To ensure that rail projects do not languish for years and officers find a way to complete them within targets, Railways Minister Suresh Prabhu, who took charge this week, has decided to give two per cent of project cost to the project teams and their chiefs as reward. But if projects miss the deadlines, adverse comments will be entered in the Annual Confidential Report of the officials concerned.
The decision has been communicated to the Railway Board and Board members are currently working out a way to prepare this policy, according to documents accessed by The Indian Express.
Depending on the nature and size of the project, the incentive can be lower but never more than 2 per cent. The money will be worked out as part of the project cost. “The system of reward and penalty should be introduced,” Prabhu told Board members in a meeting.
The decisions, taken at top speed, over the course of just two meetings, have made Prabhu’s intentions and style of functioning clear to top officers in the Railways, sources said.
As availability of funds remains a problem area, Prabhu has also evinced interest in “securitizing” railway land for sourcing funds from external sources. The Railway Board has been asked to provide “details of encumbered land and its value” across the country.
Even before restructuring of the Railway Board takes place formally, Prabhu has directed Board members to carry out complete delegation of powers to field officers with proper checks and balances in a way that “Railway Board should only monitor closely”.
It has been instructed that tenders and such commercial matters will be decided up to the level of zonal General Managers only and do not require the ministry’s interference. The Board is now to prepare a formal revision of delegation of powers policy.
For a complete turnaround of the Railways, Prabhu has directed that each area of rail operations should come up with a global benchmark which should be on a par with global standards. The task given to each department is assess their performance against such spelled out benchmarks every year for a period of five years.
The Board will now prepare a White Paper on its finances to be presented before the Consultative Committee on Railways on December 1. The White Paper will be discussed in Parliament, before presentation of Prabhu’s first rail Budget next year.
As Prabhu heads to the G-20 summit to assist Prime Minister Narendra Modi, the Railway Board will be busy preparing a presentation for the minister focusing on a three-year plan based on “benchmark of global standards in respect of Safety, Projects and Customer Satisfaction”, documents reveal.
In the past 30 years, as many as 676 projects were sanctioned worth Rs 1,57,883 crore. Of these, only 317 projects could be completed and 359 projects remain to be completed which will now require as much as Rs 1,82,000 crore.
Last Rail Budget, 30 priority projects (which include all types of projects) were selected as per need and availability of funds.
More power to your elbow Mr Prabhu.
Excellent beginning. Steps to be taken to arrest the time/cost over-run of all projects. Giving incentive to the project team is a welcome measure but not at the cost of quality. Resources can be generated from unused railway lands. The minister may pay attention to cleanliness of running trains, punctuality, safety, etc. Above all, unauthorized passengers should be stopped from boarding reserved coaches. The common incidents are - if the confirmed ticket passengers do not board the train at the originating point, TTs make fast money. They allow ordinary ticket holders to seat in the AC coaches inconveniencing other passengers. the Vigilance team should conduct random checking on long distance trains. I have seen myself where a TT allowed a passenger to sit in AC coach by taking money but not issuing receipt. We do hope there will be overall improvement in the railway functioning under the leadership of the new minister.
it was the existing Railway Board members who were holding prev Rail Ministers to carryout any effective changes to infuse finances into Cash starved Railways. So He must change the existing board members if New Rail Minister wishes to change the Railways for better future.
New Rail Minister carries a smile broader than the Broad guage He intends to carry Railways on. How long will He be able to carry such broadsmile is the real challange He faces now
Best of LUCK "Prabhu" sahab. Hope you will meet the expectations of common man. The first priority is to ensure the behaviour or Railway employees specially at ticket counters and TT. Let the ticket holder should travel peacefully to his destination by carrying happy journey note and feel a memorable journey. People are ready to pay "Extra" to the value for the service.
A good captain will first wield the stick to bring order and and then dangle the carrot for performance and achievement.
The priority is to transform the conduct of railways staff from top to bottom.
Railways require enforcement of discipline and ownership of responsibility to discharge their duties.Tackling corruption in sale of tickets and poor safety standards should be the top priority.
The basics and fundamentals of conduct,responsibility and performance must be enshrined as values in all employees before he embarks on eye catching projects.There's 5 years.
It should not happen that incentive is paid yet the project is not on time citing reasons for delay on govt. approvals or stuff of this kind. The babus are pretty good at this kind of rigmarole.
Whether 2% will be included in the project cost projections? Whether any percentage of cost over run will be recovered from the salaries of babus?
If, the timelines and the project cost are met even with 5% to 10% over run, then also the project is said to be good. There used to be huge challenges in project execution, which you cant envisage at the time of approving project cost or timelines. Incentives are good in order to keep the momentum and high morale of project team.
Even if you are not able to meet the deadlines and cost due to some unforeseen challenges, then also some incentives should be paid, keeping in mind the intentions and hard work of project team, if any.
It can never be recovered by the salaries....be logical.
The effectiveness of incentive will depend on whether it compensate for the kickbacks for putting the approvals and vendor payment on fast-track.
I appreciate the enthusiasm, speed and promptness of the new Rly Minister, Mr. Prabhu. I do hope he will maintain these bright features. .He states that the "PROJECT TEAMS AND THEIR CHIEFS " WILL BE REWARDED FOR TIMELY IMPLEMENTATION OF THE PROJECTS." It is an excellent approach. Reward and Punishment are the right approach. MAY I SEEK A CLARIFICATION OF HIS STATEMENT / ANNOUNCEMENT ? DOES HE INCLUDE THE ORDINARY WORKERS ( NOT ONLY THE OFFICERS AND CHIEFS OF THE TEAM ) TOO WHILE REWARDING FOR THE TIMELY COMPLETION OF THE PROJECTS ?I do hope he does not overlook the workers who toil and sweat to execute the proects.
A line from a from a poem by the great Telugu poet SREE SREE COMES TO MY MIND in this connection. "TAJ MAHAL NIRMAANAANIKI RAALLETHINA COOLEE LEVVARU ?" ( WHO WERE THE COOLEES WHO CARRIED THE STONES TO BUILD THE TAJMAHAL ? ) CAN THE CONTRIBUTION OF THE WORKERS BE IGNORED IN COMPLETING THE PROJECTS IN TIME ?
Why he is not dressed well even though being a Mumbai Tycoon? Reminds of Kejriwal.
Minister Prabhu comes across as a dynamic and energetic person. Good luck and God speed to him. The ministry and the departments have been limping like a aged, lame elephant.
That's the way to go. Looking forward to a great future for Railways which is India's lifeline.
How many sub standard planning and management will be done to get the projects passed and get the reward now. Its one thing to give bonus for good job done and its another to keep passing project without much analysis and risk peoples' lives. Short term vision from a mediocre government again. If only media management could better the reality!
Suresh Prabhu needs to solve the financing gaps in Railway projects. Also get the Railways to start getting nimble which they are never known for. He'll face huge resistance but has to bring all his persuasive powers and ingenuity to make them visualize the result of such a transformation!
Mr. Suresh Prabhu's Style Of Governance Is Class Leading, Inducing Corporate Culture And Adopting To e-Management So Real Time Information Availability Becomes Easy Will Make The Entity To Be Agile And Dynamic For Its Decisions. This Would Save Huge Lot of Time and Money For The Organization.
The Introductory Motivation Policy Given By Mr. Suresh Prabhu Will Be Welcomed By A Vast Majority And Also The Shortfall In Personnel In The Management Staff Is Also Something To Be Addressed Immediately. More Privatization Measures Which Touches Consumers Directly Should Be Adapted, This Releases Human Resources For More Operational Intensive Works Which Would Increase Operational Efficiency
BJP government has cultivated this habit of announcing grandiose plans and subsequently not following up or resorting to technicalities or getting defensive about non performance. There are several examples already and the latest additions to the cabinet such as Mr. Prabhu and Parikkar should prove to us in a short time that they are capable of walking their talk...the media has a big responsibility by following up on how they are performing over a period of time.
That is the way to go .
Incentivize good work done. Penalise the bad /delayed work. Decentralize the operations. Make zonal officers empowered and responsible.
The reward / penalty has to be commensurate with the good / bad work done and not arbitary.
Railway ke achchce din aa gaye kya ???
http://indianexpress.com/article/india/india-others/prabhu-incentive-finish-projects-on-time-claim-2-pc-of-cost-as-reward/99/
Suresh Prabhu takes charge as the Union Minister for Railways at Rail Bhawan in New Delhi on Monday. (Source: PTI) - 
