The presentation for the Senior Management Programme at NAIR Vadodara.

1. Management and Leadership
Programme
by
Rajesh Prasad
Director (Operations), RVNL
01.07.2022
(NAIR, VADODARA)

2. Management is about arranging and
telling. Leadership is about nurturing and
enhancing.”
– Tom Peters
Management is doing things right;
Leadership is doing the right things.
– Peter Drucker

3. Define your self….?
§ In 1 (one) sentence
§ Write it
§ Remember it
§ Follow it…

4. I am a God fearing
passionate, sincere
person and firmly
believe that work is
worship.

5. What the country
Need in you…..
- Leadership and setting examples…

6. Bhagavad Gita - Chapter 3, Shloka 21

7. SCOPE
§ ABOUT RVNL
§ CORPORATE FILM
§ CORPORATE GOVERNANCE
§ MOTIVATION AND BOUNCE BACK AFTER THE
CRISIS
§ PROJECT MANAGEMENT
§ PPP MODEL & POLICY
§ RVNL SPVs
§ SUCCESS STORY OF KUTCH RAILWAY

8. RAIL VIKAS NIGAM LIMITED
National Railway Vikas Yojna - Announced by Hon’ble Sh. A B Vajpayee
§ Incorporated as a PSU on 24-1-2003.
§ Commenced operations in 2005.
§ Project executing arm of Indian Railways.
§ RVNL contributed more than 37% of Doubling of Railway
Lines and 28% of Railway Electrification commissioned
on Indian Railways.
§ 1 Trillion INR (13.2 billion USD) project expenditure
reached in Jan’ 2022. More than 85% of project
expenditure in Railway Infrastructure by RVNL from
2014-15 onwards.
§ ‘Mini Ratna’ – upgradation to ‘Navratna’ in process

9. § Employer entity of Ministry of Railways.
§ ‘Concept to commissioning’ – FLS, DPR, Plans & GADs, land,
Commissioning.
§ Innovative execution model - excellent contract management
practices.
§ Evolved in to one of the Government’s biggest Capex spender.
§ Mandated to constitute Project specific SPVs….and successfully
commissioned.
§ Lean set up – 544 employees.
§ 100 % dedicated to Indian Railways.
RVNL
Path breaking efforts in Railway Infrastructure……

10. 2117 2493 3142
4541
5920
7557
10060
14530
15403
19381
0
5000
10000
15000
20000
25000
CAGR of +27 % in last 5 years
Turnover (Rs. Crore and USD Million)
$ 2558.29
$ 2033.19
$ 1917.96
$ 997.53
$ 781.44
$ 1327.92
TURNOVER
$ 599.41
$ 329 $ 414
$ 279

11. 3083.37
3351.48
3738.76
4499.77
4965.58
5631.41
0
1000
2000
3000
4000
5000
6000
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
NET WORTH (RS. CRORE, USD MILLION) $ 743.39
$ 655.50
$ 593.96
$ 493.51
$ 442.39
$ 407
NET WORTH

12. 185.72
304.02
381.61
469.65
606.59
789.86
940.57
1087.21
0
200
400
600
800
1000
1200
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
PAT (RS. CRORE & USD MILLION)
$ 143.51
$ 124.16
$ 104.26
$ 80
$ 62
$ 50
$ 40
$ 24.51
PROFIT AFTER TAX

13. PROFIT BEFORE TAX
236.35
371.83
481.38
564.14
758.31
990.83
1155.67
1402.53
0
200
400
600
800
1000
1200
1400
1600
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
PBT (RS. CRORE & USD MILLION)
$ 152.54
$ 130.79
$ 103
$ 74.46
$ 185.13
$ 63.53
$ 49
$ 31.19

14. Assessment Year
Rating
RVNL’s rank among Railway
PSUs assessed by DPE
Rank of RVNL
2007-08 Good 8th
2008-09 Very Good 10th
2009-10 Very Good 7th
2010-11 Excellent 5th
2011-12 Excellent 2nd
2012-13 Excellent 1st
2013-14 Excellent 2nd
2014-15 Excellent 1st
2015-16 Excellent 1st
2016-17 Excellent 1st
2017-18 Excellent 1st
2018-19 Excellent 2nd
2019-20 Excellent 1st
2020-21 Excellent 1st
DPE’s OM dated 11.10.2021 (2019-20) - rated Excellent with MoU score of 99 - 1st amongst all the PSUs in India.
DPE’s OM dated 18.01.2022 (2020-21- rated Excellent with MoU score of 99 - 3rd amongst all PSUs in India.
Rated “Excellent” for the 11 successive years by the Department of Public Enterprises.
Ranked 1st amongst the Railway PSUs for the 7 times in last 9 years.
MOU PERFORMANCE

16. Mission
To create state of the art Rail transport
infrastructure to meet the growing demand.
Vision
To emerge as the most efficient provider of
Rail Infrastructure with a sound financial
base and global construction practices for
timely completion of projects.

17. Doubling - Contribution by RVNL Railway Electrification – Contribution by RVNL
Have contributed more than 37% of the doubling and more
than 28% of electrification projects of the total project
commissioned by Indian Railways.
705
881
1,458 1,614
273
310
508
601
39%
35% 35%
37%
FY13 FY17 FY20 FY21
Total for Indian Railways Total for RVNL % Contribution byRVNL
1,317
1,646
5,782
6,015
301
380
1,208
1,700
23%
23%
21%
28%
FY13 FY17 FY20 FY21
Total for Indian Railways Total for RVNL % Contribution byRVNL
(in km)
(in km)
(Source ministry of Railways)

18. Achievements and Highlights during
FY 2021-22
Project commissioned :-
• 1020 km of NL/Doubling/GC
• 5 Workshop (Turnkey Projects)

19. PROJECTS COMMISSIONED
S. NO. HEADS UPTO 31.03.2022 (km)
1. New Line (NL) 522.3
2. Gauge Conversion (GC) 2095.83
3. Doubling (DL) 5172.18
4. Railway Electrification (RE) 6834.93
5. Metropolitan Transport Project 46.14
TOTAL 14,671.38
6. RE as part of Doubling/GC/NL 3484.30
7. Workshop projects (Nos.) 15 nos.
8. Cable Stayed Bridge (No.) 1 nos.
9. Others 12 nos.

20. 259 KM
310 KM
417 KM
693 KM
665.49 KM
662.02 KM
1020 KM
0
200
400
600
800
1000
1200
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
NL/GC/DL (KM)
Financial
Year
New Railway Lines
/GC/DL (Km)
2015-16 259
2016-17 310
2017-18 417
2018-19 693
2019-20 665.49
2020-21 662.02
2021-22 1020
(all time high)
Performance of the company in commissioning
(New Railway line/Gauge Conversion/Doubling)

21. • Contributing to efficient, reliable supply chains by building
robust Workshops and Production Units through 3D approach
(Design, Develop, Dedicate)
• Built 15 Workshop/ Production Units all over the country for
production and maintenance of Rail Locomotives, coaches
and components.
• Support, Enhance & Reinforce efforts of Indian Railways for
‘Atmanirbhar Bharat’ ‘Make in India’ by building workshops

22. PROJECTS COMPLETION TIME
Diesel Loco Component Workshop at Dankuni (Phase-I) 12 months
DMU Factory at Haldia 16 months
Electric Loco Factory at Dankuni 25 months
Augmentation of Production Capacity of DLW at Varanasi
Commencement was done by Hon'ble PM who gave a target
of 24 months. RVNL completed this work in 22 months and
was inaugurated by Hon'ble PM.
22 months
Manufacture of Fiat Bogies for LHB Design Coaches, Yadgir 17 months
DEMU Shed at Aunrihar 21 months
Wagon POH workshop of 200 Nos capacity, Vadlapudi 25 months
Diesel Loco Shed, Barauni 27 months
Marathwada Rail Coach Factory, Latur 26 months
MEMU Shed, Kanpur 22 months
Rail Coach Naveenikaran Karkhana, Sonipat 31 months
Fast Track Project Execution
(Turnkey Workshop projects)

23. RVNL to promote ‘Make in India’ policy by using
indigenous rails in Kolkata Metro Rail Project
In an effort towards ‘आ"म$नभ'र भारत’ RVNL has used, for
the first time, indigenous HH Rails in a Metro Rail Project in
our country. HH rails offers greater efficiency through its
ability to handle higher axle loads of over 25 Tonnes with
low deformation and wear. For the first time indigenous HH
rails shall be used for a Metro in our country.

24. RVNL CORPORATE VIDEO

25. PILLARS OF CORPORATE GOVERNANCE IN RVNL
COMMITTEES
OF THE BoD
DISCLOSURE
PRACTICES
STATUTORY
AUDIT
COMPENDIUM OF
RULES, SOP &
CIRCULARS; GRIEVANCE
HANDLING MACHINERY
ACCOUNTABLLITY TRANSPARENCY
INDEPENDENT
SCRUTINY
EMPOWERMENT,
ETHICS & FAIRNESS
Ø Accountability
§ Ensure that management is accountable to the Board
§ Ensure that the Board is accountable to shareholders (78.20% Govt. + 21.80% Public)
Ø Transparency
§ Ensure timely, accurate disclosure, financial situation, ownership, performance.
Ø Independence
§ Procedures + structures to avoid any conflict of interest
§ Independent Directors - free from any influence
Ø Fairness, Empowerment, Ethics
§ SOP, Procedures, Circular, Grievance Handling Machinery, Compliance to LODR, Protect
Shareholders rights.

26. • Five whole-time directors,
• Two part time official directors -from Ministry
of Railways,
• Seven independent directors including a
woman director (now retired).
“To act in accordance with the highest standards of
professional integrity, honesty, ethical conduct and to
be proficient, professional and profitable by upholding
and promoting transparency and accountability.”
RVNL BoD-
FOURTEEN
DIRECTORS
RVNL CODE OF
CORPORATE
GOVERNANCE

27. Five
functional
Committees
to assist,
guide and
inform BOD Committees predominantly headed by Independent Directors- which
lends teeth and independence to oversee the Company’s works
effectively.
1. Audit Committee- met 5 times during 2020-21
2. Nomination and Remuneration Committee- met once during 2020-
21
3. Corporate Social Responsibility (CSR) Committee- met once during
2020-21
4. Stake holders’ Relationship Committee- met once during 2020-21
5. Risk Management Committee- met 4 times during 2020-21
Ease of doing business by: -
Reforms in Contract Management,
High standards of Reporting & Accounting,
Introduction of ‘E’-Tendering in RVNL, ‘E’-Measurement Books.

28. Performance indicators in Corporate Governance in RVNL
• Holds all statutory meetings regularly - BoD Meetings and
Committee meetings at regular intervals
• Investors’ Meets are also held periodically to increase shareholders
confidence
• AGM has always been held within stipulated time
• Submissions of Quarterly Financial Results to SEBI on time
• Official news, Quarterly Results, Annual Results communicated to
stakeholders through leading English and Hindi Newspapers and
published on the Company’s web site
• Regular Press Briefing and Business Interviews with various Business
and Financial media channels periodically

29. • Independent Directors’ Meeting is held at least once a year- as per
Companies Act provisions, SEBI guidelines
• BoD has laid down a Code of Conduct for senior management, and
it is fully adhered to
• RVNL has a Whistle Blower Policy besides a vigilance policy
adhering to CVC guidelines
• Vigilance details being put up to BoD regularly.
• Statutory and Secretarial Auditor Observations during 2020-2021-
CAG Nil comments continuously.

30. Grievance Redressal Machinery works for customers, shareholders
and employees (LODR)
§ All disclosures as per statutory requirement are published on RVNL
website.
§ Last but not the least, it can emphatically be stated that all these
Corporate Governance principles while adding to the Board's
effectiveness have strengthened RVNL’s distinction as a dominant
infrastructure development company.

31. Excellence in Corporate Governance

32. मु#तस&गोऽनहंवाद0 धृ4यु4साहसमि7वत: |
:स;<य:स;<यो=न>?व>कार: कता> सािBवक उDयते ||26||
BG 18.26: The performer is said to be in the mode of
goodness, when he or she is free from egotism and
attachment, endowed with enthusiasm and
determination, and equipoised in success and failure.
FAMOUS QUOTE:-

33. COVID-19 – Pandemic was resulted into
→ The entire country shaken in locked down
condition
→ World Share Market tanked
→ Wheel of Indian Railway carrying
passengers stopped after 167 years
→ Shutdown of creation of Railway
Infrastructures
→ Share price of major companies has
touched to the bottom despite of
excellent performance in 2019-20

34. Crisis . . .
• The worldwide
infrastructure projects
including the works of
RVNL and in fact all over
India became standstill,
the share market gone
down and the whole
world was in trouble due
to the major pandemic
COVID-19.

35. QUESTION CAME TO OUR
MIND ..
What next
to
→ Our country
→ Indian Railway
→ RVNL

36. The answers were …
Ø We need to be ever motivated.
Ø Indian Railway will remain lifeline of
the nation and growth engine of the
country.
Ø RVNL will continue to play very major
role in building Railway Infrastructure
thus in building nation.

37. Railway Infrastructure investment opportunity to the tune of Rs. 50
lakh cr ($ 660 billion) during 2018-2030 for projects relating to track
completion, rolling stock manufacturing and station modernisation,
will enable Indian Railways to become the growth engine of the
country.

38. Karoly Takacs (Hungarian
Armyman)
• 1938 – In Army Camp, during practice hand grenade exploded in his
right hand. He lost his right hand.
• Takacs was determined to continue his shooting career, and without
telling anybody he started practicing with his left hand.
• ‘Impossible is nothing’
• 1939 - He won the Hungarian national pistol shooting
championship.
• Best shooters from all over the world where competing with their
best hands. He was the only one competing with his only hand.
• Other competitors got surprise to see him
• 1940 & 1944 Olympic games were canceled due to the second world
war.
• Won the gold medals in 1948 & 1952 Olympics
• Must see the link at: https://youtu.be/Sd-YsMs3OzA
MOTIVATION
EXAMPLE

40. Arunima Sinha (Indian mountain climber and
sportswoman)
§ Seven time Indian volleyball player
§ Volleyball player turned to mountain
climber
§ 2011- She was pushed from a running
train by some robbers and She lying
there seven hours.
§ Her left leg had to be amputated
below the knee, she got rods in right
leg and multiple fractures in spinal
cord
§ Her aim was to climb each of the
continents highest peaks and hoist the
national flag of India.
§ Everyone told her “you can never do
mountaineering”
MOTIVATION
EXAMPLE

41. § When she meet Bachendri pal and Arunima told her story to
Bachendri pal then Bachendri pal said to Arunima :-
"My child You decided to climb Mount Everest in these situations
with Prosthetic (Artificial) leg.
You had Climbed, Achieved Mount Everest my child now just the
date is remaining to the World to know"
§ 2013 - She reached the summit of Mount Everest
§ World's first female amputee to scale Mount
Everest, Mount Kilimanjaro (Tanzania),
Mount Elbrus (Russia), Mount Kosciusko
(Australia), Mount Aconcagua (South
America), Carstensz Pyramid (Indonesia)
and Mount Vinson
§ 2015 - Padma Shri Award

42. Mount Everest at
10:55 am
on 21 May 2013

43. Crisis forces us to do two things:
Adjust and to Change
in our approach of thinking, planning
and execution…..
Success story of RVNL

44. We have given the much needed space
and time for the nature to heal itself
and us as well.
During this crisis period….

45. The annoying Honking Noises have
been replaced with the Birds Chirping,
Trees Waving and Leaves Rattling.

46. we have realized that health is the real wealth
and prevention is far better than Cure.
During this crisis period….

47. Under the present scenario
changes are needed for us as
well..

48. As one heads towards his goal, he should
now be prepared to make adjustments in his
course……

49. Leadership principles we can learn
from Eagle:
• Fly alone and at very high
• Accurate Vision (5 Kms) and focused
• Eagle do not eat dead things
• Eagle loves storm and challenges
• Eagle tests commitments
• Eagles prepare for training
• Always leaves the comfort zone for growth
• Must see the link at: https://youtu.be/1P7cl5KxlRY
for the CHANGE process

50. The last but not the least the
famous story…..

51. The eagle has the longest life-span
of its’ species

52. It can live upto 70 years
But to reach this age,
the eagle must make a hard
decision.

53. Its’ long and flexible talons can no longer
grab prey which serves as food
In its’ 40’s

54. Its’ long and sharp beak becomes
bent

55. Its’ old-aged and heavy wings,
due to their thick feathers,
become stuck to its’ chest and
make it difficult to fly.

56. Then, the eagle is left with only two options:
Die or go through a painful process of change
which last 150 days.

57. The process requires that the eagle fly
to a mountain top and sit on its’ nest.

58. There the eagle knocks its’ beak against
a rock until it plucks it out (very painful).

60. When its’ new talons grow back, the eagle
starts plucking its’ old-aged feathers.

61. And after five months, the eagle
takes its’ famous flight of rebirth
and lives for
30 more
years

62. Why is change needed?
Many a time, in order to survive
we have to start a change
process.
We sometimes need
to get rid of old memories,
habits and other past traditions.
The present day crisis also provides
opportunities for infrastructure
building

63. As such option in Project Management is
either to change or adjust as per system
requirement or to suffer…. The change process
is very painful & unavoidable

64. Project Management
What is Project Management (PM)?
Project Management is the processes & body
of knowledge of specific skills, tools and
techniques used to bring structure and
planned order to deliver projects successfully
Project Management is the most efficient way
for implementing unique changes

65. Project Management
Project Management manages and controls the project work
by:
Ø Understanding specific requirements of all Stakeholders
that may be conflicting
Ø Identifying the Scope, Time, Cost and
Quality/performance criteria and potential risks
Ø Planning the work in detail : 'Why', 'What', 'Who',
'When', 'Where', 'How' and 'How Much’
Ø Making one person, generally the project manager
accountable for the project

66. That is why it is necessary to understand
Project Triangle
Project Life cycle

67. q Project constraints have been listed as
“scope," "time," and "cost“. These are
also referred to as the "Project
Management Triangle," where each side
represents a constraint. One side of the
triangle cannot be changed without
affecting the others.
Project Management Triangle

68. Project Triangle tells us how to implement
and what to monitor
F.T.P.I.
Quality

71. Commencement of work at site by Hon’ble Prime Minister on 25.12.2014,
Project (Part-I) dedicated to Nation by Hon’ble Prime Minister on 24.10.2016
Augmentation of Production Capacity of DLW

72. • Work sanctioned 28.08.2018
• LOA issued for execution : 30.08.2018
• Commencement of Work: 12.10.2018
• Factory completion & commissioning
with production of first coach shell
25.12.2020
Marathwada Rail Coach Factory

73. SPV Model-Policy in Railways
“Participative Models for Rail Connectivity and
Capacity Augmentation Projects”
1. Non-Government Railway Model.
2. JV Model for bankable Railway projects.
3. Railway Projects on BOT awarded through
Competitive Bidding.
4. Capacity Augmentation with Customers’ funding.
5. Capacity Augmentation - Annuity Model.
Rly Board had formulated policies like R3i in 28.11.2008 , R2CI in
21.02.2011 and now the policy guidelines of 10.12.2012 is in
vogue.

74. Process of SPV formation
• Bankability study:-
vTo asses traffic potential.
vTo ascertain IRR.
• The project is assumed to be bankable if:
v IRR > 10%
and
v DSCR >1.1
• Seeking strategic partners through EOI.
• Clearance from Ministry of Railways.

75. Financial
Models
- EPC
- BOT
- HYBRID
for PPP projects
• Public – Authority
• Private – Efficiency

76. RISK Matrix
§ Type of Risk
– Financing Risk
– Revenue Risk
– O&M Risk
§ Risk allocation in different Contract Models:

77. • It is not mere outsourcing to the private
sector – Government fully responsible for
outcomes and is a regulator.
• It is not just private funding but involves
private managerial abilities and an efficiency
focus.
• It is neither an ill, nor a panacea.
What PPP is not

78. • Political will and stability
• Good Governance
• Trust between public and private sectors
• Long Term Financing Institutions
• Strong and Unbiased Legal Institutions
• Audit related transparency and clarity
Pre-requisites for PPP to take off

79. What is Time Value of Money?
The concept of Future Value
• INR 100 is worth INR 100 today
• What would it be worth a year from today
• It would depend on how much it earns
• If it earns 10% per annum – it would be worth INR 110 i.e.
100 x (1+10%) a year from now
• INR 110 is a future value (next year) of INR 100
• Two years from now this value would be 100 x (1.1) x (1.1)
= INR 121
• 10% is the compounding rate
• 1.1 is the compound factor in year 1, 1.21 the compound
factor in year 2

80. Net Present Value
To value options
80
The net present value of all future benefits and costs
discounted at a rate reflecting the systematic risk of the
undertaking i.e. the discount rate
• Implying
• If NPV > 0 : Good
• If NPV < 0 : Not good

81. Internal Rate of Return
The return on investment for the capital
providers
• Meaning
The return on investment i.e. the return of future
benefits over future costs for the capital providers,
which should exceed their minimum required rate
of return i.e. hurdle rate
• Implying
–If IRR > Hurdle Rate : Good
–If IRR < Hurdle Rate : Not good
81

82. Internal Rate of Return (IRR)
• The internal rate of return (IRR) is
a metric used in financial analysis
to estimate the profitability of
potential investments.
• IRR is a discount rate that makes
the net present value (NPV) of all
cash flows equal to zero in a
discounted cash flow analysis.

83. Cash Reserve Ratio (CRR)
• CRR is the minimum proportion/percentage of a
bank’s deposits to be held in the form of cash or
cash equivalent.
• The CRR is mandated by the Reserve Bank of India.
RBI’s Monetary Policy Committee determined CRR.
• Current CRR rate is about 4.50%

84. Statutory Liquidity Ratio (SLR)
• SLR is the minimum percentage of deposits that a
commercial bank has to maintain in the form of
liquid cash, gold or other securities.
• The Reserve Bank of India decides the SLR which is
to be maintained by other banks.
• Banks need to maintain SLR in the form of gold,
cash, government bonds or approved securities.
• Current SLR rate is about 18%.

85. Difference between SLR and CRR
• Cash Reserve Ratio (CRR) is the percentage of
money, which a bank has to keep with RBI in the
form of cash. Whereas, Statutory Liquidity Ratio
(SLR) is the proportion of liquid assets to time and
demand liabilities.
• CRR controls liquidity in banking system while SLR
regulates credit growth in the country.
• These two controls inflation.

86. Marginal Cost of Funds based Landing
Rate (MCLR)
• MCLR rates were first introduced by the Reserve
Bank of India in the year 2016 to ensure better
pricing of floating rate loans by banks to end
customers.
• MCLR refers to the minimum interest rate below
which financial institutions can’t lend, except in
certain cases.
• Current MCLR rates about (6.65% to 10.86%).

87. Debt Service Coverage Ration (DSCR)
• The Debt Service Coverage Ratio (DSCR), also
known as "debt coverage ratio" (DCR), is the ratio
of operating income available to debt servicing for
interest, principal and lease payments.
• DSCR = Net Operating Income/Debt Service
where EBITDA = Gross Operating revenue – Operating
Expenses
Debt Service = Pr. Repayment + Interest Payments + Lease
Payments

88. Example: Delhi Noida Toll Bridge
88
• IL&FS, NOIDA and the Delhi Administration signed a MoU on 7th April 1992 for the
construction and operation of the Delhi Noida Toll Bridge. The Noida Toll Bridge
Company Limited ( NTBCL) was incorporated on 8th April 1996.
• Under the concession agreement, NTBCL has been given the right to commercially
exploit the Delhi Noida Toll Bridge by levying tolls.
• The bridge, which opened to traffic in February 2001, was among the first few project
to have been developed as a PPP in India
• In the initial years of operation, the revenue from collection of toll fees at the Delhi
Noida toll bridge fell below originally projected levels and below break-even level
because 2 new free bridges on northern side were constructed by Delhi government
• The project was able to achieve only 37% of projected traffic and 28% of projected
revenues in 2002-03.
Shortfall attributed to unexpected competing alternatives

89. Example : Pipavav Railway Corporation
• Pipavav Railway Corporation Limited (PRCL) was the first joint venture under
Ministry of Railways. It was incorporated in May 2000 as joint venture with equal
participation between the Indian Railways and the GPPL
• The project was completed in less than 2 years of contributing equity money and
started paying revenues to MOR as freight. GPPL got rail connectivity to the port in
time.
• The most serious weakness of the project was its inability to get the projected
traffic. Even the guaranteed traffic in the first three years was not materialized. This
created a serious problem of inability to service the debt.
89
2003-04 2004-05 2005-06
Projected traffic 1 MT 2 MT 3 MT
Actual traffic 0.39 MT 0.88 MT 1.57 MT
Difference 0.61 MT 1.12 MT 1.43 MT
Poor performance in first 3 years made GPPL to revise the traffic projection

90. Example : Delhi Gurgaon Expressway
90
• The plan for an expressway connecting Gurgaon, a Delhi suburb that is
located in Haryana, and the Capital, was initiated in the late 1990s..
• DPR prepared in 1998 estimated traffic in the first year at 80,000
vehicles a day
• The expressway was commissioned in January 2008 after much
delay primarily owing to issues in land acquisition and changes in
the scope of work
• Traffic on the expressway on the first day turned out to be what the
DPR had projected it would see in 2013. The actual average daily traffic
is now being estimated at 140,000 vehicles.
• Traffic has exceeded estimates because of more intense land-use
development
Year-on-Year growth in traffic has been more than 9%, instead of estimated 5%

91. What can go wrong?
Actual different from estimate
Capital Expenditures Maintenance and Operating Expenditures
Construction Operations
Costs

92. Sensitivity Analysis

93. Examples: Bandra-Worli sea link
93
• Was envisaged to be a Rs 300 crore project to be
completed by 2004
• Actual cost of the project, eventually was Rs 1600 crore
along with a delay of 5 years
• The key reasons attributable are
ü changes in project design,
ü alternations in the alignment of the main sections of the
sea link,
ü environment clearances

94. Examples: Delhi Gurgaon Expressway
94
• In the case of Delhi Gurgaon expressway, the
funding for the project at the time of financial
closure was Rs 547.5 crore.
• Actual cost of the project, eventually was Rs 1,175
crore.
• The key reasons attributable are
üChange in scope of work by NHAI
üTime taken to acquire multi-approvals
üIssues with land acquisition

95. Identify Risks
Typical infrastructure risks
RISKS
Political
Commercial
Financial Risk
Market
Risk
Land Acquisition Risk
Construction
Risk
Technology
Risk
Cost Overrun
Risk
Force Majeure
Risk
Operational and
Maintenance
Regulatory

96. BOT Annuity
How to calculate the annuity
Capital
Expenditure
Maintenance
Expenditures
Cost of Capital
Income from
Annuity Payments
The essence is that the Annuity is the
required periodic income to recover the
whole life costs and the cost of capital.

97. Viability Gap Funding (VGF) scheme
• Revolving fund within Ministry of Finance
• Supports PPP infrastructure projects which are
–Economically justifiable but NOT viable
commercially
• Upfront grant of up to 20% of project cost. Additional 20%
can be given by the sponsoring authority (if required)
• Project implementation by a Private Sector Company
(PSC)
• Project should provide a service against payment of a pre-
determined tariff or user charge
• Bidding Parameter is VGF sought
97
VGF provides funding in the form of grant to meet gap for making a PPP project commercially viable

98. It is a process that provides a
framework for prioritizing, gathering, analyzing, an
d incorporating social information and
participation into the design and delivery of devel
opmental interventions. It ensures that development
interventions are:
• Informed and take into account the key relevant
social issues
• Incorporate a participation strategy for involving a
wide range of stakeholders.
Social impact assessment (SIA)

99. • Describe the relevant human environment/ area of
influence and baseline conditions
• Develop an effective public plan to involve all
potentially affected members of the public
• Describe the proposed action or policy change and
reasonable alternatives
• Scoping to identify the full range of probable social
impacts
• Screening to determine the boundaries of the SIA
• Predicting Responses to Impacts
• Develop Monitoring Plan & Mitigation Measures
Stages in Social impact assessment

100. Design a bankable PPP
• Understand the process of financial analysis
• Understand the requirements from sponsors and
banks
• Allow for a fair and reasonable rate of return
• Understand the options for fiscal support and their
rationale

101. • PPPs worldwide are still at an
experimental stage.
• The Government is ultimately
responsible for PPPs.
• PPPs are risky because they are high
cost, long term and have high impact
on public.

102. Rail Vikas Nigam Ltd. (RVNL)
Subsidiary SPV’s
Kutch Railway Company Ltd. (KRCL)
(50.00%)-Commissioned
HSRC Infra Services Limited (100%)
Krishnapatnam Railway Company Ltd.
(KPRCL)
(49.76%)-Commissioned
Bharuch Dahej Railway Corporation Ltd.
(BDRCL) (35.46%)-Commissioned
Haridaspur Paradeep Railway Company Ltd.
(HPRCL) (30.00%)-Commissioned
Angul Sukinda Railway Ltd. (ASRL)
(32.16%)- TDC for commissioning- Dec. 22
RVNL promoted SPVs
to attract private participation in railway infrastructure
v Rs. 86,089.79 crore (USD 11363.84
million) revenue generated for
Indian Railways.
v Equity contribution of Rs. 1133.05
crore (USD 149.55 million) at a total
project cost of Rs. 8482.51 crore
(USD 1119.69 million).
v SPVs in Pipeline
102

103. Mundra
Port
Deendayal
Port
301 Kms

104. Kutch Railway Company Limited (KRC)
Project Type & Length Gauge Conversion, 301 Km
Date of MoU 03.03.2004
Date of Incorporation
shareholders Agreement
signed on
22.01.2004
Construction Agreement
signed on
06.10.2005
Project Cost 550 crore
Commercial Operations Date 01.07.2006
Equity Participants (100% ) Rail Vikas Nigam Limited : 50%
Deendayal Port Trust : 26%
Gujarat Adani Port Ltd : 20%
Govt. of Gujarat : 4%

105. Revenue from Operations
756.09
835.62
700
720
740
760
780
800
820
840
860
KRC
FY 2020-21 FY 2021-22

106. Cumulative Performance
Freight Loading - 459.93 MT
Total Revenue Earned - INR 62129.59 crore
USD 8076.83 million
Share of IR’s Revenue - INR 53838.41 crore
USD 6998.99 million
Share of SPV’s Revenue - INR 8291.18 crore
USD 1077.84 million

107. Cumulative Performance
Kutch Railway Co. Ltd –
• In FY 2020-21 (COVID year) 19375 nos. rakes
handled.
• 23123 rakes handled in FY 2021-22, 2124 rakes in
Dec. 2021, all time record.
• 2401 rakes in May 2022, all time record.

110. Year Tonnage in MT
2006-07 7.65
2007-08 16.89
2008-09 19.45
2009-10 23.23
2010-11 25.43
2011-12 29.56
2012-13 28.37
2013-14 26.90
2014-15 34.79
2015-16 31.59
2016-17 28.61
2017-18 32.83
2018-19 36.30
2019-20 34.78
2020-21 (Covid Year) 36.79
2021-22 42.57

111. Palanpur - Samakhiali DL (247.73 Km)
SPV is undertaking the doubling of Samakhiali -Palanpur
section (247.73 km) at a cost of Rs. 2538.01 Crore and 655.02
Crore for RE.

112. A. The gauge conversion was for a total length of 301 Km, with 247.73 Km of
Palanpur – Samakhiali stretch and 53 Km of Samakhiali – Gandhidham
stretch.
B. The above single line was sanctioned for doubling. Out of 247.73Km of
doubling between Palanpur-Samakhiali following sections have been
commissioned (Total = 117.31 Km):
1. Lakadiya- Kidiyanagar = 25.02 Km,
2. Lakadiya-Samakhiali = 10.44 Km
3. Jasali-Diyodar =19.26 Km,
4. Bhildi-Jasali = 11.10 Km
5. Radhanpur-Varahi = 19.52 Km,
6. Chandisar-Bhildi = 31.97 Km

113. Doubling and electrification costing more than 2400 crore
(USD 312 million) funded by revenue generated by SPV

114. RVNL for SPV KRC PPP

115. ENLARGEMENT OF CONCESSION PERIOD

116. My final words would be: life as a
sportsperson is hard, and there
will certainly be times when you
might be tempted to quit or rake
shortcuts - but remember there
are no shortcuts to success. At
such times you should try and
derive inspiration from this Urdu
couplet:
“Mita de apni hasti ko agar his
martaba chahe, ki dana khak may
mil kar gul-e-gulzar hota hai.”
The Race of My Life

117. RVNL ANTHEM FOR KEEPING ONE MOTIVATED

118. !पं धे'ह जयं दे'ह यशो धे'ह ./वषो ज'ह I
Please grant us beauty,
please grant us victory and
please destroy us inner enemies.
ॐ सव$ भव'तु सु*खनः।
सव$ स'तु /नरामयाः।
सव$ भ4ा*ण प7य'तु।
मा कि7चत ् दुःख भा=भवेत ्॥
ॐ शाि'तः शाि'तः शाि'तः ॥
May all be happy,
May all be without disease.
May all look for well being
of others, may none have
misery of any sort.
Om peace, peace, peace

119. Ø Why we Railway Officers/ Managers
need Change….
Ø We should always plan and dream to
excel….
“We may not achieve everything
that we dream
But …
We will not achieve anything
unless we dream”

120. DON’T WAIT FOR OPPORTUNITY,
CREATE IT.
THE KEY TO SUCCESS IS TO FOCUS
ON GOALS, NOT OBSTACLES.

121. THANK YOU
FOR
YOUR PRECIOUS TIME.