Railway Accounts Department Examinations

Monday, October 19, 2020

Mobile App - Study material on Railway Dept examinations

 I invite to you to download my mobile app-  Appendix3exam -for study material on Railway Departmental examinations


Mobile App Link









  • The App is designed to assist aspirants of the Accounts and Finance Department, Indian Railways in clearing Appendix 2A, 3A, LDCE, 70% exams, etc.

  • It provides write-ups on various subjects like Traffic, Expenditure, Books & Budget, Stores, Establishment, Workshop Accounts., etc, in a systematic, concise and simple English that helps even a candidate of average knowledge of the subject matter and that of the English language can understand easily.

  • Special features are App 2A, App3A question bank is provided and sharing the current question papers instantaneously.

  • LDCE 70% question papers pertaining to the various zones of The Indian Railways is furnished ,answers solved with special concentration on Management Accountancy and Official language policy.

  • Providing short notes, elaborate answers, solving problems, teaching and clarifying doubts through Zoom Sessions, and also one to one through online and PPT, conducting model tests especially MCQs and providing results instantaneously, furnishing important and latest circulars,Office Orders, Memorandums, and highlighting matters related to the latest reforms in Indian Railways.

  • Has helped many aspirants clear the departmental exams across all zones and even other departments of Indian Railways.






Saturday, October 10, 2020

Differences between Voted expenditure & Charged expenditure



Differences between Voted expenditure & Charged expenditure


Ø Para 302 of Finance Code -   Article 112 (2) of Constitution of India  prescribes estimates of expenditure embodied in the Annual financial statement i.e., Annual Budget shall show separately i.e.,      1. Charged expenditure - the amounts required to meet expenditure charged upon the Consolidated Fund of India 2. Voted expenditure - the amounts required to meet other expenditure proposed to be made from the Consolidated Fund of India.

Ø Charged Expenditure : Article 113 (1) of Constitution of India specify "the estimates of expenditure CHARGED upon the Consolidated Fund of India shall not be submitted to the Vote of Parliament".  That means charged expenditure doesn't require the approval of Parliament.  However there is no restriction on either House of Parliament discussing any of these estimates (charged), where after funds are sanctioned by the President.

Ø The meaning of "Charge" (adjective) is "to impose on".  In reality too, Charged expenditure is imposed on Consolidated fund instead of obtaining the approval of Parliament, because of the requirement of safeguarding the interest of constitutional bodies.

Ø The concept of Charged expenditure and its specific privilege is in operational in European countries too.

Examples of Charged expenditure in respect of Indian Railways:

a)   The salary, allowances and pension payable to or in respect of CAG of India.
b)   Any amounts required to satisfy any judgment, decree or award of any Courts or awards of Arbitrators where made into rule of court
c)   Any other expenditure declared by the Constitution or by Parliament by law to be so charged.

Ø Voted Expenditure: Article 113 (2) of Constitution of India specify "that the estimates of Voted expenditure shall be submitted in the form of Demands for Grants (say Demand No.03A, 04B etc) to the House of People (Lok Sabha) and the Lok Sabha shall have power to assent, or to refuse to assent, to any demand, or to assent to any demand subject to a reduction of the amount specified therein".

Ø There was a misconception that charged expenditure and contingent fund are inter related i.e., Voted expenditure is met from Consolidated Fund and Charged expenditure is met from Contingency Fund.  But it is not correct.  Both Voted and Charged expenditure are met from Consolidated Fund of India only. 

  • Authority is Article 112 (3) of Constitution of India. Click the link here. 


http://indiankanoon.org/doc/280240/



  •  In fact, Contingency Fund of India is not at all a FUND in its character, but nature of an IMPREST. (which would be discussed separately in the blog)
Ø 
Voted expenditure
Charged expenditure
1. Requires approval of Parliament.
1. Doesn't requires approval of Parliament. However Parliament can discuss about the estimates of Charged expenditure.
2. Rationale: In Democratic country like India, the Govt. cannot spend from the Consolidated Fund unless the expenditure is voted in the lower house of the Parliament.  Because the real power lies in public.  Parliament which consists of representatives of Public i.e., Members of Parliament have control on the expenditure to be met from Consolidated Fund of India.
2. Rationale: To safeguard the freedom/interest of judiciary, constitutional bodies like President of India, Vice- President of India, Speaker,CAG etc, the expenditure related to these are placed outside the scope of approval of Parliament. Otherwise they are not able to discharge their duties independently.

Note:

Readers are advised to reproduce the same notes (duly modify) even in a case, if the short notes on "Charged Expenditure" is asked in the examination.

                                      ######

Railway Capex 2020-21 Budget


Top of Form

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.

*****


Friday, October 9, 2020

PMC - Project Management Consultancy -New concept

PMC - Project Management Consultancy

Ø  New concept in Indian Railways.

Ø  What is PMC ?  It is consultancy which brings specialized skills and knowledge to assist the companies /Organizations (like Indian Railways) by providing oversight & leadership in executing the projects "from planning to completion".   That is managing projects and related specific activities within given constraints of time, budget & quality.

Ø  Why PMC required in Indian Railways ?  Due to shortage of skilled staff for supervision of Railway projects in Indian Railways.  PMC can be obviated/avoided by launching a massive recruitment drive to fill the existing vacancies of supervisory staff in all departments.
Salient features of PMC
Ø  Works costing Rs. 10 crores and above in Open line, Construction and RE organisation (Railway Electrification)

Ø  Only for throughput enhancement construction projects i.e., Doubling, Traffic facility, Railway Electrification and S& T works only.

Ø  Personal approval of DRM/PHOD/CHOD would be required on case to case basis.  

Ø  All PMC tenders irrespective of its value shall be finalized by the tender committee of SAG level & above

Ø  PMC  is contract based, not project based.  Ideally high value projects should be executed on a composite contract basis covering works relating to all depts like Civil, Electrical, OHE, S& T etc.

Ø  PMC is distinct from other consultants, if any engaged for planning, survey and other activities that precede the actual award of Contract. 

Ø  PMC shall be finalized on QCBS - Quality & Cost Based Selection  method i.e., on parameters of qualification and experience of the Consultant and their key personnel.

Ø  PMC will be finalized on the Two packet system of Tendering i.e., Technical Bid followed  by Financial Bid.


Measurements  - For works, where PMC exist
Percentage Check
By PMC personnel
By Railway Personnel
100 %
Supervisor
-
20 % Test Check
Resident Engineer/Asst Resident Engineer
-
Not less than 10 % - Representative check
-
Nominated Engineer
Random check
-
Project Engineer i.e., Dy.CE (in charge)

Ø  Project Engineer - JAG officer is responsible for all issues such as 1) Billing 2) Measurements 3) Quantity variations 4) Progress Report, etc.  The detailed duties and responsibilities of the Project Engineer shall continue to be as per existing procedure except to the extent modified in PMC guidelines.

Ø  Hidden items - Test check shall be recorded in the presence of Railway Supervisor.

Ø  PMC shall indemnify the Railways for excess billing claimed (by oversight or intentional) duly taking out a Insurance policy against all risks as specified in the Tender.

Ø  It is the responsibility of PMC to keep a tag on variation in quantities in contracts and raise an alarm sufficiently in advance to enable Railways to take necessary action.

Ø  PG - Performance Guarantee - submitted by PMC for ensuring the execution of work with due control for safety, quality control and project progress monitoring.
Payments to PMC - Accepted Man month rates
80 %
Based on the actual deployment of staff of PMC duly certified by the In charge i.e., Dy.CE
10 %
Shall be released proportionally to the average financial progress of the work.
6%
On preparation & Submission of Final Bill
4%
During DLP - Defect Liability Period of one year (1% for each quarter)
100 %


Ø  DLP - Defect Liability Period is the fixed period of time  starting from the date of practical completion, during which the contractor has an express contractual right to return the site to rectify the defects. In Railways - PMC contracts , DLP is One year.
 
Ø  Penalties - 3 times the payable remuneration for non availability of key personnel of PMC during important activities like Pre-non interlocking, Non-interlocking work & commissioning of project.

Ø  PMC should ensure that the works contractor maintain systems,  such a QAS - Quality Assurance System in place and see that the same is properly implemented or not.

Ø  PMC is responsible for getting approval of the competent Railway authority 1) for construction methodology proposed by the Contractor 2) changes in design & scope of work, if any warranted during the project execution 3) timely reaching of milestones fixed 4) good performance of the asset created during defect liability period.

Ø   Success of PMC - depends on the minimum guaranteed fund allocation during the Construction period.

Ø  The expenditure incurred on PMCs should be within the D & G charges as per extant instructions. 

Ø  Initially the selected key personnel of PMC  - should undergo training at IRICEN, Pune (Indian Railways Institute of Civil Engineering) .  But cost of training & other incidental expenditure in this regard should be borne by the PMC consultant.

Ø  In PMC model contracts - responsibility of measurement and billing has been assigned to the Works Contractor.
Minimum qualification criteria - PMC
1.       Should have paid the cost of tender document & EMD
2.       Should be a valid, legal and duly registered incorporated entity individual /firm /society /company /valid JV/consortium
3.       Should not have been blacklisted
4.       should not have conflict of interest
5.       Technical eligibility as follows.
Minimum value of single work completed or substantially completed (80%) in previous 5 financial years & current financial year till the tender submission date
35% of the estimated cost of PMC tender - completed work for Railway/Metro/Central Govt/State Govt/PSU
Payments recd from consultancy contracts during the last 3 financial years and current financial year till the tender submission date
150 % of the estimated cost of PMC tender - completed work for Railway/Metro/Central Govt/State Govt/PSU

Conclusion: 

v  Amendments to the extant codal provisions in Engineering Code and Finance code can be undertaken after the PMC policy is introduced and sufficient experience gained. 

v  Till then, suitable clauses have been incorporated in the Model tender document to take care of deviations from the extant clauses, applicable to the Works Contracts.

&&&