Sources:
Railway Board Letter No. 2022/E&R/3(2)/1 dated 28.12.2022
Railway Board Letter No. 2018/E&R/3(2)/1 dated 04.03.2020
Para 1120 of IR Engineering Code
1. What are Departmental Charges?
Departmental Charges is the new term used in place of D&G Charges (Direction & General Charges) in Railway Works Estimates.
A Railway Board-level committee reviewed the D&G charges applicable to various Works Estimates, based on which changes were introduced.
Departmental Charges cover:
Departmental manpower
Hired manpower of Projects
Includes Revenue posts
Important
Departmental Charges consist of the Establishment portion only.
The non-Establishment portion has been removed.
The cost of Pay & Allowances of Land Acquisition Staff is not included in Departmental Charges because it is included in the Land Acquisition sub-estimate as part of the project.
2. Important Changes
Electrical and S&T Works
The earlier distinction between:
With Block Works
Without Block Works
has been removed.
Gazetted Posts
Not more than 50% of Departmental Charges should be utilised for Gazetted Posts.
3. Ceiling of Departmental Charges
| Type of Work | Departmental Charges |
|---|---|
| Civil Engineering | 5.33% |
| Track Renewal Works – Primary & Secondary | 1.53% |
| Electrical Projects, including RE | 7.16% |
| S&T | 10.05% |
| Mechanical | 4.93% |
The breakup among various Departments is as specified in the Railway Board communication referred to in the supplied material.
4. ERW – Environmental Related Works
ERW = Environmental Related Works
Provision
0.5% of the overall value of the Estimate, including Contingency.
Example:
If the overall Estimate value is ₹100, ERW provision = ₹0.50.
Applicable to Plan Heads:
11, 14, 15, 30 and 42
ERW is NOT applicable when:
The work under these Plan Heads is funded through EBR(IF).
EBR(IF) = Extra Budgetary Resources (Institutional Finance)
Special Case
If the work is specifically for Environment Management, it should be processed for sanction as an Itemised Work in the Pink Book.
5. Sports Development Fund
The objective is to create robust sports infrastructure in line with Indian Railways' sports contribution.
Provision
0.1% of the overall value of the Estimate, including Contingency.
Example:
If the overall Estimate value is ₹100, Sports Development Fund = ₹0.10.
Applicable to:
All Plan Heads except:
Plan Head 17
Plan Head 31
Projects funded through EBR(IF)
Special Case
If the work is specifically for Sports Development, it should be processed for sanction as an Itemised Work.
6. Contingency
Provision
Uniform 1% and it forms part of the Estimate.
Example:
If the overall Estimate value is ₹100, Contingency = ₹1.
Important Rules
Contingency is meant only for unforeseen items essentially required for completing the Project.
It should not be diverted to a new work or repair not provided in the Estimate.
Such diversion requires sanction of the authority that sanctioned the Estimate.
If the sanctioning authority is beyond GM, the GM can sanction.
The contingency portion of Departmental Charges has been removed.
Cost of project-specific training can be included if it is not covered in the Detailed Estimate.
7. How to Calculate Contingency, ERW and Sports Fund?
Suppose:
Project Estimate Cost excluding Contingency = ₹49,500
The overall Estimate including 1% Contingency becomes:
₹49,500 ÷ 99 × 100 = ₹50,000
Therefore:
| Item | Rate | Calculation | Amount |
|---|---|---|---|
| Contingency | 1% | ₹50,000 × 1% | ₹500 |
| ERW | 0.5% | ₹50,000 × 0.5% | ₹250 |
| Sports Development Fund | 0.1% | ₹50,000 × 0.1% | ₹50 |
Remember
Contingency = 1%
ERW = 0.5%
Sports Development Fund = 0.1%
Both ERW and Sports Development Fund are calculated on the overall Estimate value including Contingency.
8. Quick MCQ Revision
D&G = Direction & General Charges
New term = Departmental Charges
Departmental Charges cover Departmental + Hired manpower, including Revenue posts.
Departmental Charges consist of Establishment portion only.
Gazetted Posts → Maximum 50% of Departmental Charges.
Electrical & S&T: distinction of With/Without Block removed.
ERW = Environmental Related Works
ERW = 0.5%
ERW applies to Plan Heads 11, 14, 15, 30 & 42.
ERW not applicable to projects funded through EBR(IF).
Sports Development Fund = 0.1%
Sports Fund applies to all Plan Heads except 17 & 31, and projects funded through EBR(IF).
Contingency = 1%
Contingency is part of the Estimate.
ERW and Sports Development Fund are calculated on the overall Estimate value including Contingency.
EBR(IF) = Extra Budgetary Resources (Institutional Finance).
Contingency is for unforeseen items essentially required for completing the Project.
9. One-Minute Memory Trick
Departmental Charges → Establishment only
Gazetted → ≤ 50%
Contingency → 1%
ERW → 0.5%
Sports Fund → 0.1%
ERW Plan Heads → 11, 14, 15, 30, 42
Sports → All except 17 & 31
EBR(IF) → No ERW / No Sports Fund
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