2. Works Programme Brief Overview 2.3.09

3. 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

4. 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.

5. 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. Role of Finance..contd.

6. Receipts Pass Other Chg Goods Sundry Misc. Receipts Subsidy Safety Surcharge Receipts

7. Railway expenditure Operating Expenses Appropriation to DRF Appropriation to PF Misc.Exp Appropriation to SRSF OLWR Dividend Appropriation to DF,SF,CF ( Excess)Expenditure

8. Where the Rupee came from

9. Where the Rupee went

10. Capital from General Exchequer Contribution from General Exchequer To SRSF Market Borrowings IRFC, Wagon investment Schemes, PPP Plan Outlay Railway Plan Outlay Appropriation to DRF Appropriation to SRSF OLWR Appropriation to DF,SF,CF

11. Plan Size DRF CF DF SF SRSF Budgetary Support Borrowings OLWR EXCESSEXCESS Market Central Govt Total Receipts Less Total Expenditure Repayment of interest and Capital component Dividend Liability Traffic Potential Infra- structure Capacity Plan Size Subsidy Dividend Relief National Economy Strings

12. Sources of Plan Expenditure Internal Generation (DRF, SRSF, SF, DF,CF, OLWR)Internal Generation From General Exchequer (Budgetary Support + Contribution from General Exchequer for SRSF) IRFC Borrowings PPP Wagon Investment Scheme

16. WHY PWP ?  RELATIVE PRIORITIES  CATEGORY OF WORKS CATEGORY OF WORKS  CLASSIFICATION OF EXPENDITURE CLASSIFICATION OF EXPENDITURE  CATEGORY OF EXPENDITURE CATEGORY OF EXPENDITURE  PROCESSING OF NEW WORKS PROCESSING OF NEW WORKS

17. NODAL DEPARTMENTS

18. Plan HeadControlling PHOD/HODFinance New Lines, Gauge Conversion, Doubling COMFA&CAO/CN Traffic FacilitiesCOMFA&CAO Road Safety Works-LCsPCEFA&CAO Road Safety Works – ROB/RUBCBEFA&CAO ComputerisationFA&CAO/S&WFA&CAO WorkshopsCME/CEEFA&CAO OEW/Elec ProjectsCEEFA&CAO Passenger AmenitiesCCM, CE(P&D)FA&CAO Staff Quarters & AmenitiesCPOFA&CAO S & T WorksCSTEFA&CAO Track Renewal, Bridges, OSWPCEFA&CAO Machinery & PlantCMEFA&CAO/S&W Rollling StockCME/CWEFA&CAO/S&W back

19. 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 < 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 2 nd 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

20. 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 1 st 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

21. Types of Works LUMPSUM WORKS LIST OF APPROVED WORKS ITEMISED WORKS UNDER PINK BOOK OUT OF TURN WORKS back

22. 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…

23. 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 2

24. 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.

25. 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.)

26. THANK YOU