EMU COSTING

EMU COSTING

Direct
1. pay and allowances including consumable stores like lubricants d no 08 400
2. electricity charges d no 10 332
3. IOH, POH, ROH change of control cables at depots & workshops d no 06 400
Direct allocation
STAFF
D NO, SUB DETAILED HD, ACTIVITY
08, 410, Running staff
08, 420, Shed and yard staff
08, 430, Other operating expenses Like lubricants, consumable Stores
08, 440, Miscellaneous
FUEL
10 332 energy supplied to EMUs


D NO, SUB DETAILED HD, ACTIVITY
06, 410, Repairs in sheds
06, 420, Repairs in workshops
06, 430, Periodical Over Hauls
06, 440, Intermediate over Hauls
06, 450, Special repairs and Over Hauls
06, 460, Other repairs –
control cables Running repairs in sheds and Workshops
Control cables – other repairs POH
Control cables – other repairs IOH
06, 470, Miscellaneous charges-
trials and experiments,
special adjustments
over/under charges on cost
over/under charges Manufacture & repairs
Indirect
1. cost of repairs and maintenance of P Way d no 04
2. cost of repairs and maintenance of Plant & Equipment d no 07
3. other transportation charges Train Passing etc d no 09
Common costs/joint costs based on GTKM, TKM, Survey Ratios

Over head
1. general superintendent d no 03
2. pension etc d no 13
Based on pro rata rupee basis

Depreciation
Railway wise, abstract wise and gauge wise (suburban)
Interest
Dividend pre 1980 6 %
Upto 1994 7 %
1995 7.5 %

Recommendations
EARNINGS
Suburban earnings to be accounted Separately
Suburban earnings in JET separately
Suburban earnings for traffic interchanged With foreign railway separately
Earnings at suburban section license fee, VLR, book stall
EXPENDITURE
TKM basis for calculation not GTKM
TKM to be inflated a factor of 1.5 %
Track life to be 30 years instead of 55 years
OHE life to be 20 years instead of 40 years
EMU costing not to take leasing charges Cf: Nanjundappa Committee Report
Separate sub detailed head for EMU like in Mumbai and Calcutta

NANJUNDAPPA COMMITTEE RECOMMENDATIONS ON TRAFFIC COSTING

NANJUNDAPPA COMMITTEE RECOMMENDATIONS

Ø Crisis in traffic costing world over
Ø Study by ICWA in 1960
Ø Monopoly government rate fixing
Ø Loss to be met by state governments
Ø Adhoc basis discontinued in 1948
Ø 1950’s bifurcation of coaching and goods on equity basis
Ø 1960 world bank suggested a cost cell
Ø 1970 passenger and EMU services loss identified
Ø 1986 task force – analysis of fully distributed costs – complex in nature passenger no class wise
Ø different costs, different capital, different interest
Ø lacks professional approach
Ø no normalization or annualized of huge expenditure

Suggestions:
1. survey ratios - frequent surveys
2. apportionment - simplified as against 1200 detailed accounts heads, 160 apportionment factors
3. annualisation or normalization – 3 to five years
4. methodology adopted for green book also for passenger (pink ) book
5. liability register to be maintained at the lowest cost centre
6. Accounting system to be revamped with professionals, finance ministry and cost accountants
7. demands to be fixed and variable – accounting complexes
8. interest accrued to be taken for assets replaced by DRF
9. data on deferential cost to be ascertained ( type & class)
10. divisional accounts to delinked from EMU costing
11. divisional accounts to be separated from repair and maintenance of HQ buildings, other railway buildings, welfare building such as central hospital
12. leasing charges to IRFC not be included in EMU costing
13. further breaking of variable cost of stores, staff, fuel and energy for each facet of operationsloss on branch

TRAIN COSTING

TRAIN COSTING
I Direct costs:

a. locomotives crew demand no 8
oil and lubricants demand no 10
depreciation demand no 8
interest demand no 8
repairs and maintenance demand no 05
b. coaches depreciation demand no 8
interest demand no 8
repairs and maintenance demand no 06
c.power generation of a/c

fuel and lubricants demand no 10
stores demand no 8
staff demand no 8
d. cost of train examination demand no 9
e. catering
f. staff on train/train superintendent etc

demand no 9
TOTAL DIRECT COST:
II indirect costs:

1. cost of track maintenance demand no 4
2. cost of signaling demand no 7
3. other transportation costs demand no 9
4. cost of traction OHE demand no 7
5. cost of terminal services demand no 9
TOTAL DIRECT & INDIRECT COSTS
III overhead charges
add over head charges 22%
Demand No 3,11 & 12 on direct and indirect costs cumulative up to OH
IV Central charges add central charges 0.46%

demand no 1 & 2 on direct and indirect costs cumulative up to
V detention cost cost of detention to goods train 10% cumulative up to central charges
total cost per annum = total direct + indirect + OH+ CC + D / no of trips per year
= cost per trip