Rail ministry tweaks project approval process to speed up execution

Seeking tenders can now begin before approval of NITI Aayog

To hasten project implementation, the ministry of railways has directed all its zonal headquarters to call tenders for an item of work even before the in-principle approval from the NITI (National Institution for Transforming India) Aayog, “in anticipation of sanction”.

This departure from the traditional mechanism is part of an exercise to move on a set of priority projects — 77 of line doubling, four new lines and one gauge conversion, aimed at decongestion of 24 saturated rail corridors, through an investment of Rs 90,000 crore.

The traditional system is for inclusion in the rail budget, seeking in-principle approval of the NITI Aayog, clearance from the extended railway board, approval of the Union Cabinet, preparation, sanction of final location surveys and detailed estimates by the zonal railways. And, finally, invitation of tenders.

“This process used to take two to three years, which meant tenders could be called only after two years of inclusion in the rail budget. To reduce this time gap, the ministry has asked zonal railways to carry out the Final Location Survey immediately after inclusion of the work in the budget and then send a Detailed Project Report (DPR) to the Railway Board, with a reasonably firm cost,” went an official statement.

Of the 77 doubling projects sanctioned this year, DPRs of 73 have been received at the Board. The ministry has also hastened DPR scrutiny by forming a committee of the officers concerned for this purpose, instead of examination from table to table by individual officers.

Once a DPR is examined in the Board, a request is sent to the Aayog for in-principle approval. The ministry has so far received approval from the Aayog for 15 projects. It is sending the proposals for four of these, over Rs 1,000 crore each, to the Cabinet Committee for Economic Affairs.

Zones have been asked to invite tenders immediately after a DPR is sent to the Aayog, with the caution that a financial commitment should be made only after all requisite approvals.

The ministry said the effort effectively reduces the tender calling period from two years after inclusion of a project in the budget to six to nine months. It is also giving more powers to zonal railways to sanction detailed estimates.

SEEKING SPEEDY SANCTIONS

Traditional system of project approval

• Seeking in-principle approval of the NITI Aayog
• Clearance from the extended railway board
• Approval of the Union Cabinet
• Preparation, sanction of final location surveys and detailed estimates by the zonal railways

New system of project approval

• Zonal railways to carry out the final location survey immediately after inclusion of the work in the budget
• They will then send a Detailed Project Report to the Railway Board, with a reasonably firm cost