Departmental charges ( D&G charges )

Departmental Charges ( D&G Charges ) in Works Estimates 

• Sources: 1. Railway Board Letter No. 2022/E&R/3(2)/1 dated 28.12.2022 Click here

    2. Railway Board Letter No. 2018/E&R/3(2)/1 dated 04.03.2020 Clickhere 

    3. Para 1120 of IR Engineering Code 

• A committee was constituted at the Railway Board level to review the D&G charges thoroughly for various Works Estimates.  

• Based on the recommendations of the Committee, the following changes have been affected vide letter under Source No. 1 above. 

 

• Departmental Charges - New term in place of D&G Charges  

 

• D&G Charges stands for Direction & General Charges 

• Will cover - Both i.e., Departmental manpower and Hired manpower of Projects (including Revenue posts)

 

• Electrical and S&T Works  - Distinction of “With & Without Block” works removed. 

 

• Consists of the Establishment portion only.  

 

• Not included: The cost of Pay & Allowances of Land Acquisition Staff.  Because the same is included in the Sub estimate of Land Acquisition as part of the Project.  

 

• Other than the Establishment portion  -Removed.  However, ERW & Sports Development Fund are continuing.   

 

• Gazetted posts - Not more than 50%  of Departmental Charges should be utilised

% Ceiling of Departmental Charges for Various Works  

Projects	Percentage - Departmental Charges
Civil Engineering	5.33 %
Track Renewal Works (Primary & Secondary)	1.53 %
Electrical Projects (incl: RE)	7.16 %
S & T	10.05 %
Mechanical	4.93 %

 

Note: Break up of the above percentages among various Departments as per the Railway Board Letter dated 28.12.2020 (Annexure-II)

 

ERW: 

 

• ERW stands for Environmental Related Works  
• 0.5 % provision of the overall value of the Estimate including Contingency 1%. (Example: If the Estimate value is Rs.100, the ERW provision is Re 0.50)
• Applicable to Plan Heads 11, 14, 15, 30 & 42 only 
• Not applicable - If the works under the above Plan Heads are funded through EBR(IF) 
• EBR(IF) stands for Extra Budgetary Resources (Institutional Finance) 
• If the work is specifically for Environment Management, it should be processed for sanction as Itemised Work in Pink Book.

Sports Development Fund: 

 

• Object: To create a robust Sports infrastructure in tune with IR Sports contribution
• 0.1 % provision of the overall value of the Estimate including Contingency 1%. (Example: If the Estimate value is Rs.100, the Sports Development Fund provision is Re 0.10) 
• Applicable to all Plan Heads {Except Plan Heads 17 & 31 and Projects funded through EBR(IF) }
•   If the work is specifically for Sports Development, it should be processed for sanction as Itemised Work 

 

Contingency:  

 

• Uniform 1 % - shall be part of the Estimate.  (Example if the Total Estimate value is Rs.100, the provision of Contingency is Re. 1)
• Provision for contingency - Should not be diverted to any new work or repair which is not provided in the estimate.  If so, it should require the sanction of the authority who sanctioned the estimate. If the Sanctioned authority is beyond GM, the GM Can sanction.  
• The contingency portion of Departmental charges is removed.   
• Used only for Unforeseen items essentially required for completing the Project.  
• Included: Cost of Project specific training, if not covered in the Detailed Estimate. 

 Example of Calculation of:   

• The Project Estimate Cost - Rs. 49500 (excluding Contingency).  The calculation of :  

 

Item	Calculated Amount	Remarks
Contingency	Rs. 500	@ 1 % of the Estimate Value.  Part of the Estimate    The calculation of Contingency is as follows:    Value /100-1 x 1    49500 /99 x 1 = 500    That means Rs.500 is 1 % of Rs. 50,000 (overall value of the Estimate)
ERW	Rs. 250	@ 0.5 % on the Total Estimate value.(incl: Contingency)   Worked out on the overall value of the Estimate including Contingency i.e., 0.5 % on Rs.50000
Sports Development Fund	Rs. 50	@ 0.1 % on the Total Estimate value.(incl: Contingency) Worked out on the overall value of the Estimate including Contingency i.e., 0.1 % on Rs.50000

 

Key points for MCQ 

1. Calculation of the Contingency is Part of the Estimate, whereas ERW & Sports Development Fund is on the overall value of the Estimate. 
2. Departmental charges - New name of D&G charges 
3. D&G charges stand for Direction & General charges 
4. Departmental charges - Cover - Both Departmental Manpower and Hired Manpower including Revenue posts. 
5. Consists of the Establishment portion only.  The non-Establishment portion was removed.  
6. Gazetted posts - Not more than 50% 
7. ERW stands for Environmental Related Works 
8. Sports Development Fund - 0.1 %, ERW - 0.5 %, and Contingency - 1 % 
9. ERW and Sports Development Fund - Not applicable for Projects funded through EBR(IF) 
10. EBR(IF) stands for Extra Budgetary Resources (Institutional Finance) 
11.  ERW - Applicable to Plan Heads 11, 14, 15, 30 & 42 only. 
12.  Sports Development Fund - Applicable to all Plan Heads (except 17 & 31) 

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