Railway Board Tightens DPR Guidelines for Projects
In a proactive move to enhance project management and efficiency, the Railway Board has issued directives to Zonal Railways regarding the preparation of Detailed Project Reports (DPRs) for large infrastructure projects. These projects, costing over ₹50 crore, must now fully incorporate the recommendations made by the Project Evaluation Committee (PEC) before they are finalized and submitted. This measure aims to address the frequent delays caused by PEC observations not being addressed in the final DPRs.
Delays in project approvals have been a persistent issue, with the Board citing that many vetted DPRs fail to reflect the necessary corrections suggested during PEC meetings. The PEC holds meetings at the Railway Board level to appraise significant projects, where various aspects are thoroughly discussed, and recommendations are recorded. Once the PEC approves a project, the Zonal Railway prepares the final DPR, which is then vetted by the Finance Department before being submitted to the Railway Board.
To streamline this process, the Railway Board has advised that all necessary corrections based on PEC observations be incorporated into the final version of the DPR. This directive comes amidst rising concerns over cost overruns and delays in major railway projects, which can have widespread implications for infrastructure development in India.
In addition to ensuring the incorporation of PEC recommendations, the Railway Board has circulated a comprehensive finance checklist. This checklist is designed to assist in the vetting of DPRs post-PEC approval and includes essential components such as accurate cost estimation, realistic rate analysis, and proper land acquisition cost calculations. It emphasizes the avoidance of lump-sum figures without justification and verifies consultations with stakeholders, especially concerning forest land issues.
Moreover, the checklist mandates compliance with all relevant Railway Board circulars and policy letters. This includes specifications related to speed standards, ballastless tracks in tunnels, fencing norms, signaling components, and facilities for track machine staff. The Board has also highlighted the importance of evaluating alternate options for proposed sections to ensure that the selected option is indeed the best choice.
To further reinforce these guidelines, Zonal finance units have been tasked with certifying that all PEC suggested corrections are reflected in the final DPR before it is sent to the Board. The detailed project reports must align with approved formats concerning cost details, financial internal rate of return (FIRR), economic internal rate of return (EIRR), and other model inputs. Through these measures, the Railway Board aims to enhance project delivery and mitigate the risks of delays and cost overruns.
