Rolling Stock Programme PDF

Silabhadra Das AP(WMT) IRIMEE/Jamalpur  Indian Railway Codes and Manual for Mechanical Department, Chapter - XV  Objective Quality of service Comfort for Passengers PLANNING IN Safety RAILWAYS Punctuality Better Utilization of As...

Silabhadra Das AP(WMT) IRIMEE/Jamalpur  Indian Railway Codes and Manual for Mechanical Department, Chapter - XV  Objective Quality of service Comfort for Passengers PLANNING IN Safety RAILWAYS Punctuality Better Utilization of Assets Reduction in Cost  Planning Involves Integrated approach PLANNING for creation of IN Infrastructure RAILWAYS Assets Machinery & Plants Human Resource  Planning has Three Levels Corporate Planning at Railway Board based on Five Year Plan of Railways Need for Infrastructure/Assets/M&P Advise Zonal Railways for PLANNING Initiation of Proposals IN Zonal Planning at Zonal Railways RAILWAYS To meet the Requirement of Zone Unit Level To replace Assets To improve Quality PLANNING INRAILWAYS Five Year Plan of railways Forecasts growth of passenger and freight traffic area wise. Anticipating, Identifying and removing bottlenecks Working out Requirement of Rolling Stock Replacement of Over-aged Assets Adopting State-of-Art Technology  Annual rolling Stock programme is a follow up of the Five Annual Year Plans formulated for rolling Stock Indian Railways in Programme respect of acquisition of rolling stock and unit exchange spares  RSP funded through Capital expenditure Planned under Demand 16, PH-21  Annual Rolling Stock Program Primarily Meant for New Acquisition of Locomotive New Coaches Acquisition Wagons Track Machines Tower Cars Breakdown Cranes Camping coach Planned and sanctioned at Railway Board level  This programme also caters to major modifications to be carried out on rolling stock, which changes their class – Conversion of coaches into ART/ARME or camping coach Major – Conversion of air brakes, e.g. modifications Twin pipe conversion of wagon stock – Utkrisht coaches and Project Swarn – Planned by Zonal railways or Railway Board and sanctioned at Railway board level High Powerpacks, Traction motors, compressors, Value Governors. Capital These items are procured by unit under Itemized Unit Rolling stock programme. Exchange Planned at Divisional/Headquarter Spares level and sanctioned by Railway Board Unit Exchange Spares Norm ALCO Locomotive  Provisions-for new rolling stock in the annual rolling stock programme is made atleast three years in advance in the case of locomotives and two years advance in the case of wagons and carriages Rolling stock provision can be done on additional requirement basis or replacement/renewal basis The provisions required to be made in the rolling stock programme on replacement account is arrived at by projecting the likely condemnation in the period for which the plan is made.  Renewal of rolling stock RSP for a year is prepared 15 to 18 months in advance, therefore it is based on rough estimates of traffic requirement therefore should take into account all those rolling stock which is due for renewal after 18 months from the year of preparation RSP 2020 will take care of rolling stock going to be due for renewal in 2022 It is generally decided on codal life of the rolling stock  Codal Life of rolling stock from the date of manufacturing till the rolling stock will perform economically and safely. Authority: Railway Board's Letter No.: 99/M (N) /60/6 dated 11.5.99 (ACS No.1) Electric Locomotives 35 Year Diesel Hydraulic/Electric Locos (a) With Original Power Pack 30 Year (b) With renewed Power Pack 40 Year (c) Power Pack for diesel Hydraulic/Electric Locos 20 Year Battery Locomotives 25 Year Electric Multiple Unit Stock (i) Motor Coaches 25 Year (ii) Trailer Coaches 25 Year Coaching Vehicles 30 Year Authority: Railway Board's Letter No.: 99/M (N) /60/6 dated 11.5.99 (ACS No.1) Bogie Inspection Carriages. 40 Year Bogie Tourist Cars 40 Year Bogie Restaurant Cars 40 Year Wooden Vehicles or Wagons with wooden under- 15 Year frames. Railway Officers and subordinate's Inspection 30 Year Carriages (Four or six-wheelers) Rest Vans, Pay Clerk's Vans and all other vehicles and 30 Year wagons  Each Railway Administration is Authorized authorized by the Railway Board to keep a fixed stock number of rolling stock known as authorized stock.  ▪ Reduction may be proposed only if ❖ 1) It is certain that the stock will not be required in future. ❖ 2)a) After obtaining sanction in Reductions reduction an estimate is to be prepared writing down the original in the cost of the stock from capital by debit to DRF Authorized ❖ b)Estimate should give estimated Rolling value of released material. ❖ c) Stock should be removed from Stock Authorized stock ❖ 3) The above procedure should also be followed in case of replaced stock, if not immediately broken up  Rolling Stock Additions “Renewal” of rolling stock should always take precedence of “Additions” No additions are to be asked if ❖“Stock on line” < “Authorized Stock”  Justification of Additional rolling stock Additional rolling stocks are considered justified irrespective of the stock only if it can be shown that the existing stock is fully implied, that the anticipated entries in traffic warrants the provisions of additional locomotives and that justification exists for the provision of such power on capital account.  Analyze trends, class-wise, since each segment of traffic has different characteristics and hence widely varying growth potentials. Get class-wise break-up and annual growth per annum of Coach passenger-kms. Carrying capacity of various types of coaches Planning Norms of coach utilization – vehicle km per vehicle day on line-450km BG & 275km MG Average occupancy per coach- 85% Study of rake links for augmentation of coaches Renewals of rolling stock: - As the RSP is prepared 15 /18 months before its commencement, it has to be based on – The traffic requirements after 1 - 2 years – Condition of rolling- stock as it might be expected to be more than a year later.  The suitability of locos / Coaches to meet the modern requirement are important considerations to be kept in mind while planning the RSP The rolling stock that will exceed in the life limit Introduction of long hauled trains Introduction of 24/26 coach trains in future  Get percentage of average growth rate during the last 5 yrs. Give projections of passenger-kms class- wise for next 5 yrs assuming this growth rate. – Replacement of over aged coaches (backlog + arising) – Spare for maintenance(8.5%) – Traffic spare(5%) – Production capacity of prod.units  Requirements of locos Decide the traction-mix of Freight & passenger TFC both for BG & MG between Diesel & elect depending on past plan considering different scenarios of electrification. Get the engine utilization norms for above. Get the existing holding. Work out requirement based on Freight transport & Passenger traffic in BGTKM. The number of additional locos required for new lines would depend entirely on the new route KMs.  Annual Rolling Stock Program Procedure Calculation New Acquisition Additional Requirement for ROLLING Increase In Traffic = B STOCK Reduction for Change In Traffic Pattern = C PROGRAM Condemned in Previous Year = E Accident Damage = F Provisions Required In The RSP = B–C+E+F  Preparation of Rolling Stock Program Forwarded to FA & CAO Finance Concurrence ROLLING Against Each Item STOCK Forwarded to General Manager for Approval PROGRAM Forwarded to Railway Board as Itemized Rolling Stock Program for Inclusion in Pink Book  www.railwayrsp.com The RSP portal has been developed to allow easy creation and processing of RSP Itemised and Bulk PORTAL RSP proposals, procurement of Locomotives, Carriages, Wagons and Cranes by users on Indian Railways.  Create proposals Assistance provided to you every step of the way. Create proposal in minutes and refine them as needed. Stay ahead of all deadlines. Submit electronically to Board RSP Complete submission online and be assured that your hard work PORTAL would not be lost sight of! Track sanction and procurement status Sanction of your items indicated to you when approval is issued from Board. Submit information about Works in Progress Submit accurate information online and receive funds according to your actual needs.  Bulk RSP Bulk RSP is planned and sanctioned at Railway board level. These include High value rolling stocks and related high value items which needs to be distributed among zonal railways. Locomotives, carriages and wagons are planned under bulk RSP. Major modifications such as upgradation of locomotive, change of traction from diesel to electric, camping coach, ART/ARME or twin pipe conversion in wagon stocks. Railway Pink book.  Itemized rolling stock Programme The itemized RSP is meant to cater for rolling stock accessories of Locomotives, Coaches, wagons, cranes, Tower wagons etc Itemized RSP is proposed and planned at Unit level/ Zonal railway level. This channel of procurement is adopted by zonal railways in order to purchase items under capital expenditure fund. Final sanction accorded by Railway board. Unit exchange spares and important accessories such as powerpack, turbosupercharger and other major modifications to be carried out on existing rolling stock. Procurement procedure is similar to that of a Non-stock item procurement procedure. Vetting and concurrence taken from divisional as well as HQ finance. After approval of GM, case forwarded to RB for final approval and addition in Zonal Pink book.  All RSP items charged under Demand 16, PH 21 Budget Provision Fund Allocation ROLLING Capital STOCK DRF RRSK PROGRAM Fund for Bulk Order Item - Controlled by Railway Board Fund for Non-Bulk Item - Allotted to Zonal Railways Programmed Delivery vs New Acquisition RSP sanction items which are of routine nature or carried forward from previous year are mentioned in Programmed delivery. These are generally Bulk RSP items directly allotted from Railway board. New RSP items which are proposed in the current year are mentioned in New acquisition. Illustration in Pink Book Illustration in Pink Book  (Proposal of RSP for Year 2015 – 16 in DHN Division) - Vetting proposal to Sr. DFM for 100 Pair BOXN Wheel Set (Proposal of RSP for Year 2015 – 16 in DHN Division) - RSP of 100pair BOXN Wheel Set with Justification (Proposal of RSP for Year 2015 – 16 in DHN Division) - Queries raised by Sr. DFM/DHN) (Proposal of RSP for Year 2015 – 16 in DHN Division) - Reply of Queries from Sr. DME (C&W)/DHN)  (Proposal of RSP for Year 2015 – 16 in DHN Division) - Concurrence is accorded for inclusion in RSP 2015-16) (Proposal of RSP for Year 2015 – 16 in DHN Division) - Approval from DRM/DHN) (Proposal of RSP for Year 2015 – 16 in DHN Division) - Proposal sent to CME-Planning)  Example – Proposal under RSP Rolling Stock Programme for the Year 2007-08 (In thousand of Rs.) Anticipat Out lay Out lay Balance ed Cost expected S. Allocat propos to Particulars Qty. as per up to Remarks No ion ed for complete vetted end of 2007-08 work est. 2006-07 It is expected that 90% Complete work for renew of 500 renewal of side Nos. of side wall, end wall, end wall wall & flooring of & flooring of 1 500 DRF 130568 117511.2 13056.8 Nil BOXN wagon will be BOXN wagon completed during Pink Book Item 2006-07 and balance No.497 & 514 during the year 2007- of 06-07 08 Dy.CME/Proj WAO/JMP  Example – Proposal under RSP Rolling Stock Programme for the Year 2010-11 Authority: CME/Plg.ER/KKK letter No.MR-5/2010-11/RSP/Proposal dt 24.04.09 (In thousand of Rs.) Out lay Anticipate proposed Sl Particulars Qty. Allocation Remarks d Cost for 2010-11 It is being proposed to rebuilding of 400 Nos. of BOXN/BOBRN for Rebuilding of CC+6T/CC+10T loading BOXN/ BOBRN for 1 400 DRF 211339 211339 during 2010-11 rate based CC+6T/ CC+10T on Sanctioned Est. No. loading 01/Proj/RB/08-09 dt.29.02.2008 against Pink Book Item No.636 of 08-09 528.3475 Dy.CME/Wagon Dycao(W)/JMP may please vet ROLLING STOCK FINANCING Sources for financing CAPEX Gross Budgetary Support Budgetary Resources Internal resources Capital Expenditure EBR-IRFC Market Extra borrowings Budgetary EBR-IF Resources EBR-PPP Financial Leasing Model: Rolling Stock Financing Lease ▪ 30 years (primary period & secondary period of 1 5 years each) Lender/BondSubscriber Period ▪ Full recovery of principal & interest during primary lease 4. Interest& Subscripti Payments period Principal 1. Bond Loan on/ ▪ After 30 years, assets handed over to MoR Standard ▪ Every year, IRFC enters into a Standard Lease Agreement Lease with MoR IRFC Agreeme ▪ IRR of the lease includes a mutually agreed mark-up over the 2. Lease ofAssets 3. LeaseRentals nt marginal cost of borrowing (at present 40 bps) Advan ▪ Arrangement to pay lease rentals in advance by MoR in case ce of difficulties experienced by IRFC in debt servicing Lease ▪ IRFC has never resorted to MoR’s extraordinary support for Rental IR meeting its debt obligations s STRUCTURE & PROCESS FLOW IRFC enjoys legal ownership of the rolling stock assets, which are leased to MoR MoR effectively uses and maintains them throughout their life Break-Up of Various Items financed through EBR(IRFC) Particulars Units ₹ crore Locomotives 11332 1,01,359 Passenger Coaches 64,648 77952 Freight Wagons 2,41,060 46,663 Cranes and Track Machines 85 360 Others 2393 Total 2,28,727 Lease charges paid to IRFC (₹ in crore) FY Capital Interest Total Component component * 2014-15 5450 7023 12473 2015-16 5984 7644 13628 2016-17 6665 8531 15196 2017-18 7591 8914 16505 2018-19 8707 9864 18571 2019-20 9992 10312 20304 2020-21 (BE) 11484 14085 25,569 For every ₹100 crore raised from the market, the OWE is impacted annually by ₹7.02 crore because of interest liability and ₹ 3.89 crore has to be repaid as principal amount from Capital Fund/ Capital every year over a period of 15 years * Interest on a cumulative basis for all borrowings Cost of leasing Rolling Stock through IRFC Financial Year Rate of Lease Charges@ Effective cost to MOR under lease pricing (IRR)* 2013-14 11.365% 8.39% 2014-15 11.724% 8.96% 2015-16 11.196% 8.12% 2016-17 10.905% 7.65% 2017-18 11.152% 8.05% 2018-19 11.428% 8.49% 2019-20 10.868% 7.59% @ Includes principal repayment component * Perhaps the lowest cost debt raised by any entity with such long tenor Thank You  RENEWAL STATEMENT Locomotives Financial Year Programme Units in Locomotives Code Type Reasons to which Item No. for programme Under 30 years Broken up Total prematur relates 30 yrs. age & & not tractive e renewal of age over replaced effort in 1000 lb. Total Carriages Financial Year Programme Units Code Type Reasons to which Item No. for programme Under 30 years Broken up Total prematur relates 30 yrs. age & & not tractive e renewal of age over replaced effort in 1000 lb. Total  Example – Proposal under RSP Rolling Stock Programme for the Year 2009-10 Authority: CME/Plg.ER/KKK letter No.MR-5/2009-10/RSP/Proposal dt 30.04.08 (In thousand of Rs.) Out lay S. propos No Allocati Anticipat ed for. Particulars Qty. on ed Cost 2008-09 Remarks It is being proposed to renew the 500 Nos. of side wall, end wall & Complete flooring of BOXN wagon during renewal of side 2008-09 rate based on vetted Est. wall, end wall & No. 01/Proj/RB/07-08 dt.30.03.2007 flooring of against Pink Book item No. 1 BOXN wagon 500DRF 140198 140198 480,503&543 Dy.CME/Wagon WAO/JMP may please vet  Provisions for new rolling stock in the RSP are made at least 3 years in advance in for locomotives and 2 years for wagons and carriage. The provisions in RSP on replacement account is arrived at by projecting the likely condemnation in the period for which the plan is made.  ROLLING STOCK PROGRAM Preparation of Rolling Stock Program Draft Program Prepared by COM Addition and Renewal of Rolling Stocks Forwarded to CME Inclusion of Major Modification Capital Unit Exchange Spares  ROLLING STOCK PROGRAM Preparation of Rolling Stock Program Workshops Shed Depots Requirement of Spares to CME for Major Modification Capital Unit Exchange Spares Consolidation of RSP at CME Addition and Renewal of Rolling Stocks Inclusion of Major Modification Capital Unit Exchange Spares Budget Estimate of Open Line Works.- ❖ The rolling-stock programme, as approved by the Minister forms part of the Budget Estimate of Demand No. 16 (Assets, Acquisition, construction and replacement). ❖ This estimate shows also the expenditure, chargeable to Capital and Depreciation-Reserve Fund on Works, other than rolling-stock, and on "Suspense" and "Miscellaneous adjustments".  ROLLING STOCK PROGRAM Work Proposed in Itemised Rolling Stock Program In Two Format Work Already Sanctioned by Railway Board Called Programmed Delivery New Work Proposed by PU/Zonal Railways Pertains to Specific Requirement  Related Booklets PWP FWP WIP PINK BOOK LAW BOOK GREEN BOOK  ROLLING STOCK PROGRAM Preparation of Rolling Stock Program Time Frame To reach Railway Board Prior to 15th September of Preceding Year Communication of Sanction of Railway Board May of Current Year  PLANNING IN RAILWAYS Five Year Plan of Railways Source of Funding Internal Generation Development Fund DRF Extra Budgetary Support Borrowings Gross Budgetary Support  PLANNING IN RAILWAYS Annual Program Review and Follow up of Five Year Plan Broadly Categorized as Works Program Rolling Stock Program Machinery & Plant Program  PRESENT FIVE YEAR PLANRAILWAYS In 2015-16 Railways Budget Beginning of a Rs 8560bn Five-Year Action Plan ToTransform Network Four goals for IR Sustainable and Measurable Improvement in Customer Experience Improved Safety Substantial Expansion of Passenger and Freight Capacity Becoming Financially Self-sustainable  ROLLING STOCK PROGRAM Advance Planning of Rolling Stock Program New Locomotive Three Years in Advance Coaches & Wagons Two Years in Advance To Match the Requirement In Each Year of Plan Period To Provide Lead Time For Supply/Manufacturing  ROLLING STOCK PROGRAM Advance Planning of Rolling Stock Program In Order to Facilitate Uninterrupted Production Planning PUs Workshops Permitted to Plan for 80% of Previous Years Facilitates in Advance Preparation of Materials Tooling Machining for 80% of Next Year Requirement without Waiting for Specific Program from Board  ROLLING STOCK PROGRAM Calculation of New Acquisition Renewal Depends on Codal Life Of Rolling Stock Suitability of Existing Stock to Meet Modern Requirement Expenditure will Incur To Maintain the Stock CODAL LIFE -ILLUSTRATION CODAL LIFE -ILLUSTRATION  ROLLING STOCK PROGRAM Calculation of New Acquisition Additional Requirement Expected Increase in Traffic On Existing Lines Additional Traffic On New Lines to be Commissioned Spares for Mechanical Repairs etc Scope for Peak Demand Unit Exchange Spares Norm ALCO Locomotive Unit Exchange Spares Norm HHP Locomotive Unit Exchange Spares Norm HHP Locomotive Unit Exchange Spares Norm ACLocomotive Unit Exchange Spares Norm ACLocomotive  ROLLING STOCK PROGRAM Information to be Furnished Programmed Delivery PB LB No. and Year of Sanction Particulars Allocation Latest Anticipated Cost Expected Expenditure in Current Year Expected Expenditure in Next Year  ROLLING STOCK PROGRAM Information to be Furnished (Contd..) New Item Particulars Allocation Anticipated Cost Expected Expenditure in Next Year Justification in Detail Concurrence by FA&CAO  ROLLING STOCK PROGRAM Budget Review Budget Estimate for Next Year Budget Grant August Review Revised Estimate Final Modification Estimate Appropriation Comparison Budget Grant vis a vis Final Grant Final Grant vis a vis Actual Expenditure