Memorandum of Understanding (MoU) signed between Ministry of Railways and Governments of Chhattisgarh for “Formation of Joint Venture Companies for Development of Railway Infrastructure in Chhattisgarh State

Memorandum of Understanding (MoU) signed between Ministry of Railways and Governments of Chhattisgarh for “Formation of Joint Venture Companies for Development of Railway Infrastructure in Chhattisgarh State

Augmentation of New Railway Lines in Chhattisgarh State will help explore full potential of natural resources of Chhattisgarh : Suresh Prabhu

New Initiative To Help Improve Transportation System in Chhattisgarh : Raman Singh

In the august presence of Minister of Railways, Shri Suresh Prabhakar Prabhu and Chief Minister of Chhattisgarh Shri Raman Singh, Memorandum of Understanding (MoU) between Ministry of Railways and State Government of Chhattisgarh for “Formation of Joint Venture Companies for Development of Railway Infrastructure in the State of Chhattisgarh” was signed. On the event of Signing Ceremony, Chairman Railway Board Shri A. K. Mital, Member Engineering Shri V. K. Gupta, Member Staff Shri Pradip, Financial Commissioner Shri S. Mookerjee and other Board Members and other Senior Officials were present. On behalf of the Railway Ministry Shri Ved Prakash Dudeja, Executive Director/Works signed the MoUs whereas on behalf of Government of Chhattisgarh Shri Subodh Kumar Singh, Secretary, Department of Commerce & Industry, Govt. of Chhattisgarh signed the MoUs. The MoU was signed in the background of Railway Minister’s Budget announcement regarding setting up of Joint Ventures with States for focused project development, resource mobilization, land acquisition, project implementation and monitoring of critical rail projects.

Speaking on the occasion, Union Minister of Railways Shri Suresh Prabhakar Prabhu thanked the Govt. of Chhattisgarh for having agreed to set up JV Company in State of Chhattisgarh. He further said that the Indian Railways has been working vigorously to reach every corner of the Country through railway lines but people’s expectations are lot more with Railway Ministry. He said that to meet the demands of the country’s people, all State Governments will have to join hands with Railway Ministry and with their becoming partner with the Railway Ministry this will become possible.

Shri Suresh Prabhu further stated that the Chhattisgarh is a State which is full of natural resources such as coal etc. Chhattisgarh has lot of potential and the exploration and evacuation of its natural resources to other parts will help the whole country at national level. For this purpose, railway infrastructure needs to be developed in the State which will not only help the people of the State in availing better transport but will also bring huge freight to the Railways. He stated that working through JV Companies will bring Railways to Ground Zero for effective implementation. He hoped early completion of formation of JV Companies in the interest of the country.

In his address, Shri Raman Singh, Chief Minister of Chhattisgarh at the outset thanked Ministry of Railways for supporting the State of Chhattisgarh for development of New Railway Infrastructure. He said that Railway Ministry already did commendable work in Bastar and Saguja District of Chhattisgarh by developing new railway lines which helped Chhattisgarh State a lot. He stated that under the energetic leadership of Shri Suresh Prabhu Railways has been progressing day in and day out. He stated that 760 kilometers additional railway lines have been spread in the State of Chhattisgarh in a very short span of time which in itself is a record. He stated that this new initiative will not only improve transport system of Chhattisgarh State but also help the State in exploring its full potential in better perspective.
Salient Features of the MoU:-

• In view of the growing demands for railway lines in various states and huge requirement of funds to execute them, Minister for Railways announced in his budget speech regarding setting up of Joint Ventures with states for focused project development, resource mobilization, land acquisition, project implementation and monitoring of critical rail projects.
• 17 State Governments consented for formation of Joint Venture Companies in collaboration with the Ministry of Railways for development of rail infrastructure in their respective States. Draft MoUs were sent to these State Governments and discussions were also held with them to clarify various provisions of the MoU.
• MoUs have already been signed by the Ministry of Railways with the State Governments of Odisha, Maharashtra, Kerala and Andhra Pradesh.
• · Today, MoU has been signed with the State Governments of Chhattisgarh. This signing of MOU is going to be a stepping stone for formation of JV companies.
• The MoU envisages formation of a Joint Venture companies having 51% stakes of the respective State Government and 49% stakes of Ministry of Railways. Thus, the JV companies shall be fully owned by the Government. The companies will primarily identify projects and possible financing avenues in addition to Govt of India and the State Government. After finances for a project are tied up, project specific SPVs or special purpose vehicles shall be formed. These SPVs can have other stake holders from Industries, Central PSUs, State PSUs etc. However, the JV companies shall be mandatory stake holders with minimum 26% shares in the SPVs.
• The ministry of Railways will sign a concession agreement of 30 years with the project SPV for safe and sound operation, revenue sharing and providing technical & marketing logistics to the SPV. The revenue sharing shall be based on already established formula being used for inter zonal apportionment of revenue.
• The most important aspect of this MoU is that the ownership of the land shall vest with the SPVs which is a departure from previous practice. This will give financial leverage to the company to exploit commercial potential of the land. This is likely to result in making project viable which are otherwise not viable.
• At the end of concession period, the railways will have option to take over the assets at a nominal price. This is largely in line with average codal life of the assets as most of the assets will need large scale replacement after 30 years.
• Indian Railways has been playing a major role in national integration by connecting the remotest places and bringing people closer to each other. Railways receive a large number of demands for network expansion as a railway line acts as an engine of growth for the area it serves.
• However, Railways have a large shelf of ongoing New Line, Gauge Conversion and Doubling projects needing about Rs 3.5 lakh crores to complete. We have been trying to meet the aspirations of public within limited availability of funds.
• To expedite the projects, Railways have been trying to mobilize resources through other than Gross Budgetary Support. However, on the initiative of Minister for Railways Sh. Suresh Prabhu, Indian Railways have tied up funds for critical capacity enhancement project of doubling, third line , electrification etc. An MoU was signed with LIC of India and we have already taken first tranche of Rs 2000 Cr for these projects. This tied up loan will ensure dedicated and assured funding for such critical projects.
• Indian Railways have targeted to commission 2000 Km New Lines, 4000 Km Gauge Conversion and 11000 Km Doubling/Tripling/ Quadrupling projects over 5 years i.e. from 2015-16 to 2019-20. In 2015-16, we had kept quite ambitious target of commissioning 2500 Km Broad Gauge track. It is a matter of great satisfaction that we are poised to not only achieve these targets but to surpass them. We have already commissioned about 1300 Km Broad Gauge track till December, 2015 against 800 Km track commissioned in the corresponding period of the previous year (Due to monsoons, major commissioning takes place in the last quarter of the financial year).
• Formation of Joint Venture Companies with the State Governments will go a long way in faster commissioning of critical rail infrastructure projects as it will not only help in mobilization of funds but also in facilitating various clearances and land acquisition.

PIB

Enhancement of Income Tax exemption limit in the case of Running Staff in Railways

Enhancement of Income Tax exemption limit in the case of Running Staff in Railways

NFIR
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110 055
Affiliated to
Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)

Dated: 13/11/2015

No. II/58/Part II
The Secretary (E),
Railway Board,
New Delhi
Dear Sir,

Sub: Enhancement of Income Tax exemption limit in the case of Running Staff in Railways-reg.

Ref: (i) NFIR’s PNM item no. 39/2012.
(ii) Railway Board’s O.M. No. F(X)I-2014/23/4 dated 23/05/2014 & 08/05/2015.
(iii) Ministry of Finance, Department of Revenue, CBDT (TPL Division)’s O.M No. 149/21/2013 TPL dated 23/07/2015 addressed to Railway Board.

On perusal of contents of O.M. dated 23/07/2015, (addressed to the Railway Board by Department of Revenue, CBDT TPL Division), copy handed over to the NFIR during the PNM meeting held on 819`” October 2015, Federation felt disappointed that the view of CBDT is unconvincing as the points raised by the Federation in the PNM agenda Item No, 39/2012 have not been taken into consideration. As a matter of fact, the CBDT has generalized the issue ignoring the Federation’s demand seeking revision of tax exemption to the specific category of Running Staff of Railways.

2. Federation however re-iterates below the key points for making proper reference by the Railway Ministry to the MoF/CBDT:-

• In para 1507 of IREC-Vol II (sixth Edition 1987/2″ Reprint Edition 2005), it has been stipulated that the Running Allowance is granted to the Running Staff for the performance of duty directly connected with charge of moving trains and includes “kilometerage allowance” or “allowance in lieu of kilometerage” and is paid on the kilometerage basis.
• The argument of CBDT that the exemption limit was raised from Rs. 6000 to 10,000 p.m. which takes care of progressive requirement of employees working in the different transport sector including Railway employees is not relevant as the revision of exemption sought pertains to Running Staff. Federation’s demand is that when the rates of kilometerage allowance of Running Staff on Indian Railways have been enhanced on DA reaching 50% of pay w.e.f. 01/01/2011 and again on reaching 100% as on 01/01/2014, the exemption limit of Income Tax correspondingly needs to be enhanced retrospectively as there is T.A. component in the kilometerage amount. Therefore, the present exempteq. amount of Rs. 10,000/- is grossly insufficient particularly in the context of upward revision of the rates of T.A which are not taxable.
• The CBDT’s view that moderation of tax rates by way of increase in the basic exemption limits and widening of tax slabs has raised every individual’s exemption limit is not relevant to the issue raised by NFIR seeking revision of exemption limit in the case of Running staff in Railways.

NFIR, therefore, requests the Railway Board to write back to MoF/CBDT duly highlighting that “kilometerage amount paid to Running staff includes T.A. component towards out of pocket expenses” and urging for approval for upward revision of tax exemption limit from the existing Rs. 10,000/- to Rs. 20,000/-

Yours faithfully,

(Dr. M. Raghavaiah)
General Secretary

Source: NFIR – https://drive.google.com/file/d/0B40Q65NF2_7UNjRyY0p1NFdlM2c/view?pli=1

Debroy Committee, PLB and Strike on 23.11.2015 issues discussed with Railway Ministry – NFIR

Debroy Committee, PLB and Strike on 23.11.2015 issues discussed with Railway Ministry – NFIR

MEETING WITH MINISTER OF RAILWAYS AND THE FEDERATIONS ON 06th AUGUST 2015 REGARDING BIBEK DEBROY COMMITTEE, PLB ETC.,

NFIR
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110 055

No.IV/NFIR/SR/2014/Pt.III (HLRRC)

Dated: 06/08/2015

Sub:

Meeting between the Federations (NFIR & AIRF) and Hon’ble Railway Minister Shri Suresh Prabhu – Rail Bhawan, New Delhi – 60th August, 2015.

A special meeting was held in the Chamber of Railway Minister, Shri Suresh Prahhu wherein the Presidents and General Secretaries of NFIR/AIRF have participated in the discussion. CRB, MS and ED (IR) were present during discussions.

Important issues discussed in the meeting

1. Bibek Debroy Committee Report

The Federations expressed their strong reservations on certain recommendations or High Level Railway Restructuring Committee (HLRRC) headed by Bibek Debroy, more particularly Railway Regulatory Authority (RRA), Private Players entry into the Railway services, Railway Medical services. RPF etc..
The Minister while appreciating the points raised bv the NFIR has directed the Railway Board (CRB/MS) to organise a separate meeting between Mr Debroy and the Federations for discussing the recommendations freely and frankly for the purpose of understanding each others perception, facilitating the Railway Ministry to appropriately consider further.

2. Productivity Linked Bonus to Railway employees

P.L. Bonus and the new formula floated by the Railway Board was discussed. Federations insisted thal the agreement reached on 22nd November, 1979 should be respected and no capital should be taken into consideration as the utilization or capital is not in the hands of workers.

After discussion, it was agreed to consider all points for sorting out the issues satisfactorily.

3. Charter of Demands and the decision of the JCM constituent organisations to go on Indefinite Strike from 23rd November, 2015.

The compelling circumstances under which the JCM constituent organisalions have taken a decision to go on indefinite strike and Railway Federations are party to the decision was explained to the Railway Minister. The Federations urged upon the Railway Minister to see that the Railway Ministry takes initiative towards reaching a negotiated settlement on pending issues and Charter of Demands. Issues, particularly upgradation of Apex Level Group ‘C’ posts to Group Gazetted. Act Apprentices. Non-implementation of agreement reached between the Federations and full Board on February, 2014. were brought to the notice of the Railway Minister.

After discussion, the MR has instructed the Board to deal with these issues for ensuring that healthy industrial relations are maintained with the Federations.

The Minister has been categorical in assuring the Federations that there is no question of privatization of Railways. The Minister also said that improved technology and improvement of efficiency levels will be given priority for making Indian Railways a dynamic infrastructure. He also complimented the rail work force for their devotion which has resulted in improvement of Operating Ratio.

Yours fraternally,
(Dr M. Raghavaiah)
General Secrctary

Source: NFIR

Appointment on Compassionate grounds of dependent of medically unfit staff on the Railways

Railway Board Orders : Appointment on Compassionate grounds of dependent of medically unfit staff on the Railways.

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

RBE No.22/2014
No. E(NG)II/2012/RC-1/GenI./15

New Delhi, dated 04.03.2014

The General Manager (P)
All Zonal Railways/Production Units etc.

Sub: Appointment on Compassionate grounds of dependent of medically unfit staff on the Railways.

Attention is invited to this Ministry letter No. E(NG)II-84/RCI/105 dated 16.11.1984, stipulating therein, that in cases of medically decategorised / incapacitated Railway employees, a wife is eligible for compassionate ground appointment subject to certain conditions.

Pursuant to the issue raised in PNM/AIRF meeting (Item No. 53/2012), the matter has been reviewed and in supersession of Board’s letter ibid, it has been decided by the Board that in case of medically decategorised / incapacitated employees where compassionate appointment is otherwise permissible, it will be the discretion of the concerned medically decategorised / incapacitated Railway employee to request for a job to either spouse or ward as per his/her choice. Further, in the event of death of the medically unfit employee without making clear his wishes, the first preference for appointment on compassionate ground appointment should be that of spouse as done in case of death.
Please acknowledge receipt.

(Harsha Dass)
Director Estt. (N)II
Railway Board

Source : www.indianrailways.gov.in
[http://www.indianrailways.gov.in/railwayboard/uploads/directorate/establishment/ENG-II/2014/appointment_040314.pdf]

Railway Minister Announces increase in Rail Passenger Fares

Railway Minister Announces increase in Rail Passenger Fares

Ministry of Railways has decided to increase the passenger fares  with effective from the midnight of 21st January 2013 and 22nd January 2013 (i.e. w.e.f. 0000 hours of 22-1-2013). This decision was announced today i.e. on 9th January 2013, by Minister of Railways Shri Pawan Kumar Bansal at a Press Conference held in Rail Bhawan.  Minister of State for Railways Shri. Kotla Jaya Surya Prakash Reddy and Railway Board Members were also present.

The fare increase, class-wise, is as per the following table:

S No.	Class of Travel	Proposed per km increase in fares
i.	Second Class Ordinary(Suburban)	2 Paise
ii.	Second Class Ordinary(Non-Suburban)	3 Paise
iii.	Second Class(Mail / Express)	4 Paise
iv.	Sleeper Class	6 Paise
v.	AC Chair Car	10 Paise
vi.	AC 3-Tier	10 Paise
vii	First Class	03 Paise*
viii.	AC2-Tier	06 Paise*
ix.	AC First Class	10 Paise*

* In addition to increase of 10 paise per km in case of First Class, 15 paise per km in case of AC 2Tier and 30 paise per km in case of AC First / Executive Class already implemented w.e.f. 01-04-12.

Moreover, it has also been decided

(i) do away with the present practice of levying Development Charge on passenger tickets, and

(ii) have all chargeable fares in multiples of Rs. 5/-.

Elaborating the rational for fare hike,  the Railway Minister,  Shri Pawan Kumar Bansal said that  basic fares had not been revised upwards in the  last ten years (except for the increase implemented w.e.f. 01-04-12 in respect of only First Class @ 10 paise per km, AC 2Tier @ 15 paise per km and AC First / Executive Class @ 30 paise per km).   He pointed out that Losses in passenger segment which were Rs.6159 Cr in 2004-05 had risen to Rs.19964 Cr in 2010-11 (18% per annum) and  is expected to increase to Rs.25000 Cr in 2012-13.

Shri Bansal informed that Railway’s Input costs have increased by 10.6% per annum between 2004-05 and 2010-11, whereas fares stagnated or were reduced in Lower Classes aggravating passenger losses.  He emphasized that cross subsidy through freight business is  no more viable in view of fast evolving competition from other modes.  Referring to the 2012-13 Railway Budget,  Shri Bansal said that across-the-board fare hike proposal placed in 2012-13 Railway Budget in Parliament was finally approved only for First, 2nd AC and First AC/Executive Classes, which together constitute only about 0.3 % of total passengers and about 10% of total earnings from passenger segment.  The Railway Minister pointed out that as a consequence Internal resource generation was  seriously impacted, resulting in scaling down of Annual Plan size, which has now been limited to Rs. 51,000 crore in 2012-13 as against  Rs. 61,000 crore that was originally targeted.  Similarly, Fund balances became negative in 2011-12, adversely affecting essential replacement /renewal of assets, operation and maintenance activities and critical safety & passenger amenity works.  The Railway Minister emphasized that it was in view of these factors, that increasing passenger fares had became unavoidable. It was also necessary to do so in the overall interests of this critical infrastructure as well  as its users on a sustainable basis.

Source: PIB News