DRF - Depreciation Reserve Fund

 

DRF - Depreciation Reserve Fund 

• Established in 1924 (April 1st) 

 

• The Oldest Working Railway Fund  

 

• The Previous Name  - The Programme Revenue (The expenditure chargeable till 31.03.1924 was then then shown under DRF from 01.04.1924)  

 

• The first two numerals (Capital classification of 8 Digits)  - 21 

 

• One of the Sources of Finance  

 

• The Uniqueness is, Source is Revenue (Internal i.e., from Railway’s Revenue) and the expenditure is Capital 

 

• Budgeted under - Erstwhile Demand No.14 (Appropriations to Funds)  

 

• Erstwhile Demand No.14 is now renamed as SMH - Sub Major Head 12 (under Major Head 3002 - Indian Railways Commercial Lines - Working Expenses) 

 

• This is a Minor Head under the Major Head 8115  - Depreciation / Renewal Reserve Funds

  

•  DRF Account will be maintained in the books of the Railway and in the office of the Railway Board 

Credits:  

1. Contributed annually from the Railway Revenues (as per the recommendations of RCC – Railway Convention Committee) 

2. The amount realized from the disposal of the original cost (at the Debit of Capital or DF) 

3. The amount of Interest earned on the balance of the Fund.  

Debits:   

1. The cost of replacements & renewals (incl: cost of dismantling, handling & shifting)

2. The cost of replacement of Ballast (incl: improvement type)

3. The cost at debit of Capital or DF of an Asset (other than Land) which is abandoned or disposed without being replaced. 

4. Modernization of Rolling Stock

 

• Balance will be carried from year to year.  

 

• The Railways appropriation to DRF on a Need cum availability basis instead of doing so in a scientific manner duly considering the historical cost, useful life and salvage value i.e., using the Depreciation Methods. 

• This negligible appropriations resulted in creation of SRSF – Special Railway Safety Fund with an amount of Rs. 17000 Crores in 2001 and RRSK – Rashtriya Rail SanrakshaKosh with an amount of Rs. 1,00,000 Crores in 2017-18

Last Ten years contribution to DRF (Rs.in Crores)

Year	Contribution
2013-14	7900
2014-15	7775
2015-16	5600
2016-17	5200
2017-18	1540
2018-19	1000
2020-21	1000
2021-22	800
2022-23	2000
2023-24	1000

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