Railway Accounts Department Examinations

Showing posts with label Railway PSUs. Show all posts
Showing posts with label Railway PSUs. Show all posts

Saturday, April 28, 2018

RITES


RITES

Click below for official website of RITES


Image result for rites 

·         Incorporated in the year 1974 as a Public limited company under the Companies Act, 1956

·         Full form : Rail India Technical & Economic Service

·         A Government of India Enterprise under the aegis of Indian Railways. Hqrs: Gurgaon, Haryana

·         Multidisciplinary organization of Consultants, Engineers and Project Managers in transport & infrastructure sectors.

·         Offers comprehensive services from concept to commissioning of projects in Railways, Urban transport, Highways, bridges, renewable energy and export packages of rolling stock and railway related equipment.

·         RITES is the nominated agency of Indian Railways for export of rolling stock manufactured at the Production Units of Indian Railways.

·         A Mini Ratna Enterprise, Schedule A, an ISO 9001-2008 company

·         Operational experience of 43 years

·         Global presence -- extended its services in nearly 62 countries

·         Only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia).

·         Integrated Check Posts  - RITES has completed these Posts at the borders of neighbouring countries in a first of its kind project in India.   These are the world-class facilities for passenger & cargo movement in similar to Airports. Examples:  Attari check post on India-Pakistan border, Petropole check post on Indo-Bangladesh border, Agartala check post on Indo-Myanmar border.

·         SAIL RITES Bengal Wagon Industry Pvt. Ltd - Joint venture of RITES & SAIL - with the object of setting up of State-of-the-art Wagon factory at Kulti, West Bengal   - Assured off-take by Indian Railways for manufacture of 1200 high end specialized wagons and rehabilitation of 300 wagons per year.

·         Financials -2016-17

v  Profit after tax - 331 Crores

v  Rs.10.34 lakhs  - Profit per employee  (Total employees -3200)

v  Total Income 1509 Crores

v  Share Capital -200 Crores

v  Profit after tax to Share Capital  -  166 %
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Friday, April 27, 2018

RLDA - Rail Land Development Authority


RLDA

  • RLDA - Rail Land Development Authority

  • Setup in the year 2006 as a Statutory Authority under the Ministry of Railways

  • VISION:  To emerge as India's leading Public Land Development Authority.

  • Object behind the set up of RLDA

1.     The need for considerable increase in internal generation of resources for such investment had been realized by the Indian Railways for some time.

2.    Indian Railways is the biggest landlord in India having nearly 10.65 Lakh acres across all over the country.

3.     Out of 10.65 lakh acres, 9.50 Lakh acres are using by the Railways for operational purpose.  Balance 1.15 Lakh acres are vacant and susceptible for encroachments.

4.     Generation of Non-tariff revenue by development of 1.15 Lakh acres of vacant land for commercial purposes

5.      Creation of Infrastructure assets for Indian Railways.

  • Member, Engineering, Railway Board is the Ex-officio Chairman of the RLDA.

  •  RLDA’s expenses are met out of grants provided by Indian Railways. The entire earnings generated from development of railway land is transferred by RLDA to Indian Railways.
  • Earnings of RLDA for the last 3 years (2009-10, 10-11 & 11-12) are Rs.2500 Crores. 

  • There is a scope of big jump in the earnings of RLDA, since many sites and MFC's will be come into function.

  • Authorisation of vacant land to RLDA - stages

1.     Land which is not required for operational purposes in the foreseeable future - identified by the Zonal Railways.
2.      Once identified, the details of such vacant land would be advised to Rly. Board.
3.     Such plots of land would thereafter be entrusted to RLDA by Railway Board in phases for commercial Development.
      

·         Commercial development of vacant railway land  -  steps:
1.      Inspection of the sites to ensure that these are free from any encumbrances/encroachments and are prima-facie suitable for commercial development.
2.    Survey done for each individual plot of land by engaging a reputed real estate consultant to identify the possibility of commercial development.
3.     Once identified potential revenue from such site, call for an EOI - Expression of Interest or RFP - Request For Proposal from Developers for commercial development through the PPP route ( Public Private Partnership)
4.    Awarded the site to the Developer through Open Bidding process.

·         .  Identified 138 sites so far and they are at different stages for development as
         Commercial places.

  • M F C - MULTI FUNCTIONAL COMPLEX:

  • Apart from development of vacant Railway land on commercial lines, Railways planned to utilise AIR SPACE over Railway Assets such as Railway Stations for generation of Non-tariff Revenue.

  • MFC's will provide facilities like Shopping, Food stalls/Restaurants, Book stalls, PCO Booths, ATMs, Budget Hotels, Parking spaces etc at Railway stations.

  • MFC's will given to PSUs i.e., RVNL, IRCON , RITES (through MOU - Memorandum Of Understanding) and to Private players (through Open bidding process)  - Lease basis on upfront lease premium or Revenue sharing for a period of 30 to 45 years.

  •  After the lease period, MFCs would be transferred to the railways. Thus good opportunity for Railways in regard to creation of infrastructure assets.

  • So far sanctioned 163 MFCs, redevelopment of 5 Railway Stations and 14 Railway Colonies.

  •  Real estate consultants like Knight Frank and JLL are advising RLDA in planning and marketing the MFCs sites. 

·         Several leading brands, retail, hotel chains and developers have expressed their interest in MFCs being developed by RLDA and prominent among them are Pantaloon, Cafe Coffee Day, The Loot, Woodland, Apodis Hospitality, Krishnan Palace Residency, WH Smith (Travel News Services).
·         MFCs at 26 railway stations developed jointly with IRCON ISL (Infrastructure & Services Ltd)  and RITES have already been completed and are waiting for being leased out, prominent places being Haridwar, Udaipur,Raipur, Madurai, Allahabad, Jabalpur, Burdwan, Manmad, Guntur.
  •  RLDA has prepared a plan for fast-tracking the development of 75 complexes in the current financial year 2013-14.


Development of Railway Stations


  •  RLDA has also been entrusted by Ministry of Railways for development of five railway stations at Chandigarh, Anand Vihar (Delhi), Bijwasan (Delhi), Habibganj (Bhopal) and Shivajinagar (Pune) into modern railway stations with excellent facilities for rail users. 

  • These stations are being developed through IRSDC - Indian Railway Stations Development Corporation Ltd., a joint venture company created by IRCON and RLDA in which the former is the majority partner.

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IRFC - Indian Railway Finance Corporation


IRFC - Indian Railways Finance Corporation

Books & Budget -1990 (W), 1992 (W)-10 marks, 1995(W)-20 marks, 2004 (W)

(Most Important Question asked many times in examination)

·         Established in the year 1986 as a Public Limited Company under the Companies Act, 1956.

·         A Govt. of India enterprise and a dedicated financing arm of the Ministry of Railways.  The Chairman of IRFC is FC-Financial Commissioner of Railways.

·         IRFC's share capital has been wholly provided by Govt. of India.  Under the new companies Act, 2013, IRFC is a "Government Company" (being more than 51 % of share capital contributed by Govt.)

·         The one and only major client is Indian Railways.

·         The entire organization is managed by a lean team of just 19 personnel.  The Overhead to Turnover ratio is 0.12 %, which is perhaps the lowest for any company the world over.

·         IRFC raises market borrowings which constitute the Extra Budgetary Resource for Railway Plan Investment.


·         Need for set up of IRFC - 

a)    The Budgetary support from Ministry of Finance is dwindling and insufficient internal resources to meet the rising needs of Traffic. To cope up the increasing traffic needs, Indian Railways has no other option, but to depend on mobilizing resources from Public.

b)    No Ministry , (except Ministry of Finance) has right to mobilize the funds  by issue of bonds to the Public.  So Indian Railways has floated a company i.e., IRFC for raising resources from Public through issue of Bonds.

·         Business of IRFC is :-

1.    To mobilize resources through market borrowings from Domestic as well as Overseas Capital Markets at most competitive rates.

2.    Funding for acquisition of Rolling Stock Assets and leased to Railways.
3.    IRFC also gives loans (Rs.3,046 Crores) to RVNL-Rail Vikas Nigam Ltd & Railtel Corporation of India ltd towards viable and bankable projects being executed by them.

·         IRFC - Lease terms: -

A.    The lease period is 30 years.

B.   IRFC leases the assets from the month of acquisition to IR based on a standard leasing agreement. Cost of borrowing in 2013-14 to Railways is around 8.4%.  (Where as Cost to IRFC is 7.9 % with a margin of 0.50 %)

C.   Indian Railways pays lease rentals to the IRFC every half year.

D.   After 30 years, Rolling stock assets may be sold to the Indian Railways for a nominal price.

·         Role of IRFC in Indian Railways infrastructure:

                      I.        IRFC has funded acquisition of Rolling Stock Assets approximately valued at Rs.1.15 Lakh Crores as on 31.03.2014.

                    II.        Share of IRFC in Indian Railways Plan outlay is 24 % ( during the period from 1996-97 to 2014-15).  

                   III.        Two thirds  ( 68 % ) of revenue earning rolling stock assets operating on the Indian Railways network is funded by IRFC.

                  IV.        Rs. 17,276 Crores  (out of Rs.1,00,011 Crores) - Target for IRFC funding in the 2015-16 Annual programme of Demand No.16.

                   V.        Brief particulars furnished in the following table shows the significant part of IRFC in the Railways Infrastructure.
Share of IRFC in Total Rolling Stock of Indian Railways as on 31.03.2014
Rolling Stock
Total Holdings of Railways
Leased by IRFC
% of IRFC share
Locomotives
11802
7289
62 %
Coaches
54432
41432
76 %
Wagons
(freight cars)
278612
185362
67%
Total units
344846
234083
68 %

·         IRFC's Leasing Charges - Accounting policy

1)    Before 2005 year, entire Leasing charges (both Principal & Interest) paid to IRFC has been charged to Revenue i.e., Demand No.09 - Abstract G - Operating Expenses - Traffic.

2)    However, In the year 2005, Indian Railways, changed its accounting policy for the Lease charges paid to IRFC.

3)    From 2005 year onwards , Leasing charges paid to IRFC has bifurcated as follows.
 Principal component
 New Plan Head -2200 - Leased Assets ( Demand No.16)
Interest
component
Demand No.09 - Abstract G - Operating Expenses - Traffic
  (OWE - Ordinary Working Expenses)

4) This has resulted in the reduction of OWE - Ordinary Working Expenses of
    Indian Railways and improved the Operating Ratio.


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