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WELCOME TO THE PRESENTATION on National Rail Vikas Yojana Government of India has conceived a massive investment plan for rail sector to eliminate capacity ... – PowerPoint PPT presentation

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National Rail Vikas Yojana
  • Government of India has conceived a massive
    investment plan for rail sector to
  • eliminate capacity bottlenecks on Golden
    Quadrilateral and Diagonals to provide
  • strategic rail communication links to ports,
    construction of mega-bridges for improving
  • communication to the hinterland and development
    of multi-modal transport corridors.
  • This initiative has been given the name of
    National Rail Vikas Yojana. Hon'ble Prime
    Minister announced the Yojana in his speech
    delivered on the Independence Day in 2002 and
    formally launched it on 26th December, 2002.
    National Rail Vikas Yojana comprises the
    following investment planning components
  • Strengthening of Golden Quadrilateral and
    Diagonals connecting the 4 metro cities i.e.
    Delhi, Mumbai, Chennai and Kolkata.
  • Providing Rail based port-connectivity and
    development of corridors to hinterland including
    multi-modal corridors for movement of containers.
  • Construction of 4 mega bridges at Patna and
    Munger on river Ganga, at Bogibeel on river
    Brahmputra and at Nirmali on river Kosi.

About Rail Vikas Nigam Limited
  • Rail Vikas Nigam Limited (RVNL), is a Special
    Purpose Vehicle created to undertake project
    development, mobilization of financial resources
    and implement projects pertaining to
    strengthening of Golden Quadrilateral and Port
  • It is the first major non-budgetary initiative
    for creating rail transport capacity ahead of
    demand and on a commercial format. RVNL has been
    registered as a company under Companies Act 1956
    on 24.1.2003.
  • It is a wholly owned Government company under the
    provisions of Section 617 of Companies Act.
    Certificate of Incorporation was obtained on

About RVNL
  • RVNL is assigned the following functions
  • Arranging financial resources for the Projects. 
    For this purpose, the RVNL would be authorized to
    approach the Financial Institutions, Banks,
    Domestic Market and the Bilateral and
    Multilateral Funding Agencies.
  • Undertaking project development and execution of
  • Creating Project specific SPVs for individual
    works, if required.
  • Commercialization of projects wherever considered
    necessary and feasible.
  • The concerned Zonal Railways will undertake the
    operation and maintenance of the Railway Projects
    on completion of their execution by the RVNL
    under a specific financial arrangement.
  • For providing a revenue stream to RVNL, the
    projects may be done by RVNL on BOT concept,
    where Ministry of Railways is to pay Access
    Charge/User Charge.

Creating Rail Transport ahead of Demand A model
  • First major non-budgetary initiative for creating
    Rail infrastructure on commercial format.
  • Strengthening of Golden Quadrilateral and
  • Providing Rail Based connectivity and development
    of corridors to hinterland including multi model
    corridors of for movement of containers.
  • Construction of 4 mega bridges at Patna and
    Munger on river Ganga, at Bogibeel on river
    Brahmaputra at Nirmali on river Kosi.
  • Funding model of ADB has got abilities to better
    contract management to avail the benefits of
    Economy's of Bulk Purchase and Hassle free
    Funds Flow.

Corporate Mission
  • Creating state of Art rail transport capacity to
    meet growing demand.
  • Executing projects on fast track basis by
    adopting international project execution,
    construction, management practices and standards.
  • To make the Project implementation process,
    efficient both in terms of cost and time.
  • Adhering to sound business principles and prudent
    commercial practices to emerge Indias top rail
    infrastructure PSU.
  • To implement Rail Infrastructure Project on
    commercial format through various Public Private
    Partnership models.
  • To achieve International Quality Standards
    through innovations.
  • To implement Rail Infrastructure Projects on
    commercial format through various Public Private
    Partnership Models.
  • To achieve project completions in target time and
    with best quality.
  • Involving private sector in financing the
    construction of projects and development of
    efficient models of Public Private Partnerships
    with joint venture SPVs with equity participation
    by Strategic Financial Investors including
    funding options from external multilateral
    agencies like the Asian Development Bank.

Corporate Vision
  • To emerge as most efficient rail infrastructure
    provider with sound financial base and global
    construction practices for timely completion of
  • Rail Vikas Nigam Limited was set up with twin
    objectives of mobilization of private and market
    funds and implement Railway Projects on fast
    track basis. 
  • RVNL has gained significant hands on experience
    in private partnerships, dealing with
    multilateral agency like ADB, understanding their
    procedures and guidelines and utilization of
    multilateral funds for Railway Projects and
    execution of large contracts involving
    significant planning and project management and
    delivery of projects in a time bound manner
  • The experience gained by RVNL is unique.
    Challenge before Indian Railways is to execute
    large number of projects on fast track basis to
    quickly augment capacity on the over saturated

Corporate Vision
  • Keeping in view, likely manifold increase in
    construction activity and need to
  • implement projects in a tighter time schedule,
    RVNL will have to play a key
  • role in removing capacity bottlenecks and
    implementation of projects. Based
  • on the experience gained so far, RVNL need to be
    assigned the following role
  • in future
  • RVNL will be assigned large capacity creation
    programmes viz. removal of capacity bottlenecks
    on High Density Network,
  • RVNL will play a greater role in creating
    capacity on Golden Quadrilateral and can be
    assigned the projects as an outcome of studies
    being undertaken by RVNL for Freight Corridors on
    North South, East West, East Coast Corridors,
  • RVNL will be assigned with large Railway
    Electrification Projects.
  • RVNL will undertake construction of Mega Bridges.
    Such bridges are ideal candidate for multilateral
    funding as the same does not involve any ROR

Corporate Vision
  • Projects to be implemented with multilateral
    funding such as ADB and World Bank.
  • Projects to be implemented through Public Private
    Partnership through various models.
  • Construction of about 1000 kms of track every
  • Expenditure of about Rs.3,000 cr. every year.
  • Full operationalisation of RVNL as Railway
    Administration under Railways Act, 1989 Section
    3(32b) as per cabinet approval.
  • To bring global construction technology in
    railway construction, to deliver best quality and
    to have cost effective design, construction to
    reduce the life cycle cost of project.
  • Assignment of critical Railway Development
    Activities, requiring new skills and techniques.

Corporate Objectives
  • To undertake and execute successfully the project
    development pertaining to Strengthening of
    Golden Quadrilateral, Port and Hinterland
    connectivity and other viable Railway projects.
  • To mobilize financial and human resources for
    project implementation.
  • Timely execution of projects.
  • To maintain a cost effective organizational set
  • To encourage public private participation in rail
    related projects managed by RVNL.
  • To be an infrastructure Project Management
    Company committed to sustainable development and
    environment friendly construction of rail related
    projects in the country.
  • To acquire, purchase, license, concession or
    assign rail infrastructure assets including
    contractual rights and obligations.

Management Board
Models of Project Implementation
  • Sources of Finance
  • RVNL is presently implementing about Rs.12,900
  • 7 Projects through ADB funding.
  • 11 Projects through IRFC borrowing
  • 9 Projects through Capital Fund of Railways.
  • 11 Projects through RVNL Equity.
  • 7 Projects through Project Specific SPVs.
  • 1 Project through full funding of Min. of

Physical size of RVNL Projects.
  • RVNL is implementing four types of Projects under
    the initiative of Golden Quadrilateral and Port
  • Doubling of Lines 1811 Km
  • Gauze Conversion 1585 Km
  • New Lines 493 Km
  • Railway Electrification 1906 Km
  • The Task of fixing of consultant and undertaking
    of Traffic and Financial Studies of 4 Dedicated
    Freight Corridors Viz Delhi Chennai
    (North-South) Kolkata Mumbai (East- West)
    Khrgapur-Vijayawada (East Coast) and Goa-
    Chennai (Southern Corridor)
  • The task of fixing of consultant or undertaking
    study and preparation of bidding document and
    bidprocess management for setting Agri Retail
    Logistics Chain on vacant Railway Land

Models of Project Implementation
  • RVNL is implementing rail projects primarily
    through following models
  • Formation of Project Specific SPVs having equity
    and debt financing.
  • Build Own Transfer (BOT) route, wherein the
    entire financing is arranged by the private
    developer through equity and debt route.
  • Private Railway, wherein the project is funded as
    part of the port project.
  • Projects are implemented either through the
    construction units of Zonal Railways or by award
    of EPC contract by RVNL and funds are raised by
    RVNL directly.

Projects to be implemented through SPVs
The following projects are being planned for
implementation through creation of Project
specific Special Purpose Vehicle (SPVs) having
equity participation by both strategic and
financial investors.
  • Haridaspur Paradeep New Line RE (Orissa)
  • Bharuch Samni Dahej Gauge Conversion
  • Surat Hazira New Line (Gujarat)
  • Obuvallirapalle Krishnapatnam New Line (Andhra
  • Arsikeri Hassan Mangalore Gauge Conversion
  • Gandhidham Palanpur Gauge Conversion (Gujarat)
  • Angul - Sukinda New Line RE(Orissa)

Projects to be implemented BOT/EPC Contracts
  • The project implementation through BOT Model
    requires financing and construction of the
    project by the private developer. RVNL will pay
    Access Charge to the developer for a fixed period
    of time. In case of EPC contracts, the financial
    resources will be raised by RVNL and the private
    firms will undertake construction. The following
    projects are identified
  • Delhi Rewari Gauge Conversion of 2nd Line
  • Rewari Phulera Ajmer Gauge Conversion
  • Junction Cabin Palwal 4th Line
  • Thanjavur Villupuram Gauge Conversion
  • Daund Gulbarga Doubling
  • Punskura Kharagpur 3rd Line
  • Bhildi Samdari Gauge Conversion
  • Panvel JNPT Doubling
  • Bhopal Bina 3rd Line
  • Daitari Banaspani New Line and
    Banaspani-Jakhpura RE and many more

Projects being developed as PPP Model - Railways
  • OBVP- KP New BG line connecting to a Private Port
    Company having strategic Partners with GOAP,
    MMTC, Krishnapatnam Port Company and Brahmani
    Steels on this system.

Projects through Private Public
  • Ministry of Railways is introducing the PPP
    models through RVNL SPV to provide additional
    infrastructure which was previously the
    responsibility of Railway Board.
  • In view of increase in infrastructural demand in
    the economy PPP can also be made attractive
    financially encourage private sector involvement.
  • A regulatory system is required to ensure that
    infrastructure provided is in the public interest
    and satisfy the partners.
  • Without changing the ownership arrangements
    (rests with the Railway Board) Private sector is
    allowed to participate either on BOO, BOT,BOOT
    and DBFO (Design Build Finance and Operate) with
    an explicit out put specification.
  • Inviting Private Finance Initiative may result in
    periodic payments (Lease charges) throughout/at
    the end of the Project period and the leverage is

Projects through Private Public Partnerships-
  • The rationale for deciding to pursue PPP for a
    particular Project is the key area to understand
    whether it is viable and there exists a macro
    fiscal device which can generate value for money
    at the end.
  • The processes and procedures that guide and aid
    the decisions to go for PPPs for a particular
    project and ensure adoption of a scheme that are
    best value for money for the partners.
  • The procedures and processes that are available
    to provide a post project (decision) evaluation
    in different areas like New line, GC, RE, and
    Doubling etc.,
  • Whether it is real merit and worth to sustain
    the Private participants to sustain over the
    total period.
  • Will of the management to pursue the PPP
    regulation, guidance, pre decision process, post
    project appraisal and can contribute to
    objective planning.

Projects being developed as Private Railways
  • Vallarpadiam - Idapalli New Line (Kerala)

Projects being implemented through ADB Funding
  • Talcher-Cuttak-Paradeep Doubling with Second
    Bridge over river Mahanadi at Birupa.
  • Gooty Renigunta Patch Doubling
  • Bilaspur Urkura 3rd Line
  • Rajatgarh Barang
  • Cuttack Barang Doubling
  • Khurda Barang 3rd Line
  • Aligarh Ghaziabad 3rd Line
  • Raichur Guntakal Doubling
  • Renigunta Guntakal Railway Electrification
  • Pune - Guntakal Railway Electrification
  • Pattabiram-Tiruvallur 4th Line
    Tiruvallur-Arakkonam 3rd Line Doubling

Salient features of ADB funded Projects.
  • Execute the projects through its Equity,
    borrowings and by forming Joint ventures SPVs
    enable to handle large and composite contracts to
    avail the advantage of Economys of Large scale.
  • Project Management is also outsourced to contain
    the cost of Establishment in the Book Value of
    the Assets.
  • Undertakes the projects from the stand point of
    establishing financial viability, bankability and
    its structuring to make it amenable to private
    funding duly avoiding Budgetary support.
  • Project Costs are established through technical
    surveys, updating of project cost and
    finalization of technical parameters and design.
  • Cost of Establishment (including the Cost of
    Project Management Consultancy) being the Human
    Capital in the assets created by the RVNL there
    is a Cap on the Cost of Establishment being
    2.5 of the Cost of the Project.
  • Projects are funded based on overall development
    of the region which can enhance the Line
    Capacity such as Doubling, New Lines, Gauze
    Conversion, RE etc, so that higher volumes of
    traffic is generated.

Framing and Evaluation of Technical Bids.
  • Irrespective of the system of submission of Bids
    either in TWO PACKET or SINGLE PACKET which is
    decided on the merits of each case Evaluation of
    Technical Bid is the KEY selection process.
  • Technical experience which is in accordance with
    the ITB has to be established by the bidders
    with the proof of documentation.
  • The Key factors such as Capacity to take up the
    Major Bridges, Track Linking, Electrification of
    Line, Building of Sub-stations, arrangement of
    solid state inter locking (ST) works etc., are
    evaluated in detail.
  • The Bid selection on the basis of Technical
    Personnel and their experience is also given
    equal importance on the related Key factors.
  • Capacity of the Agency with regard to
    availability of his Plant Machinery such as
    Mobile Welding Plants, Road vehicles, Machinery,
    and workshops available with regard to their
    capacity and present Load with in the period of
    execution of Project.
  • Unless the Bid is certified as substantially
    qualified the same is rejected due to non
    fulfilling the Technical suitability and the
    merits of financial bid should not influence the
    selection. (in case of Two Packet system the
    financial bids are not opened and entire bid is

Framing and Evaluation of Financial Bids.
  • Besides Bid Security and Performance Security
    other Financial criterion such as Worth of the
    Bidder is to be established for framing and
    selection of bids for assessing the financial
  • Average Annual turnover of the bidder for the
    last 5 years and commitments for the next 3 years
    of the bidder are also ensured to see that the
    bidder has capacity towards working capital to
    take up the work.
  • Audited Balance sheets and Revenue Accounts are
    verified that the bidder is solvent and is a
    running concern and has financial interests to
    sustain in the trade.
  • The Bid selection on the basis of quotation of
    rates on each Schedule or phase of work in co
    relation with the workability of rates to see
    that execution is ensured with out termination is
    given equal importance on the related Key factors
    of work.
  • Capacity of the Agency with regard to existing
    commitments, and Net Worth of the firm with
    regard to his capacity on the present Liability
    with in the period of Project completion.
  • For the selection of bids the L1 need not be a
    successful bidder unless it is established his
    Technical bid substantially qualified to execute
    the work as per the project objectives.s

Special features of RVNL Contracts.
  • The Contract Management is unique in RVNL
    contracts and each contract is governed by the
    its own Special/Particular conditions of the
  • As a policy Global Tenders are called inviting
    International Participants having Multinational
    experience and the value of bids can be quoted in
    INRs/ American dollars.
  • A pre bid meeting will be conducted inviting all
    possible participants about the modalities of
    implementation and execution of the Project along
    with the Technical details of the Project.
  • A 3 Tier system of Bid evaluation is in place to
    ensure that Bid selection and choice of Agency is
    arrived at based on the critical Technical
  • The in- built system of Bid evaluation ensures
    that selection is more transparent and the Agency
    has got equal responsibility to complete the
    works as per Targets failing in which payable
    compensations equal to revenue losses are laid.
  • To balance the losses to the Agency on delays due
    to non availability of Land, Designs from the
    employer, and other site arrangements the
    Employer is also bound to pay the compensations
    as per the conditions.

Particular conditions of RVNL Contracts.
  • The Contract conditions should stipulate the
    Minimum Interim Certificate by not less than
    Rs.6/7/8 Crores of the contract value.
  • Contract shall be insured covering the Employers
    risk to the extant of 40 value of the Contract.
  • Work has to be certified for its completion by
    the PMC which is directly under it supervision
    and the release of the payments.
  • Defects notification period provides guarantees
    to the employer for the defective work and the
    responsibility of the Agency to make good the
    work as per the directives of the employer.
  • The cost of the PMC contract shall be regulated
    to the 3.5 to 4.0 of the value of the each
  • The validity of the PMC shall be so regulated
    that it shall cover the currency of the main
    contract including the Defect Liability period.
  • The built in conditions shall take into account
    the Custody of the Materials at the site and
    insurance coverage includes Physical Work in
    Progress with the employer.

Features of PMC Contracts of RVNL.
  • The selection of PMC ahead of the award of Main
    contract is to ensure that consultant engineer
    has full knowledge of work that is being executed
    and the constraints and properly redressed .
  • The process of selection of PMC Engineers based
    on their experience and technical qualification
    is the criterion for their employment..
  • It is the responsibility of the PMC to certify
    the work which is directly under its supervision
    and the release of the payments.
  • The clauses provide certain penalties on the part
    of the PMC for not maintaining the time schedule
    for the completion of the main work by the
    contractors .
  • The payments to PMC contract shall be regulated
    and ensured that supervising engineers are paid
    in accordance with their actual attendance and as
    per the progress of the main work.
  • The rates of the PMC contract shall include the
    all kind of service taxes that are levied by the
    Govt. and are inclusive of their employees PF,
    Pension Gratuity etc..

Bottlenecks of RVNL Projects.
  • For any infrastructure Project, land acquisition
    is a bottleneck, the State Governments and Zonal
    Railways have to be interacted through the
    separate NGOs which indicates additional
  • Compensation Payments for Land acquisition is
    another factor during the execution period where
    the capitalization of expenditure on land needs
    to be regulated by early acquisition.
  • The projects funded by ADB have to be closely
    monitored have to be placed in time during the
    financial year for realization of moneys from ADB
    involving RR issues.
  • Managing the work with the executives of the
    Zonal Railways with regard to clearance of
    Designs and Drawings obtaining the Blocks and
    Power Blocks in case of RE works.
  • Targets and limitations set on DG charges to the
    extant of 2.5 of the project may not be workable
    situation as at present the same is about 3.93
    of the total Project Cost. (In Rlys. It is about
  • Financial Resource Mobilization for the Projects
    being executed through JV SPVs will be a problem
    for cash inflows and shall be based on clear MOUs

Completed Projects
  • 1    Pakni-Solapur Doubling
  • 2   Diva-Kalyan 5th 6th Line
  • 3    Panvel-Jasai JNPT Doubling
  • 4    Gurup-Saktigarh Extn. of 3rd Line
  • 5    Pullampet-Balapalle Ph I of Gooty-
  • 6    Gandhidham-Palanpur Gauge Conversion
  • 7    Kharagpur (Nimpura)-Bhubaneswar
  • 8    Bhubaneswar-Kottavalasa Elect
  • 9    Talchar-Cuttack-Paradeep doubling with 2nd
    bridge on rivers Birupa and Mahanadi
  • 10   Daitari-Banspani New line
  • 11   Pakni-Mohol Doubling
  • 12    Panskura-Haldia Ph I Doubling
  • 13    Barauni-Tilrath Bypass Doubling
  • 14    Arasikere-Hassan-Mangalore Gauge Conversion
  • 15    Cuddalore-Salem Gauge Conversion
  • 16    Delhi-Rewari Gauge Conversion

Projects in Progress
  • 1   New-Delhi-Tilak Bridge 5th 6th Line
  • 2   Attipattu-Korukkupet 3rd Line Doubling
  • 3   Pattabiram-Tiruvallur 4th Line
  • 4   Gooty-Renigunta Patch Doubling
  • 5   Renigunta-Guntakal Electrification
  • 6   Tomka-Banspani RE
  • 7   Bilaspura-Urkura 3rd Line Doubling
  • 8   Pune-Guntakal Rly.Electrification
  • 9   Raichur-Guntakal Doubling
  • 10   Palwal-Bhuteswar 3rd Line Doubling
  • 11   Aligarh-Ghaziabad 3rd Line Doubling
  • 12   Sambalpur-Titlagarh-Doubling
  • 13   Panskura-Kharagpur 3rd Line Doubling
  • 14   Rajatgarh-Barang Doubling
  • 15   Raipur-Titlagarh Doubling and many more

Projects in Progress

About RVNL Vigilance
  • Vigilance Unit, Rail Vikas Nigam Limited is the
    nodal section for handling all vigilance matters
    of the Rail Vikas Nigam Limited. The Chief
    Vigilance Officer heads this unit. The CVO is
    assisted by two Assistant Managers. The vigilance
    unit works under the Ministry of Railways and
    coordinates with Central Vigilance Commission

Role of Vigilance
  • The role of vigilance in RVNL is multifarious. It
    undertakes preventive vigilance, punitive
    vigilance and system improvement. The Vigilance
    Unit also arranges Vigilance Awareness
    programmes. The Vigilance Unit organizes
    Vigilance Awareness Week celebrated every year as
    per guidelines of CVC. Vigilance Bulletins are
    also published regularly providing information on
    vigilance awareness.

Physical Plan
Financial Plan
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