RSF-Railway Safety Fund - Source of Finance

   RSF-Railway Safety Fund

Ø  OBJECT:   (1) Conversion of unmanned level crossings into manned level crossings and (2) Conversion of busy manned level crossings into Grade Separator i.e., ROBRoad Over Bridge/RUB-Road Under Bridge,/FOB-Foot Over Bridge/Sub-way.

Ø Since inception of Railways, there has been policy to provide unmanned level crossings where Train Vehicle Units (TVU) are low and manned if expected TVU is on higher side. 

•  Road Over Bridge can be build over level crossings with Train Vehicle Unit (TVU) more than one lakh provided state government or local body is agreed to share 50 percent cost of the project.

ØAs on date (30.07.2016), Indian Railways have 28607 level crossings out of which,19267 (67 %) are manned and balance 9340 (33%) are unmanned. These unmanned level crossings account for maximum number of consequential train accidents.

                At present Indian Railways has deployed "Gate Mitras" (Gate counsellors) at unmanned Level Crossings on contract basis to avoid casualties.

Ø RSF created w.e.f 01st April, 2001

Ø created based on the recommendations of RCC - Railway Convention Committee, 1999.

Ø It is Non-Interest bearing Fund.

Ø SOURCES:   1.   Surplus after meeting the dividend liability in Railway Revenues.  2. Transfer of funds from CRF - Central Road Fund (12.5 % of CRF - to Railways) by the Central Government.  3. The present contribution 20 % out of the Dividends payable to RSWF - Railway Safety Works fund (operated in the books of Ministry of Finance)

Ø New Plan Head 2900 - for conversion of unmanned level crossings into manned level crossings.

Ø New Plan head 3000 - construction of ROB/RUBs in place of manned level crossings.

SRSF-Special Railway Safety Fund (Closed in year 2008)

ü  Object:   To wipe out the accumulated arrears of renewal of over-aged assets,  especially safety related ones i.e., tracks, bridges, signaling gears and Rolling stock. 

ü  SRSF has been created w.e.f   1st April, 2001  and  closed  from 1st April, 2008.

ü On closing, the balance in SRSF  Rs.597.73 Crores transferred to DRF - Depreciation Reserve Fund.

ü It is Non-lapsable and Non-Interest  bearing Fund.

ü Sources: created with an amount of Rs.17,000 Crores.  Out of this, Rs.12,000 Crores recd. from Finance Ministry in the form of Dividend Free Capital and Rs.5,000 Crores raised through by levying Safety surcharge on Passenger fares w.e.f. 01.10.2001.

ü The Safety surcharge on Passenger fares was discontinued w.e.f 01.04.2007, but subsumed in passenger fares "ON AS IS WHERE IS BASIS" and renamed as Development Fund to the DFC - Dedicated Freight Corridor.

ü carved out of the recommendations of "Railway Safety Review Committee" headed by Justice H.R.Khanna, Retd. Supreme Court Judge in the year 1998.

ü GREEN BOOK -  All SRSF works sanctioned are incorporated in the Book named as GREEN BOOK.

ü Progress/Results of creation of SRSF are mentioned below.

Renewal of	Target	Achieved	Percentage
Tracks	16538 Kms	15624 Kms	94 %
Bridges	2286 Nos	2191 Nos	96 %
Signaling gears	1448 stations	1282 stations	89 %

•  With sustained efforts in the last decade, Indian Railways have reduced the number of accidents per million train kilometers from 0.44 in 2003-04 to 0.13 in 2012-13.

ü  The creation of Second SRSF with an proposed amount of Rs.40,000 Crores is on the news.

ü So it is best time for contemplation as "Is it require SRSF's to the Indian Railways ?"   .  The simple answer is NO, as long as provide sufficient amounts to DRF - Depreciation Reserve Fund for replacement of Railway assets.

ü  Let us observe CAG remarks on SRSF  (CAG report on Railway finances of 2009-10 year)

ü  "Railways need to maintain a reserve with a minimum amount under DRF

accumulation to facilitate the timely execution of renewals with a view to

maintain the assets at the highest standard of efficiency. Accumulation of

arrears in renewal/replacement may at later stage create a need to set up

another fund (as done in the year 2001 when Special Railway Safety Fund was created) to wipe out the arrears of renewal/replacement.

Codes - Must for preparation of Appendix III (IREM) exam.

Remember, the entire examination of Appendix III (IREM) exam is based on the Indian Railways Codes on different subjects, manuals and other circulars issued by Railway Board from time to time.  Hence I request all the candidates to refer to all the Codes, especially Accounts Code, Finance Code & Engineering Code & other Codes. After that refer the guides/study material for further grasping of the subjects.


Accounts Code Volume 1

Accounts Code Volume 2 (Traffic Accounts)

Finance Code Volume 1

Finance code Volume 2 (Allocations/Classifications)

Engineering Code

Allocations/Classification of accounts - various practicals given in previous question papers of Appendix III (IREM) exam.

Practicals - Allocations/Classification examples - Previous year question papers

Click below

Allocations - Practicals


Note:

1.These allocations along with answers are contributed by Smt. Chaitali Dasgupta, SSO(A)/Gauhati.  I conveyed thanks to her behalf of all the candidates

2. The veracity/correctness of the allocations may please be checked with the help of given Finance Code Volume II through the link given below.  If at all any corrections, the same may please be brought to the notice of me.  So that the same will be corrected and published.

Finance Code Volume 2

COE - Control Over Expenditure in Indian Railways - Important question for Expenditure paper

Click below

COE - Control Over Expenditure

OLWR - No more a Source of Finance in Indian Railways

• Board(FC) has approved abolition of Allocation Head - OLWR - Open Line Works (Revenue). 
• Existing work if any under OLWR, the same may be transferred to DRF or DF as the case may be.
• As Such there is no allotment of Grant under OLWR in Demand NO.16 from the year 2015-16 onwards.
• 
  
• Necessary correction slip to the Accounts Code will be issued on receipt of approval from CGA - Controller General of Accounts and C&AG- Comptroller and Auditor General of India. 
• Reason: Insignificant expenditure under OLWR in Annual Plan of Works Expenditure.  For example in the year 2013-14 -  Rs.28 Crores expenditure under OLWR against huge Budget under Demand No. 16 (approximately around 63,000 Crores)

      Click here for the Railway Board letter on the above subject 

 OLWR - Board's Letter

Allocations - Titbits

Note:

1)   Due to merger of Rly.Budget with General Budget, all Demands 3 to 13 are now subsumed into Single Demand No.80 - Ministry of Railways.  The erstwhile Demands 3 to 13 are now named as Sub Major Heads (SMH) 01 to 11 under Major Head 3002 - Indian Railways Working Expenses (Commercial Lines) respectively. 

2)   Description of Demand/Minor Head/Sub Head/Detailed Head is given for the purpose of understanding.  Need not be furnished in answer sheets.

3)   Sub Head is not asked, yet furnished herein for perusal.

4)   For attempting these type of Allocation questions, hard copy of Finance Code Volume 2 (F2) is must for preparation.  Click for F2

Allocations / Classifications  - TITBITS

• In view of Swach Bharat campaign, the following activities are more important -
•  08 Demand - Operating Expenses - Rolling Stock & Equipement (08-593) -Expenditure on OBHS- On Board Housekeeping services, CTS -Clean Train Station Scheme, Mechanical coach Cleaning, pest & rodent control treatment or any other activity of coach sanitation.

(Authority: Board's letter no.2014/AC-II/2/2 dated 16.10.2014)�acs no.118 . To view letter - click here

http://www.indianrailways.gov.in/railwayboard/uploads/directorate/accounts/downloads/circular/Compendium_2014/34%20(a).pdf

• 09 Demand - Operating expenses - Traffic - 09-0299 - Cleanliness and Sanitation at Stations.(Authority : Board's Letter No. No.2014/ACII/2/2 dated 03.12.14)-acs no.119)
• http://www.indianrailways.gov.in/railwayboard/uploads/directorate/accounts/downloads/circular/Compendium_2014/39-2014.pdf

Ø Single Demand i.e., Demand No. 12 for two abstracts -  One is Abstract –K for Misc.Working Expenses and another is Abstract –N for Suspense.

Ø Demand No. 03 – General Superintendence and Services  - It covers all Officers and Administrative staff of all departments in GM’s Offices as well as DRM’s offices. 

 Exceptions: 1) CCO- Chief Claims Officer and his establishment - allocated to Demand No.12- Misc Working Expenses.    2) CSC – Chief Security Commissioner or DSC – Divisional Security Commissioner and their establishments – allocated to Demand No.12 – Misc Working Expenses..   3) CMD – Chief Medical Director or Sr.DMO – Sr.Divisional Medical Officer and their establishments – allocated to Demand No.11 – Staff Welfare and Amenities.

Ø The Repairs and Maintenance of Plant & Equipment of all Departments – charged to Demand No.7 – Repairs & Maintenance of Plant and Equipments

Ø Payment of compensation claims – Demand No. 12 – Misc Working Expenses

Ø Court fees and other legal expenses – Demand No. 03 – General Superintendence & Services.  ( 03-164)

Ø Expenditure on Sports & Cultural activities and connected establishment – Demand No. 03 - General Superintendence & Services. ( 03-330)

Ø Conservancy of Rivers  -  Demand No. 04 – Repairs & Maintenance of P.Way & works.

Ø Planting  & upkeep of trees along Railway lines, Station gardens, Staff colonies   - Demand No. 04 – Repairs and Maintenance of P.Way & Works.

Ø Consumable items such as lubricants, carbon brushes, lamps, bolts etc used for coaches/wagons ( by Divisions in Open Line)-  Demand No. 08- Operating Expenses - Rolling Stock.  If the same were used in Workshops, allocated to Demand No. 06- Repairs & Maintenance of Carriages & Wagons.

Ø Repairs to watches, clocks, time recorders, stop watches ( in stations, offices etc)  - Demand No. 07 – Repairs & Maintenance of Plant and Equipments.  Why because all these items are treated as tools & plants as per Railway’s Lingo/jargon.

Ø Payment of Lease charges (of IRFC, etc) – Demand No. 09 – Operating Expenses (Traffic).  Only Interest portion charged to Demand No. 09. The Principal portion of Lease charges should be charged to Plan Head 2200 – Leased Assets under Demand No.16

Ø Demand No. 16 -Plan Head 1300- Restoration of Dismantled lines – abolished by Railway Board recently.   

CLASSIFICATION OF REVENUE EXPENDITURE

Category	Group	Erstwhile Demand No.	Abstract	Name of demand
I.	Policy Formulation and Services Common to all Railways	1.		Railway Board
		2.		Miscellaneous Expenditure (General)
II.	General Superintendence and Services on Railways	3.	A	General Superintendence and Services on Railways.
III.	Repairs and Maintenance	4.	B	Repairs and Maintenance of Permanent Way and Works.
		5.	C	Repairs and Maintenance of Motive Power.
		6	D	Repairs and Maintenance of Carriages and Wagons.
		7	E	Repairs and Maintenance of plant and Equipment
IV.	Operation	8.	F	Operating Expenses-Rolling Stock and Equipment.
		9.	G	Operating Expenses-Traffic.
		10.	H	Operating Expenses-Fuel.
V.	Staff Welfare, Retirement Benefits and Miscellaneous	11.	J	Staff Welfare and Amenities.
		12.	K & N	Miscellaneous Working Expenses and Suspense
		13.	L	Provident Fund, Pension and other Retirement Benefits.
VI.	Railway Funds and payment to General Revenues.	14.	M	Appropriation to Funds.
		15.		Dividend to General Revenues, Repayment of loans taken from General Revenues and Amortization of over Capitalisation.

Note: Abstracts A to L are arranged serially to Erstwhile Demands No. 03 to 13 ( Except Abstract I )

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PPTs ( Power Point Presentations) on Railways study material

for view of PPTs (Power Point Presentations) on different Railway Subjects 
Click below

PPTs on Railway study material

ENGINEERING CODE (Railways) - IMPORTANT CHAPTERS

ENGINEERING CODE (Railways) - IMPORTANT CHAPTERS

One must be cover up the entire Engineering Code i.e., all chapters for attempting the optional General Expenditure Paper and GRP - General Rules & Procedures.  However, among the total 19 chapters, the following Nine chapters are more important and for quick revision.

Chapter No	Contents	Click the given LINK for ready access
1	Organisation & Administration	chapter 1
6	Investment Planning & Works Budget	chapter 6
7	Estimates	Chapter 7
11	Execution of works	Chapter 11
12	Contracts for Works	Chapter 12
13	Initial Records	chapter 13
14	Initial Account of Revenue & Works Expenditure	chapter 14
15	Expenditure & Budgetary Control	chapter 15
17	Completion of Railway Projects	chapter 17

                                       ~!@#$%^&*()_+\

Codes and Manuals of Indian Railways

for access to 

all codes and manuals of Indian Railways

Click here for Codes and Manuals

Annexure J of Appropriation Accounts - A Power Point Presentation

Annexure j of Appropriation Accounts of Indian Railways from Nageswara Rao M

Difference between Vetting and Concurrence

Difference between Vetting and Concurrence

Vetting:   refers to conforming of a factual correctness of figure or statement of figures.

Examples: Vetting of Briefing Note, Estimates, Purchase Order etc.

Concurrence:  refers to agreeing a proposal in its entirety including the figures given under proposal.

Examples: Concurrence for construction of new bridges, replacement of machinery, etc.

Note: Extract from the comments given by F(X)/Dte in reply to information sought under RTI Act, 2005.

http://rti.railnet.gov.in/rtidata/Scanned/n4192.pdf

How to attempt the with Books question paper of Optionals in Appendix III (IREM) exam - Here is the expert guidance offered by Ms.Usha Raman, Faculty at University of Hyderabad

How to attempt the “With Books” question paper in Appendix III A Examination

(Excerpts from the article “Have  you ever written on open book or take-home examination” by Usha Raman.  The article is published on 08^th April, 2013 in Hindu Newspaper. For full article refer the given link

http://www.thehindu.com/features/education/answers-unlimited/article4588410.ece  )

ü  The questions were designed in a way such that the answers would not be readily available from any single text or source.

ü  Students should apply their own ideas to the questions before they could come with answers in such examinations.

ü  The questions themselves were fairly open-ended, and as such, did not have any one “correct” answer.

ü  A few were excited at the possibility of such open-endedness.

ü  As we progress through higher levels of education, we need to develop the ability to tackle a variety of question formats and test patterns. 

ü  Questions that draw on a combination of information recall and critical thinking, which demand that we draw not only on what has been taught overtly in a course, but also on a broader understanding of issues and also our own experience.

ü  Obviously, these questions do not have a single correct answer.

ü  They may be answered from a variety of perspectives and bring in widely divergent pieces of information.

ü  It’s about seeing for yourself if you are good enough to get to the next level. It’s up to you to set the boundaries of the answer (within reasonable limits of course) and think in unexpected ways. In fact, that is the only expectation—that you will do the unexpected.

(The author teaches at the University of Hyderabad and edits Teacher Plus magazine. 

Email: usha.raman@gmail.com )

x

TWFA - Transfers Without Financial Adjustments

T W F A

1990,1995,1997 (with out Books) & 1994 (with Books)                                         5 Marks  - short notes question   

ü Expanded as “Transfers Without Financial Adjustments:”

ü Relates to Adjustment of transfer of Rolling Stock assets from One Railway or Unit to another Railway or Unit.

ü Journal Entry is not required.    Also raising Debits on another unit is Not required.

ü Done only through adjusting into the financial books of the Two Railways or Units by Transfer Entry.

ü The amounts simply added up in the Opening Balances for the year of Unit taking over the asset, and

ü Deducted from the Opening Balances for the year of the Unit surrendering the asset.

ü Purpose/ Advantage  of T W F A  :

1.      To avoid effect on financial accounts and budgeting.

2.     To rectify the progressive balances in respect of the accounts of the previous year already closed.

ü True examples of T W F A are:

A.    When the former State Rlys were integrated with the Indian Rlys during the year 1952, all assets belonging to the former were taken over by the respective zonal Rlys

B.     The existing balances in SRPF transferred to NCSRPF.
                                       
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