Railway Accounts Department Examinations

Showing posts with label PPP. Show all posts
Showing posts with label PPP. Show all posts

Thursday, October 24, 2024

BPO - Business Process Outsourcing & Privatisation in Indian Railways

 


Business Process Outsourcing


A MCQ has been asked in AFA LDCE 2024 Exam - BPO stands for _________ 


What is BPO ?


  • Business Process Outsourcing (BPO) is the practice of contracting specific business tasks or processes to a third-party service provider.


  • These tasks typically include non-core activities such as customer service, IT support, data entry, accounting, and payroll management.


  • BPO helps organisations reduce costs, improve efficiency, and focus on core business activities by outsourcing repetitive or specialised tasks to external experts.


  • BPO can be domestic (within the same country) or offshore (to another country).

 

Types:  


  1. Back-Office Outsourcing: Administrative tasks such as Accounting, HR, Customer support, and IT services. 

  2. Front-Office Outsourcing: Customer-facing functions like Sales, Marketing, and Technical support. 

  3. KPO - Knowledge Process Outsourcing: High-value knowledge intensive tasks such as Research, analytics, and engineering. 


Advantages: 


  1. Cost reduction: Operational costs will be reduced by leveraging lower labour costs in other countries.

  2. Scalability: BPO providers can quickly scale up or down their services to meet fluctuating business needs according to the demand.

  3. Expertise: Allows firms to access specialised expertise and resources that they may not have in-house. 

  4. Focus: Focus on Core competencies by outsourcing non-core functions such as accounting, Sales, Marketing, HR etc.


Challenges: 


  1. Communication barriers: Cultural differences and language barriers can sometimes hinder effective communication between the client and the BPO provider. 

  2. Data Security concerns: Concerns of sensitive data at BPOs. 

  3. Vendor Management: Managing multiple BPOs for various operations can be complex and time-consuming. 


Conclusion: BPO has been best suitable for industries like IT, Finance, Healthcare, and Telecommunications. By effectively outsourcing non-core functions, firms can improve their efficiency, reduce costs, and focus on their core business activities. 

List of prominent BPOs in India, serving a variety of sectors globally: 

  1. TCS: Tata Consultancy Services (TCS)

  2. Infosys BPM (Business Process Management)

  3. Wipro BPS (Business Process Services)

  4. Genpact (a GE Business unit)

  5. HCL Technologies BPO Services

  6. Tech Mahindra Business Services

  7. Cognizant Technology Solutions

Indian Railways and BPO:

  • Indian Railways has been exploring various avenues to outsource its non-core activities to the BPOs. Some of the Non-core activities are: 

  1. Ticketing and reservations

  2. Call centres and customer support

  3. Back-office operations (e.g., HR, payroll processing)

  4. IT and administrative task

Is it Privatization or Outsourcing in Indian Railways ?


The Railways has around 13 lakh permanent employees and over 4.5 lakh contractual and outsourced staff. It shows a ratio of 3:1.  May be in coming days, this ratio may be jump to 2:1


Activities (termed as Non Core) that are already outsourced on a phased manner in Indian Railways are :


  1. AC Coach attendants

  2. Platform cleaning

  3. Security

  4. Executing the works in Indian Railways

  5. P.Way maintenance

  6. Catering & Pantry car

  7. Hospitality

  8. Doctors in Railway Hospital

  9. Supply of Bed linen in AC Coaches

  10. OBHS – On Board Housekeeping Services

  11. Parcel vans

  12. Sanitation in Railway colonies

  13. Managing Retiring Rooms Dormitories

  14. Housekeeping of Railway Stations

  15. Railtel for telecom operations

  16. RVNL for construction activities

  17. Disburse salaries through NEFT (thereby reducing the Cash office staff)

  18. Doorstep Banking

  19. Engineering Surveys

  20. Painting or removal of paint of Rolling Stock in Production Units / Workshops

  21. Maintenance of IVRS – Interactive Voice Response System

  22. Transportation of released track material

  23. Leasing of SLR space

  24. Unscheduled and scheduled repairs of house wiring and operations of  Pumps/DG sets / Stationery AC Plants/ Distribution network of power supply

  25. Unscheduled repair of major electrical assembly of locomotives / multiple units / Alternator / fans / Compressor in AC Coaches

  26. Waiting halls in Platforms


Proposed / Contemplated activities are


  1. PMC – Project Management Consultancy – Supervising the Works

  2. Corporatisation of Railway Production Units and Workshops

  3. Corporatisation of all construction activities

  4. Railway Station operations (as a whole)

  5. EPC – Engineering , Procurement and Construction (from estimate stage to completion stage)

  6. Certain activities of Salary preparation, maintenance of Provident Fund / NPS etc

·         Private Trains


The above list is endless. I advise Railway employees to face any eventuality of the rapid changes in the Indian Railways in coming days.


Note:


The author neither supports nor opposes the privatisation of non-core activities in Indian Railways.


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Saturday, July 2, 2022

Bharat Gaurav Tourist Trains - Desh Apna Dekho

 


Bharat Gaurav Tourist Trains


  • An initiative under “Dekho Apna Desh” to promote domestic tourism

  • Policy from 01.04.2022

  • Theme-based tourist circuit Trains

  • To showcase India’s rich cultural heritage and magnificent historical places to the People of India and the World.  

  • At present, IRCTC is already running several tourist circuit trains on Railways.

  • Now, Railways Invited professional private tour operators to run the above trains 

  • Themes like Ramayana - covering places connected with Lord Shri Ram, Guru Kripa - Cover important places of Sikh culture, etc.  

  •  The first phase - Allocated 180 Trains with 3033 coaches like Vande Bharat, Vista Dome, and LHB Coaches. 


Salient features: 

  • Private Tourist service provider - free to decide the theme

  • Offer all-inclusive package including travel, accommodation, sightseeing arrangement, tour guides, etc. 

  • Full flexibility to decide package cost based on the services provided by them. 

  • Choice of Coaches like AC and Non AC and Accommodation like  Luxury, Budget, etc. 

  • Free to design/furnish interior and exterior of Coaches. 

  • Branding and advertisement are permitted both inside and outside of the Train. 

  • Train composition - 14 to 20 Coaches 

Process of selecting Tour operators:

  • Online registration 

  • Registration fees - Rs. One Lakh. 

  • Security Deposit - Rs 1 (one) Crore per rake.

  • Individual, Partnership Firm, Company, Society, trust, JV/Consortium (Unincorporated/Incorporated) are eligible.

  • Right to Use charges and Haulage charges are notified in the policy for Service Provider to work out his business model.

  • Right to Use Period: 2-10 years.

First / Maiden Bharat Gaurav Train 

  • Between Coimbatore to Sai Nagar Shirdi round trip with tourist places of Mantralayam  on 14.06.2022

  • 5 days trip

  • Southern Railway gets an annual fixed revenue of Rs. 3.34 Crores.

  • Registered Service provider - South Star Rail, Coimbatore-based part of the conglomerate group - Future Gaming & Hotel Services Pvt Ltd. 

  • Security Deposit - Rs. 1 Crore per 20 coaches rake, Annual right to use charges - Rs. 27.79 Lakhs and Quarterly Fixed haulage charges - Rs. 76.77 lakhs  

  • Variable haulage charge of Rs.38.22 Lakhs (excl: GST) for 5 days trip 

  • 1100 tourists traveled

  • Composition : First AC Coach -1, 2-tier AC coaches – 3, 3-tier AC coaches-8, Sleeper Class coaches-5 , Pantry car-1 and Luggage-cum-brake Vans-2. (Total – 20 coaches)

  •  All coaches - refurbished the interiors

  • Public Address system - provided for all coaches - for regular communication, playing devotional songs and mantras 

  • Doctor on board to attend any emergency

  • Private security in Train

  • On board AC Mechanic and electrician 

  • Maintained by branded housekeeping service providers 

  • Catering facility - traditional vegetarian menus

  • Radio jockey to entertain the passengers during the journey.  

Shri Ramayana Yatra

  •  18 days trip - started from New Delhi on 21st June 2022 

  • Operated by IRCTC as Bharat Gaurav Tourist Train

  • Cover approximately 8,000 KMs

  • IRCTC is the first Indian agency to connect India and Nepal through a tourist train. 

  •  Covers Janakpur (Nepal), Ayodhya, Janakpur, Buxar, Kashi, Sitamarhi, Chitrakoot, Prayagraj, Hampi, Nasik, Kanchipuram, Rameshwaram, and Bhadrachalam. 

  • The capacity of 600 tourists. 

  • AC 3 Tier Coaches

  • Single occupance - Rs. 71,820, Double occupancy - Rs. 62,370, Child with bed (5-11 years group) - Rs. 56,700 (Ticket is uniform irrespective of boarding point) 

  • All-inclusive package of Travel, Food, Accommodation, Guide, etc

  • Boarding points: Aligarh, Kanpur, Tundla & Lucknow 

 Key Takeaways for MCQ

  1. Branded as Bharat Gaurav Tourist Train

  2. Initiative under “Dekho Apna Desh”

  3. Policy w.e.f:  01.04.2022

  4. First / Maiden Bharat Gaurav Train - Coimbatore to Sai Nagar Shirdi

  5. First Registered Service provider under Bharat Gaurav Scheme - South India Star, Coimbatore-based firm

  6. Right to use period - 2 to 10 years

  7. Online Registration fees - Rs.1 Lakh

  8. Security Deposit for each Rake - Rs. 1 Crore

  9. Bharat Gaurav Tourist Train between India and Nepal  - Operated by IRCTC

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Wednesday, July 29, 2020

P P P – Public Private Partnership


Public-Private Partnership (Definition,Example)| Top 7 Type of PPP


P P P – Public Private Partnership

 

Related articles on PPP

VGF

HyderabadMetro

DedicatedFreight Corridor

IRSDC

PrivateTrains

SPV

EPC

Govt of India Website on PPP

 

Introduction :

 

·         An innovative way of delivering modern, high quality public services and promoting the country’s competitiveness. 

·         Currently, PPP occupies the page-3 status in the news.

 

What is:

 

·         A long term project between the Government and a private sector company for delivering an infrastructure service on payment of user charges.

·         Partnership / collaboration between a Government and Private firm

·         Used to finance, build & operate public projects

 

Why require:  

 

·         Due to resource crunch, Governments are not able to undertake capital intensive Public projects such as Roads, Bridges, Metro transport, Airports, Sea ports, Power services etc.

·         However Private players might be interested in funding such Public projects subject to receiving the operating profits during the life time of the Project.

·         Significant deficit in the availability of physical infrastructure that impacts economic development.

·         Development of infrastructure requires large investments that cannot be undertaken out of public financing alone, and that in order to attract private capital as well as the techno-managerial efficiencies associated with it, the Government is committed to promoting Public Private Partnerships (PPPs) in infrastructure development.

 

 

Salient features:

 

·         Normally the contract periods of 25 years or longer.

·         Role of Private player:  Designing, Build, Finance, Operating and Transfer –DBFOT

·         Role of Public player: Defining and monitoring the Project as per compliance.

·         Risks are distributed between the Public and Private partners according to the ability of each to assess  

·         The infrastructure projects may not always be financially viable because of long gestation periods and limited financial returns.  Hence, the Govt provides incentives (in India, VGF – Viability Gap Fund ) to the Private player like subsidies, land, tax benefits etc.

·         Typically, a private sector consortium forms a special company called a special purpose vehicle (SPV) to build and maintain the asset. The consortium is usually made up of a building contractor, a maintenance company and a bank lender. It is the SPV that signs the contract with the government and with subcontractors to build the facility and then maintain it.

·         Risk sharing – Private sectors managing commercial risks, construction risks, financial risks.  Whereas Govt managing Political risk and land acquisition.

·         Model Concession Agreement (MCA) - The detailed modalities of the contract between the private player and the Government. This document plays a pivotal role in the implementation of the project. It clearly delineates the risks to be shared by the private player and the government and spells out the formula of sharing of the revenue among other important details

 

Types of PPP

 

BOO

Build, Own & Operate

BOT

Built, Operate & Transfer

BOOT

Build, Own, Operate & Transfer

BOOST

Build, Own, Operate, Share & Transfer

DBFM

Design, Build, Finance & Maintain

DBFMO

Design, Build, Finance, Maintain & Operate

DBFOT

Design, Built, Finance, Operate & Transfer

O & M

Operation & Maintenance

OMDA

Operations, Management & Development Agreement

 

 

Advantages:

 

·         PPP work well when Private sector technology and innovation combine with Government player’s subsidies, tax benefits etc

·         Provide better public services

·         Creating good infrastructure facilities

 

Examples in India:

 

·         PPPAC – Public Private Partnership Appraisal Committee

·         Total PPP projects cost in India  - Rs. 25 Lakhs Crores  (Nearly 2000 Projects)

·         Hyderabad Metro Rail project – Rs. 12000 Crores

·         Teesta Power Project – Rs. 6000 Crores – BOO

·          Dhamra Port, Odisha – Rs. 10000 Crores – BOOST

·         Delhi Internation Airport – Rs. 12000 Crores - OMDA

·          Delhi – Meerut Expressway – Rs. 10000 Crores – DBFOT

·         Container terminal at JNPT – Jawaharlal Nehru Port Trust, Maharashtra– Rs. 6700 Crores -O & M

 

Examples of PPP in Indian Railways:

 

·         In India, Noida Toll Bridge was the first successful example of a Public Private Partnership in the transportation sector.

·         Redevelopment of New Delhi Railway Station – Rs. 8,500 Crores

·         Redevelopment Gwalior, Nagpur, Amritsar & Sabarmati Railway Stations  -  Rs. 1300 Crores

·         Catering, Food plazas, Budget hotels

·         SPV – PRCL (Pipavav Railway Corporation Limited)  - Surendranagar-Pipavav new line.

·         K – RIDE - A Joint Venture named K-RIDE (Rail Infrastructure Development (Karnataka) Limited

·         Wagon Investment Scheme  - WIS

·         Parcel Services

·         Operation of Container trains

·         Private sidings

·         ICDs – Inland Container Depots

·         Railside Warehouses

·         Dedicated Freight Corridor

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