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) 

—--end—-

 

OSOP - One Station One Product

 OSOP - One Station One Product

Source: CC 12 of 2022

• Launched in Union Budget 2022–23

• Objective: Promote Vocal for Local. Part of Atma Nirbhar Project   

• Market access for local/indigenous products

• Passenger experience of local culture

• Income support to marginalized sections

• Outlets: kiosks / stalls / trolleys at stations

• Products: handicrafts, textiles, garments, local food

• GI (Geographical Indication) products preferred

• Approved by DRM (Divisional Railway Manager)

• Avoid conflict with existing catering stalls

• Priority: artisans, SHGs (Self Help Groups), weaker sections

• Registration fee: ₹1000 (15 days allotment)

• Termination for violation; 24 hrs to vacate

• Fee non-refundable after allotment 

Railway Station	Product
Patna Jn	Madhubani painting
Visakhapatnam	Etikoppaka (wooden) toys
Howrah	Tant handloom sarees
Guwahati	Assamese Gamocha
Bengaluru	Channapatna wooden toys
Chennai Central	Kancheepuram sarees
Tirupati	Kalamkari sarees
Nagpur	Bamboo handicrafts
Rajkot	Terracotta  / Ceramic products
Kota	Kota doria sarees
Bilaspur	Dokra bell metal handicraft products
Gorakhpur	Terracotta handicrafts
Banaras	Azamgarh black pottery
Varanasi cantonment	Wooden toys
Panipat	Handlooms & Pickles
Jaipur	Sanganeri print items & Jaipur razai
Agra Cantonment	Marble handicrafts

52 Weeks - 52 Reforms in 2026 Year

 

🚆 Railway Reforms 2026

🔥 “52 Reforms in 52 Weeks” + Reform Express (9 Reforms)

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🔷 CORE FRAME (VERY IMPORTANT)

Year → 2026

Ministry initiative → “52 Reforms in 52 Weeks”

Execution mechanism → “Reform Express”

Reforms announced so far → 9 (4 earlier + 5 new) 

👉 Interpretation:

9 reforms = Initial phase of 52 reforms roadmap

Remaining → 43 reforms (to be rolled out gradually)

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🔷 A. NEW 5 REFORMS (WITH FIGURES)

🚆 5️⃣ Salt Transportation Reform

India salt production → ~35 million tonnes/year

Rail share → ~9.2 million tonnes/year 

Modal share:

Industrial → ~25%

Edible → ~65%

Distance → 62% traffic (1,000–2,500 km)

New system:

Stainless steel containers

Top loading + hydraulic side discharge

👉 Benefit → Reduced loss + multimodal efficiency

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🚆 6️⃣ Automobile Transportation Reform

Production → ~31 million vehicles/year

Passenger vehicles → ~5 million

Rail share → ~24% (low) 

Reform:

Industry can design route-specific wagons

SOD restriction flexibility

Benchmark impact:

Cement loading → 37,000 → 95,000 tonnes (Sep 2025–Jan 2026)

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🚆 7️⃣ Construction Reform (7 Numerical Changes)

Eligibility → 35% → 50% project value

Railway experience → ≥20% mandatory

Bid security → 2% fixed

Bid capacity → Mandatory > ₹10 crore

Subcontracting → 70% → 40%

Contractor execution → ≥60%

Predatory bidding:

If bid < 5% → extra 5% Performance Guarantee 

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🚆 8️⃣ Ticketing, Cancellation & Refund Reform

Fake accounts removed → ~3 crore 

Cancellation window:

48/12/4 hrs → 72/24/8 hrs

Chart preparation:

~4 hrs → 9–18 hrs

Aadhaar OTP introduced

TDR → Removed

Refund → Automatic

Counter cancellation → Any station (India-wide)

Upgrade → Up to 30 minutes before departure

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🚆 9️⃣ Boarding Station Change Reform

Earlier → Only before chart preparation

Now → Up to 30 minutes before departure 

👉 Benefit → Seat not lost

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🔷 B. PREVIOUS 4 REFORMS

1️⃣ On-board Services

Cleaning expanded

86 trains identified

5 Zonal Railways floated EOI

2️⃣ Gati Shakti Cargo Terminal

Policy revised

New applications under process

3️⃣ RailTech Policy

Proposals → 123

Shortlisted → 94

4️⃣ e-RCT (Railway Claims Tribunal)

Fully digital

Paperless claim settlement

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🔷 C. HIGH-IMPACT EXAM SUMMARY

Total reforms (2026 plan) → 52

Reforms announced → 9

Remaining → 43

Fake IRCTC accounts removed → 3 crore

Cancellation → 72/24/8 hrs

Charting → 9–18 hrs

Subcontracting → 40% (new)

Eligibility → 50%

Bid security → 2%

Extra PG → 5% if bid <5%

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🎯 MEMORY TOOLS

🔹 Memory Line:

👉 “2026 → 52 Weeks → 52 Reforms → 9 Started”

🔹 Numerical Trick:

👉 “50–20–2–40–5 Rule”

50% eligibility

20% experience

2% security

40% subcontract

5% extra PG

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⚡ EXAM READY ONE-LINER

👉 “The 9 reforms announced under ‘Reform Express’ in March 2026 are part of the Ministry of Railways’ broader initiative ‘52 Reforms in 52 Weeks’, aimed at systematic transformation of cargo, construction, and passenger services.”

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GCC for Works 2022 April - Correction Slip - ACS 11 of March, 2026

 

Click for ACS 11 to GCC for Works 2022 April

ACS No. 11 to the Indian Railways Standard General Conditions of Contract (GCC), April-2022, issued by Railway Board on 13-03-2026 and applicable prospectively to Works Contracts of Indian Railways.

Below is the item-wise explanation, clearly indicating what existed earlier and what is newly modified.

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1. Bid Security (Para 5(1)(a) – Part-I of GCC-2022)

Existing Provision

Earlier, Bid Security depended on the value of the work. If the estimated cost of work was up to ₹1 crore, the bidder had to submit 2% of the estimated cost as Bid Security. For works above ₹1 crore, the Bid Security was calculated as ₹2 lakh plus 0.5% of the amount exceeding ₹1 crore, subject to a maximum limit of ₹1 crore.

Modified Provision

The revised rule simplifies the structure. For all works, irrespective of value, Bid Security will be 2% of the estimated cost of the work. The complicated formula linked to the ₹1 crore threshold has been removed.

Other Provisions (unchanged but reiterated)

• Bid Security must be rounded off to the nearest ₹100.

• Start-ups recognised by DIPP (Department for Promotion of Industry and Internal Trade) are exempt from Bid Security.

• Labour Cooperative Societies need to submit only 50% of the Bid Security.

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2. Sub-contracting Limit (Para 7(a)(i) – Part-II of GCC-2022)

Existing Provision

Earlier, the rule stated that the total value of work assigned to sub-contractors should not exceed 50% of the total contract value.

Modified Provision

The rule is now made stricter and more structured.

• Sub-contracting is limited to a maximum of 40% of the contract price.

• The contractor must execute at least 60% of the contract value directly under its own supervision and personnel.

Additionally, the revised provision clarifies that procurement of materials, hire of equipment, or engagement of labour by the contractor will not be treated as sub-contracting.

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3. Performance Guarantee (Para 16(4) – Part-II of GCC-2022)

Existing Provision

Earlier, the successful bidder had to submit Performance Guarantee equal to 5% of the original contract value. One of the forms permitted was an Insurance Surety Bond, but this option was allowed only when the Date of Completion (DOC) was within 36 months. If the completion period exceeded 36 months, another form of security had to be submitted.

Modified Provision

The revised rule retains 5% Performance Guarantee, but adds important clarifications:

• Additional Performance Guarantee may also be required as per clause 16(4)(h).

• If the Date of Completion is extended, the contractor must submit extended Insurance Surety Bond / fresh Insurance Surety Bond / fresh Performance Security before expiry of the existing bond.

Thus, the emphasis is now on continuity and validity of security during extensions of contract period.

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4. New Clause – Additional Performance Security for Abnormally Low Bids (Para 16(4)(h))

Earlier Position

There was no explicit clause dealing with additional security when a bidder quoted unusually low rates.

New Provision

A new rule has been introduced.

If a bid is accepted at rates below the advertised tender value, the bidder must submit Additional Performance Guarantee (APG).

Structure of APG:

• Bid quoted between 0% to 5% below advertised value → No additional security

• Bid quoted more than 5% below advertised value → Additional Performance Guarantee of 5%

This provision is intended to discourage abnormally low bids and protect project execution risk.

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5. Bid Capacity Eligibility (Annexure VI)

Existing Provision

Earlier, this rule applied only to tenders with advertised value above ₹20 crore. In such cases, bidders were required to demonstrate available bid capacity equal to or greater than the bid value.

Modified Provision

The threshold has been reduced from ₹20 crore to ₹10 crore.

Now, for tenders above ₹10 crore, bidders must prove available bid capacity equal to or greater than the tender value.

This change expands the financial capacity check to a larger number of works contracts.

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6. Illegal Gratification / Ethical Practices (Para 18(1))

Existing Provision

Earlier, the clause simply stated that if the contractor offered bribes, commissions, gifts, or undue advantage to Railway officials, the contract could be rescinded and losses recovered.

Modified Provision

The rule has been expanded into a detailed “Code of Integrity in Procurement” covering several prohibited practices. These include:

• Corrupt Practice – offering or accepting bribes or rewards.

• Fraudulent Practice – false information or misrepresentation in tendering.

• Anti-competitive Practice – bid rigging, cartelization, or collusion.

• Coercive Practice – threats or pressure affecting procurement decisions.

• Conflict of Interest – relationships affecting impartial decision-making.

• Undue Advantage – misuse of confidential information.

• Obstructive Practice – interfering with investigation or audit.

This significantly strengthens procurement ethics and transparency provisions.

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7. Punitive Provisions for Violation of Code of Integrity (Para 18(2))

Existing Provision

Previously, the rule mainly stated that if the contractor had monetary dealings with Railway employees, the Railway could cancel the contract and recover losses.

Modified Provision

The revised rule introduces detailed punitive measures if integrity violations are detected.

Possible actions include:

• Forfeiture of Bid Security

• Cancellation of contract

• Recovery of payments including advances with interest

• Debarment or banning from future tenders for at least one year

• Reference to Competition Commission of India in anti-competitive cases

• Initiation of disciplinary or criminal proceedings

This converts the earlier clause into a comprehensive penalty framework for procurement misconduct.

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✅ In summary, the Correction Slip mainly introduces:

• Simplified Bid Security rule (2% for all works)

• Stricter limits on sub-contracting (40%)

• Provision for Additional Performance Security for low bids

• Lower threshold for bid capacity check (₹10 crore)

• Detailed integrity and anti-corruption provisions with penalties

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CRF - Cargo Related Facilities ( Master Circular on GCT & CRF - 2026 February)

 

CRF - Cargo Related Facilities 

Source: GCT CRF Master Circular 2026 February

1️⃣ Full Form of CRF

CRF – Cargo Related Facilities

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2️⃣ Definition

A Cargo Related Facility (CRF) is a facility developed on Railway land (or spare Railway land) to support, promote, and enhance rail-based cargo movement.

It is created by a private developer at their own cost and risk to facilitate freight loading, unloading, storage, or other cargo-related services connected to Indian Railways.

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3️⃣ Purpose of CRF

The policy aims to:

• Promote rail-based logistics

• Reduce overall logistics cost

• Increase freight share of Indian Railways

• Utilize spare Railway land effectively

• Create modern cargo handling infrastructure

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4️⃣ Key Features of CRF

🔹 Developed on identified spare Railway land

🔹 Built, financed, and operated by a private developer

🔹 Developer bears cost and commercial risk

🔹 Helps in efficient loading/unloading and cargo movement

🔹 Supports the overall ecosystem of Gati Shakti Cargo Terminals (GCTs)

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5️⃣ Who Develops CRF?

A Cargo Related Facilities Developer is selected through a transparent competitive bidding process.

The developer:

• Finances the project

• Constructs the facility

• Operates and maintains it

• Complies with statutory requirements

• Pays Guaranteed Railway Freight (GRF), if applicable

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6️⃣ Difference Between GCT and CRF (Very Simple)

• GCT (Gati Shakti Cargo Terminal) → Full-fledged cargo terminal with rail connectivity

• CRF (Cargo Related Facility) → Supporting cargo infrastructure developed on Railway land to enhance freight movement

CRF may not always be a complete terminal like GCT but supports rail logistics operations.

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7️⃣ Why CRF is Important for Indian Railways?

🚆 Better utilization of Railway land

🚆 Increased private participation

🚆 Reduced burden on Railway capital

🚆 Faster development of freight infrastructure

🚆 Supports PM Gati Shakti initiative

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