ..contd..

Receipts

PassOther Chg

Goods

Sundry

Misc.Receipts

Subsidy

Safety Surcharge

ReceiptsReceipts

Railway expenditure

OperatingExpenses

Appropriation to DRF

Appropriation

to PF

Misc.Exp

Appropriation

to SRSF

OLWRDividend

Appropriation toDF,SF,CF (Excess)

ExpenditureExpenditure

28%

2%

63%

3% 4%

PassengerEarnings

Other CoachingEarnings

Goods TrafficEarnings

Sundry OtherEarnings

Misc.Receipts

Where the Rupee came fromWhere the Rupee came from

Where the Rupee wentWhere the Rupee went

1%28%

7%

4%

3%

5%7%

8%7%

12%

18%

Miscellaneous

Pension Fund

Fuel

Spl.Rly.SafetyFundStaff Wages &AllowancesCapital Fund

DevelopmentFundLease Charges

Stores

DepreciationReserve FundDividend

Capital fromGeneral Exchequer

Contribution from General Exchequer

To SRSF

Market BorrowingsIRFC, Wagon investment

Schemes, PPP

Plan OutlayPlan Outlay

Railway Plan OutlayAppropriation

to DRF

Appropriation to SRSF

OLWR

Appropriation to DF,SF,CF

Plan Size

DRF

CF DF SF

SRSF

Budgetary Support

Borrowings

OLWR

EXCESS

Market

CentralGovt

TotalReceipts

Less

TotalExpenditure

Repayment of interest

andCapital

component

Dividend Liability

Traffic Potential

Infra-structureCapacity

Plan Size

Subsidy Dividend Relief

NationalEconomy

Strings

Sources of Plan ExpenditureSources 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

2007-08 2008-09A. INTERNAL GENERATIONCAPITAL FUND 8219 26.5% 9200 24.5%DRF 6070 19.6% 8500 22.7%DF 2257 7.3% 2840 7.6%SF 1051 3.4% 1300 3.5%SRSF 1882 NILOLWR 60 0.2% 60 0.2%TOTAL : INTERNAL GENERATION 19539 63.0% 21900 58.4%B. BUDGETARY SUPPORT (incl MTP) 5721 18.5% 7100 18.9%C. MARKET BORROWING IRFC 5240 16.9% 6907 18.4%WIS 500 1.6% 500 1.3%RVNL 293 0.8%PPP 800 2.1%TOTAL : MARKET BORROWING 5740 18.5% 8500 22.7%

TOTAL PLAN OUTLAY 31000 100.0% 37500 100.0%

FINANCING OF THE PLAN

Track Renewals 4360.00 14.06%Rolling Stock 3718.50 12.00%GC 2704.31 8.72%Investment in RVNL, DFC 2450.00 7.90%DL 2002.00 6.46%Repayment of Leased Assets 1677.00 5.41%S&T 1607.90 5.19%New Lines 1580.20 5.10%Traffic Facilities 804.50 2.60%Workshops incl Pus 649.00 2.09%Bridge Works 602.60 1.94%RSW - ROBs 550.69 1.78%RSW - LCs 500.00 1.61%Passenger Amenities 493.30 1.59%Computerisation 325.00 1.05%Other Specified Works 319.70 1.03%Electrification 302.00 0.97%M&P 300.00 0.97%Stores Suspense 281.24 0.91%Other Elec Works 233.80 0.75%Amenities for Staff 206.00 0.66%Misc Advances 201.17 0.65%Staff Quarters 160.50 0.52%Manufacturing Suspense 67.59 0.22%Rly Research 60.00 0.19%Restoration of lines 30.00 0.10%

Total - Planheads 26187.00 84.47%

Planhead wise distribution

Total - Planheads 26187.00 84.47%CRRM -1641.60 -5.30%Other Credits/ Recoveries -7.40 -0.02%

24538.00 79.15%MTP 723.00 2.33%Transfer to SRSF 1165.00 3.76%MTP Credits -1.00 0.00%

Grand Total 26425.00 85.24%0.00%

Net Outlay ie excl transfer to SRSF 25260.00 81.48%Borrowings through IRFC 5000.00 16.13%Wagon Investment Scheme 500.00 1.61%Borrowings through RVNL 240.00 0.77%

31000.00 100.00%

Plan Summary

WHY PWP ?RELATIVE PRIORITIES

CATEGORY OF WORKS

CLASSIFICATION OF EXPENDITURE

CATEGORY OF EXPENDITURE

PROCESSING OF NEW WORKS

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.

NODAL NODAL DEPARTMENTSDEPARTMENTS

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

back

TIME SCHEDULE FOR PWP 2008-09TIME SCHEDULE FOR PWP 2008-09Submission of new proposals costing > Rs.5 crores by PHOD/ HODs to PCE.

04.05.2007

Submission of new proposals costing > Rs.30 lakhs and < Rs.5 crs by PHOD/HODs to PCE

29.06.2007

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 2008-09TIME 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 WorksTypes of Works

• LUMPSUM WORKS

• LIST OF APPROVED WORKS

• ITEMISED WORKS UNDER PINK BOOK

• OUT OF TURN WORKSback

Proposals for PWP - Checklist 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…

• 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.

Proposals for PWP – Checklist 2Proposals for PWP – Checklist 2

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 quantities 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 of ROR calculation under DCF technique.

The cost proposed is within the ceiling limit prescribe for the Planhead.

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.)

THANK YOU