Signal and Telecommunication Works
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Questions and Answers

What is the purpose of preparing a detailed estimate?

  • To commence work on a project
  • To obtain administrative approval for a project
  • To enable the competent authority to ensure that the abstract estimate is not exceeded (correct)
  • To allocate funds to a project

    • What is technical sanction?

  • The commencement of work on a project
  • The sanction of the competent authority to a detailed estimate of a work (correct)
  • The allocation of funds to a project
  • The approval of a project by a higher authority

    • What is included in a detailed estimate of an open line work?

  • Statements showing details of estimated cost and an outer sheet giving the abstract of cost of work (correct)
  • Only statements showing details of estimated cost
  • The report and financial justification
  • Only an outer sheet giving the abstract of cost of work

    • What is the significance of receiving administrative approval to a project?

    <p>It allows for the preparation of detailed estimates</p> Signup and view all the answers

    What is the purpose of an abstract estimate?

    <p>To obtain administrative approval for a project</p> Signup and view all the answers

    What is the role of the General Manager in preparing estimates?

    <p>To prescribe that both administrative approval and technical sanction should be accorded on detailed estimates</p> Signup and view all the answers

    When should work on a project commence?

    <p>After receiving technical sanction and allocating adequate funds</p> Signup and view all the answers

    What should the authority consider when giving technical sanction?

    <p>All of the above</p> Signup and view all the answers

    What is the minimum cost threshold for conducting field surveys in Signal and Telecommunication works?

    <p>Rs 2.5 crores</p> Signup and view all the answers

    Why is it essential to make notes during the field survey regarding the availability of space for S&T buildings?

    <p>To ensure the office, depot, and residential quarters meet the requirements</p> Signup and view all the answers

    What is the primary purpose of examining alternative proposals in Signal and Telecommunication works?

    <p>To identify the most suitable option</p> Signup and view all the answers

    What is a crucial factor to consider during the site survey for Signal and Telecommunication projects?

    <p>Climatic conditions</p> Signup and view all the answers

    What is the significance of noting the availability of power supply at the site during the field survey?

    <p>To ensure the power supply meets the project's requirements</p> Signup and view all the answers

    Why is it essential to consider the environmental impact of Signal and Telecommunication projects?

    <p>To minimize the project's environmental footprint</p> Signup and view all the answers

    What is the primary purpose of conducting field surveys in Signal and Telecommunication projects?

    <p>To gather data for working out the project's details</p> Signup and view all the answers

    What is a crucial aspect to consider during the project's feasibility study?

    <p>Impact of nearby industrial conditions</p> Signup and view all the answers

    What is the monetary limit for renewals and replacements of assets charged to Revenue, and repairs and reconditioning of existing assets?

    <p>Rs. 50,000</p> Signup and view all the answers

    In which case can work be started on an Urgency Certificate?

    <p>Only for works which are urgently necessary to safeguard life or property</p> Signup and view all the answers

    What instruction should be observed while giving administrative approval or sanction and allotting funds?

    <p>Instructions in paragraph 1260</p> Signup and view all the answers

    What is the purpose of furnishing a copy of sanction and instructions to the Accounts Officers?

    <p>To keep them informed of the approval process</p> Signup and view all the answers

    What is required before undertaking material modifications in a work or scheme?

    <p>Prior approval of the authority</p> Signup and view all the answers

    What is the purpose of fixing a date by which the detailed estimate for the work should be prepared and got sanctioned?

    <p>To ensure timely completion of the project</p> Signup and view all the answers

    Who is responsible for giving instructions regarding the execution of the work to executive officers?

    <p>The competent authority</p> Signup and view all the answers

    What type of works are exempt from the ordinary rules for sanction?

    <p>Works considered to be urgently necessary to safeguard life or property</p> Signup and view all the answers

    What is the purpose of Chapter II of the Indian Railway Code for the Engineering Department?

    <p>To provide general instructions for conducting surveys for Railway Projects</p> Signup and view all the answers

    What type of surveys are carried out for new lines, Conversions, Doublings and other Line Capacity Works?

    <p>Engineering-cum-Traffic Surveys</p> Signup and view all the answers

    What is the minimum cost threshold for which Engineering-cum-Traffic Surveys are required?

    <p>Rs 2.5 Crores</p> Signup and view all the answers

    What is the reference for the system of signalling to be provided?

    <p>Chapter 7 of SEM</p> Signup and view all the answers

    What is the purpose of a Project report when it involves scientific points or other considerations of special character?

    <p>To provide a complete account of the basis on which every part of it has been framed</p> Signup and view all the answers

    What type of projects require a complete account of the various considerations in regard to engineering details, economy of construction and utility of the Project?

    <p>Works of important nature like, Centralized Traffic Control</p> Signup and view all the answers

    What is the primary consideration for conducting surveys for Railway Projects?

    <p>Utility of the practical working of the Project</p> Signup and view all the answers

    What type of surveys are carried out for Signalling and Telecommunication Works?

    <p>Survey for Signalling &amp; Telecommunication Works</p> Signup and view all the answers

    What is the main purpose of preparing an abstract estimate?

    <p>To form a reasonably accurate idea of the probable expenditure</p> Signup and view all the answers

    What is the primary difference between an abstract estimate and a detailed estimate?

    <p>The level of detail in the estimate</p> Signup and view all the answers

    What is the purpose of subdividing the cost in an abstract estimate?

    <p>To present a correct idea of the work and indicate the nature of expenditure</p> Signup and view all the answers

    What is the threshold for 'New Minor Works' that do not require a detailed estimate?

    <p>Rs. 50,000/-</p> Signup and view all the answers

    What is the purpose of an abstract estimate in the planning stage?

    <p>To get administrative approval for the expenditure</p> Signup and view all the answers

    What is included in an abstract estimate?

    <p>A brief report and justification for the work</p> Signup and view all the answers

    Why are detailed estimates not required for certain types of projects?

    <p>The project is below the specified cost threshold</p> Signup and view all the answers

    What is the purpose of keeping rough estimates on record?

    <p>For auditing and accountability purposes</p> Signup and view all the answers

    What is the term for the process of programming Works, Survey, and Rolling Stock, Machinery and Plant in advance?

    <p>Planning</p> Signup and view all the answers

    Who examines the proposals initiated on the Division?

    <p>The Divisional Railway Manager</p> Signup and view all the answers

    Where are works initiated at the Railway Headquarters sent for scrutiny and examination?

    <p>The Heads of Departments</p> Signup and view all the answers

    What happens to a proposal after approval by the Divisional Railway Manager?

    <p>It is sent to the Principal Financial Adviser for concurrence</p> Signup and view all the answers

    What type of works may be initiated as a result of proposals made by the Signal, Operating or other Departments?

    <p>Signalling and Telecommunication Works</p> Signup and view all the answers

    Who initiates works at the Railway Headquarters?

    <p>The Railway Board</p> Signup and view all the answers

    What happens to works initiated at the Headquarters Office?

    <p>They are sent to the Principal Financial Adviser for concurrence</p> Signup and view all the answers

    What is the final step in the initiation of works programme?

    <p>Inclusion in the Works Programme of the ensuing year</p> Signup and view all the answers

    Who decides the period for which the Signalling/Telecommunication team is to be catered for in the Survey Estimates?

    <p>Principal Chief Signal and Telecommunication Engineer</p> Signup and view all the answers

    Who does the Signaling/Telecommunication Survey team work under?

    <p>Principal Chief Signal and Telecommunication Engineer or Chief Signal and Telecommunication Engineer (Construction)</p> Signup and view all the answers

    What is submitted by the Officer incharge of the Survey?

    <p>Progress Reports</p> Signup and view all the answers

    What is embodied in Tables as Annexure to the Report?

    <p>Calculations and Diagrams</p> Signup and view all the answers

    Who is responsible for obtaining the requirements of the Signal & Telecommunication Department?

    <p>Principal Chief Engineer</p> Signup and view all the answers

    What provision is made in Survey Estimates for Signal and Telecommunication Projects?

    <p>For Signal and Telecommunication Departments and other Departments, viz., Traffic, Engineering, Accounts, Electrical, etc.</p> Signup and view all the answers

    What is formulated by the Officer incharge at the conclusion of the Survey?

    <p>Survey Report</p> Signup and view all the answers

    Who is consulted by the Principal Chief Signal and Telecommunication Engineer while finalizing the Survey Estimate?

    <p>Principal Financial Adviser</p> Signup and view all the answers

    What is the primary consideration when selecting works for inclusion in the Works Programme within the financial ceiling?

    <p>Works that are expected to yield the maximum benefit to the Railway</p> Signup and view all the answers

    When should the Preliminary Works Programme for the following year be submitted to the Railway Board?

    <p>By 1st week of September</p> Signup and view all the answers

    What should be based on firm data in the project cost estimate?

    <p>Quantity and rates at current price levels</p> Signup and view all the answers

    What should accompany each investment proposal?

    <p>A sketch showing the proposal</p> Signup and view all the answers

    What should be updated if there is an increase in prices between the initial project estimate and its inclusion in the Works Programme?

    <p>The project cost estimate</p> Signup and view all the answers

    What should the financial outlay proposed for the year be in accordance with?

    <p>The project schedule</p> Signup and view all the answers

    What is the purpose of submitting the Preliminary Works Programme to the Railway Board?

    <p>To enable the Railway Board to arrange for a realistic funds allocation</p> Signup and view all the answers

    What is necessary for each investment proposal?

    <p>All of the above</p> Signup and view all the answers

    What is the primary purpose of making a provision for contingencies in an estimate?

    <p>To allocate a buffer for unexpected expenses that may arise</p> Signup and view all the answers

    What is the percentage of the total estimated cost that should be allocated as a provision for contingencies?

    <p>3%</p> Signup and view all the answers

    What is the purpose of maintaining a schedule of rates in each open line division?

    <p>To facilitate the preparation of estimates</p> Signup and view all the answers

    What type of works are referred to as 'Deposit Works'?

    <p>Works executed by the Railway Administration for and at the cost of other Government departments, local bodies, private persons, etc.</p> Signup and view all the answers

    What is the minimum cost threshold for which the provision for contingencies should not be diverted to new work or repairs without the sanction of the authority?

    <p>Rs. 1,000</p> Signup and view all the answers

    Who is responsible for ensuring that correct schedules of rates are maintained in each open line division?

    <p>The Chief Engineer</p> Signup and view all the answers

    What is the purpose of periodically revising the schedule of rates?

    <p>To ensure that the rates are in line with the prevailing market rates</p> Signup and view all the answers

    What should be separately estimated and provided for in the estimates?

    <p>Incidental expenditures such as works establishment and sheds</p> Signup and view all the answers

    What is the primary reason for promptly advising the Board of revised estimates sanctioned subsequent to the despatch of the final Works Programme?

    <p>To enable the latest sanctioned cost to be exhibited in the Pink Book to be circulated along with the Budget</p> Signup and view all the answers

    What is the primary purpose of including works in the Works Programme every year till they are finally completed?

    <p>To enable the tracking of expenditure and outlay</p> Signup and view all the answers

    What is the purpose of indicating the reference to the item number of the current year's Pink Book in the Works Programme?

    <p>To identify works in progress</p> Signup and view all the answers

    What is the primary purpose of categorizing items in the Works Programme under 'New Works' and 'Works in Progress'?

    <p>To arrange works according to Plan Heads</p> Signup and view all the answers

    What is the primary purpose of indicating the authority under which the work was first started in the Works Programme?

    <p>To identify the competent authority for the work</p> Signup and view all the answers

    What is the primary purpose of including the 'Demand No.' in the Works Programme?

    <p>To identify the source of funding for the work</p> Signup and view all the answers

    What is the primary purpose of including the 'Outlay for 2021-22' and 'Outlay for 2022-23' in the Works Programme?

    <p>To provide a forecast of future expenditure</p> Signup and view all the answers

    What is the primary purpose of including the 'Expenditure to end of 3/21' in the Works Programme?

    <p>To provide a record of past expenditure</p> Signup and view all the answers

    What is the term for the process of programming Works, Survey, and Rolling Stock, Machinery and Plant in advance?

    <p>Planning</p> Signup and view all the answers

    Who examines the proposals initiated on the Division?

    <p>Divisional Officers</p> Signup and view all the answers

    What type of works may be initiated as a result of proposals made by the Signal, Operating or other Departments?

    <p>Signalling and Telecommunication Works</p> Signup and view all the answers

    Where are works initiated at the Railway Headquarters sent for scrutiny and examination?

    <p>Principal Financial Adviser</p> Signup and view all the answers

    What happens to a proposal after approval by the Divisional Railway Manager?

    <p>It is included in the Works Programme of the ensuing year</p> Signup and view all the answers

    Who initiates works at the Railway Headquarters?

    <p>Head of Departments concerned</p> Signup and view all the answers

    What is the final step in the initiation of works programme?

    <p>Inclusion in the Works Programme of the ensuing year</p> Signup and view all the answers

    Who decides the relative priorities of Works, Survey, and Rolling Stock, Machinery and Plant?

    <p>Planning Authority</p> Signup and view all the answers

    What should be prepared if an item of work was omitted from an already sanctioned estimate and cannot be met out of contingencies?

    <p>Supplementary estimate</p> Signup and view all the answers

    When should a revised estimate be prepared?

    <p>When the expenditure is likely to exceed the amount provided in the detailed estimate</p> Signup and view all the answers

    What should accompany a revised estimate?

    <p>A comparative statement showing the excess or saving under each sub-head of account</p> Signup and view all the answers

    What is the purpose of submitting an abstract estimate of a construction project?

    <p>To submit for the approval of the Railway Board</p> Signup and view all the answers

    What form should the abstract estimate of a construction project be accompanied by?

    <p>Form E. 554 'Abstract cost of Railway'</p> Signup and view all the answers

    What should a narrative report explain in an abstract estimate of a construction project?

    <p>The salient features and major items of expenditure</p> Signup and view all the answers

    What should be submitted with the abstract estimate of a construction project?

    <p>All of the above</p> Signup and view all the answers

    What type of estimates are prepared in the same form and degree of detail as the main estimate?

    <p>Supplementary estimates</p> Signup and view all the answers

    Who is responsible for deciding the period for which the Signalling/Telecommunication team is to be catered for in the Survey Estimates?

    <p>Principal Chief Signal and Telecommunication Engineer</p> Signup and view all the answers

    Under whose administrative and technical control does the Signaling/Telecommunication Survey team work?

    <p>Chief Signal and Telecommunication Engineer (Construction)</p> Signup and view all the answers

    What is the purpose of submitting periodical reports of progress in prescribed forms?

    <p>To monitor the progress of the Survey</p> Signup and view all the answers

    What is included in the report formulated at the conclusion of the Survey?

    <p>The details of the information collected, calculations, and diagrams</p> Signup and view all the answers

    Who is responsible for making provisions for other Departments in the Survey Estimates?

    <p>Principal Chief Engineer</p> Signup and view all the answers

    What is the purpose of obtaining the requirements of the Signal & Telecommunication Department from the Principal Chief Signal and Telecommunication Engineer?

    <p>To prepare the Survey Estimates</p> Signup and view all the answers

    Who is responsible for submitting the report at the conclusion of the Survey?

    <p>Officer incharge of the Survey</p> Signup and view all the answers

    What is the purpose of making provisions for other Departments in the Survey Estimates for Signal and Telecommunication Projects?

    <p>To ensure that all necessary provisions are made for the other Departments involved in the Project</p> Signup and view all the answers

    Up to what amount can expenditure or liability be incurred prior to receipt of sanction for repairs and reconditioning of existing assets?

    <p>Rs. 50,000</p> Signup and view all the answers

    Under which circumstances can work be started on an Urgency Certificate?

    <p>For works requiring immediate attention due to unexpected events</p> Signup and view all the answers

    What instruction should be observed while giving administrative approval or sanction and allotting funds?

    <p>The instruction in paragraph 1260</p> Signup and view all the answers

    What are the two sub-groups of works classified based on their cost?

    <p>Works costing more than Rupees Five Lakhs each and works costing upto Rupees Five Lakhs each</p> Signup and view all the answers

    What is required before undertaking material modifications in a work or scheme?

    <p>Prior approval of the authority who sanctioned the estimate</p> Signup and view all the answers

    Who is responsible for giving instructions regarding the execution of the work to executive officers?

    <p>The Competent Authority</p> Signup and view all the answers

    What is the minimum return required on the initial estimated cost of a project for it to be considered financially justified?

    <p>10 per cent</p> Signup and view all the answers

    What type of works are exempt from the requirement of showing individual works with estimates in the Programme?

    <p>Works costing upto Rupees Two Lakhs each in the case of Track Renewal works</p> Signup and view all the answers

    What type of works are exempt from the ordinary rules for sanction?

    <p>All of the above</p> Signup and view all the answers

    What is added to the cost of the project, excluding that chargeable to Revenue, when its construction is likely to last for more than one year?

    <p>Interest during construction</p> Signup and view all the answers

    What is the purpose of furnishing a copy of sanction and instructions to the Accounts Officers?

    <p>To facilitate the execution of the work</p> Signup and view all the answers

    What is the primary consideration for a project to be financially justified?

    <p>The project's net gain should yield a return of at least 10 per cent on the initial estimated cost</p> Signup and view all the answers

    What is the purpose of fixing a date by which the detailed estimate for the work should be prepared and got sanctioned?

    <p>To ensure timely completion of the project</p> Signup and view all the answers

    What type of projects have special rules applicable to them?

    <p>Residential buildings, assisted sidings, and rolling stock</p> Signup and view all the answers

    What is the primary purpose of the Test of Remunerativeness?

    <p>To determine the financial justification of a project</p> Signup and view all the answers

    What is the primary consideration for determining whether a project is financially justified?

    <p>The project's net gain should yield a return of at least 10 per cent on the initial estimated cost</p> Signup and view all the answers

    Study Notes

    Field Surveys

    • Field surveys are required for Signal and Telecommunication works costing more than ₹2.5 crores each before inclusion in the Works Programme.
    • Categories of works that require field surveys include:
      • Electronic/Relay Interlocking of Major yards
      • Modern Signalling Works including CTC, ATP, etc.
      • Communication Works including LTE/MTRC/UHF/OFC/QUAD, etc.
      • IP Networks/Data Security/Web-based Applications
      • IoT and AI-based systems

    Alternative Proposals

    • Alternative proposals of importance should be examined and rejected, with reasons for rejection explained in the report.

    Notes to be Made in the Field

    • During surveys, careful notes with data should be made at site, from personal enquiry and observation, regarding any information likely to be useful in working out the details of the Projects.
    • Special attention should be given to:
      • Availability of Space for S&T building including Office/Depot/Residential quarter, etc.
      • Availability of required concrete sleepers
      • Availability of power supply at site or sites
      • Climatic condition suitability for the type of equipment to be installed
      • Special problems like rocky soil, existence of wide rivers, etc.
      • Gradients on the section, particularly for Automatic Signalling
      • Detention to trains that can be saved, and additional services that can be introduced
      • Availability of road approach
      • Any other specific requirement/consideration for the project

    Detailed Estimates

    • Detailed estimates should be prepared and submitted for technical sanction of the competent authority after administrative approval.
    • Detailed estimates should be prepared in sufficient detail to enable the competent authority to ensure that the abstract estimate sanctioned by a higher authority is not likely to be exceeded.
    • No work should be commenced till a detailed estimate is prepared, sanctioned, and adequate funds are allotted by the competent authority.

    Technical Sanction

    • Technical sanction is the sanction of the competent authority to the detailed estimate of a work.
    • The authority according technical sanction should satisfy itself that:
      • The details of the scheme as worked out are satisfactory
      • The methods proposed for the execution of the work are adequate
      • The cost has been estimated from reliable data and is likely to be reasonably accurate

    Estimates

    • Estimates should be presented in the form of:
      • Abstract Estimates
      • Detailed Estimates
      • Supplementary Estimates
      • Revised Estimates
      • Project Abstract Estimates
      • Construction Estimates
      • Completion Estimates
    • Note: For "New Minor Works" costing ₹50,000/- and less, for renewals and replacement works chargeable to Revenue costing ₹2 lakh and less, and for "Reconditioning Works" costing ₹1 lakh and less, detailed estimates need not be prepared for formal sanction.

    Planning and Execution

    • Works started on Urgency Certificates: In addition to the exception mentioned, the following are the only classes of work on which expenditure or liability may be incurred prior to the receipt of sanction of the authority competent to sanction the estimates under the ordinary rules.
    • Material modifications in a work or scheme as sanctioned should not be permitted or undertaken without the prior approval of the authority who sanctioned the estimate.
    • The competent authority will give instructions regarding the execution of the work to executive officers subordinate to him and fix a date by which the detailed estimate for the work should be prepared and got sanctioned.

    Planning General

    • Planning involves programming works, survey, and preparation of estimates, justification, and allocation of funds within prescribed ceilings.
    • The process includes deciding on priorities, preparing necessary justification and estimates, and including them in the "Works, Machinery, and Rolling Stock Programme".

    Initiation of Works Programme

    • The programme of signalling and telecommunication works may be initiated by proposals from various departments for periodic replacement of worn-out assets, meeting operating requirements, improving safety, or providing amenities to passengers.
    • Works can be initiated at the Division or Railway Headquarters, and the proposal is examined and approved by the Divisional Railway Manager and then sent to the Headquarters Office for scrutiny.

    Survey Estimates

    • The period for which the signalling/telecommunication team is to be catered for in the Survey Estimates is decided by the Principal Chief Signal and Telecommunication Engineer in consultation with the Principal Financial Adviser.
    • Requirements of the Signal & Telecommunication Department are obtained from the Principal Chief Signal and Telecommunication Engineer while preparing the Survey Estimates.

    Administrative Control on Survey Team

    • The Signaling/Telecommunication Survey team works under the administrative and technical control of the Principal Chief Signal and Telecommunication Engineer or Chief Signal and Telecommunication Engineer (Construction).

    Progress Reports and Report

    • The Officer in charge submits periodical reports of progress in prescribed forms as directed by the Principal Chief Signal and Telecommunication Engineer.
    • A report is formulated at the conclusion of the Survey, embodying the details of the information collected, calculations, and diagrams in tables as an annexure to the report.

    Works Programme

    • The Railway Administrations should take stock of schemes already formulated and those under consideration, and select works for inclusion in the Works Programme within the financial ceiling.
    • The Preliminary Works Programme for the following year should be submitted to the Railway Board by the 1st week of September or an earlier date specified by the Board.

    Cost and Estimates

    • Project cost is based on firm data on quantity and rates at current price levels, and should be updated taking into account changes in wages, material prices, freight, and fares.
    • A sketch showing the proposal should accompany each proposal, and investment proposals should be accompanied by a detailed plan showing the scheduling of the project.

    Works Programme Compilation

    • The Works Programme is compiled in a specified format, including columns for expenditure, outlay, and balance.
    • Items in the Works Programme are grouped into categories, including New Works and Works in Progress.
    • Provision for contingencies is made in all estimates at 3% of the total estimated cost, and should not be diverted to new works or repairs exceeding Rs. 1,000 without sanction.

    Planning General

    • Planning involves programming works, survey, rolling stock, machinery, and plant in advance, deciding priorities, preparing justification and estimates, and making available funds for execution.
    • Planning includes preparing necessary justification and estimates, making available funds for execution, and including them in the "Works, Machinery and Rolling Stock Programme".

    Initiation of Works Programme

    • The programme of signalling and telecommunication works may be initiated as a result of proposals made by the Signal, Operating, or other Departments for periodic replacement of worn-out assets or for meeting operating requirements.
    • Works may be initiated either on a Division or at the Railway Headquarters or by Railway Board.
    • Works initiated on a Division shall be first examined by the Divisional Officers and then forwarded to the Headquarters Office for scrutiny and examination.

    Survey Estimates

    • The period for which the Signalling/Telecommunication team is to be catered for in the Survey Estimates shall be commensurate with the workload in each case.
    • The requirements of the Signal & Telecommunication Department shall be obtained from the Principal Chief Signal and Telecommunication Engineer while preparing the Survey Estimates for such projects.
    • Suitable provision shall be made for other Departments, viz., Traffic, Engineering, Accounts, Electrical, etc. as found necessary in the Survey Estimates.

    Administrative Control on Survey Team

    • The Signaling/Telecommunication Survey team shall work under the Administrative and Technical Control of the Principal Chief Signal and Telecommunication Engineer or Chief Signal and Telecommunication Engineer (Construction).

    Progress Reports on Surveys

    • The Official incharge shall submit periodical reports of progress in prescribed forms as may be directed by the Principal Chief Signal and Telecommunication Engineer.

    Report

    • At the conclusion of the Survey, a report should be formulated by the Officer incharge of the Survey.
    • The report should include details of the information collected, calculations, and diagrams, embodied in Tables as Annexure to the Report.

    Classification of Works

    • Works are further classified into sub-groups based on their cost, with different categories for works costing more than Rupees Five Lakhs each, works costing up to Rupees Five Lakhs each, and works costing up to Rupees Two Lakhs each in the case of Track Renewal works.

    Test of Remunerativeness

    • A project is considered financially justified if it can be shown that the net gain expected to be realised as a result of the proposed outlay would yield a return of not less than 10 per cent on the initial estimated cost.

    Revised Estimate

    • A revised estimate should be prepared and submitted for the sanction of the competent authority if the expenditure on a work or project is likely to exceed the amount provided in the detailed estimate or construction estimate.
    • The revised estimate should be prepared in the same form and degree of detail as the original estimate and should be accompanied by a comparative statement showing the excess or saving under each sub-head of account against the latest sanction.

    Project Abstract Estimate

    • The abstract estimate of a Construction Project should be submitted for the approval of the Railway Board on Form E. 554 "Abstract cost of Railway".
    • The abstract estimate should be accompanied by an abstract estimate of junction arrangements, a narrative report explaining the salient features and major items of expenditure, and detailed estimates on Form E. 553.

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