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HMR - Hyderabad Metro Rail

 HMR - Hyderabad Metro Rail

 

 

•  Pride of Hyderabad city

 

• World’s largest Public-Private Partnership (PPP) project in the Metro Rail sector.

• An MRTS – Mass Rapid Transport Project

• An integrated urban transport development project with intermodal connectivity and convenient skywalks  - for seamless commuting across busy Hyderabad city.

• Gauge: Standard Gauge 1435 mm (whereas Broad gauge -1676 mm is used in Indian Railways) 

• Standard Gauge is also called a uniform gauge, UIC gauge, International gauge, etc.  60 % of the World Railway tracks are operated in Standard gauge only.

• Maximum capacity per 3 car train  - 965  (Each car – 40 seats)

• Brand Mantra of HMR – “My City, My Metro, My Pride”

 

Why Metro in Hyderabad city

 

•   The population stands at 1 Crore +.  Projected to touch 1.36 Crores by 2020

 

• Currently, 50 lakhs personalized vehicles ply on Roads with the addition of 5 lakh vehicles every year. 

 

• 80 Lakh motorized trips – every day.  Out of which 32 Lakh trips are made by Public transport system i.e., Local Trains & Buses.  The rest of the 48 Lakh trips are made by personal vehicles leading to bottlenecks, high pollution levels & steep increase in fuel consumption

 

  

 

 

DBFOT –Design, Build, Finance, Opeation & Transfer

 

• 35 years (5 years construction + 30 years Operation)

 

• Can be extended to another 25 years

 

• After 35 years, the entire structure incl: Track, Corridors, Station Buildings etc, Rolling stock, Malls, etc should be transferred to State Government i.e., Telangana. 

• Central Metro Act extended to Hyderabad city. 

 

Salient features

 

1. Three Corridors -68 KM 

 

2. Corridor 1 – Red Line   - From Miyapur to LB Nagar -29 KM

 

3. Corridor 2 – Green Line – From MGBS – Mahatma Gandhi Bus Stand to JBS – Jubilee Bus Stand – 11 KM

 

4. Corridor 3 – Blue Line – Nagole to Raidurg – 28 KM

 

5. Concessionaire (the holder of a concession or grant, especially for the use of land or commercial premises or for trading rights.) is LTMRHL – Larsen & Toubro Metro Rail Hyderabad Limited.  It is an SPV – Special Purpose Vehicle

 

6. Eco-friendly, fully automated, and best-in-class transportation, reduction of carbon footprints

 

7. RBT – Regenerative Braking Technology 

 

8. CBTC – Communication Based Train Control technology – virtually one train can speak to another train  

 

9.  Comfortable Air Conditioned coaches

 

10. HMRL – Hyderabad Metro Rail Limited, a Govt of Telangana enterprise 

 

11.  Every KM (approx) – One Station 

 

12. Automatic ticket vending machines - reducing waiting time in queues and counters.

13. Automatic fare collection system - hassle-free entry and exit from the stations.

 

 

 

Partners 

 

• Operations & Maintenance – Keolis  (Paris-based organization- World leaders in public transport business)

 

• Rolling Stock (Coaches)  - Hyundai Rotem of South Korea

• Communications – Thales, Portugal

• Signal & Train Control – Thales, Canada

• Ballast less Track – Tata Corus (France), Voest Alpine (Austria) & Vossloh (Germany)

• Automatic Fare Collection (AFC) – Samsung (South Korea)

• Elevators & Escalators – OTIS (USA)

 

Green Metro

 

• Reduce Carbon footprint by -10 thousand tons of CO2,  200 tonnes of volatile organic compounds & 12 tonnes of particulate matter are eliminated

 

• Efficient power consumption

 

• Rainwater harvesting – One lakh liters of water per day is recycled

 

• One ton of waste paper per year is recycled. This saves 23 trees per year. 

 

Financials:

 

• Total Estimated Cost – Rs. 14.132 Crores

• Actual Completed Cost - Rs. 18,411 Crores ( 17,207 Crores by L & T and 1,204 Crores by Government as part of VGF.

 

• Central Govt support through VGF – Viability Gap Fund – Rs. 1458 Crores. But given so far 1204 Crores

• Amount spent by State Govt. i.e., Telangana  - Rs. 3000 Crores

 

• 2020-21 FY loss - Rs.1,767 Crores  (Cumulative loss Rs. 3,279 Crores)

 

• Debt element as on date - By L&T  - 13,252 Crores  ( Interest rate 9.1 %) 

 

• Yearly Interest charges are borne by L & T - Approx 1200 Crores. 

• Revenue Model  - TOD – Transit Oriented Development

 

1. Passenger fares – 50 %

 

2. Retail Malls (as TOD) -40 %  (57 acres given by State Govt on lease basis)

 

3. Advertisements & stalls at Stations – 5%

 

 

Status of Metro trains – World over

• Approx 200 Metro Trains in Cities worldwide

• Out of that, only 4 are in profits (Tokyo, Taipei, Singapore & Hongkong) 

Prominent features of Rolling Stock

• 3 Cars Train set (can be extendable to 6 Cars Train set)

• Maximum Design Speed – 90 kmph

• Maximum Operating Speed – 80 kmph

• Average Speed – 33 kmph

• Dwell/Halt time at Station – 20 Seconds 

• Energy regeneration during electro-dynamic braking 

Timeline 

• Conceived in 2007 (HMR formed)

 

• Agreement with L&T – 2010

• First Corridor started – in 2017 (28th November)

• Last Corridor started – 2020 (7th February)

• 
  

• Key takeaways for MCQ ( General Knowledge)

• 1. PPP stands for Public Private Partnership 

  2. World’s Largest PPP project in Metro Rail sector  - Hyderabad Metro

  3. MRTS stands for Mass Rapid Transport System

  4. Standard gauge - 1435 MM - Also called Uniform Gauge or International Gauge

  As on 31.03.2017  - Indian Railway's position

  Gauge	Width	Route KM	Percentage
  Broad	1676 mm	61680	92 %
  Metre	1000 mm	3479	5 %
  Narrow	762 mm &  610 mm	2209	3 %
  	Total	67368	100 %

  
  

  5. DBFOT stands for Design, Build, Finance, Operation & Transfer

  6. CBTC stands for Communication Based Train Control technology – virtually one train can speak to another train  

  7. VGF stands for Viability Gap Fund 

  8. RBT – Regenerative Braking Technology

  9. AFC  stands for Automatic Fare Collection

• end -

NFR - Non Fare Revenue, NINFRIS, Earning Contracts & Earnings Vs Revenue

 NFR  - Non Fare Revenue, NINFRIS, Earning Contracts & Earnings Vs Revenue

NFR - Non-Fare Revenue

• Part of Sundry Earnings

• NFR  - Income from various sources excluding Passenger & Goods Earnings

• NFR consists of 

1. Advertisement on Rolling Stock, Railway Bridges, Circulating area of Stations, inside the Stations & other Assets

2. Setting up of ATM and other stalls at Railway Stations

3. Digital Content on Trains and Platforms

4. NINFRIS

5. infotainment systems

6. Any other innovative ideas

• Concept – 2010-11 year

 

• Different policies by Railway Board

1. OOH - Out Of Home - Railway estate areas & Outside Railway Stations

2. Mobile Assets - Display in interiors & exterior of Coaches (Vinyl wrapping), Freight wagons (Vinyl wrapping / P.U paint), Locomotives (P.U paint). 

3. RDN - Rail Display Network - Advertisements through digital screens at Stations 

4. Unsolicited NFR proposals - Proposals received from proponents Similar to the Swiss Challenge Method 

5. NINFRIS - New, Innovative Non Fare Revenue Ideas Scheme

• NFR Directorate – 2014 year

• NFR policy switched from Centralized governance (Railway Board) to Decentralizing (Divisions) in the year 2018

• Earnings contracts period is reduced from 5 to 10 years to 3 to 5 years 

 

• Trains will be allotted without a tendering system to Central & State Government Departments and Agencies including PSUs for advertising on the exteriors of various Trains.

• Scheme Offers Fixed Rate of: Rs.25 Lakhs per year per Rake for Local Trains / Short Distance Trains EMU/DMU/MEMU. and Rs.50 Lakhs per year per Rake for other Coaching Trains.

• Telangana Express allotted to M/s Singareni Collieries Corporation Limited on Lumpsum rates @ Rs 50 Lakhs per annum.

• NFR Target for 10 years is Rs.15000 Crores (Rs. 1500 Crores per year)

• But 2018-19 year NFR is Rs. 33 Crores (against a target of Rs. 1200 Crores)

• Share of Sundry Earnings

	Indian Railways	World wide
Sundry Earnings share	8 %	15 to 20 %

Examples of NFR

1. Handloom stalls 

2. Health Kiosks 

3. Fish spa

4. Massaging Chairs

5. Branding of staircases in Stations 

6. Pre-shooted videos  at Railway premises 

7. Branding of Lifts & Escalators

NI-NFR-IS  - New, Innovative Non Fare Revenue Ideas Scheme

• The new scheme - to increase Non Fare Revenue 

• Announced by the Ministry of Railways in 2018.  

• Object: Promote new ideas and concepts for enhancement of NFR (Non Fare Revenue) and improve passenger convenience on IR

• To classify an idea/concept as innovative - a similar proposal should not have been implemented on the concerned Division before. 

• Replication - Divisions are encouraged to report the success of such ideas and give wide publicity for possible replication across Indian Railways.  

Salient features: 

• At Divisional level

• DRM – Divisional Railway manager -Full powers.

• Nodal Officer – Branch officer of Commercial Dept (Sr.DCM / DCM)

• Committee of Branch Officers of Commercial Dept, Finance Dept, and Dept holding the assets to be used scrutinize the proposals received and recommended to DRM for approval. 

• Terms & conditions of the Agreement are accepted by such committee with the approval of DRM 

•  Savings in expenditure if any, is added notionally as “deemed earnings” for the purpose of evaluation of the project. 

• Token non Refundable application fees Rs. 1000 – should be accompanied by each proposal.  The object of levying such fees is to avoid non-serious ideas/concepts. 

• Based on the importance of the proposal, DRMs are authorized to decide the EMD – Earnest Money Deposit of not less than Rupees 10,000 /-

• Projects may be executed directly by the Divisions using their own manpower or through any Railway PSU or outside agencies such as NGO – Non-Governmental Organisation, SHG – Self Help Group, Cooperative society, etc. 

• Period – One year or part thereof.   Can be extended beyond one year with the approval of DRM. If Extended, Licence fees for an extended period may be decided depending on the realization of the earnings of the Project. 

Safeguards/Precautions

• Should not be political or religious in nature.

• No permanent structure should be constructed

• Not violating the norms of aesthetics, environmental concerns, decongestion, safety and security, free movement of passengers, sanitation standards, temporary structures, fire, safety, etc as prescribed under Railway rules. 

Earning Contracts 

Simplification of Earnings Contracts (except Parcels & Catering)

Tender Amount	Tender Committee
Up to Rs. 50 Lakhs	No T C. Direct Acceptance by  SG/JAG/Sr.Scale  (Independent charge)  – subject to conditions
Rs. 50 Lakhs to Rs. 2 Crores	2 Member TC ( Comml& Finance)
Rs. 2 Crores and above	3 Member TC (Comml, Finance & User dept)

Contract Amount	TAA – Tender Acceptance Authority
Up to Rs. 5 Crores	Sr.DCM
Rs. 5 to Rs. 10 Crores	ADRM
Rs. 10 Crores to Rs.100 Crores	DRM
Rs. 100 Crores and above	PCCM

Extension of Contract	By
6 Months (2 spells of 3 months each)	Sr.DCM
Above 6 Months (Concurrence required)	DRM/CCM/PCCM

Direct Acceptance – Earnings Contracts

• Constituting the Tender Committee is not required for awarding of the Earning Contracts up to Rs. 50 Lakhs by SG or JAG or Sr.Scale (Independent charge)

• Earning contracts are finalized expeditiously without prolonged Tender Committee Proceedings thereby avoiding loss of Revenue to Railways. 

Requisites of Direct Acceptance of Tenders

• By SG or JAG or Sr.Scale Officers(Independent charge)

• Up to value Rs. 50 Lakhs

• Tender Committee not required

• Tenders through IREPS only

• Tendering through E-Tender i.e., IREPS and Open Tender mode only

• Minimum Notice Period – 21 days

• H 1 cannot be bypassed

• Negotiations if any, with H 1 only

• Reasonable Speaking Order by TAA – Tender Accepting Authority (about Tender evaluation & Acceptance)

• LOA  - Letter Of Award/Acceptance should be vetted by Finance (Object is to comply with the above requisites or not)

Earnings Vs Revenue

In Indian Railways, we use normally the word Earnings instead of Revenue.  Now we will check the difference between the two and is it correct to use the word Revenue in place of Earnings or not. 

 

Revenue minus Expenditure is equal to Earnings.

 

The difference between revenue and earnings is that while revenue tracks the total amount of money made in sales, earnings reflect the portion of the revenue the company keeps in profit after every expense is paid.

 

So Using the word Earnings so far in lieu of Revenue is incorrect.  Because Earnings means profits/surplus after deducting the expenditure from Revenue.  

 

So, hereafter

 

Abstract X -  Coaching Revenue

 

Abstract Y  -  Goods Revenue

 

Abstract Z - Sundry Revenue

 

It is high time to modify the Revised Accounting Classification in Finance Code Volume Two accordingly.

Key Takeaways for MCQ

1. NFR stands for Non Fare Revenue 

2. NFR is part of Sundry Earnings / Revenue

3. NI NFR IS  stands for New Innovative Non Fare Revenue Ideas Scheme 

4. NINFRIS Introduced in 2018 

5. NINFRIS is part of NFR 

6. Divisional Level  (Previously NFR at Railway Board level) 

7. NINFRIS - Non Refundable Application fees – Rs. 1000 

8. NINFRIS - EMD – Not less than Rs. 10000

9. NINFRIS - DRM – Full powers 

10. NINFRIS - Period – One year or part thereof  

 

11. Earning Contracts - Direct Acceptance - up to Rs. 50 Lakhs ( Tender Committee is not required) 

 

12. NFR Directorate at Railway Board - 2014 year 

 

13. Earnings contracts period is reduced from 5 to 10 years to 3 to 5 years

 

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MCQ 

1. NFR - Non Fare Revenue is ______ 

1. Part of Sundry Earnings / Revenue

2. Excluding Sundry Earnings / Revenue

3. Part of Other Coaching Earnings / Revenue

4. A separate component of Earnings / Revenue

2.NINFRIS stands for ____________ 

1. New Indian Non Fare Revenue Ideas Scheme

2. New Innovative Non Fare Revenue Ideas System

3. Novel Innovative Non Fare Revenue Ideas Scheme

4. New Innovative Non Fare Revenue Ideas Scheme

3.NINFRIS introduced in the year______

1. 2020

2. 2019

3. 2018

4. 2014

4.NFR Directorate at Railway Board ________________

1. 2014 year

2. 2018 year

3. 2020 year

4. 2016 year

5.Earnings contracts period is reduced from 5 to 10 years to ___________

1. 3 to 5 years

2. 2 to 8 years

3. 1 to 5 years

4. 4 to 8 years

6.Earning Contracts - Direct Acceptance - ________ ( Tender Committee is not required) 

1. up to Rs. 1 Crore

2. up to Rs. 5 Crore

3. up to Rs. 2 Crore

4. up to Rs. 50 Lakhs

7.TAA - Tender Acceptance Authority for Earning Contracts for valuing Rs. 100 Crores and above is __________ 

1. Railway Board

2. GM

3. DRM

4. PCCM

 

8. Up to Rs. 50 Lakhs, Direct Acceptance of Earning Tenders by the Officer of ________ (subject to certain conditions) 

1. Selection Grade (SG)

2. Junior Administration Grade (JAG)

3. Senior Scale (Independent Charge)

4. All the above

9.In case of Direct acceptance of Tenders, vetting of LOA - Letter Of Acceptance / Award is ______ 

1. Required

2. Not required

10.Non Refundable application fees in respect of NINFRIS is ________ 

1. Rs. 1000

2. Rs. 10000

3. Rs. 20000

4. Rs. 2000

Answers:

1.  A

2.  D

3.  C

4.  A 

5.  A

6.  D

7.  D

8.  D

9.  A

10.  A

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