ORDER. , Ivlinistryof Railways(RailwayBoard)have decidedto constitutea Committeeto look intothe certainissuesrelatingto 'treatmentof interestearnedby P$Us etc from Banksetc on depositsmade oui of funds advanced by Ministryof Rail*"ys from Capital/Funds for projectexecution."The Commifteewill cbnsistingof the following:i) ExecutiveDirector/F(x)-ll, RailwayBoard ii) ExecutiveDirector(PSU), RailwayBoard
2.
: :
conveno*. Membffi
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TheTermsof reference of thecommittee willbeas ,no"r,4
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i) To lookintowhetherprojectadvanceitselfcouldnffinsed withtotallyand allpayments againstworksbe basedon reiq${s"q;m nburse mode; and ,&,
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ii) To analysethe suggestionof infusioaoiA6r$,famount CEF i as additionalequity
to the PSU as workingcapital\,fi!ap&,E. projectis assignedto the PSU/JV/SPV/Bodies etc. The i to returnof equityafterthe projectis over;whetherratioof *ith/project
cost wouldbe-a ionstantor
variable, is alsoto.beexanineft@g otherthings,including the liability of dividend-in-perpetuity to tn:{g&'cases of workscharged-to cap (ces)l andits costcomparisgn qll ttilriterest presently apprehinded to be earned on projectadvancef iJ[.3ilqge6ted arrangement:and 3' The Committeesnofi(sr$rlfu its reportwithin two weeks of the formal notification normcatlon of lts ot its setting-g\Tfl)ztime-frame setting-yNH)rtime-frame hasto be respected has respected stricily,as any stricily, anydBlay dBlay
in the decisionwoulda(ct\liase of furthertranchesto the PSUsetc. In casbgrer6 is likeliho.od of anVj"luY\F Committee.should suggest'interimmeasure'as to how to dealwiththe cyn{Rnt goiect advancestillthefinal}eportis submitted. 4.
The
5.
i of the Committeewill be at NewDelhi. pce (Expenditure)Directorateof Railway Board will be the Nodal functioning of the Committee. A
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