970x125
In a move aimed at the scrutiny of major projects, the Railway Board has directed all Zonal Railways to strictly ensure that detailed project reports (DPRs) for large infrastructure projects — costing more than Rs 50 crore —are fully incorporating recommendations made by the Project Evaluation Committee (PEC) before final submission.
970x125
The Board said PEC observations were not addressed in the final DPRs vetted by zonal railways. Such omissions led to unnecessary delays in project approvals, it added.
“On perusal of the vetted DPR, it has been observed that in certain cases PEC observations remain unaddressed. This delays the processing of proposals in the Board. It is expected that due consideration is given to the PEC minutes and the DPR should duly reflect the corrections, advised /agreed to by Zonal Railway while presenting the project to PEC,” said the Board, in its communication to Zones on Tuesday.
The PEC meetings are convened at the Railway Board level for appraisal of project DPRs costing over Rs 50 crore. Various aspects of the proposal are deliberated upon and suggestions for modification are recorded in Minutes of Meeting.
Once the PEC recommends the project, the final DPR prepared by Zonal Railway is vetted by the Finance Department and submitted to the Railway Board with the approval of the General Manager of the respective zone.
“Accordingly it is advised that white vetting the final version of DPR after the PEC recommendation, Construction Finance should ensure that all the rectifications required owing to observations of PEC are invariably incorporated in the vetting note before submission to the Railway Board,” said the board.
Officials said the move comes amid increasing cases of cost overruns and delays in major railway projects.
Story continues below this ad
The Railway Board has also circulated a comprehensive finance checklist for vetting DPRs after PEC approval.
It covers important components such as accurate cost estimation, realistic rate analysis, proper land acquisition cost calculation, avoidance of lump-sum figures without justification, and verification of stakeholder consultations, especially in cases involving forest land.
The checklist also mandates that DPRs must adhere to all relevant Railway Board circulars and policy letters, covering areas such as speed standards, ballastless tracks in tunnels, fencing norms, signalling components, and provisions for track machine staff facilities.
“Please check whether alternate options for the proposed section have been evaluated and the proposed selection is the best available option,” the Board said. “The traffic considered for the project should only be additional traffic and supported by adequate stakeholder consultation,” the Board added in its checklist.
Story continues below this ad
Zonal finance units have been asked to certify that all corrections suggested by the PEC have been incorporated before forwarding the final version to the Board. Each detailed project report must also align its cost details, financial internal rate of return (FIRR), Economic Internal Rate of Return (EIRR), and other model inputs with the approved formats.
© The Indian Express Pvt Ltd
970x125
