RSF-Railway Safety Fund - Source of Finance

   RSF-Railway Safety Fund

Ø  OBJECT:   (1) Conversion of unmanned level crossings into manned level crossings and (2) Conversion of busy manned level crossings into Grade Separator i.e., ROBRoad Over Bridge/RUB-Road Under Bridge,/FOB-Foot Over Bridge/Sub-way.

Ø Since inception of Railways, there has been policy to provide unmanned level crossings where Train Vehicle Units (TVU) are low and manned if expected TVU is on higher side. 

•  Road Over Bridge can be build over level crossings with Train Vehicle Unit (TVU) more than one lakh provided state government or local body is agreed to share 50 percent cost of the project.

ØAs on date (30.07.2016), Indian Railways have 28607 level crossings out of which,19267 (67 %) are manned and balance 9340 (33%) are unmanned. These unmanned level crossings account for maximum number of consequential train accidents.

                At present Indian Railways has deployed "Gate Mitras" (Gate counsellors) at unmanned Level Crossings on contract basis to avoid casualties.

Ø RSF created w.e.f 01st April, 2001

Ø created based on the recommendations of RCC - Railway Convention Committee, 1999.

Ø It is Non-Interest bearing Fund.

Ø SOURCES:   1.   Surplus after meeting the dividend liability in Railway Revenues.  2. Transfer of funds from CRF - Central Road Fund (12.5 % of CRF - to Railways) by the Central Government.  3. The present contribution 20 % out of the Dividends payable to RSWF - Railway Safety Works fund (operated in the books of Ministry of Finance)

Ø New Plan Head 2900 - for conversion of unmanned level crossings into manned level crossings.

Ø New Plan head 3000 - construction of ROB/RUBs in place of manned level crossings.

SRSF-Special Railway Safety Fund (Closed in year 2008)

ü  Object:   To wipe out the accumulated arrears of renewal of over-aged assets,  especially safety related ones i.e., tracks, bridges, signaling gears and Rolling stock. 

ü  SRSF has been created w.e.f   1st April, 2001  and  closed  from 1st April, 2008.

ü On closing, the balance in SRSF  Rs.597.73 Crores transferred to DRF - Depreciation Reserve Fund.

ü It is Non-lapsable and Non-Interest  bearing Fund.

ü Sources: created with an amount of Rs.17,000 Crores.  Out of this, Rs.12,000 Crores recd. from Finance Ministry in the form of Dividend Free Capital and Rs.5,000 Crores raised through by levying Safety surcharge on Passenger fares w.e.f. 01.10.2001.

ü The Safety surcharge on Passenger fares was discontinued w.e.f 01.04.2007, but subsumed in passenger fares "ON AS IS WHERE IS BASIS" and renamed as Development Fund to the DFC - Dedicated Freight Corridor.

ü carved out of the recommendations of "Railway Safety Review Committee" headed by Justice H.R.Khanna, Retd. Supreme Court Judge in the year 1998.

ü GREEN BOOK -  All SRSF works sanctioned are incorporated in the Book named as GREEN BOOK.

ü Progress/Results of creation of SRSF are mentioned below.

Renewal of	Target	Achieved	Percentage
Tracks	16538 Kms	15624 Kms	94 %
Bridges	2286 Nos	2191 Nos	96 %
Signaling gears	1448 stations	1282 stations	89 %

•  With sustained efforts in the last decade, Indian Railways have reduced the number of accidents per million train kilometers from 0.44 in 2003-04 to 0.13 in 2012-13.

ü  The creation of Second SRSF with an proposed amount of Rs.40,000 Crores is on the news.

ü So it is best time for contemplation as "Is it require SRSF's to the Indian Railways ?"   .  The simple answer is NO, as long as provide sufficient amounts to DRF - Depreciation Reserve Fund for replacement of Railway assets.

ü  Let us observe CAG remarks on SRSF  (CAG report on Railway finances of 2009-10 year)

ü  "Railways need to maintain a reserve with a minimum amount under DRF

accumulation to facilitate the timely execution of renewals with a view to

maintain the assets at the highest standard of efficiency. Accumulation of

arrears in renewal/replacement may at later stage create a need to set up

another fund (as done in the year 2001 when Special Railway Safety Fund was created) to wipe out the arrears of renewal/replacement.