WELCOME TO THE PRESENTATION on

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WELCOMETO THEPRESENTATION on
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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.

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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
  Connectivity.
• 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
  24.1.2003.

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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
  works.
• 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.

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Creating Rail Transport ahead of Demand A model
SPV.

• First major non-budgetary initiative for creating
  Rail infrastructure on commercial format.
• Strengthening of Golden Quadrilateral and
  Diagonals.
• 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.

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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.

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Corporate Vision

• To emerge as most efficient rail infrastructure
  provider with sound financial base and global
  construction practices for timely completion of
  projects.
• 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
  network.

Contd..
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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,
  etc.
• 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
  issue.

Contd..
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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
  year.
• 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.

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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
  up.
• 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.

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Management Board
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Models of Project Implementation

• Sources of Finance
• RVNL is presently implementing about Rs.12,900
  Cr.
• 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
  Shipping.

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Physical size of RVNL Projects.

• RVNL is implementing four types of Projects under
  the initiative of Golden Quadrilateral and Port
  connectivity
• 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

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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.

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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
  (Gujarat)
• Surat Hazira New Line (Gujarat)
• Obuvallirapalle Krishnapatnam New Line (Andhra
  Pradesh)
• Arsikeri Hassan Mangalore Gauge Conversion
  (Karnataka)
• Gandhidham Palanpur Gauge Conversion (Gujarat)
• Angul - Sukinda New Line RE(Orissa)

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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

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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.

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Projects through Private Public
Partnerships-Concepts

• 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
  given.

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Projects through Private Public Partnerships-
Issues.

• 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.

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Projects being developed as Private Railways

• Vallarpadiam - Idapalli New Line (Kerala)

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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

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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.

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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
  rejected)

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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
  capacity.
• 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

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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
  contract.
• 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
  evaluation.
• 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.

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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
  contract.
• 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.

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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..

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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
  expenditure.
• 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
  10.5)
• 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
  

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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

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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

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Projects in Progress

• 16  CUTTACK - BARANG DOUBLING 
• 17  KHURDA ROAD - BARANG 3RD LINE DOUBLING 
• 18   BHOPAL - BINA 3RD LINE DOUBLING 
• 19   TIKIAPARA - SANTRAGACHI DOUBLING 
• 20   DAUND - GULBARGA DOUBLING 
• 21   HOSPET - GUNTAKAL DOUBLING 
• 22   BHARUCH - SAMNI - DAHEJ GAUGE CONVERSION 
• 23   AJMER - PHULERA - RINGUS - REWARI GAUGE 
• 24   THANJAVUR - VILLUPURAM GAUGE CONVERSION 
• 25   BHILDI - SAMDARI GAUGE CONVERSION 
• 26   PANSKURA - HALDIA PH II DOUBLING 
• 27   HARIDASPUR - PARADEEP NEW LINE 
• 28   SURAT - HAJIRA NEW LINE 
• 29   VALLAPARPADM - IDAPALLY NEW LINE 
• 30   OBULAVARIPALLE - KRISHNAPATTNAM NEW LINE 
• 31   SALKA ROAD - ANNUPPUR DOUBLING 
• 32   ANGUL - SUKINDA NEW LINE 
• 33   JAKHPURA- HARIDASPUR 3RD LINE DOUBLING 
• 34   DALLI - RAJHARA - RAOGHAT 

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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
  (CVC).

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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.

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Physical Plan
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Financial Plan
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