Works Programme

and
Working on RSP, M&P,
&
IRPSM Portal
Manoj Kumar Singh
Chief Instructor/Works
 Budget - A Constitutional and Management Document
 Article 112(1) of the Constitution of India prescribes that 'the
President shall in respect of every financial year cause to be laid
before both the Houses of Parliament a statement of the estimated
receipts and expenditure of the Government of India for that year‟
referred to as the "annual financial statement" and popularly called
the "Annual Budget". Every budget contains three elements-

 (a) A review of the preceding year, including the actual receipts and
expenditure in that year ;

 (b) An estimate of the receipts and expenditure of the coming year;

and

 (c) Proposals, if any, for meeting the requirements of the coming

year.
History of Railway Budget:

Separated from Union Budget -1924 on the recommendations of

“ACWORTH COMMITTEE” during 1920-21.

Railway Budget merged with Union Budget in 2017. In FY 2017-

18 was the first Budget presented on February 1, 2017 instead
of February 28.

(Rail Budget merged with Union Budget on the recommendations of a 5

member committee constituted by Finance Ministry and submit report by
August 31, 2016.)
Demand Numbers for Union Budget:

Union Government of India – 54 Ministries

As per union budget (2021-22) - 101 Demand for grants in
Alphabetical order as:

Agriculture Ministry – 1 & 2

Atomic Energy – 3
Ministry of Railways – 84 ( Earlier 80,81,82 & 83)
Youth Affair & Sports – 101

Ministry of Railways gets fund from Consolidated Fund of India from

Demand No. 84.
 Benefits:
 Ministry of Railways continued to function as a departmentally run
commercial undertaking.
 A separate Statement of Budget Estimates and Demand for Grant was
created for Railways, retaining the autonomous nature of the Railway
budget.
 Facilitated multimodal transport planning between highways, railways and
inland waterways, paving the way for cross-ministerial infrastructure
projects.
 Not such burden to pay annual dividend for the budgetary support it
received from the government.
 Save of resources in preparation of Railway Budget.
 Financial deficits are transferred to Union Ministry of Finance.
 Away from political pressure.
 More functional autonomy.
 CONSOLIDATED FUND OF INDIA

The Consolidated Fund of India, created under Article 266 of the Indian
Constitution, includes the revenues received by the government and expenses
made by it. All the revenues that the government receives through direct or
indirect tax go into the Consolidated Fund of India.
Recoveries of loans, earnings from disinvestment and repayment of debts
issued by the Centre also contribute to the fund.
All expenditure incurred by the government is met by the Consolidated Fund
of India.
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.
 Annual Budget Estimates in Railways:

Annual Budget estimates are prepared by individual

Railway administrations for the following items, figures
shown in thousands of Rupees:
 (A) Earnings Estimates;
 (B) Revenue Budget (Demand 1 to 15)
 (C) Capital Budget (Demand 16)
(A) Earning Estimates:
The earnings of Railways are classified under three Sub major Heads
with a separate abstract for each Sub major Head. viz-

1. Abstract "X"- Earnings from Coaching traffic.

2. Abstract "Y"- Earnings from goods traffic.

3. Abstract "Z"- Sundry other earnings. viz, Telegraph, rent, Toll,

Commercial Publicity, Catering, Sales Proceeds,
Interests, Maintenance charges on sidings, Saloons,
Postal Vehicles etc.
(B) Revenue Budget:
Revenue Budget comprises only revenue receipts & revenue
expenditures and also not create any asset or liability for the
government.

Revenue Budget is prepared under Demands 1 to 15 by Railway

Administrations.
 (C) Capital Budget (Demand 16)
The budget proposals of the expenditures to be met out from the
“Consolidated fund of India” should be presented in the form of
Demands for Grants to the parliament.
Capital Budget comprises of capital receipts & capital expenditures
and also create assets or liabilities for the government.
Demand No. 16 :
i) Assets- Acquisitions
ii) Construction &
iii) Replacement
At present there are sixteen demands for Grants which are grouped
under seven categories viz.
 Group Group Demand Name of Demand
No. No.
I Policy Formulation and 1 Railway Board
Services Common to all
2 Miscellaneous Expenditure (General)
Railways
II General Superintendence 3 General Superintendence and Services on
and Services on Railways Railways
III Repair and maintenance 4 Permanent Way and Works
5 Motive Power
6 Carriage and Wagons
7 Plant and Equipment
IV Operation 8 Operating Expenses-Rolling Stock and
Equipment
9 Operating Expenses- Traffic
10 Operating Expenses-Fuel
V Staff Welfare, Retirement 11 Staff Welfare and Amenities
benefits and Miscellaneous
12 Miscellaneous Working Expenses
13 Provident Fund, Pension and other Retirement
Benefits
VI Railway Funds and Payment 14 Appropriation to Funds
to general Revenues
15 Dividend to General Revenues, Repayment of
loans taken from General Revenues.
VII Works Expenditure 16 Assets- Acquisition, Construction &
Replacement.
Classification of Expenditures:
The Revised Classification of expenditure on works irrespective of
whether they are charged to Capital, Fund, DRF,DF,RSF,RRSK and RSF will
come under a single Demand-16 namely Assets-Acquisition, Construction
and Replacement. The Accounting Classification for works expenditure in
in the form of a 8 digit numerical code.

1 2 3 4 5 6 7 8

Source of Finance Plan Head (Minor Head) Detailed Head Primary Unit

 The first module which is an alpha indicates the source of fund namely
Capital, DRF, DF, OLWR as the case may be.
 The second module of 2-digits is numerical this will represent the standard
Plan Head.
 The third module, which is also numerical, will represent the two digits
corresponding to the sub-detailed head of classification giving the details of
the asset acquired, constructed or replaced.
 The last module, which is also numerical 2-digit module, will indicate the
primary unit or object of expenditure.
 Source of Finance:
2 digits indicates the source of fund viz., Capital, Capital Fund, DRF,DF, RRSK and RSF as the
case may be:
Source of Finance Num. Remarks
Code
Capital 20 Expenditure incurred for creation/acquisition of assets for the
purpose of earnings or possession is termed as capital
expenditure.
DRF- (Depreciation Reserve 21 In order to meet the cost of replacement of an asset, DRF has
Fund) been created.
DF- (Development Fund) All un-remunerative new lines, works for passengers amenities,
staff welfare and amenities works, operational improvement
works should be charged to this fund.
DF-I 23 The cost of all passenger and other user's amenity works
DF-II 33 Cost of Labour Welfare Works including additions to existing
and new works when cost is exceeding Rs1,00,000/-
DF-III 43 The entire cost of works when exceeding RS 10/- lakhs which
are un-remunerative but are required.
DF-IV 53 Safety works
Capital Fund 25 1992-1993. This Fund is utilized to finance expenditure until now
charged to Loan Capital and to all Plan Heads (except Plan
Heads 11 & 51).
RSF– (Railway Safety Fund) 26 Conversion of Unmanned LC gates into manned LC gates, busy
manned LC Gates into Grade Separator i.e., ROB/RUB/ ROB/
LHS.
 Source of Finance: Continued
Source of Finance Num. Remarks
Code
Capital – Nirbhaya Fund 28 2016-17, Capital –N, Fund Allocation made by Ministry of
Economic Affairs, Ministry of Finance. Ministry of Women and
Child Development is the Nodal authority for
proposals/schemes. Plan Head 64 – Capital Works & other
projects.
EBR- IF – (Extra Budgetary 84 EBR –like IRFC, RVNL, PPP.
Resources – Institutional
Finance)
RRSK- (Rashtriya Rail Sanraksha 29 2017-18, 5 Years, Fund- One Lakh Crores (20,000
Kosh) Crores per year), Non- lapsable - Track renewals & up-
gradation, Bridge rehabilitation, Elimination of LC
gates on BG routes by 2022, Construction of
ROBs/RUBs, HRD – Human Resources Development
etc.
OLWR – Open Line Works This is not a fund. The actual amount required is met from
Revenue Railway Revenues. for "NEW MINOR WORKS" like
passengers & other Railway user‟s amenities, Labour Welfare
Works and un-remunerative works but essential for
increasing operational efficiency.
SRSF – (Special Railway Safety 27 Not in operation. It was ceased in the 2008 year.
Fund).
PLAN DESCRIPTIONS PLAN DESCRIPTIONS
HEAD HEAD
11 New lines 36 Other Electrical Works including TRD Works

14 Gauge conversion 41 Machinery & Plant

15 Doubling 42 Workshops Including PUs

16 Traffic Facilities 51 Staff Welfare
17 Computerization 53 Passenger & Other Railway users‟ Amenities

18 Railway Research 61 Investment in PSU/JV/SPV etc. (Gov.& Non Gov.)

21 Rolling Stock 64 Other Specified Works

22 Leased Assets 65 Training/HRD
29 Road Safety -Level Crossings 71 Stores Suspense
30 Road Safety- ROB/RUB 72 Manufacturing Suspense

31 Track Renewals 73 Miscellaneous Advances

32 Bridge Works Tunnel Works 81 Metropolitan Transport Project

and Approaches
33 S&T Works 82 Transfer to SRSF – Special Railway Safety Fund
(Not in operation)
35 Electrification Projects
( Authority : Board‟s Letter No. 2017/AC-II/3/2 dated 29.08.2019)
Out of total 39 primary units these units are mostly used for expenditure
for works: -
1 Pay and allowance
2 Payments to casual labor.
3 Payments to contractors.
4 Direct supply of material.
5 Stores supplied from stock.
6 Freight on stores.
7 Credit for released material.
8 Others.
9 Transfer of debits/credits effecting Capital Works Expenditure.
10 P.L.B.
11 Excise duty for purchases of material.
12 Custom duty.
13 Sales Tax.
 The revised and budget estimates for the construction, acquisition and
replacement of assets are briefly known as Works Budget. The budget
estimate for the works are based on the Works Programme approved by the
Board. The requirement of funds both for new investments and for works in
progress are submitted in the form of "Demand for Grants" in the ‘Works,
Machinery and Rolling Stock Programme’ which forms a part of the Budget
papers presented to the Parliament.

Investment decisions relating to the creation, acquisition and replacement

of assets on the Railways are processed through the 3 different Programs:

 1. Rolling Stock Program (Plan Head 21)

 2. M & P Program (Plan Head 41 )

 3. Works Program (Rest of the Plan Heads)

 1. Rolling Stock Program (Plan Head 21)

Website address: http://www.railwayrsp.com/

 2. M & P Program (Plan Head 41 )

Website address: http://www.irmnp.com/

 3. Works Program (Rest of the Plan Heads)

Website address: - https://ircep.gov.in/IRPSM/

• Save 25-30 MT paper /financial year.
• Save a lot of man power.
• Easy & time saving process.
• More systematic.
• Easy online monitoring of progress of work.
• Online physical & financial progress monitoring of works
over the year.
• Analysis of data and generation of various MIS reports.
• Provision of „Out of Turn‟ works through „Supplementary
demands for grants‟.
Rolling Stock Programme :(Plan Head 21 )

Primarily Meant for New Acquisition, Locomotive, Coaches,

Wagons, Tower Cars, Track Machines, BD Cranes , Midlife
Rehabilitation & Modernization. Also for Major Modification High
Value Capital Unit Exchange Spares.

Chapter XV of the Indian Railways Code for Mechanical Department (Workshops).

 RSP - Plan Head 21 under Demand No.16
 RSP Inclusions:

i) Acquiring new rolling stock such as locos, coaches, wagons, cranes tower
wagons, track machines, Break Down Cranes etc.
ii) Midlife rehabilitation/modernization of rolling stock.
iii) Major modifications to be carried out on the Rolling stock which primarily
changes their class i.e., conversion of coaches into ART - Accident Relief Train
iv) Modifications which are of improvement nature, chargeable to Development
Fund.
v) Follow up of the Five year Plans which implemented through an action oriented
annual plan prepared in consultation with Finance Ministry.
vi)The final plan is subject to periodical reviews based on the growth of expected
traffic. Usually the Railway Minister is the convener of the above Working
groups.
 Advance Planning for Rolling stock
 Estimation of requirements.
 Itemized Rolling Stock Program (IRSP) :

i) Prepared by the zonal Railways and PUs

ii) IRSP is in two Formats:
iii) IRSP is submitted on a similar pattern as the Works Programme.
iv) IRSP should reach the Railway Board by 15 September of the
preceding year. The IRSP proposals in the above format are
consolidated and examined by various directorates, moderated or
modified.
v) These are then sent for finance concurrence and approval of the C.A.
The approved proposals are returned to PU Directorate for
compilation and data entry for the Pink Book.
 Machinery and Plants are expensive assets both to acquire and
maintain. Hence, it is important that investments in M&P shall be made
thoughtfully.
 The monetary limits for submission of preliminary M&P proposals to Railway

Board are revised from time to time.

 Items proposed under GM’s Out of turn sanctions should not be included in the

regular M&P Programme for Board’s sanction.

 PCME (for budget allotments & utilization of funds) is nodal officer for

distribution of Ceiling (Preliminary M&P Programme) among various depts. The

overall ceiling should, however, be followed strictly.
 Items included are:
i) Rs. 50 lakhs above - each item
ii) Rs. 30 lakhs above - each item (Electronic in motion weigh bridges)
Submit consolidated Preliminary M&P Programme through M&P Portal maintained by
Railway Board.
 Estimated costs of the machines indicated in the proposals should be present day

realistic costs and should include cost of essential accessories.

 The present day cost - adopt from 1. The latest compendium issued by COFMOW 2.

M&P Portal.
 Costs for other machines may be obtained through market surveys.

 Preliminary M &P Due Date: September / October month of every year or date specified
by the Railway Board. After which, the portal would disallow any subsequent
submissions.
 Final M&P Due Date - Discussed with the Railways by the Railway Board within specified

period of every year.

 M&P- Machinery & Plant covers:
 A machine that remains stationary
and immovable. That means job
comes to machine and not vice
versa.
 All vehicles such as staff cars,
Lorries, Diesel utility vehicles, Road
mobile Cranes, Front end loader/JCB
cranes & Fork lifts.
 Procurement of such T&P value
above Rs. 10 lakhs, is processed
under M&P.
T&P - Tools & Plant covers:
 All movable machines like P/ drills,
power saws, tools & plants, jigs and
fixtures etc.
 Small tools and equipment, All
measuring instruments / Gauges,
Upkeep of office such as furniture,
computers, printers etc.
 Limit for Tools and Plant - Up to Rs.
10 Lakhs each - Charged to
Revenue.
On the basis of the estimate of the Plan funds requirement for the ensuing year,
the Railway Board lay down the financial under various plan within which the
Railway Administrations are required to make out their programme for the
following years duly vetted by the Financial Advisor and Chief Accounts Officer
for submission to the Railway Board by a specified date.
The various stages of investment planning and preparation of the Final Works
Programme are given below :

Stage I – Advance Planning.

Stage II – Advance scrutiny of Major Schemes.
Stage III – PWP.
Stage IV – FWP.
Main features of works Programme:
 Works Programme is submitted to Railway Board 18 months in advance in respect
works chargeable to Capital, Depreciation Reserve Fund, DF, OLWR and Capital
Fund, Railway Safety Fund, Special Railway Safety Fund, under Demand 16.

 Preliminary Works Programme is initiated at the Divisional/Unit level in the month of

June/July every year and submitted to Railway Board in September each year. After
discussion with General Managers, Railway Board decides the works to be included
in the Final Works Programme.

 The Works Programme is prepared under each Plan Head.

Proposals of GM‟s
W/S, Depots Sanction PCME Approval
vetted by by CWM, Consolidation
Associate DRM
Finance

F.A. &C.A.O.
Execution by Finance Railway Board
the Agency Concurrence

Allocation of Parliament Part of

Fund Budget Estimate Pink Book
Demand No. -16
Sanctioning Power of Works Program:

RAILWAY BOARD
Work above Rs. 2.5 Cr
Work upto Rs. 2.5 Cr

General Manager
Work upto Rs. 2.5 Cr
Work upto Rs. 1 Cr (PH-51)

PHOD and DRM/CWM

Work upto Rs. 2.5 Cr
(PH-16, 31, 32, 29, 30, 53)
Work upto Rs. 1 Cr
(PH-33, 36, 37, 42, 64)
DRM/CWM
Work upto Rs. 20 Lakh (PH-51)
 Login User Name & Password
 Proposal bank
 Sanctioned Works
 Unique Project- ID as per ID-Protocol
DESCRIPTION & PROTOCOL OF DIGITS IN Project ID IS
ELABORATED AS UNDER:
Digit No. Nos. Significance Example
of (02.05.64.11.3.74.001)
Digits

1&2 2 Railway 02- Eastern Railway

3&4 2 Division 05 – Jamalpur Division
5&6 2 Plan Head 64 – Other Specified Works
7&8 2 Sanction Year 11- 2011
9 1 Sanctioning 3 – Under GM‟s Power
Authority
10 & 11 2 Executing 74 – Director/IRIMEE
Agency
12,13 & 14 3 Serial Number 001 – Serial Number of works
PRESENTATION TO THE PARLIAMENT:
The consolidated budget proposals are presented before the parliament in
the following form –

1) The speech of Railway Minister (Yellow Book)

2) The book of Demands for Grants(Blue Book)
3) The explanatory memorandum(White Book)
4) Works, Machinery and Rolling Stock Programme
sanctioned by Railway Board (Pink Book)
5) Budgetary Notes(Green Book)
6) Work sanctioned by GM ( Law Book)
THANK YOU