Works Programme Brief Overview 2.3.09 Financial as well as advisory roles. Advises on all matters...
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Transcript of Works Programme Brief Overview 2.3.09 Financial as well as advisory roles. Advises on all matters...
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