Railway Capex 2020-21 Budget

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Railway Capex 2020-21 Budget

·         Capex - Capital Expenditure - 1,61,042 Crores

Source of Finance		Amount (Rs.in Crores)	Percentage
Capital	46500
RRSK	5000
CRIF	18500
Total - Gross Budgetary Support	70000	70000	43 %
DRF	1000
Development Fund	1500
RRSK	5000
Total - Internal Resources		7500	5 %
EBR - IRFC	30000
EBR - IF	28000
EBR - PPP	25292
Nirbhaya Fund	250
Total - External Resources	83542	83542	52 %
Grand Total		161042	100 %

Note: RRSK -  Rs. 10,000 Crores (Budgetary support - Rs. 5000 Crores & Internal Sources - Rs. 5000 Crores)

·         Make Indian Railways, the Growth engine of the Indian Economy.

·         GBS - Gross Budgetary Support  -  Rs. 70,000 Crores (includes RRSK - Rs. 5000 Crores & CRIF - Rs. 18,500 Crores)

·         Electrification - 6500 Route KMs - target (By 2023-2224 - target is entire BG network electrification)

·         New Lines, GC, Doubling, Tripling - 3750 Route KMs

·         Freight loading target - 1265 Million Tonnes.

·         Average freight lead - 553 KM

·         Originating Passengers - 879 Crores

·         S & T - to implement CTC - Centralized Traffic Control system along with Automatic Block Signaling system- 1830 Kms over 8 Zonal Railways.

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Railway Funds (Source of Finance) - Year established

         Railway Funds (Source of Finance)   - Year established

 

Funds	code	Established in year	Remarks
DRF- Depreciation Reserve Fund	21	1924	Previous name is Programme Revenue
D.F–Development Fund I, II, III & IV	23,33,43 & 53	1950	Previous name is Betterment Fund
IRFC (Indian Railway Finance Corporation)	_	1986	It is a PSU – owned by Ministry of Railways for financing the Rolling Stock
C.F – Capital Fund	25	1992	Established in place of closed Railway Revenue Reserve Fund
R.S.F – Railway Safety Fund	26	2001
EBR (IF) Extra Budgetary Resources (Institutional Finance)	_	2016
RRSK (Rashtriya Rail Sanraksha Kosh)	29	2017	Though it is not specified, it is a Second SRSF – Second Railway Safety Fund

 

 

Note:

If any inconsistency in the above data, please be brought to the notice of blogger. 

Flow chart of IRFC - Indian Railway Finance Corporation

Click for PDF of IRFC Flow chart

Flow Chart of IRFC

NIF - National Investments Fund

NIF - National Investments Fund

·         One of the sources of finance for Indian Railways Capex - Capital Expenditure

·         Established in 2005

·         Maintained by : DIPAM - Dept of Investments & Public Asset Management

·          Credits: Proceeds from disinvestment of CPSEs - Central Public Sector Enterprises.  Initially the proceeds are kept under Public Account of India.

·          Corpus(Amount) of NIF - Permanent nature.  That means  the money with the NIF is permanent in nature and is professionally managed to provide returns (income) to the Government without depleting its value (corpus) 

·         Managed by : Professional Managers such as SBI Funds Managment pvt ltd, UTI Asset Management Company ltd, LIC Mutual Fund Asset Management Company ltd.

·         NIF income- utilised for the following purposes.

1.       Subscribing - shares being issued by the CPSE on Rights basis or Preferential allotment of shares as per SEBI regulations  ( to ensure 51% ownership by the Govt)

2.       For capital infusion in Public Sector Banks & Public Sector Insurance companies to meet BASEL III norms.

3.       Investments in Regional Rural Banks/NABARD- National Bank for Agriculture & Rural Development/EXIM Bank - Export - Import Bank/IIFCL - India Infrastructure Finance Company Limited.

4.       Equity infusion in Metro Projects

5.       Investment in Bhartiya Nabhikiya Vidyut Nigam Limited (BNVNL) & Uranium Corporation of India Limited.

6.       Investment in Indian Railways towards Capital Expenditure.

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CRIF - Central Road & Infrastructure Fund

CRIF - Central Road & Infrastructure Fund

·         One of the Sources of Finance under Capital Expenditure (Capex) of Indian Railways

·         Rs. 18,500 Crores - allocated to Capex of Indian Railways in 2020-21 Budget (Rs. 15,250 Crores in 2019-20) - Usually spend on LC Gates and ROB/RUBs under Plan Heads 2900 & 3000 through RSF - Railway Safety Fund.  CRIF is the main source for RSF.

·         Established in 2000   (The Central Road and Infrastructure Act, 2000) F

·         Old name is CRF - Central Road Fund

·         Managed by Dept of Economic Affairs (DEA) under Ministry of Finance. (Previously it is under Ministry of Road Transport & Highways)

·         Source of Fund -  Levy & collect by way of Cess, a duty of excise and duty of customs on Petrol and Diesel  (in 2018-19 - Rs. 1,13,000 Crores collected).  It is approximately Rs. 10 per liter of Diesel / Petrol.

·         Object: To finance infrastructure projects such as Railways, Inland Waterways, Roads & Bridges, Ports, Shipyards, Urban Public Transport, Energy, Water & Sanitation, Communication & Social infrastructure (educational institutions)

   

·         Ministerial panel on CRIF - 4 Ministers (of Finance, Railways, Road transport & Highways, HRD) - for allocation of funds under CRIF

·         The 15-member sub-committee has Secretaries from different Ministries - Examine and evaluate proposals received from Ministries on infrastructure projects.

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Capex - Capital Expenditure of Indian Railways - 2019-20

CAPEX – INDIAN RAILWAYS 2019-20

Source of Finance	Amount  (Rs. In Crores)	Amount (Rs. In Crores)	Percentage
1. Capital	35587
2. RRSK	15000
3. Central Road Fund (Railway Safety Fund)	15250
Gross Budgetary Support (GBS)  - Total	65837	65837	41 %
1.Capital Fund	3000
2. DRF	1000
3. Development Fund – DF	1500
4. RRSK	5000
Internal Resources – Total	10500	10500	7 %
1. IRFC	55471
2. PPP	28100
Extra Budgetary Resources – EBR	83571	83571	52  %
Grand Total		159908	100  %