WELCOMETO THE

PRESENTATION on

National Rail Vikas YojanaNational Rail Vikas Yojana

Government of India has conceived a massive investment plan for rail sector to Government of India has conceived a massive investment plan for rail sector to eliminate capacity bottlenecks on Golden Quadrilateral and Diagonals to provide eliminate capacity bottlenecks on Golden Quadrilateral and Diagonals to provide strategic rail communication links to ports, construction of mega-bridges for improving strategic rail communication links to ports, construction of mega-bridges for improving communication to the hinterland and development of multi-modal transport corridors. 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 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 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 and formally launched it on 26th December, 2002. National Rail Vikas Yojana comprises the following investment planning components:comprises the following investment planning components:

Strengthening of Golden Quadrilateral and Diagonals connecting the 4 metro cities i.e. Strengthening of Golden Quadrilateral and Diagonals connecting the 4 metro cities i.e. Delhi, Mumbai, Chennai and Kolkata. Delhi, Mumbai, Chennai and Kolkata.

Providing Rail based port-connectivity and development of corridors to hinterland Providing Rail based port-connectivity and development of corridors to hinterland including multi-modal corridors for movement of containers. including multi-modal corridors for movement of containers.

Construction of 4 mega bridges at Patna and Munger on river Ganga, at Bogibeel on Construction of 4 mega bridges at Patna and Munger on river Ganga, at Bogibeel on river Brahmputra and at Nirmali on river Kosi.river Brahmputra and at Nirmali on river Kosi.

About Rail Vikas Nigam LimitedAbout Rail Vikas Nigam LimitedRail Vikas Nigam Limited (RVNL), is a Special Purpose Rail Vikas Nigam Limited (RVNL), is a Special Purpose Vehicle created to undertake project development, Vehicle created to undertake project development, mobilization of financial resources and implement projects mobilization of financial resources and implement projects pertaining to strengthening of Golden Quadrilateral and pertaining to strengthening of Golden Quadrilateral and Port Connectivity. Port Connectivity.

It is the first major non-budgetary initiative for creating It is the first major non-budgetary initiative for creating rail transport capacity ahead of demand and on a rail transport capacity ahead of demand and on a commercial format. RVNL has been registered as a commercial format. RVNL has been registered as a company under Companies Act 1956 on 24.1.2003. company under Companies Act 1956 on 24.1.2003.

It is a wholly owned Government company under the It is a wholly owned Government company under the provisions of Section 617 of Companies Act. Certificate provisions of Section 617 of Companies Act. Certificate of Incorporation was obtained on 24.1.2003. of Incorporation was obtained on 24.1.2003.

About RVNLAbout RVNLRVNL is assigned the following functions: RVNL is assigned the following functions:

Arranging financial resources for the Projects.  For this purpose, the RVNL Arranging financial resources for the Projects.  For this purpose, the RVNL would be authorized to approach the Financial Institutions, Banks, Domestic would be authorized to approach the Financial Institutions, Banks, Domestic Market and the Bilateral and Multilateral Funding Agencies. Market and the Bilateral and Multilateral Funding Agencies.

Undertaking project development and execution of works. Undertaking project development and execution of works.

Creating Project specific SPVs for individual works, if required. Creating Project specific SPVs for individual works, if required.

Commercialization of projects wherever considered necessary and feasible. Commercialization of projects wherever considered necessary and feasible.

The concerned Zonal Railways will undertake the operation and maintenance of The concerned Zonal Railways will undertake the operation and maintenance of the Railway Projects on completion of their execution by the RVNL under a the Railway Projects on completion of their execution by the RVNL under a specific financial arrangement. specific financial arrangement.

For providing a revenue stream to RVNL, the projects may be done by RVNL on 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. BOT concept, where Ministry of Railways is to pay Access Charge/User Charge.

First major non-budgetary initiative for creating Rail First major non-budgetary initiative for creating Rail infrastructure on commercial format.infrastructure on commercial format.Strengthening of Golden Quadrilateral and Diagonals.Strengthening of Golden Quadrilateral and Diagonals.Providing Rail Based connectivity and development of Providing Rail Based connectivity and development of corridors to hinterland including multi model corridors of corridors to hinterland including multi model corridors of for movement of containers.for movement of containers.Construction of 4 mega bridges at Patna and Munger on Construction of 4 mega bridges at Patna and Munger on river Ganga, at Bogibeel on river Brahmaputra at Nirmali river Ganga, at Bogibeel on river Brahmaputra at Nirmali on river Kosi.on river Kosi.Funding model of ADB has got abilities to better contract Funding model of ADB has got abilities to better contract management to avail the benefits of ‘Economy's of Bulk management to avail the benefits of ‘Economy's of Bulk Purchase’ and ‘Hassle free Funds Flow’.Purchase’ and ‘Hassle free Funds Flow’.

Creating Rail Transport ahead of Creating Rail Transport ahead of Demand – A model SPV.Demand – A model SPV.

Corporate MissionCorporate MissionCreating state of Art rail transport capacity to meet growing demand. Creating state of Art rail transport capacity to meet growing demand.

Executing projects on fast track basis by adopting international project execution, Executing projects on fast track basis by adopting international project execution, construction, management practices and standards. construction, management practices and standards.

To make the Project implementation process, efficient both in terms of cost and To make the Project implementation process, efficient both in terms of cost and time. time.

Adhering to sound business principles and prudent commercial practices to Adhering to sound business principles and prudent commercial practices to emerge India’s top rail infrastructure PSU. emerge India’s top rail infrastructure PSU.

To implement Rail Infrastructure Project on commercial format through various To implement Rail Infrastructure Project on commercial format through various Public Private Partnership models. Public Private Partnership models.

To achieve International Quality Standards through innovations. To achieve International Quality Standards through innovations.

To implement Rail Infrastructure Projects on commercial format through various To implement Rail Infrastructure Projects on commercial format through various Public Private Partnership Models. Public Private Partnership Models.

To achieve project completions in target time and with best quality. To achieve project completions in target time and with best quality.

Involving private sector in financing the construction of projects and development Involving private sector in financing the construction of projects and development of efficient models of Public Private Partnerships with joint venture SPVs with of efficient models of Public Private Partnerships with joint venture SPVs with equity participation by Strategic & Financial Investors including funding options equity participation by Strategic & Financial Investors including funding options from external multilateral agencies like the Asian Development Bank.from external multilateral agencies like the Asian Development Bank.

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

Rail Vikas Nigam Limited was set up with twin objectives of mobilization of Rail Vikas Nigam Limited was set up with twin objectives of mobilization of private and market funds and implement Railway Projects on fast track private and market funds and implement Railway Projects on fast track basis. basis. 

RVNL has gained significant hands on experience in private partnerships, RVNL has gained significant hands on experience in private partnerships, dealing with multilateral agency like ADB, understanding their procedures dealing with multilateral agency like ADB, understanding their procedures and guidelines and utilization of multilateral funds for Railway Projects and and guidelines and utilization of multilateral funds for Railway Projects and execution of large contracts involving significant planning and project execution of large contracts involving significant planning and project management and delivery of projects in a time bound mannermanagement and delivery of projects in a time bound manner

The experience gained by RVNL is unique. Challenge before Indian Railways The experience gained by RVNL is unique. Challenge before Indian Railways is to execute large number of projects on fast track basis to quickly is to execute large number of projects on fast track basis to quickly augment capacity on the over saturated network.augment capacity on the over saturated network.

Cont’d…..

Corporate VisionCorporate Vision

Keeping in view, likely manifold increase in construction activity and need to 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 implement projects in a tighter time schedule, RVNL will have to play a key role in removing capacity bottlenecks and implementation of projects. Based role in removing capacity bottlenecks and implementation of projects. Based on the experience gained so far, RVNL need to be assigned the following role on the experience gained so far, RVNL need to be assigned the following role in future: in future:

RVNL will be assigned large capacity creation programmes viz. removal RVNL will be assigned large capacity creation programmes viz. removal of capacity bottlenecks on High Density Network, of capacity bottlenecks on High Density Network,

RVNL will play a greater role in creating capacity on Golden Quadrilateral RVNL will play a greater role in creating capacity on Golden Quadrilateral and can be assigned the projects as an outcome of studies being and can be assigned the projects as an outcome of studies being undertaken by RVNL for Freight Corridors on North South, East West, undertaken by RVNL for Freight Corridors on North South, East West, East Coast Corridors, etc. East Coast Corridors, etc.

RVNL will be assigned with large Railway Electrification Projects. RVNL will be assigned with large Railway Electrification Projects.

RVNL will undertake construction of Mega Bridges. Such bridges are RVNL will undertake construction of Mega Bridges. Such bridges are ideal candidate for multilateral funding as the same does not involve any ideal candidate for multilateral funding as the same does not involve any ROR issue. ROR issue.

Cont’d…..

Corporate VisionCorporate VisionProjects to be implemented with multilateral funding such as ADB and Projects to be implemented with multilateral funding such as ADB and World Bank. World Bank.

Projects to be implemented through Public Private Partnership through Projects to be implemented through Public Private Partnership through various models. various models.

Construction of about 1000 kms of track every year. Construction of about 1000 kms of track every year.

Expenditure of about Rs.3,000 cr. every year. Expenditure of about Rs.3,000 cr. every year.

Full operationalisation of RVNL as Railway Administration under Full operationalisation of RVNL as Railway Administration under Railways Act, 1989 Section 3(32b) as per cabinet approval. Railways Act, 1989 Section 3(32b) as per cabinet approval.

To bring global construction technology in railway construction, to To bring global construction technology in railway construction, to deliver best quality and to have cost effective design, construction to deliver best quality and to have cost effective design, construction to reduce the life cycle cost of project. reduce the life cycle cost of project.

Assignment of critical Railway Development Activities, requiring new Assignment of critical Railway Development Activities, requiring new skills and techniques.skills and techniques.

Corporate ObjectivesCorporate ObjectivesTo undertake and execute successfully the project development pertaining to To undertake and execute successfully the project development pertaining to “Strengthening of Golden Quadrilateral, Port and Hinterland connectivity” and other “Strengthening of Golden Quadrilateral, Port and Hinterland connectivity” and other viable Railway projects. viable Railway projects.

To mobilize financial and human resources for project implementation. To mobilize financial and human resources for project implementation.

Timely execution of projects. Timely execution of projects.

To maintain a cost effective organizational set up. To maintain a cost effective organizational set up.

To encourage public private participation in rail related projects managed by RVNL. To encourage public private participation in rail related projects managed by RVNL.

To be an infrastructure Project Management Company committed to sustainable To be an infrastructure Project Management Company committed to sustainable development and environment friendly construction of rail related projects in the development and environment friendly construction of rail related projects in the country. country.

To acquire, purchase, license, concession or assign rail infrastructure assets To acquire, purchase, license, concession or assign rail infrastructure assets including contractual rights and obligations. including contractual rights and obligations.

Management BoardManagement Board

Models of Project Models of Project ImplementationImplementation

Sources of FinanceSources of Finance

RVNL is presently implementing: about Rs.12,900 Cr.RVNL is presently implementing: about Rs.12,900 Cr.

• 7 Projects through ADB funding.7 Projects through ADB funding.• 11 Projects through IRFC borrowing11 Projects through IRFC borrowing• 9 Projects through Capital Fund of Railways.9 Projects through Capital Fund of Railways.•11 Projects through RVNL Equity.11 Projects through RVNL Equity.•7 Projects through Project Specific SPVs.7 Projects through Project Specific SPVs.•1 Project through full funding of Min. of Shipping.1 Project through full funding of Min. of Shipping.

Physical size of RVNL Projects.Physical size of RVNL Projects.

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

Doubling of Lines: 1811 KmDoubling of Lines: 1811 Km

Gauze Conversion: 1585 KmGauze Conversion: 1585 Km

New Lines: 493 KmNew Lines: 493 Km

Railway Electrification: 1906 KmRailway Electrification: 1906 Km

The Task of fixing of consultant and undertaking of Traffic and The Task of fixing of consultant and undertaking of Traffic and Financial Studies of 4 Dedicated Freight Corridors Viz: Delhi – Chennai Financial Studies of 4 Dedicated Freight Corridors Viz: Delhi – Chennai (North-South) Kolkata –Mumbai (East- West) Khrgapur-Vijayawada (North-South) Kolkata –Mumbai (East- West) Khrgapur-Vijayawada (East –Coast) and Goa- Chennai (Southern Corridor) (East –Coast) and Goa- Chennai (Southern Corridor)

The task of fixing of consultant or undertaking study and preparation of The task of fixing of consultant or undertaking study and preparation of bidding document and bidprocess management for setting “Agri Retail bidding document and bidprocess management for setting “Agri Retail Logistics Chain” on vacant Railway Land Logistics Chain” on vacant Railway Land

Models of Project Models of Project ImplementationImplementation

RVNL is implementing rail projects primarily RVNL is implementing rail projects primarily through following models: through following models:

Formation of Project Specific SPVs having equity and debt Formation of Project Specific SPVs having equity and debt financing. financing.

Build Own Transfer (BOT) route, wherein the entire financing Build Own Transfer (BOT) route, wherein the entire financing is arranged by the private developer through equity and debt is arranged by the private developer through equity and debt route. route.

Private Railway, wherein the project is funded as part of the Private Railway, wherein the project is funded as part of the port project. port project.

Projects are implemented either through the construction Projects are implemented either through the construction units of Zonal Railways or by award of EPC contract by units of Zonal Railways or by award of EPC contract by RVNL and funds are raised by RVNL directly.RVNL and funds are raised by RVNL directly.

Projects to be implemented Projects to be implemented through SPVs through SPVs

The following projects are being planned for implementation through The following projects are being planned for implementation through

creation of Project specific Special Purpose Vehicle (SPVs) having equity creation of Project specific Special Purpose Vehicle (SPVs) having equity participation by both strategic and financial investors. 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)

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

Projects to be implemented Projects to be implemented BOT/EPC Contracts BOT/EPC Contracts

Projects being developed as Projects being developed as PPP Model - RailwaysPPP Model - Railways

OBVP- KP New BG line connecting to a Private Port OBVP- KP New BG line connecting to a Private Port Company having strategic Partners with GOAP, Company having strategic Partners with GOAP, MMTC, Krishnapatnam Port Company and Brahmani MMTC, Krishnapatnam Port Company and Brahmani Steels on this system.Steels on this system.

Projects through ‘Private Projects through ‘Private Public Partnerships’-ConceptsPublic Partnerships’-Concepts

Ministry of Railways is introducing the PPP models through Ministry of Railways is introducing the PPP models through ‘RVNL SPV’ to provide additional infrastructure which was ‘RVNL SPV’ to provide additional infrastructure which was previously the responsibility of Railway Board.previously the responsibility of Railway Board.In view of increase in infrastructural demand in the economy In view of increase in infrastructural demand in the economy PPP can also be made attractive financially encourage private PPP can also be made attractive financially encourage private sector involvement.sector involvement.A regulatory system is required to ensure that infrastructure A regulatory system is required to ensure that infrastructure provided is in the public interest and satisfy the partners.provided is in the public interest and satisfy the partners.Without changing the ownership arrangements (rests with the Without changing the ownership arrangements (rests with the Railway Board) Private sector is allowed to participate either on Railway Board) Private sector is allowed to participate either on BOO, BOT,BOOT and DBFO (Design Build Finance and BOO, BOT,BOOT and DBFO (Design Build Finance and Operate) with an explicit out put specification.Operate) with an explicit out put specification.Inviting Private Finance Initiative may result in periodic Inviting Private Finance Initiative may result in periodic payments (Lease charges) throughout/at the end of the Project payments (Lease charges) throughout/at the end of the Project period and the leverage is given. period and the leverage is given.

Projects through ‘Private Projects through ‘Private Public Partnerships’- Issues. Public Partnerships’- Issues. The rationale for deciding to pursue PPP for a particular Project is 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 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.macro fiscal device which can generate value for money at the end.

The processes and procedures that guide and aid the decisions to The processes and procedures that guide and aid the decisions to go for PPPs for a particular project and ensure adoption of a go for PPPs for a particular project and ensure adoption of a scheme that are best value for money for the partners.scheme that are best value for money for the partners.

The procedures and processes that are available to provide a post The procedures and processes that are available to provide a post project (decision) evaluation in different areas like New line, GC, project (decision) evaluation in different areas like New line, GC, RE, and Doubling etc.,RE, and Doubling etc.,

Whether it is real “merit and worth” to sustain the Private Whether it is real “merit and worth” to sustain the Private participants to sustain over the total period.participants to sustain over the total period.

Will of the management to pursue the PPP regulation, guidance, Will of the management to pursue the PPP regulation, guidance, pre decision process, post project appraisal and can contribute to pre decision process, post project appraisal and can contribute to objective planning. objective planning.

Projects being developed as Projects being developed as Private RailwaysPrivate Railways

Vallarpadiam - Idapalli New Line (Kerala)Vallarpadiam - Idapalli New Line (Kerala)

Projects being implemented Projects being implemented through ADB Fundingthrough ADB Funding

Talcher-Cuttak-Paradeep Doubling with Second Bridge over Talcher-Cuttak-Paradeep Doubling with Second Bridge over river Mahanadi at Birupa. river Mahanadi at Birupa. Gooty – Renigunta Patch Doubling Gooty – Renigunta Patch Doubling Bilaspur – Urkura 3rd Line Bilaspur – Urkura 3rd Line Rajatgarh – Barang Rajatgarh – Barang Cuttack – Barang Doubling Cuttack – Barang Doubling Khurda – Barang 3rd Line Khurda – Barang 3rd Line Aligarh – Ghaziabad 3rd Line Aligarh – Ghaziabad 3rd Line Raichur – Guntakal Doubling Raichur – Guntakal Doubling Renigunta – Guntakal Railway Electrification Renigunta – Guntakal Railway Electrification Pune - Guntakal Railway Electrification Pune - Guntakal Railway Electrification Pattabiram-Tiruvallur 4th Line & Tiruvallur-Arakkonam 3rd Line Pattabiram-Tiruvallur 4th Line & Tiruvallur-Arakkonam 3rd Line Doubling Doubling

Salient features of ADB funded Projects.Salient features of ADB funded Projects.

Execute the projects through its Equity, borrowings and by forming Execute the projects through its Equity, borrowings and by forming Joint ventures SPVs enable to handle large and composite contracts Joint ventures SPVs enable to handle large and composite contracts to avail the advantage of ‘Economy’s of Large scale.to avail the advantage of ‘Economy’s of Large scale.

Project Management is also outsourced to contain the cost of Project Management is also outsourced to contain the cost of Establishment in the Book Value of the Assets.Establishment in the Book Value of the Assets.

Undertakes the projects from the stand point of establishing financial Undertakes the projects from the stand point of establishing financial viability, bankability and its structuring to make it amenable to private viability, bankability and its structuring to make it amenable to private funding duly avoiding Budgetary support.funding duly avoiding Budgetary support.

Project Costs are established through technical surveys, updating of Project Costs are established through technical surveys, updating of project cost and finalization of technical parameters and design.project cost and finalization of technical parameters and design.

Cost of Establishment (including the Cost of Project Management Cost of Establishment (including the Cost of Project Management Consultancy) being the Human Capital in the assets created by the 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 RVNL there is a ‘Cap’ on the Cost of Establishment being 2.5% of the Cost of the Project.Cost of the Project.Projects are funded based on overall development of the region which Projects are funded based on overall development of the region which can enhance the ‘Line Capacity such as Doubling, New Lines, Gauze can enhance the ‘Line Capacity such as Doubling, New Lines, Gauze Conversion, RE etc,’ so that higher volumes of traffic is generated.Conversion, RE etc,’ so that higher volumes of traffic is generated.

Framing and Evaluation of Technical Bids.Framing and Evaluation of Technical Bids.

Irrespective of the system of submission of Bids either in TWO PACKET Irrespective of the system of submission of Bids either in TWO PACKET or SINGLE PACKET which is decided on the merits of each case or SINGLE PACKET which is decided on the merits of each case ‘Evaluation of Technical Bid’ is the ‘Evaluation of Technical Bid’ is the KEYKEY selection process. selection process.

Technical experience which is in accordance with the ITB has to be Technical experience which is in accordance with the ITB has to be established by the bidders with the proof of documentation. established by the bidders with the proof of documentation.

The Key factors such as Capacity to take up the Major Bridges, Track The Key factors such as Capacity to take up the Major Bridges, Track Linking, Electrification of Line, Building of Sub-stations, arrangement of Linking, Electrification of Line, Building of Sub-stations, arrangement of solid state inter locking (S&T) works etc., are evaluated in detail.solid state inter locking (S&T) works etc., are evaluated in detail.

The Bid selection on the basis of Technical Personnel and their The Bid selection on the basis of Technical Personnel and their experience is also given equal importance on the related Key factors.experience is also given equal importance on the related Key factors.

Capacity of the Agency with regard to availability of his Plant & Capacity of the Agency with regard to availability of his Plant & Machinery such as Mobile Welding Plants, Road vehicles, Machinery, Machinery such as Mobile Welding Plants, Road vehicles, Machinery, and workshops available with regard to their capacity and present Load and workshops available with regard to their capacity and present Load with in the period of execution of Project.with in the period of execution of Project.

Unless the Bid is certified as substantially qualified the same is Unless the Bid is certified as substantially qualified the same is rejected due to non fulfilling the ‘Technical suitability’ and the merits of rejected due to non fulfilling the ‘Technical suitability’ and the merits of financial bid should not influence the selection. (in case of Two Packet financial bid should not influence the selection. (in case of Two Packet system the financial bids are not opened and entire bid is rejected)system the financial bids are not opened and entire bid is rejected)

Framing and Evaluation of Financial Bids.Framing and Evaluation of Financial Bids.

Besides Bid Security and Performance Security other Financial criterion Besides Bid Security and Performance Security other Financial criterion such as Worth of the Bidder is to be established for framing and such as Worth of the Bidder is to be established for framing and selection of bids for assessing the financial capacity. selection of bids for assessing the financial capacity.

Average Annual turnover of the bidder for the last 5 years and 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 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 that the bidder has capacity towards working capital to take up the work. work.

Audited Balance sheets and Revenue Accounts are verified that the Audited Balance sheets and Revenue Accounts are verified that the bidder is solvent and is a running concern and has financial interests to bidder is solvent and is a running concern and has financial interests to sustain in the trade.sustain in the trade.The Bid selection on the basis of quotation of rates on each Schedule 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 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 execution is ensured with out termination is given equal importance on the related Key factors of work.the related Key factors of work.

Capacity of the Agency with regard to existing commitments, and Net Capacity of the Agency with regard to existing commitments, and Net Worth of the firm with regard to his capacity on the present Liability Worth of the firm with regard to his capacity on the present Liability with in the period of Project completion.with in the period of Project completion.

For the selection of bids the L1 need not be a successful bidder unless 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 it is established his Technical bid substantially qualified to execute the work as per the project objectives.swork as per the project objectives.s

Special features of RVNL Contracts.Special features of RVNL Contracts.

The Contract Management is unique in RVNL contracts and each The Contract Management is unique in RVNL contracts and each contract is governed by the its own Special/Particular conditions of the contract is governed by the its own Special/Particular conditions of the contract.contract.

As a policy Global Tenders are called inviting International Participants As a policy Global Tenders are called inviting International Participants having Multinational experience and the value of bids can be quoted in having Multinational experience and the value of bids can be quoted in INRs/ American dollars.INRs/ American dollars.

A pre bid meeting will be conducted inviting all possible participants A pre bid meeting will be conducted inviting all possible participants about the modalities of implementation and execution of the Project about the modalities of implementation and execution of the Project along with the Technical details 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 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 and choice of Agency is arrived at based on the critical Technical evaluation.evaluation.

The in- built system of Bid evaluation ensures that selection is more The in- built system of Bid evaluation ensures that selection is more transparent and the Agency has got equal responsibility to complete transparent and the Agency has got equal responsibility to complete the works as per Targets failing in which payable compensations equal the works as per Targets failing in which payable compensations equal to revenue losses are laid.to revenue losses are laid.

To balance the losses to the Agency on delays due to non availability of To balance the losses to the Agency on delays due to non availability of Land, Designs from the employer, and other site arrangements the Land, Designs from the employer, and other site arrangements the ‘Employer’ is also bound to pay the compensations as per the ‘Employer’ is also bound to pay the compensations as per the conditions.conditions.

Particular conditions of RVNL Contracts.Particular conditions of RVNL Contracts.

The Contract conditions should stipulate the “Minimum Interim The Contract conditions should stipulate the “Minimum Interim Certificate” by not less than Rs.6/7/8 Crores of the contract value.Certificate” by not less than Rs.6/7/8 Crores of the contract value.

Contract shall be insured covering the Employer’s risk to the extant of Contract shall be insured covering the Employer’s risk to the extant of 40% value of the Contract.40% value of the Contract.

Work has to be certified for its completion by the PMC which is directly Work has to be certified for its completion by the PMC which is directly under it supervision and the release of the payments.under it supervision and the release of the payments.

Defects notification period provides guarantees to the employer for the Defects notification period provides guarantees to the employer for the defective work and the responsibility of the Agency to make good the defective work and the responsibility of the Agency to make good the work as per the directives of the employer.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 The cost of the PMC contract shall be regulated to the 3.5 to 4.0% of the value of the each contract.value of the each contract.

The validity of the PMC shall be so regulated that it shall cover the The validity of the PMC shall be so regulated that it shall cover the currency of the main contract including the ‘Defect Liability period’.currency of the main contract including the ‘Defect Liability period’.

The built in conditions shall take into account the Custody of the The built in conditions shall take into account the Custody of the Materials at the site and insurance coverage includes Physical Work in Materials at the site and insurance coverage includes Physical Work in Progress with the employer.Progress with the employer.

Features of PMC Contracts of RVNL.Features of PMC Contracts of RVNL.

The selection of PMC ahead of the award of Main contract is to ensure 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 that consultant engineer has full knowledge of work that is being executed and the constraints and properly redressed .executed and the constraints and properly redressed .

The process of selection of PMC Engineers based on their experience The process of selection of PMC Engineers based on their experience and technical qualification is the criterion for their employment..and technical qualification is the criterion for their employment..

It is the responsibility of the PMC to certify the work which is directly It is the responsibility of the PMC to certify the work which is directly under its supervision and the release of the payments.under its supervision and the release of the payments.

The clauses provide certain penalties on the part of the PMC for not 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 maintaining the time schedule for the completion of the main work by the contractors .the contractors .

The payments to PMC contract shall be regulated and ensured that The payments to PMC contract shall be regulated and ensured that supervising engineers are paid in accordance with their actual supervising engineers are paid in accordance with their actual attendance and as per the progress of the main work.attendance and as per the progress of the main work.

The rates of the PMC contract shall include the all kind of service taxes 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, that are levied by the Govt. and are inclusive of their employees PF, Pension Gratuity etc..Pension Gratuity etc..

Bottlenecks of RVNL Projects.Bottlenecks of RVNL Projects.For any infrastructure Project, land acquisition is a bottleneck, the State For any infrastructure Project, land acquisition is a bottleneck, the State Governments and Zonal Railways have to be interacted through the Governments and Zonal Railways have to be interacted through the separate NGOs which indicates additional expenditure.separate NGOs which indicates additional expenditure.

Compensation Payments for Land acquisition is another factor during Compensation Payments for Land acquisition is another factor during the execution period where the capitalization of expenditure on land the execution period where the capitalization of expenditure on land needs to be regulated by early acquisition.needs to be regulated by early acquisition.

The projects funded by ADB have to be closely monitored have to be 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 placed in time during the financial year for realization of moneys from ADB involving R&R issues.ADB involving R&R issues.

Managing the work with the executives of the Zonal Railways with Managing the work with the executives of the Zonal Railways with regard to clearance of Designs and Drawings obtaining the Blocks and regard to clearance of Designs and Drawings obtaining the Blocks and Power Blocks in case of RE works.Power Blocks in case of RE works.

Targets and limitations set on D&G charges to the extant of 2.5% of the Targets and limitations set on D&G charges to the extant of 2.5% of the project may not be workable situation as at present the same is about 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%)3.93% of the total Project Cost. (In Rlys. It is about 10.5%)

Financial Resource Mobilization for the Projects being executed Financial Resource Mobilization for the Projects being executed through JV SPVs will be a problem for cash inflows and shall be based through JV SPVs will be a problem for cash inflows and shall be based on clear MOUs on clear MOUs

Completed ProjectsCompleted Projects1   1    Pakni-Solapur Doubling Pakni-Solapur Doubling 2  2   Diva-Kalyan 5Diva-Kalyan 5thth & 6 & 6thth Line Line 3   3    Panvel-Jasai JNPT Doubling Panvel-Jasai JNPT Doubling 4   4    Gurup-Saktigarh Extn. of 3Gurup-Saktigarh Extn. of 3rdrd Line Line 5   5    Pullampet-Balapalle Ph I of Gooty- Pullampet-Balapalle Ph I of Gooty- 6   6    Gandhidham-Palanpur Gauge Conversion Gandhidham-Palanpur Gauge Conversion 7   7    Kharagpur (Nimpura)-Bhubaneswar Kharagpur (Nimpura)-Bhubaneswar 8   8    Bhubaneswar-Kottavalasa Elect Bhubaneswar-Kottavalasa Elect 9    9    Talchar-Cuttack-Paradeep doubling with 2Talchar-Cuttack-Paradeep doubling with 2ndnd bridge on rivers bridge on rivers

Birupa and Birupa and Mahanadi Mahanadi 10  10   Daitari-Banspani New line Daitari-Banspani New line 11  11   Pakni-Mohol Doubling Pakni-Mohol Doubling 12   12    Panskura-Haldia Ph I Doubling Panskura-Haldia Ph I Doubling 13   13    Barauni-Tilrath Bypass Doubling Barauni-Tilrath Bypass Doubling 14   14    Arasikere-Hassan-Mangalore Gauge Conversion Arasikere-Hassan-Mangalore Gauge Conversion 15   15    Cuddalore-Salem Gauge Conversion Cuddalore-Salem Gauge Conversion 16   16    Delhi-Rewari Gauge Conversion Delhi-Rewari Gauge Conversion

Projects in ProgressProjects in Progress

1   New-Delhi-Tilak Bridge 51   New-Delhi-Tilak Bridge 5thth & 6 & 6thth Line Line 2   Attipattu-Korukkupet 32   Attipattu-Korukkupet 3rdrd Line Doubling Line Doubling 3   Pattabiram-Tiruvallur 43   Pattabiram-Tiruvallur 4thth Line Line 4   Gooty-Renigunta Patch Doubling 4   Gooty-Renigunta Patch Doubling 5   Renigunta-Guntakal Electrification 5   Renigunta-Guntakal Electrification 6   Tomka-Banspani RE 6   Tomka-Banspani RE 7   Bilaspura-Urkura 37   Bilaspura-Urkura 3rdrd Line Doubling Line Doubling 8   Pune-Guntakal Rly.Electrification 8   Pune-Guntakal Rly.Electrification 9   Raichur-Guntakal Doubling 9   Raichur-Guntakal Doubling 10   Palwal-Bhuteswar 310   Palwal-Bhuteswar 3rdrd Line Doubling Line Doubling 11   Aligarh-Ghaziabad 311   Aligarh-Ghaziabad 3rdrd Line Doubling Line Doubling 12   Sambalpur-Titlagarh-Doubling 12   Sambalpur-Titlagarh-Doubling 13   Panskura-Kharagpur 313   Panskura-Kharagpur 3rdrd Line Doubling Line Doubling 14   Rajatgarh-Barang Doubling 14   Rajatgarh-Barang Doubling 15   Raipur-Titlagarh Doubling 15   Raipur-Titlagarh Doubling and many more and many more

About RVNL VigilanceAbout RVNL Vigilance

Vigilance Unit, Rail Vikas Nigam Limited is Vigilance Unit, Rail Vikas Nigam Limited is the nodal section for handling all vigilance the nodal section for handling all vigilance matters of the Rail Vikas Nigam Limited. matters of the Rail Vikas Nigam Limited. The Chief Vigilance Officer heads this unit. The Chief Vigilance Officer heads this unit. The CVO is assisted by two Assistant The CVO is assisted by two Assistant Managers. The vigilance unit works under Managers. The vigilance unit works under the Ministry of Railways and coordinates the Ministry of Railways and coordinates with Central Vigilance Commission (CVC). with Central Vigilance Commission (CVC).

Role of VigilanceRole of Vigilance

The role of vigilance in RVNL is multifarious. It The role of vigilance in RVNL is multifarious. It undertakes preventive vigilance, punitive undertakes preventive vigilance, punitive vigilance and system improvement. The vigilance and system improvement. The Vigilance Unit also arranges Vigilance Vigilance Unit also arranges Vigilance Awareness programmes. The Vigilance Unit Awareness programmes. The Vigilance Unit organizes Vigilance Awareness Week organizes Vigilance Awareness Week celebrated every year as per guidelines of celebrated every year as per guidelines of CVC. Vigilance Bulletins are also published CVC. Vigilance Bulletins are also published regularly providing information on vigilance regularly providing information on vigilance awareness.awareness.

Physical PlanPhysical Plan

Financial PlanFinancial Plan