Comparison of Railway Budget Grants

 Comparison of Railway Budget Grants

Aspect	Railways Internal Circulation	Parliamentary Oversight (C&AG Scrutiny)
Types of Grants	1. Budget Grant (BG) 2. Spending Limit (SL) 3. Revised Grant (RG) 4. Final Grant (FG)	1. Original Grant (O) 2. Supplementary Grant (S) 3. Excess Grant
Purpose	Internal monitoring and control of Railway expenditure	Parliamentary sanction and post-facto legislative accountability
Authority Concerned	Ministry of Railways, Zonal Railways	Parliament of India
Budgeting Stage	Throughout the financial year	During and after Budget session of Parliament
Documentation	Internal budget circulars, Demand Forecasts, Expenditure Registers	Appropriation Bill, Budget Documents presented to Parliament
Audit/Reconciliation Role	Reviewed internally by Railways	C&AG scrutinizes via Appropriation Accounts
Approval Needed From	Railway Board	Parliament of India

Explanation of Each Term

Railways Internal Circulation

BG - Budget Grant: Initial estimate of funds allocated at the start of the financial year.

SL - Spending Limit: The maximum limit up to which the spending can be made under a grant.

RG - Revised Grant: Modified estimate based on mid-year trends and actual expenditure.

FG - Final Grant: Consolidated and actualized allocation after adjustment of estimates and savings.

Parliamentary Classification

O - Original Grant: Sanctioned during the Annual Budget approved by Parliament.

S - Supplementary Grant: Additional funds sought during the year for unanticipated needs.

Excess Grant: Sought after the financial year ends if expenditure exceeds total sanctioned grant.

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Pink Book - Discontinuation

 Pink Book - Discontinuation 

The Indian Railways has decided to discontinue the publication of the traditional "Pink Book" and will instead issue comprehensive, zone-wise budget documents.

Key Points:

• The Ministry of Railways has ceased the publication of the annual 'Pink Book,' which traditionally detailed budgetary allocations for various zonal railways and production units.

• In place of the Pink Book, the Railways will now prepare comprehensive budget documents tailored for each Zonal Railway and Production Unit. These documents will incorporate details of earnings, working expenses, capital expenditure, and lists of works.

• Railway Minister Ashwini Vaishnaw confirmed this shift in Parliament, stating that the work of preparing these new documents has already begun.

• The Pink Book served as a guide for fund allocation across railway zones, including specifics on spending for safety-related works, maintenance, infrastructure development, doubling of lines, and new projects.

• There has been a delay in the release of the new zone-wise budget documents, which has affected project planning in certain regions such as Southern Railway.

History of the Pink Book in Indian Railways

• The Pink Book has historically been an annual publication released by the Ministry of Railways after the Union Budget.

• It provided detailed budgetary allocations for Zonal Railways, Production Units, and Railway Board-sanctioned works.

• It listed sanctioned projects under heads like New Lines, Doubling, Gauge Conversion, Electrification, Passenger Amenities, Safety Works, and Rolling Stock Procurement.

• It was called the 'Pink Book' due to the color of its cover, following a government budgeting color-code tradition.

• Used widely by officials from Board level to divisions for planning, monitoring, and implementation of works.

• After the 2017 merger of the Railway Budget with the Union Budget, the Pink Book’s central role was re-evaluated.

• The discontinuation marks a shift towards decentralized planning with each zone getting a tailor-made budget document.

PTO - Preferential Traffic Order 2025-26

PTO - Preferential Traffic Order   

• Source: The PTO General Order No. 99  (for allotment of Wagons) w.e.f 01.04.2025. Unless canceled earlier, it will remain in force up to 31st March 2026 Please click for RB letter

• Section 70 of the Railways Act, 1989 - First comes first to serve - Basis for Booking and transportation of Goods.  No priority or No preference  

 

• Section 71 of Railway Act, 1989 - Orders are issued by Central Government to Railways Administration from time to time - For giving priority or preference to booking and transportation of particular types of commodities in the interest of the Nation / Public in General or for Industrial Development. 

 

• PTO - Preferential Traffic Order - Published by the Central Govt in Gazette and informed the Railway Administration.  

 

• PTO validity - 1 Year.  

 

• The priority route is decided and Goods are carried by that route only

  

General Instructions:  

 

•  Block Rake traffic is preferred over Peice-meal Traffic. 

 

•  Traffic will have preference over other Traffic within the same class of Priority in the following order: 

 

1.      Traffic guaranteed under special Schemes 

2.      Traffic in rakes loaded from the Good shed of the station having round the clock working

3.      Traffic booked from Full rake handling siding having mechanized loading facility.

4.      Traffic offered for distance of more than 600 Kms within the same classification  

5.      Single Point Block rakes over two-point / multipoint mini rakes  

6.      Wednesday & Saturday shall be reserved and notified for allotment of rakes as per the ODR - Date of Registration irrespective of the class of priority.   

7.      Monday & Friday will be  nominated two days for according higher priority to traffic covered under Premium Indent Scheme

 

•  Any Traffic under special orders of the Ministry of Railways (Railway Board) / Zonal Railways 

Priority	Traffic
A	Military Traffic sponsored by MILRAIL and approved by the Railway Board
B	Emergency Relief works (for natural calamities like floods, drought, earthquakes etc)  - Sponsored by an Officer, not below the rank of Dy.Secretary of Central / State Government or by a Non-Government Organisation. All Food grains except quota traffic notified by the Railway Board.  Levy Sugar for PDS - Public Distribution System & other welfare programs sponsored by FCI - Food Corporation of India / State Govts or their agencies approved by the Railway Board. Proposals for sponsorship of any other commodity by a Central Govt agency  will require specific approval of the Railway Board.
C	1	Coal	i) Sponsoring authority is Public Sector Coal - Accepting authority is ED/RM, Kolkata for ER, ECR, SER, SECR & ECoR  ii) Sponsoring authority is Private coal companies - Accepting authority is COM/CFTM of other Zonal Railways iii) Sponsoring authority is Coal Importers - Accepting authority is PCOM/CFTM of respective Zonal Railways
	2	Iron Ore	Sub - Priority	Traffic Type
			C +	From Customer’s own private siding to his own private siding at unloading end of for domestic manufacturer
			C	One end to other end, the Customer is having his own private siding at either end for domestic manufacture
			C -	One end to the other end, the Customer not owned by him at both ends.
	3	Other than 1 & 2	i) Non - refined Edible Salt - For the States of West Bengal, Assam, Sikkim & Tripura  - Sponsored by the respective State Governments .  For the other States  - The Sponsored by Salt Commissioner & Accepted by the Zonal Railways (Amendment 2 to GO.98 dated 02.08.2024) ii) Common Salt to approved iodization plants - For the States of West Bengal, Assam, Sikkim & Tripura  - Sponsored by the respective State Governments .  For the other States  - The Sponsored by Salt Commissioner & Accepted by the Zonal Railways (Amendment 2 to GO.98 dated 02.08.2024)   iii) Fertilizer - Sponsored by Fertilizer manufacturers / Importers  - Accepted by the Zonal Railways    iv) POL - Petroleum, Oil & Lubricants - Sponsored by Oil companies - Accepted by the Railway Board
D	All other Traffic not included in A, B & C

 

Key points for MCQ 

 

1. PTO stands for Preferential Traffic Order 
2. PTO validity - 1 Year   
3. PTO - Issued by Central Govt and published in Gazette
4. No of Priorities under PTO - 4 
5. MIL RAIL - Military wing of the Railways  (Office at Sena Bhawan, Army Hqrs) 
6. Railways Act - Year 1989 (The First act in 1890)
7. PDS stands for Public Distribution System 
8. RMS stands for Raw Material for Steel plants 
9. POL stands for Petroleum, Oil, & Lubricants 
10. ED/RM - Executive Director Rail Movement
11. SCO stands for Salt Commissioner Organization - Hqrs - Jaipur
12. Salt Commissioner is working under DPIIT 
13. DPIIT stands for Department for Promotion of Industry & Internal Trade (Ministry of Commerce & Industry)
14. Wednesday and Saturday are fixed for allotment of Rakes as per the date of registration, irrespective of the class of priority. 
15. Monday and Friday will be nominated two days for higher priority to traffic covered under Premium Indent Scheme.

 

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Ex-gratia for Train Accidents, Untoward Incidents, and Manned Level Crossing Accidents

Ex-gratia for Train Accidents, Untoward Incidents, and Manned Level Crossing Accidents

Type of Accident	Ex-gratia for Death	Ex-gratia for Grievous Injury	Ex-gratia for Simple Injury
Train Accident (as defined under Section 124 of the Railways Act, 1989)	Rs. 5,00,000/-	Rs. 2,50,000/-	Rs. 50,000/-
Untoward Incident (as defined under Section 124A of the Railways Act, 1989)	Rs. 1,50,000/-	Rs. 50,000/-	Rs. 5,000/-
Accident at Manned Level Crossing (due to Railway’s prima facie liability)	Rs. 5,00,000/-	Rs. 2,50,000/-	Rs. 50,000/-

 

Authority: Railway Board Letter No. 2023/TC-III/49/I/Ex-gratia dated 18.09.2023