It gives me immense pleasure to present before you the 18th AnnualReport of your Company. The audited accounts of the Company for the financial year2020-21 along with the Directors' Report and reports of Auditors and comments ofComptroller and Auditor General of India . have already been circulated.
B As we all are aware your Company was established with the mandate offast track implementation of rail infrastructure projects working for and on behalf ofMinistry of Railways as an executing agency. The contribution of RVNL to the building ofrail infrastructure in the Country is amply demonstrated by its performance and thepresence of the Company in Project Implementation Units established at 25 locations acrossthe "" length and breadth of the Country. RVNL is executing projects in all theZonal Railways and 19 States of the Country.
During the year 2020-2021 world witnessed an unprecedented globaloutbreak of the COVID-19 pandemic leading to a humanitarian crisis and lockdown acrossmany countries including India. The nationwide lockdown restrictions had impacted thenormal operations of the Company by way of interruption of project execution. Company wasregularly assessing and monitoring the situation. The Company resumed its operations afterobservation of necessary safety norms for Covid-19 and took steps to ensure safety at workplace and smooth functioning of operations. The working of the company was streamlinedwith work from home norms and roaster for the employees as per the guidelines issued bythe Government Authorities. Further e-office was comprehensively implemented for fasterworking and widespread meetings were held through video conferencing (VC) to continue thenormal functioning of the company. The Company took all measures to contain spread ofCovid-19 among its personnel. Proactive steps were taken to vaccinate all employees ofRVNL PMCs and the executing agencies by organising special camps for vaccination.
In 2020-21 RVNL increased its expenditure on project execution from Rs14530.58 crore to Rs 15403.65 crore which excludes the element of Rs 1840.52 crore asGST. This reflects an increase of 6.01%.
Profit Before Tax increased from Rs 990.84 crore in 2019-20 to Rs1155.67 crore in 2020-21 and Profit After Tax (PAT) of the Company is at Rs 940.55 croreshowing an increase of 19.08% over the previous year.
In view of the improved financial performance and in line with thedirections of Department of Public Enterprises and the Ministry for payment of Dividendthe Directors of your Company have recommended payment of the highest ever final dividendof Rs 329.43 crore for 2020-21 compared to Rs 237.69 crore in the previous year. As aresult the effective management fee of RVNL got reduced from 8.5% to 6.58% With thepayment of final dividend the cumulative amount paid as Dividend to the Ministry standsat Rs 1168 crore.
Furthermore I would like to mention that the Statutory Auditors havenot given any qualification or remarks in the Auditors' Report Comments ofComptroller & Auditor General of India (C&AG) and Management reply thereto havebeen circulated to the Shareholders.
Physical performance Railway Electrification:
During the year with the focus of the Ministry on the commissioning ofRailway Electrification projects I am happy to inform the Shareholders that your Companycommissioned highest ever 1700 Route km (2815 Track km) of pure Railway Electrificationworks on important routes as compared to 713.79 km in 2019-20 implying an increase of138.59 %. Commissioning of 1700 km of RE work helped Indian Railways in electrification ofover 6000 km for the first time. I am happy to inform that your company was second only toCentral Organisation for Railway Electrification (CORE) in commissioning of RE projects.CORE is a dedicated body of Indian Railways for executing Railway Electrification worksonly. Apart from pure RE work 267 km of RE was also commissioned with the doublingprojects. Thus 1970 km of electrified sections were made ready as against 917.87 km in2019-20.
Doubling/ New Line/ Gauge Conversion:
During the year despite the continuation of pandemic Covid-19 globallyand in India Company commissioned 662.02 km of project length as against 665.49 km in2019-20. 56.49 km of New Line 601.39 km of Doubling 6 4.14 km of MTP Plan Head work werecommissioned. .
As compared to 1959.83 km of project length completed in 2019-20 RVNLcompleted 2306.39 km in 2020-21 implying an increase of 17.68 %. This consists of 780.68km of Doubling 181.57 km of Gauge Conversation 4.14 km of Metropolitan Transport Project(MTP) and 1340 km of Railway Electrification. In addition Railway Electrification of557.66 km was also carried out in other than specific Railway Electrification projects aspart of Doubling.
During the year two important projects Bhopal-Bina- 3rd line (143 km)and Barkhera - Habibganj - 3rd line (41.420 km) were completed.
Signalling & Telecom:
In 2020-21 182 stations were interlocked by RVNL. This includedcommissioning of 66 new Electronic Interlocking 4 new Panel Interlocking and alterationsin existing 51 Els 54 existing PI stations and
7 Mechanical Signalling Stations of 4th line 3rd line and Doublingprojects/ 118 stations on Railway Electrification projects interlocking of 18 Mid-sectionLevel Crossing Gates and 23 IBS/Auto signals. The Company has also been able tosuccessfully commission telecom works involving laying of optic fibre cables and 6 Quadcables totalling 1300 km.
Hill Railway Projects:
Commendable progress was also made on the new hill rail projectsassigned to RVNL that is the Rishikesh- Karnaprayag section in Uttarakhand andBhanupali-Bilaspur-Beri section in Himachal Pradesh. I am happy to inform that works areprogressing satisfactorily in both projects. Tunneling works in challenging Himalayangeology are being carried out with state of art machinery and best technical expertise.
In the past few years RVNL has shown its capability for planning anddelivery of State-of-the-Art Railway Workshops and augmentation of capacity of ProductionUnits. Upto 2019-20 RVNL had successfully completed 8 projects and in 2020-21 works ofMarathwada Rail Coach Factory at Latur and Construction of MEMU Car shed at Kanpur werecompleted. At present 04 Workshop projects are under an advanced stage of progress.
The projects related to extension of Kolkata Metro got delayed due tovarious issues such as non-acquisition of land clearances and removal of hindrances bythe local authorities.
I am happy to report that breaking from the past and with the proactiveinvolvement of the Ministry of Railways and State Government the projects got therequired push and 4.14 km of Noapara-Dakshineswar line was commissioned. The commissioningof other lines will continue from 2021-22 onwards.
The project of construction of National Rail & TransportationInstitute which was announced by Hon'ble PM was assigned to RVNL for execution.Renowned Architect Padma Bhushan Hafeez Contractor was engaged for comprehensivearchitectural consultancy for this work. I am happy to inform that despite lockdownarising due to COVID 19 pandemic designs and drawings for this project were completed intime and agency for construction activities was finalised. The work on this prestigiousproject has commenced.
Pamban - Vertical Lifting Bridge:
The work on the country's only vertical bridge at Rameshwaram isprogressing satisfactorily with the state of Art technology and best technical expertise.
Special Purpose Vehicles
RVNL has taken the lead for establishing six joint venture SpecialPurpose Vehicles (SPVs) in partnership with various stakeholders including Ports MinesState Governments etc. for implementation of rail connectivity project. RVNL hascontributed an equity of only Rs 1074.42 crore against which project worth Rs 8483.89crore are being implemented with contribution of equity by the project partners andraising of funds through Financial Institutions.
The project under the Kutch Railway Company Ltd. Bharuch Dahej RailwayCompany Ltd. Krishnapatnam Railway Company Ltd. and Haridaspur-Paradeep Railway CompanyLtd. have been completed and are under operations. These SPVs are contributingsubstantially to the total revenues of the Railways.
New Railway line from Haridaspur to Paradip (82 km) a PortConnectivity Project was commissioned on 30.07.2020 under SPV named Haridaspur ParadipRailway Company Limited (HPRCL). During the 1st quarter of financial year 2021-22 HPRCLhas handled 1995 loaded rakes which is an excellent performance. 719 loaded rakes werehandled in the month of April 2021 which is the highest traffic since SPV becameoperational.
Doubling of 247 km of the Kutch Railway line between Palanpur andSamakhiali which is being funded completely by the SPV at an estimated cost of Rs 2538crore has been taken up by RVNL on behalf of the SPV and work is proceedingsatisfactorily. Electrification of this line at an estimated cost of Rs 655 crore is alsoin good progress.
The physical work on Angul-Sukinda New Line project is also in goodprogress despite land related issues.
Human Resource Development
The primary focus of RVNL Management has been to not only attracthighly motivated skilled and experienced manpower but also retain them by facilitatingright environment competitive perks and ample opportunities for a better careerprogression through training and support.
I am happy to report that HR has taken commendable initiatives in2020-21 for its employees as detailed below:
RVNL has implemented E-of^ice by extending it to all RVNL usersacross all departments and PlUs. It was a game changing initiative. It not onlyfacilitated work from home (WFM) culture during COVID period but also improvedtransparency.
Employee Satisfaction Survey (ESS) was conducted and I am happyto report that employees have given highest satisfaction on the Work Clarity (85%)understanding RVNL's mission (84%) & proud to work at RVNL (84%).
RVNL has also taken many initiatives during the COVID pandemicto cater to the urgent and immediate needs of the staff and their family membersintroducing various welfare schemes and also organizing camps for Rapid Antigen/RT-PCRCOVID Testing.
Further to strengthen the grievance redressal system a mobileapp and website "SAMPARK-RVNL" was launched during the year.
It is worth mentioning that all the above milestones have been realizedwith an on-roll staff strength of only 568 regular personnel which include 208 regularemployees and 360 deputationists.
Corporate Social Responsibility
RVNL is conscious of its Corporate Social Responsibility. During2020-21 the Company spent Rs 21.86 crore (approximately 3.5% of the average net profit oflast three financial years) on CSR initiatives compared to Rs 19.43 crore in the previousyear. Rs 15 crore was contributed towards PM COVID Care Fund to fight against COVID-19.The main focus of the Company is in the areas of education health and sanitation withimplementation of CSR projects through Ramakrishna Mission TERI Sulabh Internationaletc.
It is with a great deal of satisfaction that I can report to theShareholders based on the overall performance your Company has been rated as Excellent'by Department of Public Enterprises for the Financial Year 2019-20 for 10thconsecutive year. The grading achieved by your company was highest among Railway CPSEs.RVNL got 99 out of 100 marks.
RVNL maintains a robust system of checks and balances to ensure thatthe authority of decision making is exercised with due care and responsibility to meetthe aspirations of Shareholders and society. Your Company complies meticulously with alllegal requirements and Government guidelines regarding Corporate Governance. A Report onCorporate Governance and Management Discussion and Analysis forms part of the AnnualReport.
In the end I would like to mention that all the achievements of RVNLwould not have been possible without the wholehearted support provided by Indian Railways.I am also grateful for the encouragement and confidence reposed in RVNL by the Chairmanand Members of the Railway Board and other officers that helped RVNL in contributingsubstantially to the development of rail infrastructure in the Country.
I express my sincere thanks to our esteemed Shareholders Ministry ofFinance Department of Public Enterprises Ministry of Heavy Industries the StateGovernments Zonal Railways ADB IRFC Financial Institutions C&AG's officeour bankers and stakeholders in various railway projects and national and internationalcontractors for their unstinted cooperation to RVNL. I would also like to place on recordmy deep appreciation for the devotion and dedication of all my fellow RVNL employees whohave been pillars of strength for the Company and have delivered their best despitevarious challenges.
|(Pradeep Gaur) |
|Chairman & Managing Director |