Vijayalakshmi Viswanathan
D.O.No.2005/FC/Misc
November 28, 2005
My
dear (All FA&CAOs)
As I lay down my office at the end of
this month, I would like to convey my appreciation of the excellent efforts put
forth by you and your team of dedicated officers. I indeed deem it a privilege
and honour to have been at the helm of affairs of
this great organization as Financial Commissioner (Railways) for over three
years. The period, which witnessed the turn around of Indian Railways, is
marked by a number of initiatives and milestones, which I re-capitulate and
would urge upon you to take them forward for greater fruition!
2.1 First and foremost is the impetus given to
a number of IT initiatives taken in the recent past. A
thrust was given for implementation of AFRES and PRIME, definitely acknowledged
as versatile, robust and trustworthy applications. I am happy that many
divisions have already switched over to these systems. I used to avidly follow
the messages posted on the IRAS website on the immense potential of these
applications. Railways, which are lagging behind should take special efforts to
come on the mainstream. It may also be necessary to take full advantage of the
training courses organized at Railway Staff College and C-TARA. Your personal interest will go
a long way in meeting the targets.
2.2 Railways are working towards adoption of
E-procurement which envisages putting purchase activities on the internet
wherein issue of tenders, receipt of bids, issue of contracts etc. would be
done online. The introduction of this system will bring transparency and
improve efficiency by way of reduced procurement time cycle and expeditious
payment to suppliers. Northern Railway should successfully complete the project
where upon this would be extended to all the Zonal Railways and Production
Units.
2.3 MMIS is a complete software package
covering activities of purchase office, stores depots, scrap depot, vendor
evaluation and registration. It also covers activities of Stores Finance Branch
including bill passing of materials received against supply orders released by
Stores Department. Central Railway has taken a lead in development, testing and
customization of this software. The other Zonal Railways should also plan for
early implementation.
3.1 The investment strategy has undergone a
paradigm shift. Focused, corridor-wise approach or route-wise planning with a
special emphasis on throughput enhancement and terminal improvement works has
been introduced in the last two ‘Works Programme’
exercises. To achieve ‘Mission 700’, it is important that identified works
are executed with utmost expedition. It may be worthwhile to bring to the
notice of General Managers, the trend of expenditure periodically on these
works. Apart from this, sample checks on the outcome of completed works, if not
productivity tests, should be undertaken. These works should result in better
fluidity of the system and improved asset utilization. Statistical branch and
Traffic Costing Cell should provide you with suitable inputs on performance
parameters. A meaningful analysis of this would be an effective mechanism to
achieve the corporate objective.
3.2 A methodical review of proposals for track
renewal for inclusion in Works Programme has been
introduced since last year. Ideally, before the prescribed GMT norm is
fulfilled there should not be any need for proposing CTR/TRR/TSR. Financial
scrutiny of track renewal proposals should address this issue sharply, since
premature renewals had been commented upon in the Rakesh
Mohan Committee Report.
4. A wide-range of freight initiatives, both
tariff related and otherwise, have been announced in the last few budgets.
These have helped the system recapturing some lost traffic and post a healthy
growth, much above the GDP. The inspection wing of traffic accounts should be
fully conversant with these important policy pronouncements and their impact at
field level. Overloading was an area of concern and continues to engage the
attention at the highest level in Railway Board. Installation and proper
functioning of weigh-bridges would facilitate correct realization of dues and
arrest this menace of overloading, affecting safety too. There should be a
proper feed back mechanism on this, which I expect you, to set up.
5. I have been stressing that budget
exercise should be zero-based and performance related. With the Hon’ble Finance Minister laying the ‘outcome budget’ in the
Parliament, this exercise assumes added significance. Apart from financial
reviews, which are being submitted to General Managers from your end, the
status of physical progress of certain identified activities should also be
presented to assess the ‘value for money’. Not much has been done in this
regard so far. FA&CAOs should take cue from some
of the comprehensive reviews conducted by Audit in different areas.
6.1 Early completion of actuarial assessment of
pension liability, which is underway, will be possible only if the Railways
furnish the requisite data in time. This may be personally monitored at your
level.
6.2 Updating of the asset registers so as to
realistically arrive at the depreciation fund requirement is another budget
commitment and is a priority area. Your active involvement would be required to
put in place a sound mechanism in this vital aspect, which has drawn adverse
remarks from the accounting pundits.
7. Indian
Railways’ performance as reflected in the approximate actuals
of October reveal a satisfactory trend. While earnings
have definitely registered a significant growth, aided by a buoyant economy,
expenditure control measures have also greatly helped in posting substantial
net surplus over Budget proportions. To maintain and sustain the trend, there
should be continuous, unswerved efforts towards fiscal discipline, in which you
have a greater responsibility. Hon’ble PM has
conveyed his appreciation over Railways’ excellent performance to Hon’ble MR. While enclosing a copy of the letter under reference, I implore you to put in all efforts to sustain
this.
8. As
you are perhaps aware, due to our effective pleading, Railway Convention
Committee had reduced the rate of dividend from 7% to 6.5.%
for the two successive years of 2004-05 and 2005-06. Another important
recommendation was to get the same concessions in payment of dividend as
available on new lines on strategic considerations to gauge conversion work
also. Further, the dividend on the capital at charge of the new lines, which
was being computed at the average borrowing rate (much above the dividend rate) will now be calculated at the least of the rate of
dividend or average borrowing rate charged to the commercial departments. These
concessions have resulted in a substantial relief in the payment of dividend,
with the resultant increase in internal resources. Encouraged by this trend,
RCC has been approached seeking their approval for revival of capital fund. We
have also been able to shrink the period of discharging the deferred dividend
liability from 8 to 5 years. Once revived, works under
Capital Fund should be executed speedily in a time bound manner.
9. A
safety blueprint called “Corporate Safety Plan” was prepared in August, 2003
for outlining the priority to do safety related works. It is an Rs.32000 cr.
investment plan designed to upgrade the technology level of IR during the 10
year period 2003-2013. The investment decisions of IR on safety issues are
governed by this plan. The implementation of the plan along with completion of
SRSF works should receive special attention.
10. Integrated
Modernization Plan was formulated with a view to clearly define a broad
framework of initiatives, to be undertaken in the fields of throughput
enhancement and technological upgradation, in a
period of five years starting from 2005-2006. Investment proposals worth Rs.24,000 crore have been identified for
transforming Indian Railways into a modern world class system. These measures
should in the long run bring down the operating and maintenance costs. A clear
and close watch on this aspect is a must, as our professional responsibility.
11. The most gratifying part of my tenure, from the cadre point
of view has been the year long celebrations of Platinum Jubilee. The occasion
provided us an opportunity to upgrade our professional knowledge through
valuable inputs from the eminent speakers and authorities in their field, in
the seminars organized by the various regions. This also enabled our younger
and middle level officers to acquire and enhance their capabilities in
meticulously planning and organizing events. The concluding workshop at Railway Staff College was noteworthy for its
content, coverage and quality of presentations. My congratulation to each and
every one of you!
12. I have
high hopes on my officers, and staff who, despite all
odds, have proved what a committed, enthusiastic and dedicated team can
achieve. As the captain of the successful team, I had your unflinching support,
which made my task easier. I take this opportunity to acknowledge the
contribution of each and every one of you and would like to place on record my
appreciation! I wish you and all your officers a bright and rewarding future
and successful career!
Yours sincerely,
Encl: as above.
(Vijayalakshmi
Viswanathan)