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SOUTH EASTERN RAILWAY FA&CAO's OFFICE

LL, Garden Reach Rodd,
Kolkata-700 043.

I{o.PFA/CAPE}UGuidelin es /23 Ilated : 31't August, 2A23.

To
The FA&C AO I con/SER/G RC
5r.DFM/ADA, CKP, KGP; DFM lCo-ord/RNC - SER

Sub: Actionable items to ensure faster execution of Capital Works under Demand 15

A number of issues have been cropping up wrt CAPEX. Consolidated guidelines for
some of the key factoiStafiecting work execution and accountal are addressed below:

L. Re-Appropriation of BG : Attention is drawn to provisions of Para L4 (B) on Works

Matters under MSOP 2018. As per the same, PHODs have full powers to
distribute/redistribute the Budget, for the Railway,for works costing Rs. 2.5 Crores and
below, within the same plan head and source. DRMs have similar powers for works
sanctioned for the Division.
Thus proposals for Re-Appropriations should be sent to HQ only in case funds are to
be re-appropriated to another Division/Unit or where the sanctioned cost of the
workis in excess of Rs. 2.5 Crores. ln terms of Para 14 (B) on Works Matters under
MSOP 2Ot8, this will require approvalof PHOD/GM, as applicable.
Where proposals require sanction of HQ the bills/Adjustments should not be held up
and following may be adopted:
i. While sending the bills/ Adjustments to Accounts, the concerned Department should
also prepare a Re-appropriation statement and send the same along with the bill.
These should be cross checked in Accounts Department , not below the level of a
Gazetted officer and if found in order, the bill may be passed.
ii. Every fortnight, concerned executing Departments shall prepare a Plan Head-wise Re-
appropriation statement which should be vetted by Accounts for correctness.
Accounts Department must ensure that it includes all Re-Appropriations that were
sent along with Bills/Adjustments to Accounts during the last fortnight.
iii. The Re-Appropriation statement duly signed by the concerned Branch Officer and Sr.
DFM, should be forwarded to the concerned Plan Head Coordinator, with the approvat
of DRM.
.ir. DRM/ADRM nominated should review every fortnight that all cases where Re-
Appropriation has been done for discharge of financial liabilities, have been processed
for approval and wherever the same has been sanctioned, necessary changes in
Budget Allocation have been made on IPAS and IRPSM.
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v. ln case it is noted that the procedure for Re-appropriations is not bqing followed after
passing a bill, Dy. FA &CAO/ Sr DFM will revert to the prior practice of pre sanction of
Re-Appropriation, after giving advance notice of 15 days during which all such arrears
should be cleared. During this window, discharge of financial -liabilities as above will
be followed.
vi. Please note that this procedure is applicable only for Re-Appropriation from one work
to another, within the sanctioned Budget and works of the Unit. ln case of inter unit
: Re-Appropriations, discharge of Financial liabilities wlll take ptace only after the same
has been approved by HQ.
vii. While processing Re-Appropriations following must be ensured:
a) The Re-Appropriation is being done for works within the same Plan Head,
chargeable to the same source of fund.
b) ProVisions exist in the Sanctioned Estimate of the work to which the Funds are
being re-appropriated, for payment of bills/ adjustments.
c) Re-appropriation from work under "Station Development'', "ABSS Stations",
Works tirt6ted for completion within the Financial year (by DRM/Zonal HQ/Rly
Board), should be done in consultation with the Plan Head Coordinator.
d) Before processing any Re-Appropriation, the importance of the work from which
funds are being transferred, should be reviewed from the perspective of
Operational efficiency, Safety and Customer amenities.
e) RE-appropriation from works where further booking are expected and these are
likely to be in excess of the balance allotment after Re-appropriation, should not be
done. ln case of repeated instances of such unplanned Re-Appropriations, details
should be brought to notice of concerned PHOD/DRM/CWM, as applicable.
f) The concerned Department should append a certificate wrt clauses b-e above on
the Re-Appropriation statement.

2. Processing of Works Proposals:

i. While concurring to the work, Units must ensure that the "Gati Shakti" tag is used
only where required, as per guidelines issued by Railway Board. Wanton application
of this tag is to be avoided. Both the justification and the concurrence must clearly
specify where the work has been proposed under GatiShakti or DRM priority.
ii. Please check and ensure that the estimated cost of the work has been prepared in
relative detait, duly assessing the quantities, basis of rates (As per SOR/LAR), and
same needs to be checked at the Unit level. Please note that at HQ, Estimates that
are forwarded are generally expected to be reasonable, and processed as such
unless major anomalies are noticed.
iii. For works costing over Rs. 50 Crores, a DPR is prepared, as per directions of Railway
Board, and the same is in adequate detail. Deliberate splitting of works, to avoid this,
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should be avoided. Further, please ensure while processing to'HQ, that "DRM's
personal certificate that the proposed work is complete in all respects and no
additional work would be required for this scope of work" {ref. item 2 (vi} of R.Bd.
I ette r no. 2OL7 I CE-tlW P / z}t$-tg / LPt. dated 27 .L0.2022) .

iv. Since the list of works proposed is firstly prepared for 'ln Principle Approval' of GM,
sample checks of locations/ requirements may be done before processing of the
work, for better appreciation of the requirements.
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V A list of works proposed under the allotted ceiling, in case of Umbrella works, should
be maintained both at the time of concurrence and after sanction, to ensure that the
ceiling is adhered to.

3. Correct Budgeting& Allocation:

i. While the Capital Budget is normally prepared by the Executing Departments, it is
advisable that prior discussions, based on Plan Head, source of fund-wise utilization
is reviewed, discussed with the concerned Branch Officer, to ensure realistic
budgeting.
ii. lnstances where the sanctioned cost is found to be on the higher side should be
reviewed and sanctioned cost corrected, to reduce the "Throw Forward Liability" of
the Railway.
iii. Where a "Change of Allocatior" is proposed, brief justification for the same
including thb'need for its early execution should be furnished by the executing
department. lt may be noted that change of allocation has to be exercised with
reasons for the sarne, needs to be restricted to safety, operational and other
priority works, and reasons for this have to be kept on record. Mere shortage of
funds may not be a valid reason for such changes.
iv. Further, in case of change of Atlocation, in case expenditure has been incurred upto
March of this year, work will have to be split into multiple allocations (Allocation
under which work was booked till March and balance amount as per the proposed
change. A review may be done to ensure if the entire balance amount allocation
needs change or only part of it. Sanctioned Estimates would have to be modified
accordingly.
4. Processing of Finance proposals:
i. Details of works in Finance should be reviewed to expedite cases relating to safety,
through-put enhancement and other targeted works.
ii. lf any case is being returned for the third time, it should be reviewed by the Sr. DFMI
Dy. FA concerned and further action taken oniy after discussions with the concerned
officer.
iii. lnstances of repeated failure to send complete information in a timely manner/
respond to Finance queries in a logical and reasonable fashion should be brought to
the notice of the PHOD/DRM/CWVI, as applicable.

Suggested Guidelines for processing of Capital works proposals.

1) Where within a proposed/sanctioned work multiple Assets are coming up, it is

recommended that specific costs for different Assets (Eg .FOBs, PFs, station building,
Lifts, Escalators, Sub stations etc in station development) are specified tcj enable proper
and correct accountal ofAssets once created.
2) Where a work is split into multiple allocations, unless rules are prevalent, a brief on why
a particular scope is undertaken under a specific source needs to be included. This is
particularly applicable where there is a mix of one of more of the following: CAP/ RRSK or
SF/DRF IDF IEBR(1F) . Further,theportionof theworkunderaparticularfundneeds
to be specified.
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3) Where the specifications/ drawings are as per RDSO guidelines or other instructions by
Board/HQ, authority for this may be mentioned.
4) Replacements to be done
a. not merely due to availability of new technology but when old asset is due for
replacements.
b. not only age but also on condition basis.
5) CRRM to be
a. clearly indicated separately in the specific field provided in Top sheet.
b. assessed separately for ferrous/ non-ferrous & copper items and mentioned in the
attached estimates.
6) The Abstract cost in top sheet has a drill-down wherein the break-up between Cash and
Stores is to be clearly mentioned. Availability of the same in the attachments of
estimates would not help in Stores budgeting.
7) RoR calculations :

a. lnstructions pgntained in Railway Board's letter no. 2023/F (t:Xl lrlL)/Z dt 10-03-
as,
2023 should be adhered to. However it is incumbent for the finance officer to ensure
that grounds for waiver from RoR are valid.
b. A brief on the assumptions behind the RoR and basis of data needs to be enclosed.
These must be checked personally at the level of an officer, in Accounts Department.

(NARENDRA}
PFA/SER/GRC

Copy to : l)Secretary to GM for kind information of GM please.

2)Secretary to AGM for Kind information of AGM please.
3) All PHODs/SER/GRC
4) DRM/ADA, CKP, KGP, RNC - SER .
s) FA&CAO/T&CM, (6) FA&CAO lF&B (71FA&CAO/WS

ry
- SER/GRC

(NARENDRA}
PFA/SER/GRC