CHENNAI: Southern Railway will operate special suburban trains between Arakonam and Tiruttani from August 6 to 8 in view of the Aadi Krithigai festival in Tiruttani. EMU passenger special train no. 1 will leave Arakkonam at 10.30am and reach Tiruttani at 10.50am. In the return direction, the train will leave Tiruttani at 11am and reach Arakkonam at 11.20am. EMU passenger train no. 2 will leave Arakkonam at 1.10pm and reach Tiruttani at 1.25pm. In the return direction, the train will leave Tiruttani at 1.35pm and reach Arakkonam at 1.50pm. EMU passenger special train no. 3 will leave Arakkonam at 2.45pm and reach Tiruttani at 3.05pm. In the return direction, the train will leave Tiruttani at 3.15pm and reach Arakkonam at... Read more...
Government Railway Police on Monday arrested three alleged robbers operating from Kanpur Railway Station and recovered a gold chain from their possession, police said. Rajesh Tiwari, Bablu, and Mithlesh were arrested at the railway station and police have seized a gold chain worth Rs 30,000, 80 gram intoxicating drugs, and Rs 1000 cash from Rajesh, GRP incharge Tripurari Pandey said. The other two accused were carrying two knives with them, Pandey said. The GRP incharge Bablu and Mithilesh have been arrested in connection with other cases earlier, the GRP incharge said.The three are being questioned and investigation in the case is underway, he said.
Courtesy Charles Dickens we have the cliched Micawber Principle: “Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.” This does apply to many situations, including Indian Railways (IR). Everyone understands the difference between revenue account and capital account. Revenue expenditure is like consumption expenditure, while capital expenditure (loosely investment) adds to assets and productive potential. Everyone wants IR to invest – in freight corridors, electrification, doubling (or more) of lines, track renewal, bridges, signalling, station development, logistics parks, locomotives, coaches, wagons. Unless resources come from somewhere else, IR must find the money for this. That is, IR must have a surplus on the revenue account, so that it can meet capital expenditure. Indeed, in recent... Read more...
years, IR hasn’t made operating losses, defined as difference between gross traffic receipts and ordinary working expenses. IR’s operating ratio – a multiple of the cost to revenue ratio – has been around 90, barring the period between 2005-06 and 2007-08. This means that out of every Rs 100 earned, Rs 90 is spent on expenses, leaving Rs 10 for investments. That can hardly be enough. While there can’t be an ideal operating ratio, it should probably be around 75. There are several recommendations on how revenue can increase and working expenses reduce. But there is a more fundamental problem. IR’s accounting system is completely non-transparent. With a mishmash of commercial principles and requirements of Comptroller & Auditor General, Controller General of Accounts and Public Accounts Committee very few people, including those within IR, can understand what’s going on. There is no quantification of liabilities, both works and staff-related. The cash-based system leaves pensions unfunded. There is no listing and valuation of assets. There is no sense of true cost of providing a service.How much does it cost to run a train, passenger or freight? How much does it cost to stop at a station? How much will it cost to introduce a new train? What is the profit loss status of a zone or division? No one expects IR to be completely commercial. But how much do social costs amount to? Answers to these questions are completely subjective and nontransparent, without any objectivity . A long list of committees has recommended that IR should transition to commercial accounting. Contrary to perception, this isn’t only because one is trying to attract private capital. This is important for IR to itself understand what it is up to. An accounting reforms project has existed, ostensibly, since 2005-06. Unfortunately, that project has been like Begunkodor railway station in Purulia district of West Bengal. In case you don’t know what Begunkodor is, it used to be a ghost station, without any trains. Because of fears of a ghost, between 1967 and 2009, there were no trains in Begunkodor and it remained an abandoned station. This accounting reforms project shouldn’t wait for 42 years. Tragically , this isn’t a privatisation issue, where one can blame unions for being obstructionist. Unions have nothing against commercial accounting, they welcome it. The resistance to commercial accounting and transparency comes from those who have something to hide. This also means the operating ratio which is bandied around is artificial and misleading. Relationships between Union government and IR are messy and ‘dividends’ aren’t what you would normally expect them to be. Essentially , Union government grants a loan in perpetuity to IR through what is called gross budgetary support (GBS). That loan never gets extinguished. The principal remains and interest is repaid as ‘dividends’. Dividends and appropriations to Deprecation Reserve Fund (DRF), Railway Safety Fund (RSF) and Pension Fund (PF) are part of revenue expenditure. Note that dividends may be externally determined, but contributions to DRF, RSF and PF are internally determined and have nothing to do with what these amounts should really be. A new railway minister wants to show a healthy operating ratio? Not an issue, reduce contributions to DRF, RSF and PF. Consequences will be borne by posterity. I have exaggerated, but you get the general picture. Parliament determines a rate of dividend. That’s a cost. If IR borrows through IRFC (Indian Railways Finance Corporation), that’s a cost too, as is any attempt to float bonds, or even invite private resources. Against that x% (whatever that figure may happen to be), one needs to figure out what return on investment (ROI) truly is. Because of lack of sensible accounting, there is no means for working out an authentic ROI, or deciding on priorities for competing demands on capital investment. Other than the freight corridor, have you ever wondered why multilateral lending is rare for IR, especially since 2006 or thereabouts? That’s because there isn’t faith in ROIs computed. This is also partly the reason why ex-ante ROIs (computed before a project starts) are so much at variance with ex-post ROIs (after a project is completed). I started with Dickens and will end with an uncharitable reference from Dickens. This is the Oliver Twist quote, “Please, sir, I want some more”. Whether Mr Bumble is Union government, private capital, or citizens, i don’t think another portion of gruel will be forthcoming in the absence of commercial accounting.
Aug 04 2015 (7:13PM) Unfortunately people are mislead by this news which is not desirable (/news/post/ 235876)
Aug 04 2015 (6:40PM) 3% the correct interpretation of this as per the principles of management accounting is if your income is Rs 100 then your expenditure is Rs 90 SosavingsisonlyRs10
Aug 04 2015 (6:40PM) Now recently there is a news that IR's operating ratio is 90%thecorrectinterpretationofthisaspertheprinciplesofmanagementaccountingisifyourincomeisRs100thenyourexpenditureisRs90
Aug 04 2015 (6:35PM)
Aug 04 2015 (6:31PM)
Aug 04 2015 (6:29PM)
Aug 04 2015 (6:28PM) " So the news relating to Interpretation of Operating Profit of IR is incorrect which is proved
Aug 04 2015 (6:24PM)
Aug 04 2015 (6:15PM)
Aug 04 2015 (6:10PM) Now if we critically observed the recommendations of this Bibek Debroy Committee then we can see that this Committee aims at the restructuring of IR by boosting it's financial condition
Aug 04 2015 (6:07PM)
Aug 04 2015 (6:07PM)
Aug 04 2015 (6:04PM)
Aug 04 2015 (6:01PM) Now recently there is a news that IR's operating ratio is 90% the interpretation of this as per the principles of management accounting is if your income is Rs 100 then your expenditure is Rs 90
Respected Sir, Management Accounting was my subject in Graduation and Post Graduation. As per the concept of Management Accounting the higher is the Operating Ratio the more is the Cost and less is the revenue and the Lower is the Operating Ratio is the reverse process. Now recently there is a news that IR's operating ratio is improved by 91.3% the correct interpretation of this as per the principles of management accounting is if your income is Rs 100 then your expenditure is Rs 91.30. So savings is only Rs 8.70. (I don't know how they comment that Operating Ratio has been improved in the News) Now if we critically observe the recommendations of this Bibek Debroy Committee then we can see that this Committee aims at the restructuring of IR by... Read more...
boosting it's financial condition.IR has to think about the implementation of these recommendations specially Accounting related to bounce back to the Profit Making entity from a Loss Making Dying Entity which it is now currently. Now the question is if IR don't have the Guts to amend their accounting system then nevertheless they will see the ray of Profit in their Operation. All are hypothetical, no real picture you can obtain from any sector of IR due to it's Orthodox Faulty Accounting Concept. If this scenario continues Central govt won't be able to run this Transport System in Future, as because Subsidy has a limit, it can't be unlimited. Just View the Following Link Sir: click here In the Significance and interpretation section of this Link you will find the Following Sentence: "A low operating ratio means high net profit ratio i.e., more operating profit." So the recent news relating to Interpretation of Operating Profit of IR is incorrect which is proved. Unfortunately people are mislead by this news which is not desirable on the part of IR. (/news/post/ 235876)
n order to clear extra rush of Passengers, SCR will run a special train between Kacheguda - Tirupati as detailed below:- Train No. 07047 Kacheguda-Tirupati Special Train will depart Kacheguda at 18:00 hrs i.e., 5th August, 2015and arrive Tirupati at 07:00 hrs on the next day. Enroute this special train will stop at Malkajgiri, Jangaon, Kazipet, Warangal, Khammam, Vijayawada, Tenali, Ongole, Nellore, Srikalahasti and Renigunta Stations.
On account of inclement weather conditions, the Traffic Block announced earlier for insertion of precast RCC box bridges between Ammanabrolu – Uppugunduru stations on Vijayawada – Gudur section of Vijayawada Division have been withdrawn on 5th & 6thAugust, 2015. As a result, the trains which were announced earlier as cancelled/partially cancelled will run normally to their schedules on these dates.
The Minister of Railways Shri Suresh Prabhakar Prabhu inaugurated the one-day Seminar on “Solar Energy – opportunities in Rail Sector”. This Seminar has been organized by Institution of Railway Electrical Engineers (IREE), Delhi Metro Rail Corporation (DMRC) and The Institute of Engineering and Technology (IET) under the aegis of United Nations Development Programme – Global Environment Facility (UNDP-GEF). Chairman, Railway Board, Shri A. K. Mital, Member Electrical, Railway Board and Patron IREE, Shri Navin Tandon, Managing Director, DMRC Dr. Mangu Singh, Country Director, UNDP-India Shri Jaco Cilliers other Members of the Railway Board, Shri Sunil Goyal, Chief Electrical Engineer, Northern Railway and General Secretary, IREE, Senior Officials of Ministry of Railways were among those present on the occasion. Speaking on the occasion, Minister of Railway Shri Suresh Prabhu said that the... Read more...
fossile fuel which is the predominant source of energy has met the energy needs of the human beings in a big way. However, the extensive use of fossile fuel has been causing irreparable damage to eco system leading to climate change and global warming and hence global efforts are being made to work on alternative options and develop a suitable energy mix for meeting crucial energy needs. Shri Suresh Prabhu said that Railway is naturally a green mode of transport – we want to make it further greener by adopting renewal energy as a major source of energy for railways. Indian Railways is the single biggest consumer of energy and hence it is imperative that Railways must look towards alternative sources of energy. He pointed out that Indian Railways has targeted large scale harnessing of renewable energy, mainly solar and wind energy as well as adoption of energy efficient measures, to reduce electricity consumption. The Minister said that it has already been announced in this year’s Railway Budget that Indian Railways will be setting up 1000 MW Solar Plants in next five years and the suitable initiatives for implementing this have been undertaken. Shri Suresh Prabhu said that Railways has already initiated the process of using rooftop of railway buildings for generating solar power. We have also taken innovative initiative for harnessing solar energy by putting solar panels on the roof of railway coaches. Such initiatives are to be taken forward and expanded to make game changer. We are considering developing solar power generation under PPP model. He said there is a need to work on both solar voltaic cell and solar thermal way of generating solar energy. There is also need for storage of technology. The Minister said that Railway should take lead in reducing the carbon footprint and also work to earn more carbon credits. He hoped that the deliberations & presentations will help Railways to come out with a long term policy and road map for harnessing solar energy. Speaking on the occasion, Chairman, Railway Board, Shri A.K. Mital said that the earth's climate is changing and such climatic change can have major impact on households, businesses, critical infrastructure such as transport, energy etc. We must, therefore, take measures to address the issue of climate change on priority. One of the ways to counter the menace of global warming would be to reduce greenhouse gas emissions. As we are all aware, in the light of depletion of traditional sources of energy and increasing green house gases emission there is a greater need to focus on the use of renewable sources of energy. Therefore a paradigm shift to meet our energy need is a must, incorporating a judicial mix of power from conventional sources and from renewable technologies. Usage of renewable energy by Indian Railways will provide energy security to the organization. A good strategy would be to evolve its own supporting energy system, consisting of renewal energy sources. There are various renewable energy options for the Indian Railways such as power from wind and solar, and bio fuels. Wind and solar energies can be the major players to meet Traction and non Traction power requirements of railways. Speaking on the occasion, Member Electrical, Railway Board and Patron, IREE, Shri Navin Tandon said that the challenges before Indian Railway today in achieving the aim of using renewable energy resources include the following (a) There is a need to take up feasibility assessments (b) Identify appropriate technologies, (c) Streamline procedures for utilizing and engaging private sector (d) Develop financing models for large scale solar deployment in Indian Railways, (e) Need to have proper line of credit modality, option of concessional loan mechanism through IRFC/REMC/IREDA, (f) Building capacities, Shri Tandon further said that the Indian Railways is fully geared up to take up the challenge of ‘Global Warming’. With policy support from the government, Indian Railways will surely bring about positive changes on the energy front and will be a lead organization showing a path of taking care of increasing energy requirement with reduced carbon foot prints and thereby providing solutions towards growth with sustainability. IR due to its wide visibility can act as catalyst in accelerating use of renewal energy across the country & thereby bringing large scale social and environmental changes. Managing Director, DMRC Dr. Mangu Singh, Country Director, UNDP-India Shri Jaco Cilliers also spoke on the occasion. Eminent personalities from renowned Institution of Railways, DMRC and Ministries are sharing their experience through their papers in the Seminar. The seminar has been divided in three technical sessions namely (i) Solar energy – Issue & Option for Rail Sector (ii) Technological Developments & New Trends in Solar System & (iii) Financial & commercial sustainability - Economic, social & environment aspects of Solar energy in Rail Sector. More than 300 delegates all over India, Railways, Industries and & other PSUs and Institutions are participating in the seminar. BACKGROUND BRIEF : - Indian Railways consumes about 18 billion units of electrical energy per annum for its traction and non-traction applications. Indian Railways, in its endeavour to counter the menace of global warming has targeted large scale harnessing of renewable energy, mainly solar and wind energy, in addition to adoption of energy efficient technologies. Accordingly Hon’ble Minister for Railways in his budget speech had announced a target of installing 1000 mega watt solar power in Railways in next 5 years. IR has already installed about 21 MW of solar and wind plants. In addition provision of 10 KWp solar PV modules at 200 stations under various Zonal Railways, provision of 4.05 MWp solar photovoltaic (SPV) at roof top of 21 Railway office buildings and provision of total 1.3 MWp capacity solar photovoltaic plants at 2000 level crossing gates is in progress. Railways are providing Grid / off grid connected solar panels on the Divisional and Zonal headquarters, maintenance depots, sheds and workshops. In this direction Railway have set up a grid connected 1 MW solar power plant at Katra Railway station, which is second largest roof top plant in the country. Further solar power systems at all major Railway stations and stations of Tourist importance have been planned. The generation of solar supply will help Railways supply power at remote locations and achieve saving on diesel consumption due to reduced running of diesel generators. In addition Indian Railway had successfully commissioned a 10.5 MW Wind Mill which is supplying power to ICF, Chennai, and plans to take the total capacity of wind mills to more than 150 MW. Normally for solar units availability of land is an issue; however IR has available land stretches & rooftop spaces on railway buildings, workshops, stations, residential building etc. In addition Railways, can also take up setting up solar power plants on wasteland, empty yards, alongside Railway Tracks, Railway coaches in due course of time. Investments in solar energy are generally characterized by relatively high up-front capital and low operating costs accordingly there is a need for developing appropriate business models This seminar can offer unique initiative which will build capacity, explore and identify best technologies, develop financing models for large scale solar deployment in Indian Railways.
New Zones and Divisions on Indian Railways are set up keeping in view various factors like size, workload, accessibility, traffic pattern and other operational/administrative requirements, consistent with the needs of economy and efficiency. At present, there is no plan to set up new divisions on Indian Railways, except those with headquarters at Gulbarga, Jammu and Silchar, which were announced in February, 2014. In addition, a Committee of senior officers from Railways has also been constituted to examine the issue of setting up a new railway zone in the successor State of Andhra Pradesh, in terms of Item No.8 of Schedule 13 (Infrastructure) of Andhra Pradesh Reorganisation Act, 2014. Konkan Railway is not attached to any Zonal Railway. It is under the control of Konkan Railway Corporation Limited (KRCL), a Central... Read more...
Public Sector Enterprise (CPSE) under the Ministry of Railways, formed with the mandate of construction and operation of Konkan Railway. This information was given by the Minister of State for Railways Shri Manoj Sinha in a written reply to a question in Lok Sabha yesterday.