Академический Документы
Профессиональный Документы
Культура Документы
CAMTECH, Gwalior
Disclaimer
This lecture is for orientation purpose
only, and should not be used as a
reference.
What is Agreement ?
What is Tender ?
Contract stages
Abstract Preparation & Sanction
Opening of Tenders
CAMTECH, Gwalior
Contract stages
Preparation of Briefing Note
Consideration of Tenders
Award of Contract
Payment
Variation Statement
Completion Report
CAMTECH, Gwalior
Tender System
As per engineering Code Para 1210, it is the
primary duty of the executive to obtain the best
value possible for the money spent. Tender system
should be given a very careful and serious
consideration in all cases.
When the value of work exceeds quotation basis
power (Up to 2 Lakh JAG has power for 3
quotation and SAG upto 4 Lakhs ) it should be
proposed through tender procedure.
Open Tender
It is a system of invitation of tender by public
advertisements in most open public manner.
Advertisement of tender
While publishing tender in news papers, CPRO must
ensure that NIT has already been uploaded on the
website by taking certificate from executive.
Accident,
Breaches involving dislocation of traffic (separate powers) and
AMC of Equipment.
• No post-facto sanction.
This is resorted to in rare and emergent situations such as accidents,
derailments, dislocation to traffic, some in-escapable situations as
decided by GM with prior concurrence of FA&CAO.
All the cases of single tender shall require prior finance concurrence
before the administrative approval.
CAMTECH, Gwalior
a. Limited Tender from the contractors borne on the approved list only.
b. Notice for LT should be sent to all eligible Contractors borne on approved list
and should also be published in Local News Papers and displayed on Notice
Boards and put on Internet. [Rly Bd. L.No.-94/CE-I/CT/4 dated 22.10.2001]
c. Rly. May decide category of works for which list of approved contractors shall be
maintained for each monetary slab.
3. Board has decided that CAO(C) with the concurrence of FA&CAO(C) may invite SLT not only for
specialized nature of work, but all type of works depending upon the merit of the case...
(Board‘s Letter dated 28.09.2007)
4. Delegation of Powers
Authority Competency Remarks
GM -- All type of works on case to case
basis with FA & CAO concurrence
CAO (C) 1 Crore
PHOD 50 Lakhs Only works of special nature with
finance concurrence
DRM 50 Lakhs
CAMTECH, Gwalior
Bulletin Tender:
It is floated for procurement of many items through stores or works to be
executed. These are processed through bulletins by stores department.
In all other cases where it is decided not to call for tenders, the reason should
be recorded and financial concurrence obtained.
Any work proposal value up to Rs. 2 Lakhs can be processed through work
order by calling quotations.
Attempt should not be made to split the work to bring the proposal under
work order limit.
CAMTECH, Gwalior
Dispensing with Tendering
AUTHORITY FINANCIAL LIMIT ANNUAL CEILING
IREPS
[ Indian Railway e-Procurement System ]
Training to all Department user of Zonal
Railways, PUs and CTIs for implementation
of “E-Tendering in Works Contract”
(RLy Bd letter No. 2014/CE-I/WP/5 dt. 05.02.2016 & 16.02.2016)
Introduction - IREPS
Continue….
Introduction - IREPS
Continue….
Railway may follow two packet system for high value tenders
(RB Letter. 2008/CE.1/CT/Con/7(PCE/GM) DT 15.12.08)
2. However, for all works contract tenders valuing more than Rs. 10
Crore, “Two Packet System” shall mandatorily be followed, except in
cases where it is decided by an Executive officer not below HAG
level for reasons to be recorded in writing with the concurrence of
FA&CAO, that it would be advantageous to follow “Single Packet
System”.
Schedule Contract: For works or supply of material at the fixed unit rates. These contracts need a
master schedule of rates.
Piece Work Contract: Only unit rates or the prices for various kinds of works or materials are
agreed upon.
Turn Key Contract: These are “Design – build‖ contracts – Construction of ETP or ROB etc..
Petty Labour Contracts: Contractors use the sub-contracts so as not to increase the staff strength.
Rate Contracts: During the period of its currency, the contractor supplies the material on the
demand at fixed rates.
Running Contract: For certain consumable items, the periodic consumption is known by
experience. In such cases, stores deptt. enters in to the running contracts.
Consultancy Contracts: May be required for advisory services for works requiring highly specialized
technical assistance.
CAMTECH, Gwalior
Estimate:
Kinds of Estimates
1. Abstract Estimates.
2. Detailed Estimates.
3. Supplementary Estimates.
4. Revised Estimates.
5. Project Abstract Estimates.
6. Construction Estimates.
7. Completion Estimates.
Tender Document
TOP SHEET
Contract for: House keeping, Caretaking, Catering Facilities to the IRCAMTECH Hostels.
5. Date & Time of placement of T/ Box : 09.30 hrs. on 05.10.2016 near Main gate
8. Index:
Tender document cost: Rs. 2000/-
CAMTECH, Gwalior
Tender Document
As per Railway Board’s letter No. CE-I/CT/1 dated 13.02.1991, it is desired that boxes should
be provided well in advance and in any case atleast 10 days before the last date of
receipt of the tenders so that tenderers feel free to deposit the tenders at their
convenience.
Tender box once sealed to be opened at specified time and the opening should under
normal circumstances not to be postponed.
[CE/CR‘s L.No. W.187.R.VII OF 31.10.79, Para 10] annex. 56.]
It should be ensured that the sealed tender box not tempered-with and adequate
arrangements for its security are made to avoid complaints from any of the tenderers.
[CE/CR‘s L.No. W.187.R.VII OF 31.10.79, Para 10] annexure 56. & Bd‘s letter dated 13.02.1991 ]
CAMTECH, Gwalior
g. Tender box should indicate by a slip pasted on the box conspicuously, the
name of the work for which the tenders are to be deposited therein and
date & time up to which tenders can be dropped in the box.
h. The key of this lock should be kept in the custody of the Supervisory
official.
i. For high value tenders, arrangements should be made for keeping
tender boxes at 2 to 3 different locations so as to give max. scope for
contractors residing in far off remote areas to submit their offers.
[ Boards letter No. 90/CE-I/CT/I of 28-10-98, annex.26].
The tenderers should be allowed to drop their offers in the tender box
up to 15 minutes prior to the opening of the tenders where after the
boxes may be sealed. This should be indicated in the NIT.
j. The tenderers should be allowed to drop their offers in the tender box
up to the time specified in NIT, where after the boxes may be sealed.
k. At the specified time for closing of tenders, the hole in the box should
be covered by a slip pasted over it under the signature of the
supervisory official holding the key of the tender box and preferably in
the presence of the Section Officer (Accounts).
l. Immediately after sealing of the tender box, the same should be kept in
the chamber of the Gazetted officer nominated for tender opening.
CAMTECH, Gwalior
Tender Box Opening:
m. Tenders to be opened at specified time, date and place by the officer
nominated for this purpose in the presence of the tenderers.
q. All tenders should be taken out from their envelops, if any, and should be duly
numbered by indicating serial number in the numerator and the total numbers
of tenders received for that particular work in the denominator.
r. Tender Opening register should reflect: Sr. No., opening date, name of work,
tender notice no. & date, name of tenderer, EMD particulars, rates quoted,
nature of tender, nos. of forms sold, nos. of forms received and opened,
signature of tender opening officials ( EO and Accounts representative).
Above guidelines to be followed strictly by concerned staff
CAMTECH, Gwalior
1. Name of the work: Tender for providing Transportation facilities in CAMTECH/GWL for a
period of one year i.e. 2016-2017
2. Tender No:, IRCAMTECH.GWL.Hostel.Vehicle.2016-17
3. The date & time of availability of tender box for submission of tender: 08.08.2016 at
.09.30 hrs
4. The last date & time up to which tender box will be available for submission of
tender – 17.08.2016 up to 15.00 hrs.
5. The Name of Security staff: Shri Parmoli (Gunman) for date of opening.
6. The tender Box will be kept in the chamber of Director/Mechanical in safe custody daily
at 17.30 hrs. and will again be kept at main gate near the table of security supervisor at
09.30 hrs. in sealed & locked condition.
Note: The tender box is made available on 08.08.2016, min.10 days before the last date of
receipt of the tenders as per guidelines of Railway Board’s letter No. CE-I/CT/1 dated
13.02.1991.
To be tabulated as under -
1. Sr.No.
2. Date of placement of Tender box at main gate of CAMTECH office.
3. Time of Tender box Placement
4. Time of tender box taken in safe custody by SSE/TENDER
5. Signature of key holding SSE
7. Test check conducted by Executive:
Test check was conducted by Sr DEE on 17.08.2016 at 09.30 hrs.
(Seal of Sr DEE)
CAMTECH, Gwalior
Format for Tender Box Slip (Sample)
Register No.: Tender Box. Reg..IRCAMTECH/GWL.
• Documents of all bidders be sent for verification immediately after opening of technical
bids.
• The processing of tenders may continue without waiting for verification of documents.
1. Name of Work :
2. Directorate/Division :
3. Pink Book/Law Book/LWP Ref. No. for Demand No. 16 :
Reference of sanctioned detailed estimate (DE) & cost of
4. DE :
a. Nature of Tender (Open/Single/Global/Spl. Ltd.)
5. b. Sanctioning authority with respect to nature of Tender :
6. Works / Stores/ Consultancy tender :
7. Two bid (two packet) or single bid :
8. Whether pre-bid meeting required :
9. Pre-bid minutes available/uploaded : :
S Amt. of tender Mode No. & Date Issuing Exemption Walval, Validity, Whethe Remarks
N document of EM of bank & s, if any if any if any r cross
deposited (BG’s instrument whether indicatin checke
are s is a g last d with
not schedule date of issuing
valid) d bank. validity Bank
FORMAT OF BRIEFING NOTE FOR TENDERs (Contd…
CAMTECH, Gwalior
Part B: Post Tender information
S Name of Amt. of Mode No. & Dale Issuing bank Exempt Waival, Validity, Wheth Remarks
N Tenderer EM of of & ions if if any er
deposited EM instruments branch & ,if any any indicating cross
(BG's whether is a last check
are not scheduled date of ed
valid) bank. validity with
Issuin
g
Bank
-
CAMTECH, Gwalior
FORMAT OF BRIEFING NOTE FOR TENDERs (Contd…
Part B: Post Tender information
EMD
The Earnest Money of the unsuccessful tenderer(s) will,
save as here-in-before provided, be returned to the
unsuccessful tender(s) within a reasonable time but the
Railway shall not be responsible for any loss or
depreciation that may happen to the Security for the due
performance of the stipulation to keep the offer open for
the period specified in the tender documents or to the
Earnest Money while in their possession nor be liable to
pay interest thereon.
(GCC-2014 Annexure 1 Second Sheet, Item No. 6d )
Returning of EMD:
[ Rly Board‘s letter No 2007/CE-I/CT/18(Pt.I) dated 10.09.2008 ]
Site Registers
For successful execution of the work and to
deal with arbitration cases effectively,
following registers should be maintained.
1. Site Order Book – This is covered by para 1122 &
1123. This is the basic record and should be bound
and numbered.
2. Programme Register- Full particulars i.e.
manpower, machinery, plants deployed and day to
day programme are recorded.
3. Payment Register –Contains the details of payment
and various recoveries made from contractor..
CAMTECH, Gwalior
Recording of Measurements
1. Measurement are to be recorded in MBs.
2. Prescribed checks on measurement should be conducted by officers.
3. Payment at full rates must not be made unless the item has been
completed as per specs.
(Bd’s letter No. 94/CE-I/CT/4 dated 17.09.1997)
Railway passes
Communications to be in writing:-
All notices, communications, references and
complaints made by the Railway or the Engineer
or the Engineer's Representative or the Contractor
inter-se concerning the works shall be in writing.
(GCC 2014 Part-II, Item No.4)
CAMTECH, Gwalior
Carriage of materials:-
No forwarding orders shall be issued by the railway for the
conveyance of Contractor's materials, tools and plant.
(GCC 2014 DEFINITIONS AND INTERPRETATION , Item No 10)
CAMTECH, Gwalior
Representation on Works:-
The Contractor shall, when he is not personally present on
the site of the works place and keep a responsible agent at
the works during working hours.
(GCC 2014 DEFINITIONS AND INTERPRETATION , Item No 12)
For contract value upto 2 lakhs : 10% of the total value of contract.
Illegal Gratification:-
Any bribe, commission, gift or advantage given, promised or
offered by or on behalf to the Contractor or his partner,
agent or servant or, anyone on his behalf, to any officer or
employee of the Railway, or to any person on his behalf in
relation to obtaining or execution of this or any other contract
with the Railway shall, in addition to any criminal liability
(GCC 2014 DEFINITIONS AND INTERPRETATION , Item No 18.(1)
1. Should have completed similar work in one contract for minimum value of
35% of the advertised tender value in proceeding 3 years (current year + 3
previous years.
This criteria would apply only to tenders of value more than Rs. 50 lacks.
2. Total contract amount received by contractor during last 3 years & current
financial year should be a minimum of 150% of advertised tender value.
Note: However, the above eligibility criteria may be modified on case to case
basis in respect of urgent process / works and specilised nature of works
with FA&CAOs concurrence and personal approval of GM.
CAMTECH, Gwalior
Eligibility Criteria: (GCC - 2014 Item No. 10)
i. The tenderer shall be eligible only if he
fulfill eligibility criteria of having received
total contract amount during the last
three financial years and in the current
financial year with a minimum of 150% of
the advertised tender value.
ii. Authentic certificates shall be produced
by the tenderer to this effect which may
be attested certificate from the employer
or balance sheet duly certified by CA.
CAMTECH, Gwalior
From whom Certificate can be considered
Organizations other than ‗Private individuals‘ from
whom certificate can be considered -
1. Govt. department/PSU/Co-operative/Institutions.
2. Public Ltd. Company
3. Private Ltd. company.
4. Partnership firms
5. Sole proprietary firms- Registered
( WRLy Letter No. W/623/2344 dt. 13.12.2011)
Estimates
Arbitration
Demand for Arbitration: In the event of any
dispute or difference between the parties
hereto as to the construction or operation of
this contract, or the respective rights and
liabilities of the parties on any matter in
question, dispute or difference on any account
or as to the withholding by the Railway of any
certificate to which the contractor may claim
to be entitled to, or if the Railway fails to
make a decision within 120 days, then and in
any such case, but except in any of the
„excepted matters‟ referred to in clause 63 of
GCC, the contractor, after 120 days but within
180 days of his presenting his final claim on
disputed matters, shall demand in writing that
the dispute or difference be referred to
arbitration.
CAMTECH, Gwalior
Tender Committee
• Tender committee to be constituted as per SOP.
• All the members are collectively responsible for given
recommendations.
• Eligibility criteria of tenderers have to be examined in
detail.
• The Tender committee minutes should be self contained
and self explanatory .
• Rate reasonability of individual item to be examined.
• TCM to be finalised within validity of tender.
• No TC member to be related with any of the tenderer.
• Each page of TCM to be signed with date.
Consistency? 102
CAMTECH, Gwalior
Tender Committee
TC to verify that -
• Similar work definition as approved by PHOD was
included in NIT.
• There was clear 30 days gap between NIT and
TOD.
• Escalation to be based on relevant and established
index.
• Don’t sign TCM in haste.
• Get the TDs downloaded from INTERNET & verified
• Invitation of tender was approved by CA.
• Tender conditions are latest.
• Offer has been signed by authorised representative
(power of attorney)
CAMTECH, Gwalior
Tender Committee
• Members to check their nominations.
• TC to meet on pre-fixed date & venue and decision be
recorded.
• Check and ensure that:
• Work is appearing in current PB/LB
• L-1 value not exceeding sanction limit
• Funds are available.
• Credentials have been verified
• Each offer has been gone through
• Tender file contains all referred LARs/letters, published
NIT with date.
• Tender was posted on Internet.
• EMD of correct amount and in valid form. 104
CAMTECH, Gwalior
Tender Committee
• Check and ensure that: contd-----
• Special conditions have been evaluated financially
• No banned LARs taken into account
• Avg of 3-4 current LARs taken for comparison
• ABC analysis of rates (Overall rate reasonability not
adequate)
• Delay in tender finalisation to be explained
• Rate analysis to be critically seen.
• Offers from 2-3 firms controlled by same person
• Declaration from L-1 before negotiation.
• Critical evaluation of Non-schedule items.
• Segregation of major groups of Tender schedule.
105
CAMTECH, Gwalior
Consideration of tender
Negotiation
1. Declaration form by Tenderer before
Negotiation:
(RB Letter no 2008/CEI/CT/1 DATED 12/09/08)
A tenderer during negotiations is required to
give a declaration that in event of failure of
negotiation, his original offer shall remain open
for acceptance and not allowed to increase
rates of any of items .
“I…………………………………….Accordingly”
2. Form of offer after Negotiation.
(CVC Order No 68/10/2005 dated 25.10.2005)
“From………………………..Signature & Date”.
CAMTECH, Gwalior
Counter Offer
• Sometimes, counter offer may be given to the contractor
on the reduced rate or without accepting some
conditions.
Counter offer
(RB Letter NO. 94/CEI/CT/4 DT 17.10.2000)
02 Calling for budgetary quotation from SSE (Tender) & ADEE OEM/Any other firm --
Firm
07 Tender booklet preparation with Terms and SSE (Tender) ADEE/DEE/ Sr DEE --
Conditions, scope of work etc.
28 Signing of Contract Agreement SSE (Tender) With Rly. & Firm 03 Days
70 DAYS
CAMTECH, Gwalior
STAGES OF TENDER PROCEEDINGS
SN Activity To be Initiated Done by Time
by Limit
Days
TOTAL
CAMTECH, Gwalior
Termination of Contract
In the events of faults on the part of contractor,
Railway can resort to:
1. Railway may serve the contractor 7 days notice in
writing.
2. If the contractor does not make good his fault within 7
days.
3. Before 7 days notice, write 2-3 letters to contractor
clearly bringing out his failure.
4. Railway shall be entitled after giving 48 hrs. notice to
rescind the contract.
5. Forfeit the whole or part of the SD as may consider fit.
CAMTECH, Gwalior
Termination of Contract -
Do‘s
Ensure that the rating of the offers received is done properly after
evaluating the special conditions and vetting by finance.
Ensure that the reasonableness of rates is examined critically,
logically and specifically both in respect of total cost and rates of
important individuals items.
Beware that the low offers are in facts so in reality and price,
differential for similar but different items of schedule is reasonable.
Ensure that the tender committee is duly constituted of competent
level of officers specified.
Ensure prior sanction of competent authority before executing
additional quantities (beyond 25%) in such items so that the contracts
are not vitiated.
CAMTECH, Gwalior
Don‘ts
Do not change the Tender Committee members once constituted without prior
approval of competent authority.
Do not consider delayed/ late tenders except under specified exceptional
circumstances & that too only by following prescribed procedure.
Do not treat the Tender Committee’s recommendations with dissenting notes
from one or more members of the Tender Committee as unanimous
recommendations.
Do not order negotiation on the repeated advice of tender committee to invite
fresh tenders, particularly where response to the call for negotiations is poor.
Do not exercise the power of accepting authority in case you have been a
member of the Tender Committee. Let it go to higher authority.
Do not hold negotiation with those who had either not tendered originally or
whose tender was rejected because of unsatisfactory credentials, inadequacy
of capacity or where tenders were unaccompanied with adequate earnest
money or any other invalid tenders.
Do not accept open quotations from contractors during negotiations.
CAMTECH, Gwalior
Don‘ts
Do not entertain letter / representations of tenderer subsequent to opening/
negotiations/ consideration of tenders.
Do not accept modified offers, not considered by the Tender Committee.
Do not allow subsequent revision of the minutes unless the reconsidered
minutes are put-up in addition.
Do not advise the tender committee prior to their deliberations on the
suitability or otherwise of any particular offer.
Do not allow anomalies in evaluation of special conditions to affect the
acceptance of the offer recommended.
Do not operate non-schedule items without sanction of competent authority .
In exceptional cases where it has to be done, maintain necessary site records.
Do not operate non-schedule items where it is possible to do work as per
schedule items or a combination there of.
Do not award works on questions in a routine manner and strictly follow
annual financials limits laid down.
CAMTECH, Gwalior
Phase I - Module No. FC-10-ppt-1
Case 1:Irregularities in
purchase of optical fiber cable
• OFC was railway board procurement item. Purchase at
Zonal railway was justified as E.P. although tenders at
railway board had been finalized.
• Optical fiber accounts for 70% of the total cost. Its market
prize were crashing down.
OFC- case study
• One firm out of the 3 firms got a contract for which it had
not even quoted the rates.
NO EMD
From other Railways
NSIC firms
Discounts;
Conditional Discounts
Cash Discounts
Advance payments
100% PI payments: AGM standing
sanction
ABB, MMTC, NEI, Hindustan Zinc etc
90/95/98% payments: IC & Proof of
dispatch
Advance along with order
Rs 3 lacs or 30% whichever is less [Annex
III/2-10]
ITI SBC, Hindustan Cables: 25% & 50% advance
TRANSPARENCY IN TC
PROCEEDINGS
Proceedings should be drawn in such a
manner that it replies to all the queries
which may be made later and TC
Members are not required to be called
for clarification either by the Tender
Accepting Authority or by the
Investigating agencies i.e. Audit,
Vigilance or CBI.
Never hide favourable/ unfavourable
information.
TRANSPARENCY IN
TENDER CONSIDERATION
Ensure that security deposits and
earnest money deposits are
collected from unregistered
suppliers as per rules and when
exempted, proper reasons are
recorded and competent authority’s
sanction taken for the same.
TRANSPARENCY IN
TENDER CONSIDERATION
When the descriptions or
specifications undergo significant
changes after invitation of tenders,
ensure that equal opportunity is
afforded to all the suppliers by re-
tender.
TRANSPARENCY IN
TENDER CONSIDERATION
Do not change the tender committee
members once constituted without prior
approval of competent authority.
Do not consider delayed / late tenders.
Do not allow anomalies in evaluation of
special conditions to affect the
acceptance of the offer recommended.
TRANSPARENCY IN
TENDER CONSIDERATION
Do not accept open quotations from the
contractor during negotiations.
Do not entertain letters/
representations of tenderers
subsequent to the
opening/negotiations/ consideration of
tenders.
TRANSPARENCY IN
TENDER CONSIDERATION
Do not accept a single tender received in
response to a call for limited tender unless
the work is very urgent and permission from
competent authority has been obtained.
Do not exercise the powers of the accepting
authority in case you have been a member of
the tender committee.
TRANSPARENCY FOR
ACCEPTING AUTHORITY
Do not allow subsequent revision of the
minutes, unless the reconsidered
minutes are put up in addition.
Do not record the acceptance/
otherwise of the tenders anywhere else
than the body of the tender committee
minutes – noting side of the file is to be
endorse action taken only.
TRANSPARENCY FOR
ACCEPTING AUTHORITY
If Tender Accepting Authority wants to
disagree with the Tender Committee or
to agree with some members in a non-
unanimous proceedings, TAA must
record the detailed reasons.
TAA should not obtain any information
from a source other than the Tender
Committee.
TRANSPARENCY FOR
ACCEPTING AUTHORITY
Do not advise the tender committee
prior to their deliberations on the
suitability or otherwise of any particular
offer.
Treat the tender committee
recommendations with dissenting
notes carefully
TRANSPARENCY FOR
ACCEPTING AUTHORITY
Do not order negotiation on the
repeated advice of tender committee to
invite fresh tenders, particularly where
response to the call for negotiations is
poor.
Do not accept modified offers, not
considered by the tender committee.
Supply Tenders & Contracts
Negotiations
Techno commercial clarifications
In case of ST, LT & OT: rate unreasonably
high
Only with L1: CVC: 1998
L1: Price/Purchase preferences: SSI & CPSU
L1: Cartel situations
Supply Tenders & Contracts
Price Determination
Formal PO
Standard form
PO numbering: xx xx xxxx x xxxxx
xx
Finance Checks:
Error removal: Effect on lead time!
Shirking of responsibility by
Purchaser
Allotment of Budget: Freedom &
accountability: US Railroads
Supply Tenders & Contracts
Fixed Contracts
Period Quantity & Rate [PVC]
IR contracts for supply
Special Conditions of Contracts
Terms of delivery [FOR destination]
Payment terms [90+10%, for M/C], {Now EFT}
Warranty/AMC for M/C or other items
Delivery [not vague]/Validity requirements
Preferences as per the Govt. India Policy
Condition relating to Cartel Formation
Quantity splitting & Quantity variation clauses
Samples in certain cases
Supply Tenders & Contracts
Standard Conditions of Contracts
Risk in Stores
Consignee’s Right of rejection
Even in case of interim consignee
Subletting & Assignment
Inspection
Facility provision for test & inspection, Notice in
writing, Method of test & cost of tests, Marking of
Stores
Powers of Inspecting Officer
Insolvency & breach of contract
Jurisdiction of Courts
Arbitration:
Either Party can ask for. Works Contract?
POST CONTRACT
Be vigilant about increase/decrease in prices,
revision of taxes and duties while granting
extension to delivery dates.
Be vigilant about requests for change of
inspection clauses as request may come from
the supplier for such a change to get over
some inconvenient inspecting agencies.
POST CONTRACT
Ensure that risk purchases are
completed within the time schedule and
also that the risk purchase claims are
lodged to the defaulting suppliers
promptly without delay.
POST CONTRACT
Always guard against suppliers asking for
relaxations in description or specifications
after release of order, as it is quite
possible that the relaxation asked for has
been already rejected in the original
tender.As the suppliers to write to the
purchase authority for any amendments
to the terms of the Purchase Order.
LOCAL PURCHASE
DOs
Indicate quantity and rate both in
figures and words.
Ensure that a register of local purchase
sources is maintained after inspection
of the existence and capacity.
LOCAL PURCHASE
DOs
Even if the lowest offer is accepted, still
ensure that the accepted rate is
reasonable.
Ensure that enquiries are sent by
rotation to registered local suppliers.
LOCAL PURCHASE
DONTs
Do not split indents to bring the
purchase within the local purchase
power.
Do not collect more than one quotation
from single firm.
LOCAL PURCHASE
DONTs
Do not purchase stock item (PL item)
through non-stock, except under special
circumstances recording the reasons for
the same.
Do not purchase items on credit.
Do not issue an enquiry unless the
existence of the firm has been checked.
LOCAL PURCHASE
Before accepting a quotation,have
a look at all the quotations and see
that they have been arranged in
the correct order.
Be vigilant while deciding offers
with small differences on all
inclusive prices.
RECEIPT OF MATERIALS
e- Procurement System
Central
Railway
CAMTECH, Gwalior
E-Procurement / E-Tendering
To Stimulate COMPETITION
To Ensure TRANSPARENCY
- Better Information Sharing, RTI
To Achieve EFFICIENCY
- For Buyer, For Seller
- Reduced Lead Time, Costs Saving
Avoid unnecessary paper work
Stake-holders in e-GP
CVC Guidelines for E-Tendering
CAMTECH, Gwalior
PURPOSE Contd...
Objectives of e-GP
SMART Governance
CAMTECH, Gwalior
What is EPS ?
Business Process – Existing System
E-Procurement definitions
SCOPE OF WORK
Requirements / Features
Features Contd…
MMIS
CAMTECH, Gwalior
Digital signature
Security - PKI
PKI : Contd…
Symmetric Encryption
– Single Key for Encryption/Decryption
Encryption
Plaintext
Ciphertext
Key
and encryption algorithm
Decryption
=>Any Problems? Is
Faster!
CAMTECH, Gwalior
PKI : Contd…
Asymmetric encryption
Encryption
Key 1 and
encryption algorithm
Decryption
Ciphertext
Plaintext
CAMTECH, Gwalior
PKI: Contd…
Encryption
Key 1 and
encryption algorithm
Ciphertext
Plaintext
Key 2 and
encryption algorithm
Decryption
If Key 1 = private, Key2 must be corresponding public
If Key 1 = public, Key2 must be corresponding private
CAMTECH, Gwalior
Hi Bob Hi
#d%G
Alice Bob
*!ki4i
Alice
Ciphertext
Vender
A
Encrypt Decrypt Buyer
B
• A encrypts bid data with B’s public key (available with
tender document)
Version Name of
Algorithm certification
used to Serial number
authority
sign Signature algorithm
certificate Issuer name
Validity period
Start date
and Subject name
end date Subject public key
Issuer’s signature
Benefits of E-Procurement
Improved transparency.
Online access to Information.
Online participation and information sharing.
Reduced procurement cycle time.
Improved Material and Inventory
management.
Faster payments through payment gateway.
Shift from paper based business to electronic
business.
CAMTECH, Gwalior
Benefits Contd…
Issues Involved
Following major issues are involved which need
to be reviewed:
e-Procurement System
Creating and
Uploading of
Tender
CAMTECH, Gwalior
► To Create tender, click on “Create NIT” link
CAMTECH, Gwalior
► This will open tender form, has mainly two parts
► Enter the details in the fields provided
CAMTECH, Gwalior
►PART I >Viz. Fill in Tender No., Type, Section,
Date, TDC/EMD amount, Delivery period,
Description and Click on “Save” Button.
►This will initiate Tender Creation.
CAMTECH, Gwalior
►Scroll down and fill up PL No., Description and
Consignee details.
►Click on “Add Item” button
CAMTECH, Gwalior
►After Clicking on “Add Item” button, a message
will appear as “Data inserted Successfully”
CAMTECH, Gwalior
► Now, to insert vendor names, click on “Click
here to add vendor details” link
►This will open a new window, insert minimum
CAMTECH, Gwalior
Note:
Tender
Opening
CAMTECH, Gwalior
► Login to the ireps account by entering Login ID and password
CAMTECH,
► ClickGwalior
on “Quick Search”
CAMTECH, Gwalior
►Enter desired tender no. for Tender Opening and press “Show Result”
CAMTECH, Gwalior
►Click on tender box opening icon provided therein
CAMTECH, Gwalior
► Enter login passwords of both Purchase Officer and Accounts person in
respective fields
►Click on “Open Tender Box” button.
CAMTECH,
► Gwalior
Insert Purchase Officer’s e-token and press “OK”
CAMTECH, Gwalior
Note:
Note:
Why?
Is it right to be scared?
Certain Precautions
Speaking Orders For Any Discretion Used
Stating All Facts And Circumstances.
REASONS
Mistakes
Over confidence
Not Objective
Not Objective
Question not strictly objective
Not Objective
Modification in Tabular Sheet
Marks actually 3 modified to 5 in
Tabular statement in (previous slide)
Corrections
Corrections
Number of copies was very high.
…..in the answers to objective type questions, no corrections of any type may
be permitted. In case any correction is made, that answer shall not be
evaluated at all. The correction may be any one of the following types (the
list is illustrative and not exhaustive):-
a) Cutting;
b) Overwriting;
c) Erasing;
d) Scoring off a ticked answer in multiple-choice and ticking another
answer; and,
e) Modifying the answer in any way.
RB letter No. E(NG)I-2008/PM1/18 dt. 13.02.2009
Para 2.1.
Train Cost
MRP of cables taken for working out NIT cost. During tender
finalisation, reasonableness of rates justified based on NIT cost.
The rates not compared with the prevailing Stores supply rates,
which were much lower.
Fraudulent Transportation Charges
COS order for supply of cable to station X.
BUT: The offer of Part I was more than Rs 3 crore and the TC
mentioned this fact that since “it was higher than our power we
have not considered this offer.”
What is wrong?
The Eligible offer decides the level of TC
• Problems
– No publicity
– Known firms. Old panel
– Higher fee
– Adhoc rates
– In-house facility available
– No punitive action
– Rates for Repetitive works not defined
– Paid services not rendered
– No check on plan, design, estimates, execution
Preparation of Tender
document
• No scrutiny and Approval
• Conflicting, vague & ambiguous conditions
– Disputes, delays and losses
• Stringent and ambiguous pre-qualification
criteria
– Less bidders, favourite firms, higher rates
• Old machineries
– Acquired before award of work
– No expenditure incurred by Contractor
Preparation of Tender
document contd…
• Splitting of bigger works
– Lower level Technical sanction
– Lower Level TC
• Use of brand
– Particular brand
• Favour manufacturer/supplier
Invitation and Opening of
Tenders
• Inadequate time
– Favored firms
– High rates
• Inadequate Publicity
– Very less circulation in news papers
– Not uploaded in websites
– Favoured few firms
Invitation and Opening of
Tenders contd…
• No Tender sale and opening Register
– For Fair & Transparent system
• Open at prescribed time, place
• Presence of Tenderers
• Rates to be read by Tender opening officer
• Corrections/omissions not numbered &
attested
– Possibility of Tampering of documents
• Rates not in words
– Tender opening authority should write in words
Invitation and Opening of
Tenders contd…
• Late/Delayed Tenders
– Not to be considered
• Maintain sanctity of Tender system
• Avoid malpractices
Tender Scrutiny and Award of works
• Credentials issued by private organisation
• Tenderers conditions
– Financial implications to be evaluated
• Delay in finalization
– Time and cost overrun
– Source of corruption
• L1 ignored on flimsy ground
– Favored contractor, high rates
Tender Scrutiny and Award of
works contd…
• Comparative statement not prepared or
checked
– Other than L1
• Reasonability of rates
• Tender accepted during 2nd call
– 1st instance discharged on flimsy ground
– Higher rates during 2nd call to favored firm
Tender Scrutiny and Award of
works contd…
• Items deleted after opening
– To alter L1
• No verification of credentials
– EMD mode not proper
– False credentials
Works Agreement
• Contract documents
– Not complete, not detailed
• Important papers missing
– Corrigendum to tender documents
• Performance guarantee not collected /
delayed
– Bank charges are saved by Contractor
Works Agreement cont…
• Labour license
– From Labour authority
– Saving of charges
• Technical staff
– Not employed/requisite number not employed
– Bad quality of work
Payment to contractors
• Excessive variations
– No competent approval
– Quantities advantageous to contractor
– Variation due to
• Inaccurate estimate
• Wrong/over measurement
• Abnormally low rate items
– To be identified
– Less execution to be avoided
– Substitution to be avoided
Payment to contractors contd…
• Items substituted
– Beneficial items to the contractors
– Exorbitant rates fixed
• Extra items
– Inadmissible but paid
– Exorbitant rates fixed
• Exorbitant rates for extra/new/substituted
items
• Measurements not in MB
Payment to contractors contd…
• Measurements books
– To be bound, numbered
– All to be recorded in MB
– To be test checked e.g. 20%
• Hidden items – 100%
• High rate items – to be test checked
Payment to contractors cotd…
• Recording of Measurements
– Under wrong item
– Under 2/3 items
• Accepted Rebates of contractor
– Not availed
• Security deposit/ Performance guarantee
– Released before due date
Site Records
• Labour register
– Daily presence of labour/supervisor
• Unnumbered registers
– All pages to be numbered
– Each page to be initialed by Officer
– Each transaction to be jointly signed by
contractor’s rep and Railway Engineer
– Cutting/overwriting to be avoided
• Inspection notes
– To be issued by Senior officers
– Compliance to be recorded
Case I
• Maintenance of Running Room contract in a
division
– Penalty clause for short deployment of manpower
against the stipulated 16 persons per day.
– In the billing period, there was short deployment of
manpower to the tune of 2300 men for a period of 334
days.
– No recoveries were made for short deployment of
man power in Bills
– The recoveries were made only in bill after the
intervention of vigilance.
PRIMARY UNITS, VARIOUS DEMANDS
•EXPENDITURE ACCOUNTAL
•REVENUE EXPENDITURE
•WORKS EXPENDITURE
•EARNINGS ACCOUNTAL
ACCOUNTAL OF MONEY
1. HOW EARNINGS ARE ACCOUNTED FOR
DEPOSITED AT
THE BANKS
BANKS ADVISE
RBI CREDITS (ADDS TO)
RBI-NAGPUR
THE RLY.’S ACCOUNT
ACCOUNTAL OF MONEY
2. HOW EXPENSES ARE ACCOUNTED FOR
EARNINGS CFI
BUDGETARY
ALLOCATION
WHAT IS IT?
A DETAILED SCHEME OF RECORDING ACCOUNTS
HELPS ANALYSIS
COMPARISONS
COST CONTROLS
BUDGETING
FORECASTS
REVENUE EXPENDITURE
•DEFINITION
•COMPONENTS
ORDINARY WORKING EXPENSES (Para 324 of F-1)
APPROPRIATION TO FUNDS
OTHERS.
FROM WHERE DO WE GET MONEY FOR
REVENUE EXPENSES?
• Relevant References ( Page 1 & 2 of A-2 & Para 701 of F-1)
S. Group Dem- Demand
N and Name of demand
No.
I Policy Formulation and 1. Railway Board
Services common to 2. Miscellaneous Expenditure (General)
all Railways
II General 3. General Superintendence and Services on Railways
Superintendence and
Services on Railways
III Repairs and 4. Repairs and Maintenance of Permanent Way and Works.
Maintenance 5. Repairs and Maintenance of Motive Power.
6. Repairs and Maintenance of C & W.
7. Repairs and Maintenance of plant and equipment.
IV Operation 8. Operating Expenses – Rolling stock and equipment.
9. Operating Expenses – Traffic
10. Operating Expenses - Fuel
V Staff Welfare, 11. Staff Welfare and Amenities.
Retirement Benefits 12. Miscellaneous Working Expenses.
and Miscellaneous 13. Provident Fund, Pension and other retirement benefits.
VI Railway Funds and 14. Appropriation to Funds.
payment of General 15. Dividend to General Revenues, Repayment of loans
Revenues taken from General Revenues and Amortization of over
Capitalization
DEMANDS FOR GRANTS
1. Railway Board FROM
2. Miscellaneous expenditure 3 TO 13
3. RAILWAY ADMINISTRATION OWE .
(Demands 4,5,6,7 are for Repairs and Maintenance)
4. BUILDINGS & TRACKS FROM
5. LOCOMOTIVES 3 TO 14
6. CARRIAGES TWE
7. PLANTS & EQUIPMENTS
(Demands 8,9,10 are for operations) FROM
8. ROLLING STOCK 1 TO 15
9. TRAFFIC DEPARTMENT REVENUE
10. FUEL EXP
11. STAFF WELFARE
12. MISCELLANEOUS EXPENSES. FROM
13. PF, Pension & other retirement benefits. 1 TO 16
14. Appropriation to funds. TOTAL
15. Dividend, Repayment of loan etc. EXP
SUB- DIVISIONS OF REVENUE DEMANDS
DEMAND NO
MINOR HEAD
SUB HEAD
DETAILED HEAD
PRIMARY UNIT
EXAMPLE OF REVENUE EXPENDITURE
CLASSIFICATION :
04 B 223 32
ABSTRACT
DEMAND No. DETAILED HEAD PRIMARY UNIT
CLASSIFICATION OF WORKS EXP.
PLAN HEAD:
e.g. DOUBLING,
S&T ETC.
CAPITAL AT CHARGE
It is a loan given by General Exchequer through Central
Government’s Budget for which, Railways
have to pay interest (which is termed as Dividend in railways,
current rate is 6.5%)
• CREATED IN 1992-93
• EXCESS AFTER APPROPRIATION TO DF IS
CREDITED TO THIS.
• WITH A VIEW TO CREATE
INFRASTRUCTURE FROM INTERNAL
RESOURCES.
• CURRENTLY NOT IN USE
SRSF (Special Railway Safety Fund)
(Works Shown in Green Book)
ABSTRACT X -
ABSTRACT Y -
COACHES 38896
DMUs/DHMUs 692
EMUs 5762
Other coaching 5905
WAGONS 207719
BDT CRANES *
Key Indicators
• Route Km 63327
• BG 49820
• MG 10621
• NG 2886
• Electrified route km 17786
• STATIONS 6909
• FREIGHT 661 MTs
• PASSENGERS CARRIED 5725 Millions
What is RSP?
CAP 517.23
DRF 1157.77
DF(1) 14.80
WP M&P RSP
Already Works in Programmed Programme
sanctioned programmes Deliveries/ d Deliveries
by Board WIP Works in
programmes
New Works New Works New New
Acquisition Acquisition
Cranes
Rail cars &
Multiple units
Track
Machines
BULK RSP
• ROLLING PROGRAMME FOR 3 YEARS
• INITIATED BY CONCERNED DIRECTORATES
IN RLY BOARD BASED ON CSP, UPGRADED
DESIGNS, RDSO RECOMMENDATIONS ETC.
• FOR MODIFICATIONS & CAPITAL SPARES
• PROCESSED BY DME/PU & DRS/W
• PLANNING & TRAFFIC DEPARTMENTS ARE
INVOLVED IN NEW ROLLING STOCK
• APPROVED BY BOARD
• APPEARS IN PB AS RAILWAY BOARD RSP
• ITEMS LISTED IN PINK BOOK
BULK RSP
• Beyond 50 lakhs to MR
>30 lacs & < 100 Crs Full Full Min of Rlys, RB
2
M&P Programme
3
M&P Programme
5
Model Time Frame
6
M&P Programme
Expansion plan
Any extra work load in near future
7
M&P Programme
8
PROCUREMENT OF MACHINES IS UNDER PLAN HEAD
4100 DEMAND NO. 16
ALLOCATION
• DF-I Passenger amenity
• DF-II Staff welfare
• DF-III Operating improvement
• DF-IV Safety
9
Framing of Proposal
Justification
Technical Justification
Financial Justification
10
Framing of Proposal
Technical Justification
M&P proposed should clearly specify the
machinery being replaced, its age, its codal
life, its present condition and a justification for
its replacement.
(Codal life Para 219 Indian Railway finance code
along with advance correction slip no. 65 vide R.Bd
letter no 2002/AC-II/1/10 dated 12.10.07)
11
Framing of Proposal
Technical Justification
Full details of jobs required to be machined should be
furnished.
M&P Proposal should be based on “System
Approach” and should lead to improvement in the
output in a particular section.
Items of M&P already included in the “Works
Program” should not be included in the M&P program
12
Framing of Proposal
Technical Justification
Material handling equipment where proposed,
should indicate the labour saving to be achieved
One to one replacement should not be sought
automatically.
The latest version of the machine with higher
productivity should be planned
13
Framing of Proposal
Technical Justification
The inescapability of procurement should be
established.
14
Framing of Proposal
Financial Justification
All proposal must be furnished with financial
justification.
The cost should include:
Cost of foundation,
D&G charges,
Electrical work ,
Tooling etc.
Contingency
16
Elements of cost of M&P
1) Basic cost of Machine =
2) Electric connection charges (as per estimate) =
3) Foundation charges (as per estimate) =
4) Freight (if know actual or maximum
3% for COS procured machine only) =
5) D&G charges 4.99% as per Board’s letter
No. 2000/E&R/400/2 Dt. 12/10/2000 =
6) Contingency (Maximum 3% if required) =
7) Other charges if any =
Total: XYZ =
17
Admissible D&G
(Board letter 2007/M(W)/964/66 dated 23.8.2007)
In M&P Program: 4.99%
COFMOW COS
Mech: 2.7 3.6
COFMOW-1.49 Store-0.59
A/c 0.40 0.40
Admissible D&G
(Board letter 2007/E&R/400/2 dated 12.10.2000)
20
Framing of Proposal
The proposal for inclusion in M&P programme
to be sent to Electrical Department duly vetted
by Finance and approved by HOD.
Railway Board
Machines costing above Rs. 10 Lakhs
( 2000/m(M&P)/1063/NA/AL 14.07.00)
All road vehicles except staff cars.
Staff cars are sanctioned by the establishment directorate
for which separate proposals are to be sent as individual
items. However, funds are to be allotted from PH-4100.
25
Sanctioning Authority
GM’s Powers
Machines costing not more than Rs. 10 Lakhs
Rs. 15 Lakhs for Electronic in-motion
weighbridges (2002/M(M&P)/814/1 14.10.04)
Sanction of M&Ps up to 3 times funds allotted
for the year, validity remains for 2 years (97
M(M&P)/1063/NA/AL 04/09/98). Ceiling limit
is also given every year.
26
Vehicle Vs Staff car
27
Sanction of M&P Proposals
28
Items under GM’s Power
29
Procurement Agency
30
Specification
3. Specifications
4. Check List
Training requirement
Maintenance manuals
Spares requirement
Software Program back ups
Availability of spares for next 10 years
34
Following points should also be kept in mind
while finalizing the M&P program.
Foundation details be be furnished by the firm
Electrical Power requirement
Any crane requirement
Water, air supply to be provided to the
machine
Provision to be made for custom duty,
insurance etc.
35
Committee on Issues of M&P
Rly Board’s letter No, 98/RS(G)/709/1 dated 30.5.3006
(Members COS/COFMOW, FA&CAO/COFMOW & CME/DLW).
value.
37
Committee on Issues of M&P
..contd
3. Warranty
•Warranty period for M&P will be 24 months from the date of
commissioning. Maximum period of two weeks will be allowed
for attending and rectification of faults during the warranty period.
•Maximum down time during the warranty period will be
2% for on line M&P
38
Committee on Issues of M&P
..contd
3. Warranty ---contd.
•Penalty of 0.5% per week of the contract value will be levied for
delay in response time for attending and rectification of faults
beyond specified time during warranty period.
39
Committee on Issues of M&P
..contd
4. Annual Maintenance Contract.
•Tenderers are required to quote for post warranty Annual
Maintenance for a period of 5 years, after expiry of warranty
period alongwith the offers.
•Tenderers will mention AMC schedule of such Annual periodic
maintenance alongwith offers giving the charges for AMC
maintenance schedule and other details of item to be used in such
preventive maintenance.
•For the purpose of comparative evaluation all charges on AMC
alongwith items to be used in preventive maintenance will be
included in the FOR destination place quoted for M&P. 40
Committee on Issues of M&P
4.
..contd
Annual Maintenance Contract.---contd
• Tenderers will also give cost of essential spares and service
charges for each items of work of repair of M&P outside
preventive maintenance contract. These charges will not be
included in the price of M&P for the purpose of comparative
evaluation of offers.
• The terms and conditions of AMC must clearly specify the
maximum down time and maximum response time.
• Tenderers who are OEM, must give undertaking for supply of
spare parts for a period of expected life of the machine/
equipment. Other tenderers must submit undertaking from OEM
for supply of spare parts for a period of expected life of the
machine/ equipment. 41
Committee on Issues of M&P
..contd
5. Inspection
• Inspection of M&P items will be carried by M/s.RITES
42
M&P PORTAL
•To assist the creation of proposal and their subsequent
processing, a web based system for creating M&P proposal
has been developed.
•It provides necessary formats, instructions and guidelines
for creation of proposal.
•Latest COFMOW compendium has been integrated into
the portal.
•This is a secure system with password access for each field
and head of its user.
•Address of the portal is http://www.irmnp.com
44
M&P Condemnation
•Condemnation is for
•New but not useful/ serviceable
•Outlived its Codal life
(There is no codal life laid down for
Medical equipment)
•Under repair
•Accidented
45
M&P Condemnation
•M&P condemnation is done through Survey
committee
•For each division there is standing Survey
committee
•After acceptance of the Survey committee
report by CME, M&P condemnation
Memorandum is issued
46
M&P Disposal
•An Advice note (DS-8) is prepared and
submitted to Stores depot for disposal.
47
WORKS PROGRAMME
• Income-Expenditure=Gross Surplus
• Gross surplus- provision for
depreciation(DRF)
• = Net surplus
• = Investment.
• Must be in useful form- “Productive
investment”
• At least 10% Annual rate of return
Dividend
• Formulation of schemes
– Advance planning
• Preparation of Preliminary Works
Programme
• Discussion With Rly Bd
• Submission of Final Works Programme
WORKS PROGRAMME
• By Whom
– Divisional Works- Division
– Major Works- HQ
– Covering two Railways- Railway having
major portion.
Important requirement
– Full Details, Justification, Detailed plans &
Estimate
– ROR-Financially Justification- Project
Evaluation
– Cost of project- Break up after full
investigation
– Investment Schedule
– Look as a whole- Entire Scheme
Format of PWP
i) Revolving in nature.
• Single quotation
i) Technical suitability.
2
BUDGET
Chartered Institute of Management Accountants
(CIMA), London, defines Budget as
3
Contd..
A budget, thus, is a precise statement
of financial and quantitative implications
of the course of action that
Management has decided to follow in
the immediate next period of time
(usually a year).
4
Types of Budget:
Concepts in brief
5
Budget- Constitutional
Background
Three organs of the State
Legislature (Parliament, Assemblies)
Executive
Judiciary
6
Budget – contd.
Annual Financial Statement (AFS) i.e. an
estimate of Receipts and Expenditure for the
year.
Article 112(1) : AFS should be laid before
both Houses of Parliament for consideration
and sanction of voted portion.
Charged expenditure, Appropriations
sanctioned by President.
It is also a Management Document.
7
Presentation to Parliament
8
Presentation of budget
9
Approval by Parliament
10
Approval by Parliament – contd.
11
Budgetary Reviews
• Budgetary Reviews Monthly, Quarterly
- Budget Control Statement
Budget Proportion for the month
Actuals for the month
Budget Proportion up to the month
(cumulative)
Actuals for the month (cumulative)
Remarks / reasons for variations
Use of Exchequer control mechanism
12
Revision to Grants
Changes in Budget
Supplementary grants
Re-appropriation
13
contd.
14
Railway Budget:
Department Wise
Demand wise
Primary Units (object of exp.) wise
Divisions/workshops
Zonal HQs
Railway Board
15
Revenue Budget
Revenue Budget: For maintenance
and operation of services to generate
business and meet other charges and
appropriations (provisions / debt
servicing etc.)
Short term (One year)
Demand no 1 to 15
16
Revenue Budget--contd
Abstr Dema Name of Demand
act nd
1 Railway Board
2 Miscellaneous Expenditure(General)
A 3 General Superintendence and Services on
Railways
B 4 Repairs and Maintenance of Permanent Way and
Works
C 5 Repairs and Maintenance of Motive Power
D 6 Repairs and Maintenance of Carriages and
Wagons 17
Revenue Budget--contd
H 10 Operating Expenses-Fuel
19
Primary Units
(Objects of Expenditure)
20
Primary Units--contd
12 Night duty allowances
13 Other allowances
14 Fees and honoraria
15 Transfer allowance
16 Travelling expenses
17 Air Travel Expenses sanctioned in lieu of
privilege passes
18 Office expenses
19 Rental for P&T telephone and call charges
including Trunk calls
20 Leave Encashment During the service
21 Advertising expenses
21
Primary Units--contd
22 Utilities
23 Rental for office equipment(other than Data
Processing)
24 Printing and stationery including Publications
25 Children Education Allowance
27 Cost of materials from stock
28 Cost of materials-Direct purchase
32 Contractual payments
33 Transfer of debits
22
Primary Units--contd
36 Excise duty paid/payable for purchase of
materials
37 Customs duty paid/payable for purchase of
materials.
38 Sales Tax paid/payable for purchase of
materials.
39 Air Travel (Domestic)
40 Air Travel (Foreign)
99 Other expenses.
23
Capital Budget
For creating/acquiring New Assets to
build additional capacity and for
replacement / renewal of over-aged
assets
Works, M&P, RSP Budget under
different Plan Heads of Demand
number 16.
24
Capital Budget
Works, Machinery and Rolling stock
programme called Pink Book.
Chief Engineer co-ordinates works program
Chief Mechanical Engineer co-ordinates the
Machinery and Plant Program.
Rolling Stock co-ordinated by Railway Board
through CME.
25
Source of Funds for Capital
expenditure
External-
From GOI- Capital at Charge
Internal –
Depreciation Reserve Fund for replacement
Development Fund for non-remunerative
operational improvements, welfare works etc.
Capital Fund for creating new assets which are
remunerative.
26
Non- Budgetary Sources for Capital
Expenditure.
Market borrowings through IRFC to finance
RSP, M&P items on lease basis.
Others
PPP
National Rail Vikas Yojana projects through
Rail Vikas Nigam Ltd. .
27
Capital Exp: Plan Heads
Plan Name Plan Name
Head Head
s s
28
–contd.
Plan Name Plan Name
Hea Hea
ds ds
17 Computerization 18 Railway Research
30
–contd.
52 Amenities for staff 53 Passengers amenities
31
Primary Units (Objects) of Expenditure for
Works
32
Primary Units (Objects)Expenditure for
Works-contd.
6 Freight on stores 06
8 Others 08
33
Primary Units (Objects)Expenditure for
Works-contd.
10 Productivity Linked Bonus 10
35
Earnings Budget-contd
Prepared by CCM of the Zonal Railway.
Prepared separately for passenger, other
coaching, goods earnings.
Sundry earnings- estimates prepared by
accounts based on information submitted by
commercial and engineering branches.
36
Earnings Budget - contd
Estimates for passenger and goods traffic
prepared separately under the headings
“originating”, “received” and “carried” and
then totalled.
The detailed working sheet under passenger
traffic, other coaching traffic and goods traffic
detailed under the above headings are sent
to the Traffic Accounts office.
37
Accountal of Earnings
Classification
Abstract ”X” - Earnings from Coaching traffic
Abstract “Y” - Earnings from Goods traffic
Abstract “Z” - Sundry other earnings.
38
Parliament’s control
CAG
PAC
39