PG 9-114

Index for Materials Management Manual 2018
INDEX
Para No. Page no
CHAPTER I: PROFILE OF GSI AND ROLE OF AP&M DIVISION

Purchase•Section•role•and•Functions•of•APM&D
1 A profile of the Organisation…………………....................................... 1-2 1
2 Role of AP & M Division in GSI………………................................... 3-5 2
3 Hierarchy of MMD (AP & M Division) AT CHQ……………………… 6 3-4
4 Functions of AP & M Division……………………............................... 7 5
Materials•Classification,•Codification,•Provisioning,•Procuring,••
•••••••••••••••••••••••••••••••••••Stock•Holding•••Authorities•etc
5 Definition, Classification and Materials used in GSI…………………. 8-10 5-8
6 Codification of Materials………………………………………………. 11-16 8-9
7 Provisioning Authority…………………………………………………. 17 9-10
8 Central Technical Specification Committee & CPMC………………... 18 10
9 Indenting and Provisioning Authority…………………………………. 19-20 10-11
10 Purchasing Authority…………………………………………………… 21 11-12
11 Sanctioning Authority and Lapse of Sanction………………………… 22 12-13
12 Difference Between Sanctioning authority and Purchasing authority.. 23 13
13 Procurements by Laboratories, Work shop /
Operation Units and Divisions, Stock Holding Authority……………. 24-26 13-14
14 Various Stock Holding Authority in GSI……………………………… 27 14
Purchase•formalities•
15 An Over View on Purchase……………………………………………. 28 15
16 Pre-Purchase formalities……………………………………………….. 29 15
17 Purchase Advisory Committee, its role, and
Constitution of PACs………………………………………………........ 30 15-16
18 The Various Divisions & Similar Divisions…………………………… 31 17
19 The Essentials for initiating Purchase proposals………………………. 32-33 17
20 PAC Recommendations, Role, &Guide lines…………………………. 34-36 18
21 Procurement without PAC……………………………………………… 37 19-20
22 Post PAC recommendations…………………………………………… 38 20
23 Placement of Indents, Principles of Public Buying……………………. 39- 41 21
24 Registration of Firms……………………………………………………. 42 22-23
25 Enlistment Of Indian Agents…………………………………………… 43 23
26 Procurement process, Processing of Procurement INDENTS by the
conferred Purchase section Procurement Process to be followed in GSI.. 44-46 24
27 Single Tender Procurement & PA Certificate…………………………. 47 25-26
28 Limited Tender Enquiry……………………………………………….. 48-49 27
29 Global / Open Tender…………………………………………………. 50 27-28
30 Two Bid system, Invitation of EoI Tenders…………………………… 51 28-30
31 Tender Enquiry, Sale of Tender Schedule…………………………….. 52-53 30
32 Pre-bid conference, Negotiations……………………………………… 54-55 31
33 Re-tendering, Minimum number of quotations, price not reasonable 56-62 31-34
Bid security, Refund, Forfeiture, Exemption of EMD/BID Security,
34 Performance security…………………………………………………. 63 34-35
35 Guaranty / Warranty…………………………………………………… 64 35
36 Opening of tenders, Postponement of Tenders opening……………… 65-66 35-36
37 Late tenders…………………………………………………………… 67 37
38 Initial Scrutiny of the Tenders by Purchase Section & Preparation Of
Comparative statement………………………………………………… 68-69 37
39 The Tenders Need not be accepted under the following Circumstances 70 38
40 The Conditional Offer, Post Tender Revision& Formation of TEC…. 71-73 38-39
41 Duties and Responsibilities of Technical Evaluation Committee(TEC) 74 39
I
42 Formation of TAC, Duties & Responsibilities of TAC………………. 75-76 39-41

Para No. Page no
43 Direct Purchase of GeM……………………………………….. 77-78 41
44 Advance / Part payment to supplier…………………………………..!. 79-80 41
45 Terms and conditions of the contract……………………………….…. 81 41-42
46 Buyback / Exchange offer…………………………………………….. 82 42
47 Purchase order, repeat PO,, Job order, Funds allocation, Amendment to
PO, Extension of PO, Cancellation of PO………………………… 83-89 42-44
48 Government e-Market Place(GeM),Electronic Reverse Auction…….. 90A & 90B 44-46
49 Extension of Purchase/Work orders, Repeat Purchase order………… 91-92 46
50 Watching Of delivery, Remainder for Over Due Deliveries………….. 93-94 47
51 Liquidated damages, Power for LIDUIDATED Damage Etc………… 95-97 47-48
52 Price preference, Purchase preference………………………………… 98-99 48
CHAPTER-II: IMPORT PROCUREMENT

Import Procurement
53 The necessity of Import Procurement…………………………………… 100 49
54 Import Procurement Process…………………………………………….. 101 49
55 Selection of Supplier……………………………………………............. 102 49
56 Conversion of Currency………………………………………………… 103 49
57 Indian Agency Commission…………………………………………….. 104 49-50
58 Remittance / Payment to the Supplier Abroad…………………………. 105 50
59 Approval for Making Payment Abroad………………………………… 106 50
60 Letter of Intent…………………………………………………………... 107 50
61 Contract / Purchase Order………………………………………………. 108 50
62 Letter of Credit, LC Modes……………………………………………... 109 51
63 Documentary Collection – CAD Payment……………………………... 110 51
64 LC Payment Terms……………………………………………………… 111 52
65 Different parties to a Letter of Credit………………………………. 112 52-53
66 Opening of Letter of Credit………………………………………… 113 53
67 Requisite documents to be forwarded for Opening of LC…………… 114 53
68 Advance Payment Clause in LC……………………………………… 115 53-54
69 Validity of LC………………………………………………………… 116 54
70 Insurance cover for Importing Items………………………………….. 117 54
71 Air Consignment…………………………………………………….... 118 54
72 Follow-up of Shipment…………………………………………….......119 54
73 Retirement of Documents……………………………………………...120 54-55
74 Customs and Port Clearance………………………………………….. 121 55
75 Demurrage / Warehouse, Terminal Charges , Loss / Damage /
Shortage / Short supply……………………………………………….. 122 56
76 Installation of the Equipment…………………………………………. 123 56
77 Acceptance of Accounting of Imported Stores………………………. 124 56
78 Balance 10% payment to the Party / Firm……………………………. 125 56
79 Forwarding of Exchange Control Copy (B/E)……………………….. 126 56
II
CHAPTER –III Para no Page no

ANNUAL•MAINTENANCE•CONTRACT•(AMC)• •
81 Annual Maintenance Contract(AMC)/Comprehensive Annual Maintenance
Service (CAMC) ………………………………………………………….. 127 to 57
127.1.7
82 AMC (ASC) with OEM……………………………………………………. 127.1.8 58
83 Proposal, renewal of AMC/ CAMC/ASC………………………………… 127.1.12 58
84 Advance payment to the AMC/CAMC, etc………………………………. 127.1.16-17 59
CHAPTER –III –A
Procurement•of•Services•
85 Outsourcing of consulting services……………………………………. 128(A) 60-62
86 Outsourcing of non consulting services……………………………….. 128(B) 63-64
87 System Improvement-Guideline regarding Hiring of Vehicles by
Govt. Officers……………………………………………………!……. 128(C) 64
CHAPTER-IV
•••••••Receipt•and•Inspection•
88 Receipt………………………………………………………………… 129 65
89 Receipt Register………………………………………………………. 129(A) 65
90 Inspection in the case of Purchase through DGS&D………………… 130 66
91 Release of Inspection Note…………………………………………… 131 66
92 Local Supply – Inspection…………………………………………….. 132 66-67
93 Supply from Outstations………………………………………………. 133 67
94 Inspection of Furniture…………………………………………………. 134 67
CHAPTER – V ••••STORAGE AND ISSUE
•General
87 Store Holding Authorities / Under OCBIS………………………………… 135 68
88 Organisation of Store Depot………………………………………………. 136 68-69
89 Stacking of Materials, Security from Store Personal, Security Exemption By
HOD………………………………………………………………………. 137-138 69-70
90 Security of the Depot…………………………………………………….. 139 70
91 Recording of Transactions………………………………………………... 140 70
Payment•for•stores•received•against•purchase•orders
92 Action by Consignee…………………………………………………..…. 141 70-71
93 Action by Party Bill Section……………………………………………... 142 71
Accounting•of•Stores
94 Accounting of Dead Stock……………………………………………… 143 71-72
95 Consumable Sores………………………………………………………. 144 72
96 Depot Ledgers……………………………………………………………. 145 72-73
97 Numbering of Receipt Vouchers………………………………………… 146 73
Requisitioning•and•issue•of•Stores
98 Requisitioning and Issue of Stores……………………………………… 147 73-74
99 Requisition Register……………………………………………………... 148 74
100 Numbering of Issue Voucher…………………………………………… 149 74
101 Distribution of the Issue Voucher Copies……………………………… 150 74
102 Separate Issue Note Forms………………………………………………. 151 75
III
Return•of•Stores•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••Para no Page no
103 Return of Stores………………………………………………………….. 152 75-77

104 Unserviceable Stores Section…………………………………………… 153 77-78
105 Stores other than dead stock and Consumable Stores…………………. 154 78
Special•type•of•Issues
106 Special Type of Issue…………………………………………………… 155 79
Capital•stores
107 Capital Stores……………………………………………………………. 156 80-81
108 Drills & Vehicles………………………………………………………… 157 81
109 Spare parts & Accessories………………………………………………. 158 81
110 Empties………………………………………………………………….. 159 82
111 Inter-camp Transfer……………………………………………………… 160 82-83
112 Responsibility for Correct Accounting…………………………………. 161 83
113 Control of Issue………………………………………………………….. 162 83
CHAPTER –VI
••••••PHYSICAL•VERIFICATION•AND••REGULARISATION••OF•DISCREPANCIES•
Verification•of•stores•
115 Verification of Stores……………………………………………….. 163 84
116 Verification Team…………………………………………………… 164 84
117 Objective of Physical Verification of Stores……………………….. 165 84
118 Procedure for Verification and Field Books………………….……. 166-167 84-85
119 Stock Verification Sheets…………………………………………… 168 85
120 Distribution of Stock Verification Sheets……………………….…. 169 86
121 Posting of Verification results in the Ledger…………………….… 170 86
122 Duties of Physical Verification Team……………………………… 171 87
123 Taking of Un-accounted Materials through Stock Verification Sheet 172 87
124 Regularization of Discrepancies…………………………………… 173 88
Percentage•verification•
125 Percentage verification by Stock Holding Officer………………….. 174 88
126 Verification of Vehicles……………………………………………… 175 88-89
127 Powers for Regularizing Adjustments……………………………… 176 89
•Losses•
128 Losses & defalcation……………………………………………….... 177 89-90
129 Responsibility for Losses……………………………………………. 178 90
130 Bore Hole Losses……………………………………………………. 179 91
131 Write-off of Losses………………………………………………….. 180 91
132 Distribution of copies of Survey Reports for Irrecoverable Losses… 181 91
CHAPTER – VII
•••••UN-SERVICEABLE•STORES•SURVEY•&•DISPOSAL•
Un-serviceable•stores•survey•and•Disposal•
133 Survey and Disposal…………………………………………………. 182 92
134 Unserviceable Stores Ledger………………………………………... 183 92
135 Survey Committee…………………………………………………… 184 93
136 Functions of the Survey Committee…………………………………. 185 93-94
137 Survey!Committee’s!Report…………………………………………. 186 94
138 Disposal in the Fields………………………………………………… 187 94-95
IV
Para no Page No
139 Surplus Stores………………………………………………………… 188 95
140 Emergency Stores……………………………………………………. 189 95
141 Disposal of Surplus and Obsolete Stores……………………………. 190 96-97
142 Direct Disposal………………………………………………………. 191 97-98
143 Reserve Price………………………………………………………… 192 98
CHAPTER – VIII -- ACCOUNTING OF STORES AT CAMPS

•Maintenance•of•books•
144 Maintenance of Books……………………………………………….. 193 99
145 Stock Register of General Stores…………………………………….. 194 99
146 Register of P.O.L…………………………………………………….. 195 99
147 Running Log Book………………………………………………….. 195(b) 99-100
148 Replacement of Spare parts, Accessories, Tools and Repairs……… 196 100
149 Timber………………………………………………………………. 197 100
150 Consumable Stores other than P.O.L……………………………….. 198 103
151 Diamond Tools………………………………………………………. 199 100
•Verification•of•stores•
152 Verification of Books……………………………………………….. 200 100
153 Physical Verification……………………………………………….. 201 101
154 Geophysical Camps…………………………………………………. 202 101
CHAPTER – IX
•••••PROVISIONING•BUDGET•AND•CONTROL•OF•EXPENDITURE•
Preparation•of•Budget•and•Revised•Estimate •
155 Preparation of Budget and Revised Estimate……………………….. 203 102
156 Control Register……………………………………………………… 204 102-103
157 Preparation of Estimates and Periodical Review……………………. 205 103
Section-II•:•Control•of•Expenditure•
158 Monthly Statement of Expenditure………………………………… 206 104
159 Liability Register…………………………………………………….. 207 104
CHAPTER-X MISCELLANEOUS•••••••••••••••••••••••••••••••••
•
160 Audit of Stores & Stock Accounts…………………………………… 208 105
•Section-II•:•Duties•of••SK,•ASK,•Store•Clerk,•Store•Attendant•
161 Duties of Store Keeper………………………………………………… 209-210 105-107
162 Duties of Assistant Store Keeper………………………………......... 211 107
163 Duties of Stores Clerk………………………………………............... 212 107-108
164 Duties of Store Attendant………………………………………........ 213 108
Charge•Report,•Scale•Regulated•Issues•
165 Charge Report on Regular Leave or Transfer………………………….. 214 108
166 Scale Regulated Issues…………………………………………………. 215 108
••Duties•of•Purchase•co-ordination•Section•and•Stores•Managers•/•Stores•Officers•
167 Duties and Functions of Purchase Co-ordination Section………………216 108-109
168 Duties and Responsibility of the Stores Manager / Store Officer……… 217 109
V
Para No Page no
CHAPTER - XI : VARIOUS TERMINOLOGY, VOCABULARY, ETC.
VARIOUS TERMINOLOGY, VOCABULARY, ETC
169 Terminology……………………………………………………………. 218 110
170 Glossary of Terms……………………………………………………… 219 111-114
171 Abbreviations…………………………………………………………... 220 114-116
172 Ten commandments on Administrative measures……………………... 221 117-118
Attachments to the Manual such as Forms, Annexure, Registers and Appendixes.
A Tender Enquiry and Schedule of Requirement………………………… 52 119
B Instructions to Bidders…………………………………………………. 52 120-121
C Condition of Contract………………………………………………….. 52 122-123
D Norms for Bid security / Earnest Money Deposit……………………… 52 123
E (1),(2) Bank Guarantee & Performance Security……………………………… 52 124-126
F Specifications & Allied Technical details……………………………… 52 126
G AWB – LC Format……………………………………………………... 52 127
Sl No. VARIOUS FORM & NO USED IN GSI

1 Procurement Indent ( Form No.1)……………………………………… 38 128-130
2 Comparative Statement of Tenders (CST)(Form No.2)………………... 70 131
3 Purchase Order ( Form No.3)…………………………………………... 84 132-133
4 Inspection Report(Form No-4)…………………………………………. 132 133
5 Receipt Non- Receipt Certificate(Form No-5)…………………………. 141 134
6 Payment Intimation Slip (Form No-6)…………………………………. 142 135
7 Issue Voucher (Form No-7)……………………………………………. 147 135-136
8 Requisition Form (Form No-8)………………………………………… 147 136
9 Return Voucher Form(Form No-9)…………………………………….. 152 137
10 Stock Verification Sheet ( Form No.-10)………………………………. 168 138
11 Survey Report for Irrecoverable Loss Of Stores (Form No-11)………...177 139
Sl. No. CONTENT
12 Survey!Committee’s!Report!for!Stores!Which!are!not!of!Capital……… 185 140
Nature (Form No-12)
13 Survey!Committee’s!Report!for!Capital!Equipment!(Form!No.13)……. 185 141
14 Charge Report (Form No-14)…………………………………………... 213 142
15 Transfer Voucher (Form No-15) Camp & Personal……………………. 160 143-144
Reg No Register/s Name Para No. Page No
I PIR Register……………………………………………………………. 44 145
II Monthly Expenditure Register…………………………………… 44 146
III (a) Indent Progress Register ( IPR ) – I for Foreign Procurement……….. 45 147
III(b) Indent Progress Register ( IPR ) – II for Indigenous Procurement…... 45 148
IV Registration of Suppliers / Firms………………………………………. 42 149
V Register for Performance Security……………………………………... 64 150
VI Tender Opening Register ( Technical, Price Bid)……………………… 66 150-151
VII Dead Stock Register……………………………………………………. 143 151
VIII Requisition Register……………………………………………………. 148 152
IX Register of Return Stores………………………………………………. 152 152
X Register for Stores on Loan……………………………………………. 154 152
XI Central Control Register of Capital Assets……………………………. 156 153
VI
Para No Page No
XII Stock Register of Vehicles…………………………………………….. 157 153
XIII Diamond Tools Register……………………………………………….. 159 154
XIV Used Diamond Bits Register…………………………………………… 159 155
XV Unserviceable Diamond Bits…………………………………………... 159 156
XVI Stock Register-General Stores/Non Consumable Stores………………. 194 157
XVII Register for Petrol, Oil & Lubricants…………………………………... 195 158
XVIII Register for Replacement of Spare Parts, Accessories & Tools & …… 195 159
Repairs
XIX Timber Register…………………………………………………………196 160
XX Register for Consumable Stores……………………………………….. 197 161
XXI Control Register……………………………………………………….. 203 162
XXII Monthly Statement of Expenditure……………………………………. 205 163
XXIII Ledger of Unserviceable Stores……………………………………….. 192 164
XXIV Lot Register of Unserviceable Stores…………………………………. 192 165
XXV Liability Register………………………………………………………. 206 165
Sl.No APPENDIX Para No Page no

1 Guide Lines for Opening of Files……………………………………. 44 166-168
2 Scale of Camp Equipment for issue to various Grades of Field……… 214 169-170
Officers
3 Scale of Furniture for supply to the various Gazetted Officer………… 214 171-172
& Class III Officers
4 Scale of Tents for Issue to various grades off Field Officers………… 214 173
5 Prescribed Life Period for the following Items……………………….. 10 174
6 Circular for Financial Power delegated by the Ministry
of Mine to DG, HoD etc........................................................................... 22 277-311
7 Circular for Financial power delegated by the DG,GSI to the Director
/Supt.Engineers /HOO/OIC Filed Camp and other officers!in!GSI………!!!!!!!22!!!! 312-320
8 Procurement Glossary(Words), Purchase Procedure in a Nutshell………!! 175-180
9 FLOW!CHART!OF!PURCHASE!PROCESS……………………….................. 181-185
Sl.No GSI Circulars

1 Modified Norms regarding Hunter shoes/Field shoes/……………………… 186
Sports shoes for Field – going Officers
2 Modified Rates & Norms regarding Brief case/…………………………….. 187
Office Bag for Gazetted Officers.
3 Public Procurement (Preference to Make in India), Order 18-09-2017…… 190-191
4 (Preference to Make in India) Order Dt 24-04-2018, ………………… 192-199
5 Acceptance!of!BG!letter!issued!by!VO!CHQ………………………………….. 200-201
240-
6 GSI Guideline for purchase and price preference policy MSE..……………..! 241,254
7 Standard terms and conditions!for!Outsourcing!personnel!in!GSI…………. 242-244
VII
Sl.No. Page No
OM (Office Memorandum)
1 Purchase of Note Book / Laptop etc. by Ministries/………………………… 188
Departments – revision of guidelines
2 Hospitality by Suppliers/Vendors to the Government Officials _Reg………. 189
3 Integrity pact in Major Procurement activities of GSI………………………. 203
4 Domestic preferences in public procurement ……………………………….. 202-203
5 Public Procurement from MSEs information sought by Ministry of
MSME….......................................................................................................... 245-253
6 Public Procurement (preference to make in India)…………………………. 192-199
Sl.No CVC CIRCULARS Page No.

1 Acceptance of Bank Guarantee(BG)………………………………………………... 204
2 Adoption of integrity pact – Standard Operating Procedure……………………….. 205
3 Guidelines for compliance to quality requirements of e – procurement System ….. 206
4 Tendering process Negotiations with L1…………………………………………… 207
5 Irregularities in the award of contracts……………………………………………… 208
6 Illustrative check point for various state for public check point…………………….!209-211
7 Systemic Improvement Guidelines – Engagement of consultants………………….. 212-213
8 Selection and employment of Consultants………………………………………….. 214-215
9 Short coming in Bid documents…………………………………………………….. 216-217
10 Acceptance of Bank Guarantees……………………………………………………. 218-219
11 Adoption of integrity pact – Standard Operating Procedure……………………….. 220-225
12 Adoption of Integrity pact in major Government Procurement……………………. 226-237
Activities-regarding
13 Integrity pact format model, ………………………………………………………. 228-233
14 Tendering Process- negations with L-1…………………………………………….. 238-239
15 VIGILANCE MANUAL-2017,Chaper no:IX (9.9)……………………………….. 255-276
DFPR and GFR Amendment
1 Appendix – 6 Circular for Financial Power delegated by the Ministry

of Mine to DG, HoD etc......................................................................................... 277-311
2 Appendix- 7 Circular for Financial power delegated by the DG,GSI to the
Director /Supt.Engineers /HOO/OIC Filed Camp and other officers in GSI……….!!!!!!!!
312-320
3 Amendment to the Rule 152 of General Financial Rule, 2017- Reg………........... 321
4 Amendment!to!the!Rule!170(i)!of!General!Financial!Rule!(GFR),!2017……. 322
**&&&&&&**
VIII
Materials Management Manual 2018
CHAPTER-1
Section-I
GENERAL PROFILE OF GSI AND ROLE OF AP&M DIVISION
1. A PROFILE OF THE ORGANISATION

Geological Survey of India is premier Geo-Scientific Organization of International repute. It
renders services to the Nation for the last 166 years in the Earth Science Information, natural
resource build-up and country’s multifarious development missions. This organization has
been serving the nation since its inception on 4th March, 1851. After independence, there has
been added emphasis on locating and harnessing the natural resources for meeting the
growing demands of mineral/metal industries, power, agriculture, irrigation sectors etc. This
organization looks into management of risks and crisis due to natural hazards such as
landslides, earthquake, defining and delineating areas prone to environmental degradation.
GSI provides Geological inputs to optimize developments in the transport and
communication sectors. It has expanded its vision and activities for future beyond the
shorelines of the country to include the Exclusive Economic Zones (EEZ) in the continent of
Antarctica for inventory of resources. The activity of Geological Survey of India (GSI) is
spread over from lofty peaks of Himalayas to Antarctica, from the desert to the Ocean and
from the Earth to the Sky. In order to achieve its goal, different constituent divisions of GSI
have been working together incessantly throughout the year. The constituent divisions of GSI
are Engineering, Geophysical, Chemical, Petrology, Paleontology, Geochronology & Isotope
Geology, Mineral Physics, Curatorial, Map & Cartography, Publication, Geodata, GHRM,
Assets Procurement & Management, OCBIS, Finance, Administration & Personnel
Management etc. Operation of every division requires different kinds of materials,
equipments, machineries, accessories etc.
2. The entire GSI was divided as per the geographical locations to 8 Regions, 1 Training
Institute and 33 Operational Units spread over the Country. In the year 2009, the Govt. of
India constituted a High Powered Committee comprising of Expert Professionals from
respective fields, including Planning Commission. This committee was chaired by Shri S.
Vijay Kumar, IAS, the then Additional Secretary, Govt. of India, Ministry of Mines to
thoroughly review the functioning of Geological Survey of India and assess its capacity to
meet the emerging challenges taking in to account the organisation’s technological and man
power resources. As per the HPC recommendations, in the year 2009, GSI has entered into
Mission-Region hybrid matrix system in order to facilitate its scientific activities/ projects
more efficiently, in tune with the international standards. This High Powered Committee has
recommended 5 Missions (Mission – I, II, III, IV and V) to operate in 8 Regions i.e Eastern,
Western, Northern, Southern, Central, North Eastern, RSAS and Central Head Quarters
Office. In this system, Heads of Regions (being HoDs) will look after all administrative and
financial matters INCLUDING PROCUREMENT & STORES within its own Region,
Mission Heads irrespective of project/ activities of Missions as per the Delegation of
Financial Powers.
1
3. ROLE OF ASSETS PROCUREMENT & MANAGEMENT DIVISION IN GSI

The Geological Survey of India is a Premier Earth Science Organisation where stores are
procured in varied range literally from hurricane lanterns, G.I. buckets etc. for field going
officials to sophisticated equipments such as SEM-EDS, WD-XRF, EPMA, AAS, ICPMS,
Spectrometer, Multibeam Echo-sounders, etc., for laboratories, heavy duty Hydrostatic
Drilling Rigs and other equipments for Drilling Fields located across the country. In addition
GSI in its inventory possess two twin Otter Air crafts for Arial survey, two costal vessels and
one Deep water vessel, for Marine survey. In the anvil is acquisition of one Deep water
Ocean going Research Vessel ‘Samudra Ratnakar’, one Helicopter, and in the pipe line are
one Geo-technical vessel and two more Aircrafts for mineral investigations.
4. The basic function of the AP&M Division is to give logistic support to a scientific
department having various scientific functions and laboratories involved in the scientific
investigations, mapping activities of minerals, R&D on earth science etc. The GSI carries out
their investigation on land by sending scientific officers untouched by human beings and in
the air by GSI’s owned aircraft. GSI also carries out investigations in deep water and shallow
water of country shores. This unique department has various scientific streams and have their
laboratories/workshops located all over the country. GSI carries out the Geo-scientific
investigations in the Himalayan glaciers and also participates in various expeditions to
Antarctica.
The requirement of GSI scientific laboratories is not of routine nature as other Central
Government Departments like CPWD, Central Excise, Income Tax and other departments.
On the contrary, the requirement of GSI starts from field requirements to most sophisticated
equipment of international standard. More so, since the DGS&D has withdrawn its support
for procurement of high value and sophisticated equipments on adhoc indents hitherto
performed by DGS&D. Now DGS&D further decentralize procuring activities, so the
responsibilities of AP&M Division of GSI increased many folds.
5. Each procurement of sophisticated equipment requires careful analysis and

processing. The suppliers for such sophisticated equipments are very few in the International
Market and as such the scrutiny of technical and contractual aspects for each equipment has
to be carried out carefully, to avoid any contractual disagreement. The AP&M Division thus
plays an important role in procurement of equipment’s and stores. It is therefore necessary
that every Government assets/stores, how trivial it may be, is as good as money in the shape
of materials /stores. So every care is required to be taken in every step right from its
procurement, maintenance and up to its disposal, so that the public funds does not go waste.
2
6. The Organisation chart of the Assets Procurement &

Management Division in GSI is as below:
A). PRESENT HIERARCHY OF ASSETS PROCUREMENT & MANAGEMENT

DIVISION AT CHQ
Controller of Stores
Dy. Controller of Stores
Stores Manager
Stores Officer
STORE KEEPER
ASST. STORE KEEPER
STORES CLERK
STORES ATTENDANT
ATTENDANTSSISTANT
3
B) PRESENT HIERARCHY OF ASSETS PROCUREMENT & MANAGEMENT
DIVISION AT REGIONS:
Dy. Controller of Stores
Stores Manager
Stores Officer
STORE KEEPER
ASST. STORE KEEPER
STORES CLERK
STORES ATTENDANT
4
7. FUNCTIONS OF ASSETS PROCUREMENT & MANAGEMENT DIVISION
The basic function of AP&M DIVN. is to provide balance flow of materials to its’ constituent
divisions dependent on it and to achieve this objective, the AP&M Division has to perform
the following activities.
1). Procurement of Goods and Services with maintaining budget.
2). Store Keeping

a) Receipt and arrange for Inspection of Stores
b) Maintenance of Stores including Stock taking, storage, stores handling
c) Issue of Stores
d) Arrange physical verification
3). Arrange Write-off stores and Disposal of Unserviceable stores
4). Job/ Service Contracts and Maintenance Contracts (AMC/CAMC/ASC)
SECTION – II
MATERIALS CLASSIFICATION, CODIFICATION, PROVISIONING,
PROCURING, STOCK HOLDING AUTHORITIES ETC.,
8. DEFINITION OF GOODS/STORES:
The Term ‘stores’ / ‘materials’/ ‘goods’ (GFR Rule 143) includes all articles, material,
commodity, livestock, furniture, fixtures, raw material, spares, instruments, machinery,
equipment, industrial plant, vehicles, aircraft, ships, medicines, railway rolling stock,
assemblies, subassemblies, accessories, a group of machineries comprising of an integrated
production process or such other category of goods or intangible products like software,
technology transfer, licenses, patents or other intellectual properties purchased or otherwise
acquired for the use in GSI but excludes books, publications, periodicals, etc. for a library.
The term ‘goods’ also includes works and services which are incidental or consequential to
the supply of such goods, such as, transportation, insurance, installation, commissioning,
training and maintenance.
9. CLASSIFICATION OF MATERIALS
The materials are classified as per the details given below:
i) as per the nature of the material
ii) as per the condition of the material
iii) as per the nomenclature of the material
i) As per the nature of the material

a) Raw materials
b) Consumable stores
c) Non-consumable stores
d) Machinery and equipment
e) Inflammable stores
f) Chemicals
g) Spares and Accessories
h) Computer Hardware and software ( IT Items)
i) Furniture & Fixtures
5
j) General stores including stationary

k) Scrap Materials
l) Packing materials
m) Fuel stock
n) Dead stock
ii) The materials classified as per their condition are:

a) Serviceable
b) Un-serviceable
c) Obsolete
d) Surplus
e) Finished Stores
f) Semi-finished stores
g) repairable stores
iii) as per the nomenclature of the material

The classification as per the nomenclature is industrial /organizational specific. This
classification is adopted in some industry / organizations to facilitate easy identification and
there by corresponding codification.
10. (A). The various terms used to generally classify the materials are:
i). Consumables: All those stores when used loose their identity are called consumable
stores. Ex: paints, varnish etc.,
There are some stores through retain their identity even after use but do not fetch any value
on its disposal are also treated as consumable stores, such as Glass tumblers, table top glass,
fragil items and other small value stores used by department.
ii). Office use- General stores and stationery items (Small Value Stores) if declared as
non-returnable items : All small value stores with book value (Purchase/ Invoice value)
less than Rs.1,000/-( based on nature of the item) and issued within in interval of prescribed
life period to be treated as Small Value Stores, and hence need not be returned on completion
of the life period. Ex: Pen stand, Stapler, Calculator and such similar stationery items.
(However prescribed life period of various store items has been given in Appendix – 5).
iii). Non-Consumable Stores: All those materials which do not loose their identity even
after their prescribed life period and are not fragile are called non-consumable stores.
Such as spares, accessories, etc,.
iv). Capital Equipment: Each organization prescribes a sealing price to distinguish between
capital equipment and other than capital equipments (i.e C.E. and O.T.C.E) In GSI all those
Machineries and equipments costing more than Rs. 1.00 Lakh are classified as Capital
Equipments and below Rs.1.00 Lakh are classified as other than Capital Equipments
(O.T.C.E).
Ex: Air conditioners, water coolers, small printer, Xerox machines (costing less than Rs.1.00
lakh) etc,. The prescribed minimum life period of capital Drilling equipment and Laboratory
Equipment is 10 Years, for electronic equipments such as computers, laptops, workstations,
Xerox machines, etc, is 5 Years.
6
v). Accessories: All those stores which are supplementary to the main equipment and
required to be aligned / connected for running the machines are called accessories. The
accessories may not be essential item for running the equipment / machinery.
Ex: Stepney wheel for Jeep, etc,.
vi) Spares: All those stores which are required to be maintained to avoid uninterrupted
performance of the equipment / machinery are called spares. Though the equipment can work
efficiently without these spares and perform all its function but spares are kept for
replacement and maintenance purpose.
Ex: Clutch wire for scooter.
vii) Dead Stock: All those capital equipments & other stores which are stationed at a place
for prolonged period are called dead stock items.
Ex: Fixture, furniture, machinery equipments, etc,.
Note: All dead stock items may not be capital equipment but all capital equipments which
are installed and not likely to move are called dead stock items.
vii) Fixtures: All those amenities / equipments and similar items which are fixed to the
permanent structure are called fixtures. Ex: A/C, Fire extinguishers etc,.
viii) Furniture: All those office need comforts to facilitate office work is called furniture,
such as office table, chair, computer table, sofa set etc.
10. (B). The various materials used in Geological Survey of India which are classified as
per the nomenclature are as below:
i). Drilling Stores: Drilling Rig, Pump & its accessories, spares, Diamond tools, Tubular
items, Drill rods, other stores and tools required for drilling operations.
ii). Chemical Stores: Chemical Equipments, its accessories, spares, standards, apparatus,
Chemical, consumables and non-consumables required for Geochemical Labs.
iii). Geophysical Stores: Geophysical equipment’s and its accessories, spares, consumables,
non-consumables, and other stores required for Geophysical Labs and field requirements.
iv). Geological Laboratory Stores: Geological Laboratory Equipment’s, accessories and

stores required in Petrological, Paleontological, Geo-chronological and Isotope, Geology,
Gem Testing Lab, Engineering Geology, Marine Geology etc.,
v). Automobile Stores: Vehicles, Vehicle Stores, Auto Spares, including Tyre Tubes,
Automobile Batteries, Workshop Stores, and other miscellaneous stores required in
connection with vehicle.
vi). Field use and General Stores: Tentages stores, Camp/Field equipments, Furniture &
Fixture, General stores, Paints hardware, wood, etc.,
vii). Drawing Stores: Drawing instruments and Drawing stores
viii). Office General Stores and Stationary Stores : Office equipments and its accessories,
Consumables, Forms, Field Note books, Stationary, etc.
7
ix). Disposable Stores: Disposable stores, i.e. Obsolete, Surplus and Un-serviceable Stores.
x). Computer Related Stores: Computer related Hardware, Software, Spares, Peripherals,
and Accessories etc.
Note: The acquisition of all the above stores, except urgent and day to day operational
requirements / as delegated by specific order, is the responsibility of the Assets
Procurement & Management Division.
11. CODIFICATION OF MATERIALS

Codification is a process of representing each item by a code word and it is one of the
methods of easy identification of items. Codification of all stores items has been done and
listed with OCBIS module of AP&M Division.
The details of the codification of each item being used in GSI is available in Materials
Management Module of OCBIS.
12. THE NECESSITY OF CODIFICATION:

i) For proper identification.
ii) To avoid long, unnecessary, incorrect description
iii) To avoid duplicate items in stock under different names, trade name, brand name or
functional name etc.
iv) To enable reduction in variety and sizes.
v) Easy location of items.
vi) Easier material accounting.
vii) Prerequisite for computerization of stores activities – resulting in efficient inventory
control.
viii) To facilitate procuring of uniform type of item in entire GSI
13. The codification of materials should be done by one source only and hence in GSI it
is to be executed by the office of COS. The following codification is proposed in GSI
which is shown below as an example:
MAIN GROUP (2 CHARACTERS) – To identify the major heads as follows:
01) Drilling Stores

02) Geophysical Stores & Survey Stores
03) Chemical Stores
04) Petrological Stores including instruments and spares
05) Electric and Electronic items
06) Software
07) General and Office Stationery
08) IT Hardware and Peripherals
09) Liveries, Uniforms, Protective items
10) Tentages and Tarpaulins/ Hutment items
11) Geological laboratory instruments, equipment’s, and apparatus
12) Office Equipment (Photocopy machine, Type writer) including spares
13) Motor vehicle
14) P.O.L
15) Machineries and Instruments for Engineering Workshop
8
16) Tools
17) Furniture and Fixtures
18) Amenity Articles (Air Conditioner, Water Cooler, Aqua Guard)
19) Carpentry Items
20) Camp Equipment and High Altitude items
21) Printing Paper for plotter
22) Civil Works.
23) Miscellaneous Items
SUB GROUP (2 CHARACTERS) – To identify type of materials under a main

group:
01. Main Instrument / Equipment / Apparatus
02. Spares
03. Consumables (items which do not have a scrap value once used)
04. Accessories (works in association with an instrument and cannot exist
independently).
05. Peripherals (works in association, but can exist independently and hence can be
associated to several instruments)
06. Instrument / Equipment / Apparatus of Non – capital nature
07. Stores for works.
14. MODE OF OPERATION (2 CHARACTERS) – To identify an item by its mode of

operation, like Electrical, Mechanical, optical, and others
15. GSI CODED MATERIAL (4 CHARACTERS) – Finally identifies an item

universally. Thus as per the 10 digit codification scheme, “0104010009: indicates an HX
Casings of certain specification that is used specifically for drilling purpose.
16. The items codified in GSI are with the use of 10 digits code as per the details
given below:
1) The first two digits to identify major heads
2) Next two digits to identify the sub-grouping
3) Next two digits to identify its’ mode of operations
4) The Last four digits relates to the GSI coded material.
xx xx xx xxxx
Main group Sub-group/ mode of operation / item code already
for the item type of material nature of material accorded by GSI
Example:-
01 04 05 0009
Main group Sub-group Mode of operation GSI coded item
Drilling Stores Accessories others HX Casing.
17. PROVISIONING AUTHORITY (P.A)
The function of the Provisioning Authority is to plan the requirement of the laboratory / division /
wings / operations. He is the authority for planning and provisioning of major equipments,
instruments, consumables, accessories, spares and other stores required for running of the
laboratory / division/ wings/operations. The Provisioning Authority is also responsible for
9
installation, commissioning, training, repairs, maintenance and Annual Maintenance/ Service

Contract (AMC/CAMC) of the equipment / instrument under his control. Obtaining PACs
recommendations and approval from Sanctioning Authority is the responsibility of the PA. The
PA will act as the Indentor to submit Procurement Indent (PI) to respective purchasing
authorities.
The Provisioning Authorities are as per Table –I of this chapter.
18. A) CENTRAL TECHNICAL SPECIFICATION COMMITTEE (CTSC)
Central Provisioning Authority is responsible for examining need for purchase of high valued
items of Equipment/ Instrument/ Machineries in GSI in the light of existing and future work plan
of GSI. It is also responsible for advising correct specification to bring in uniform standard of
working pattern in GSI.
Central Provisioning Authority is different for different categories of items
The over all in-charge of the stream and responsible for provisioning of the stores of entire GSI,
stream wise, is called CTSC (erstwhile Central provisioning Authority -CPA). The Central
Technical Specification Committee is stationed at Central Head Quarters (CHQ) Kolkata. The
Details are as below:
1) For Geological Stores: ADG/DDG, Central Geological Laboratory (CGL),
CHQ/ DDG Mission-IV,
2) For Geochemical Stores: DDG/DIC, (Chemical) CHQ,
3) For Geophysical Stores (Exploration and Instrumentation): ADG/DDG
(CGD/GPI),
4) For Drilling and vehicles: Chief Engineer, STSS, / Chief Engineer-II, CHQ,
6) For IT Stores: ADG/DDG, (IT) CHQ,
7) For Tentages, Tarpaulins, Furniture Fixture, etc., COS, CHQ
8) For Stationery, & Office Equipments: DDG(P) / Director(Administration)
HOO ( Region / Mission-V).
B) CPMC (Central Procurement Management Committee )
The CPMC comprises of all HODs of the Regions/ their authorized representatives, COS,
Dy.DGs/Directors and any member co-opted by the DG,GSI. The Chairman of this body will be
ADG(STSS) of CHQ as entire job related to CPMC matters has been entrusted to STSS cell,
CHQ, Kolkatta.
The Director General, GSI nominates the member secretary of the CPMC. Purchase proposals
for Equipment/ Instrument/ Machineries etc Stores, other than proprietary nature with
estimated cost beyond Rs. 10.00 Lakhs for new items and Rs. 20.00 Lakhs for replacement
items will be taken for discussion and recommendation for purchase. After vetting by Central
Technical Specification Committee (CTSC).
19. INDENTING AND PROVISIONING AUTHORITY
All Provisioning Authorities are responsible for provisioning of equipments, instruments,

accessories, spares and all materials required for running the laboratories/ their establishment and
hence they are also the Indenting Authorities. The responsibility of the CTSC (CPA) at CHQ and
Provisioning Authorities at Regions / Wings / Units is therefore to plan their requirements and
submit their procurement indents (PI) to respective Procurement Authorities i.e COS in CHQ and
DCOS in Regions, enclosing-
10
a) Attested copies of PAC recommendations duly approved by the competent authority with
estimated cost.
b) Technical Specifications and name of the probable suppliers:-

N.B: As per requirement / functional necessity the authority who requires a specific stores may
also process his requirement through PAC and submit the PI along with probable suppliers names
to AP&M Division.
20. PROVISIONING AUTHORITIES:

Table –1
Sr. STORES PROVISIONING AUTHORITY
No.
CHQ Regions, RSAS & M &CSD/
Directorates of Operational
Units, DGCO, Training
Institute, Special Functional
Divisions and Special
Service Divisions.
1. Chemical Stores DDG/ Director(I/C) DDG/Director
(Geochemical) (Geochemical)
2. Petrological including G&IG, GHRM ADD/DDG /Director Director
Stores (I/C) (CGL) / Mission IV (Petrology)
3. Geophysical Store ADG/DDG / Director
Director(I/C) (Geophy.&
(Geoph.& Instt.), Instrumentation)
4. Drilling, Drilling Stores, Diamond Chief Engineer / Sup. Sup. Engineer
Bits, Vehicle, Vehicle stores Engineer (Engineering) (Engineering)
including Tyres, Tubes & Batteries
5. General Stores such as Tent, Controller of Stores DCOS/SO/OIC
Camp Equipment, Furniture,
Fixture, Office Equipments and
Others Office Equipments
6 Publication , Map Stores and Dy.D.G./Director Director, M&C
Drawing Stores (Map & Publication) ,
7 Stationery Stores Director(Admin) HOO
8 Computer, Software, Peripherals Dy.DG (IT)/Director Director, Geodata
& others IT Equipments Geodata Divisn Divsn.
21. PURCHASING AUTHORITY
“Purchasing authority” means the authority, authorized for processing the purchase or
procurement and is accountable/ responsible for doing so, to audit and vigilance.
The Assets procurement & Management Division (erstwhile Materials Management Division) is
the Sole Central Purchasing Authority in GSI for purchase of all scientific equipments,
instruments, accessories, spares, consumables, non-consumables and other stores required by
GSI. However various Directorates, Operational Units, Special Functional Divisions / Special
Service Divisions are also authorized for the procurement of stores as delegated to them by the
competent authority. Similarly, the Director (Administration)/HOO are responsible for the
procurement of Stationery. The Map & Publication Division/ Library is responsible towards the
procurement of the scientific publications, bulletins, journals and other publication materials
required for the library as well as for the printing work to be executed by GSI press/ outside
agencies. The Purchasing authorities are as per Table –2.
PURCHASING AUTHORITIES:
11
Table-2
Purchasing Authorities
CHQ Regions, RSAS &
M&CSD/ Directorates of
Sl. No. STORES Operational Units,
Training Institute/ DGCO,
Special Functional
Divisions and Special
Service Divisions
1. Chemical Stores Controller of Stores Dy. Controller of Stores
/ OIC Stores
2. Petrology/Paleontology, G&IG and GHRM Controller of Stores Dy. Controller of
Stores, etc., Stores / OIC Stores
3. Geophysical Store Controller of Stores Dy. Controller of
Stores/ OIC Stores
4. Engineering /Drilling Stores, Diamond Bits, Controller of Stores Dy. Controller of
Vehicle, Vehicle stores including Tyres, Tubes Stores / OIC Stores
& Batteries
5. General Stores such as Tent, Camp Equipment, Controller of Stores Dy. Controller of
Furniture, fixture, Office Equipments and Stores / OIC Stores
Others Office Equipments
6 Publication, Map Stores DDG, MP/ M&C/COS Director, MPD/ M&C /
DCOS/OIC Stores
7 Stationery Stores Director (Admn.) / HOO/DCOS/OIC
HOO/ DCOS APMD
8 Computer, Software, Peripherals& others IT Controller of Stores Dy. Controller of
Equipments. Stores/ OIC Stores
Note: Liveries however will be regulated as per OM no. 19051/1/2017-E.IV Dt. 02-08-2017
(Ministry of Finance, Department of Expenditure) - Appendix-7.
22. SANCTIONING AUTHORITY:

a) Sanctioning/ Competent Authority:
“Sanctioning authority” / “Competent authority” means the officer(s) who is delegated

sanctioning power by the President of India or such other authority to which the power is
delegated by or under the General Finance Rules 2017, Delegation of Financial Power
Rules 1978 or any other general or special orders issued by the Government of India, to
finally approve the decision to incur an expenditure for a specific amount for the specified
purpose(s) from the Government exchequer. The financial powers of the Government have
been delegated to various subordinate authorities vide Delegation of Financial Powers
Rules as amended from time to time. The financial powers of the Government, which have
not been delegated to a subordinate authority, shall vest in the Finance Ministry (GFR
Rule 23).
Sanctioning Authority is de termined on the basis of value/cost of the materials to be

purchased and as the financial power has been delegated by the GOI.
Head of Department (as declared by the Ministry of Finance, Govt. of India vide Schedule-
I of the DFPR) is the highest sanctioning authority in GSI.
The financial powers to various authorities for GSI is officially declared through “Delegation of
financial powers” by the Ministry of Mines vide Appendix- 6&7 of this manual.
12
(b).Lapse of Sanction:
A sanction for any fresh charge shall, unless it is specifically renewed, lapse if no payment in
whole or in part has been made during a period of 12 months from the date of issue of such
sanction. Provided that:
i). When the period of the currency of the sanction is prescribed in the departmental
regulations or is specified in the sanction itself, it shall lapse on the expiry of such periods,
or
ii). When there is a specific provision in a sanction that the expenditure would be met from
the budget provision of a specified Financial Year, it shall lapse at the close of that F.Y. or
iii). In the case of purchase of stores, a sanction shall not lapse, if tenders have been
accepted (in the case of local or direct purchase of stores) or the indent has been placed (in
the case of central purchases) on the central purchase organization within the period of 1
year of the date of issue of that sanction, even if the actual payment in whole or in part has
not been made during said period. (Rule 30 of GFR 2017).
C) PROCUREMENT BY AP&M DIVISION
The AP&M Division being central Procuring Entity in GSI have no financial power to accord
financial sanction but can process purchase for any material worth the financial value. Head of
AP&M Division of CHQ / Region/SU/RSAS/MCSD/TI Directorates of Operational Units,
DGCO etc. (COS/DCOS/SM/SO) enjoys purchase power for processing procurement for any
value. Financial sanction is to be obtained from the respective sanctioning authority DG / HOD as
per DFPR of GSI.
23) DIFFERENCE BETWEEN PURCHASING AUTHORITY & SANCTIONING

AUTHORITY:
The Purchasing authority may have no financial power to accord financial sanction but can
process purchase for any material worth the financial power of HOD which limited to his
purchase power. Similarly, the sanctioning authority having financial power as per DFPR and re-
delegated to competent authority to accord sanction may not be authorized to process purchase.
Head of AP&M Division. of CHQ / Region/ RSAS/MCSD/Circle/SU/TI (COS/DCOS/OIC)
enjoys purchase power for processing procurement for any value. Financial sanction, beyond their
sanctioning power, is to be obtained, from the respective sanctioning authority / HOD.
Note: It is clarified that SANCTIONING AUTHORITY and PURCHASING AUTHORITY are

two different authorities having completely two different roles to play and so these two
authorities are not same.
24. PROCUREMENT BY LABORATORIES /WORKSHOP /DIVISIONS
In addition to the above, the powers have been delegated to the operational units, Special
Functional Division (i.e. Geophysical, Geophysical-Instrumentation and Engineering),
Specialized Service Divisions (i.e. Personal, AP&M Divn., Finance, Engineering, Chemical,
Laboratories) as per GSI Compendium on Delegation of Financial Powers (as per Appendix- 6&7
to this Manual) towards procurement of stores to meet operational requirements. Those divisions
may process purchase for themselves / through AP&M division for the materials required for
their project/ unit specific intermittent operational requirements after observing pre -purchase
formalities of GSI.
13
25. PROCUREMENT BY OPERATIONAL OFFICES
The Operation Offices / Circle Offices / Unit Offices may process the required purchase within
their limit of Financial Sanction through an organized setup of Assets Procurement &
Management Division under supervision of Stores Manger / Stores Officer / Officer-in-charge
within the operation / Circle / Unit Office.
26. STOCK HOLDING AUTHORITY
In GSI various Stock Holding Authorities are identified to keep the stock of the stores with them.
The responsibilities of the Stock Holding Authority are receipt of materials,
arranging inspection, taking materials into stock, safe custody, issue of stores, physical
verification and maintenance of the stores.
27. Various Stock Holding Authorities in GSI
The Various Stock Holding authorities are as given in Table -3
Table - 3
Sl. STORES Stock Holding Authorities

No.
Description In CHQ Regions, RSAS &
M&CSD/ Directorates
of Operational Units,
Training Institute/
DGCO, Special
Functional Divisions
and Special Service
Divisions
1 Chemical Stores DDG/Director DDG/Director
(Chemical) (Chemical)
2. Petrolo gical/ ADG/DDG Director
Paleontological/ /Director(I/C)( (Petrology)
G&IG and GHRM Stores, etc., CGL) / Mission IV
3. GeophysicalStore/SurveyStores DDG/Director Director (Geophy)
(Geoph. Inst.),
4. Engineering, Drilling Stores, Controller of Stores DCOS/OIC Stores
Diamond Bits, Motor Vehicle
stores including Tyres, Tubes &
Batteries
5. General Stores such as Tent, Controller of Stores DCOS/ OIC Stores
Camp equipment, Furniture ,
Fixture, and Others Office
Equipment / Amenities
6 Publication, Map Stores Dy.D.G./ Director Director,
(Map & Publication) MP / M&C
/M&C
7 Stationery Stores Director (Adm.)/HOO HOO/ OIC Stores
Computer,Software, Dy.DG (IT)/ Director,
8 Peripherals COS/DCOS Geodata Divn
& others IT Equipments /HOO/OIC Stores
14
Section – III
PURCHASE FORMALITIES
28. AN OVER VIEW ON PURCHASE
In GSI the Controller of Stores (COS) at CHQ level and Dy.Controller of Stores (DCOS) in
the Regions and DCOS/SM/SO/ OIC Stores in other places are the Central Procurement
Authorities in GSI. These procurement authorities initiate procurement process only after the
procurement indents are received from Central provisioning Authorities / Regional Provisioning
Authorities as the case may be. The entire acquisition of stores can be summarized in the
following three processes.
(A) Pre-purchase formalities.

(B) Purchase formalities.
(C) Post Purchase Formalities.
29. PRE – PURCHASE FORMALITIES
The Pre-purchase activity is to be carried out solely by the Provisioning Authority. The pre-
purchase formalities involve the planning and programming towards the procurement of
equipment, accessories, spares, consumables etc, required by the respective division. The
provisioning authorities, therefore, after careful analysis prepare their requirements, which is
called requisition, and ascertains the availability from respective stores. The items which are
under stock are issued and non-available items are clubbed together by the PA and processes it
through Purchase Advisory Committees, by submitting the purchase proposal. The standing
Purchase Advisory Committees are constituted by the respective HODs with the different
financial limits.
30. PURCHASE ADVISORY COMMITTEE( PAC)
The constitution and role of the Purchase Advisory Committee are as below:
[A] Role of Purchase Advisory Committee :
Purchase Advisory Committee (PAC) is the authoritative body to examine the requirement of
materials proposed by the Indentor/ User. It is the tool to the sanctioning authority who approves
a purchase by the advise of the PAC. The PAC’s are classified depending on the estimated value
of the proposed purchase such as Junior PAC and Senior PAC. The Senior or Junior P.A.C. is
constituted by the Sanctioning authority. The P.A.C. comprises of officers from Indenting
Division, similar division, Assets Procurement &Management Division and officer from Finance
wing (or in absence of finance, officer from administration dealing with finance job).
In case of a Sr.PAC, all members should be heads of all such divisions and to be headed by
ADG/ Dy.D.G/ Senior most Director if DDG is not available.
In case of Jr.PAC, it should be headed by a Director The Jr. P.A.C. comprises of junior officers
from Indenting Division, similar division, Assets Procurement &Management Division and
officer from Finance wing (or in absence of finance, officer from administration dealing with
finance job) . The purchase proposal below Rs.25,000/- need not to be examined by PAC. The
PAC will not only recommend the purchase but will also examine/ modify the specification,
quantity, estimated cost etc,. The PAC should appropriately record the justification towards
procurement of stores as proposed or otherwise.
15
The Chairman of the PAC can co-opt the any officer or expert for evaluation of the proposal.
N.B:
(i) The rank of the Chairman of Jr. PAC / Sr. PAC should be as per the availability of
the officer in the station and discretion of the sanctioning authority.
(ii) The Chairman of the committee is empowered to co-opt a member in absence of
any member of the committee or otherwise also.
(iii) The PACs should be convened timely to avoid disruption/ delay in procurement
process (preferably with 3- 5 days). To early disposal of file the alternate
chairman will conduct the meeting when Chairman is on tour or leave.
[B] Constitution of the Sr. Purchase Advisory Committee (Sr.PAC):

1) Chairman / Alternate Chairman
2) Member from Indenting Division
3) Member from Similar to Indenting Division (see Para – 31]
4) Member from AP&M Division
5) Member from Finance wing.
[C] Constitution of the Jr. Purchase Advisory Committee (Jr.PAC):

1) Chairman/ Alternate Chairman
2) Member from Indenting Division
3) Member from AP&M Division
4) Member from Finance wing.
a) There can be two-tier committees such as 1) Jr. PAC and 2). Sr. PAC. In CHQ the
committee from above Rs.25,000/- to Rs.20.00Lakhs (Estimated value) named as Jr.
Purchase Advisory Committee and above Rs.20.00 Lakhs to the extent of sanction power
of DG,GSI will be Sr. Purchase Advisory Committee.
b) In all Regions/Wing/including State Units/RSAS/MCSD/M-V, the committee from
above Rs.25,000/- to Rs.5.00Lakhs (Estimated value) named as Jr. Purchase Advisory
Committee and above Rs.5.00 Lakhs to the extent of sanction power of HOD will be Sr.
Purchase Advisory Committee. For the new item proposal to the extent of sanction
power of DG,GSI.
c) The purchase/ procurement of IT items (except software) will be done by the HODs as
per the latest DFPR of GSI. Beyond the limit of HOD, the purchase proposal with
required documents shall be sent to CHQ for approval and obtaining sanctions from the
competent authority (DG/Ministry) through COS, CHQ,GSI.
d) Regarding procurement of all Software (Geo-scientific / proprietary/ special type etc. )
for use of GSI more than 5.00 lakhs has to be referred to ADG M-III,GSI,CHQ for
vetting by Software Standing Committee which is functional in NMH-III, CHQ Kolkatta
and obtaining Administrative approval from DG,GSI.
Note:
(1). The member of Senior Committee should preferably the heads of the divisions, and by
ADG / DDG/ DIC (other than sanctioning authority). In case there is no Dy.DG level
officer posted in the Regional Head Quarter, other than the HOD, the Sr. Committee
(PAC or TAC) can be chaired by the senior most Director of the Regional Head Quarters
and to be nominated by the HOD of that Region.
(2) Formation of Standing Committee
i) At CHQ and Regional level the various Junior and Senior PAC/TAC/ Survey &
Disposal Committee etc., will be constituted by the competent authority as per the
constitutions of the committees as stated at 3(B) as above. In this standing
committee provision for alternate Chairman/member may be kept, so that
committee meeting may convene in time to initiate purchase requirement at the
earliest.
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31. The various Divisions, Similar Divisions and vis-e-versa are identified as below:
Table –3.
INDENTING
SL NO.NATUR OF STORES DIVISION SIMILAR DIVISION
1 Engineering /Drilling, Engineering Geophysical Instrumentation
Vehicle stores, etc.
2 Chemical Chemical Petrology
3 Petrology Stores, Paleontology,Petrology, Paleontology
G&IG, & GHRM Stores & G&IG Chemical
4 Tentages, Camp equipments,
Furniture & Fixture, Office Engineering or Administration
equipment etc. AP&M DIVN. (whatever the case may be)
5 Computers, Hardware, Geophysics/Geophysics(Instrume
Software Geo-data ntation)
6 Geophysical stores Geophysics/ Geological
Geophysical.
Instrumentation
7 Any other stores not covered Indenting Division Division as considered by the
above Purchasing authority/ Chairman
32. THE ESSENTIALS FOR INITIATING PURCHASE PROPOSALS
For Equipments / Instruments and other durables:
(i) The complete justification requiring its procurement

(ii) The cost effectiveness of the present procurement vise-versa the alternatives available
(iii) The complete specification of the equipment / store. The specification should be broad
based to the extent feasible to attract sufficient offers. Efforts should also be made to
explore the possibilities to use stores of standard specifications.
(iv) The ground preparation for required infrastructure should be completed by the time the
equipment is received and the indenting division should ensure to this effect, to avoid the
delay in installation of the equipment.
(v) The inspection criteria for accepting / rejecting the equipment.
(vi) The different makes available and their sources of supplies.
(vii) For import of stores, complete justification against the Indigenous item, if the estimated
cost is available.
(viii) If the materials recommended for purchase is “Proprietary”, the same to be recorded.
33. ESSENTIALS FOR INITIATING Consumable Stores:
i) The justification for its procurement.

ii) The past consumption pattern and date of last purchase.
iii) The present requirement keeping in view of the ensuing Field Season Programmers
(FSPs) etc.
iv) The detailed specifications with likely sources of supply.
v) The estimated cost
17
34. THE PAC RECOMMONDATION SHOULD INCLUDE
(i) The complete justification requiring its procurement in view of cost effectiveness of the
present procurement vise-versa the alternatives available.
(ii) The broad and generic specification of the equipment / store. The specification should
not be, in any case, a brand/ make specific. The specification should be broad based to the
extent feasible to attract sufficient offers. Also efforts may be made to explore the
possibilities to use stores of standard specifications.
(iii) Action taken regarding preparation of infrastructure for using the proposed
equipment/material
(iv) The numbers / quantity of the stores recommended for purchase.
(v) The broad specifications in commensuration with the standards required.
(vi) The estimated cost of the equipment / stores
(vii) If the materials recommended for purchase is “Proprietary”, the same to be recorded.
35. ROLE OF THE CHAIRMAN OF PURCHASE ADVISORY COMMITTEE FOR

TIMELY CONVENING OF MEETINGS
The Chairman of Purchase Advisory Committee has to receive the purchase proposal in the form
of file from provisioning authorities and convene the PAC meeting at regular intervals so that
the procurement process is not delayed at any stage. The chairman is authorized to co-opt suitable
substitute in absence of a member, if necessary, to conduct the PAC meeting in time. The
Chairman may inform the members by a standing order or a letter / telephonic information, as
required to ensure that the meetings are convened at scheduled time. Alternate Chairman will
conduct the meeting when chairman is on tour or leave for early disposal of proposed file.
36. GUIDELINES FOR PAC RECOMMENDATIONS:
(a) There must be following 4 points in every PAC Recommendation as below:

1. Introduction: should indicate the constitution of PAC, date, time, venue and purpose of
the meeting.
2. Observation: there should be clear mention about PACs observation in the back drop
of the purchase, existing facilities available and proposed procurement.
3. Inference: The opinion of the PAC is to be recorded in clear words.
4. Recommendations: The PAC should clearly mention nomenclature, quantity, and
estimated cost involved of the material which is recommended for procurement. A
broad specification with salient features to be mentioned here. If the materials
recommended for purchase is “Proprietary” , the same is to be recorded.
(b) The PAC should examine the specifications submitted by the indenting division,
modify if necessary. The Specification should not indicate any brand/ make, it should be
broad based, generic in nature, so that the competition is healthy.
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37. PROCUREMENT WITHOUT PAC RECOMMONDATIONS
(A) Small Value Procurement without PAC:

The requirement of stores with less than Rs.25,000/- (estimated cost which including taxes) need
not be processed through PAC. The recommendation of the provisioning authority and the
approval of the competent authority are sufficient for procurement. The procurement proposal
should include the details specification and estimated cost.
B) Urgent Local Purchases The provisions contained in Rule 155 of GFR2017 will continue to
apply for purchases above Rs.25,000/- to 2.50Lakh, the Local ‘Purchase Committee” as
mentioned in Rule 155 of the GFR 2017 Will finalise the purchase proceedings. The competent
authority my accord Administrative Approval and may constitute three members committee at
appropriate level on case to case basis for market survey and materialise the purchase on urgent
basis a. In such cases there is no need of vetting by Jr. PAC.
Compassion of the committee: 1) A member from Indenting Division 2) A member from Stores
Division 3) Member from Other/ Similar Division.
C) Liveries
The regulation of Liveries matter will be as per DOPT orders issued from time to time.
At present OM No.19051/1/2017-E.IV Dt.0208-2017 is in vogue.
D). Replenishment Items:

Stores which are of recurring nature of usage and are the requirement of the Laboratories,
Workshop, AP&M DIVN. as consumable nature viz. tyre, tubes, batteries, chemicals, etc are also
to be procured as per GSI purchase procedure as stipulated in this manual. The Rule 154, 155 of
GFR 2017 may be followed for procurement of urgent item/s. under this category.
E) Emergency purchase.
Emergency purchase (including hiring of services on emergency), directly by user division
without reference to Purchase Wing shall be resorted in the situations of emergencies – any
natural calamity like flood, fire, earthquake, civil disturbances, war, cyclones, blow out & fire,
operational break down or likelihood of operational breakdown where it is necessary to restore
normalcy of equipment, machinery or vehicles and the urgency does not permit following the
normal methods of purchases. In such cases standard terms & conditions of tender documents
may not be applied and may be procured following prescribed norms up to a limit of Rs. 50,000/-
at a time with detailed justification for resorting to such emergency purchases to be recorded at
the time of processing the proposal for approval of competent authority as per powers delegated
vide GSI Compendium on Delegation of Financial Powers.
Purchases of items under above circumstances,(above Rs. 25,000/- to 50,000-.00) may

be made for “Consumable!spares!and!Emergency!Purchase” on single quotation basis by the
Concerned provisioning authority ( Indentor / User division) themselves in the fields/ camps/
away from the head quarters.
A certificate will be given by the Officer In charge who is making such purchases that hand
quotations were obtained from reliable supplier at reasonable cost. Concerned Provisioning
Authority (Indentor / User division ) shall certify the purchase of sprares/ services under natural
calamity i.e ______/ operational break down____________ has happened in the field/ camp
place__________________.
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The items/ spares/ service has been procured from the reliable supplier at the reasonable
cost after making market survey and endorse the signature on the quotation with witness by
any two available officers/ officials on the spot/ field.
That the under signed has obtained telephonic approval from the competent authority.
The stock entry for the purchased stores/ spares have been made in the Camp Register at
page no____.
38. POST PAC RECOMMENDATIONS:
The provisioning authority/Indenter after seeking the PAC recommendations needs to process the
proposal as detailed below:
(i) For Proprietary Stores: All procurement of the stores of proprietary nature, the PAC
recommendation is to be forwarded to respective finance wing/ officer will note and sign
on PAC recommendation for their concurrence and carrying out financial duties(As per
BE/RBE), before submitting to the sanctioning authority for approval/ acceptance on the
PAC recommendation. After getting the financial concurrence upon its purchase as
proprietary article, the PAC recommendation is to be submitted by the Indenting Division
to the Sanctioning Authority for approval/ acceptance of the recommendation.
(ii) For all Stores, other than proprietary nature , the PAC recommendation is to be
submitted by the Chairman, Jr.PAC/ Sr.PAC to the Sanctioning Authority for approval/
acceptance of the recommendation and according administrative approval. The
CPA/PA/Indentor should enclose to the PAC recommendations, duly approved by the
competent authority to the Purchasing Authority along with PI.
(iii) For All Stores, other than proprietary nature with estimated cost beyond Rs. 10.00
Lakhs for new items and Rs. 20.00 Lakhs for replacement items should be processed
through Central Technical Specification Committee (CTSC) (erstwhile CPA), followed
with Central Procurement Management Committee (CPMC) (erstwhile Task Force
Committee). For this purpose, the Indenter is to approach the Central Technical
Specification Committee (CTSC) (erstwhile CPA) along with approved Sr.PAC
recommendations who in turn will submit the proposal with modified specification, if
necessary, and with his comments to the Central Procurement Management Committee
(CPMC). The recommendations of the Central Procurement Management Committee
(CPMC) (erstwhile Task Force Committee) in the form of minutes is to be submitted to
the Director General for his concurrence and acceptance. In case where the estimated cost
of the materials is beyond the sanctioning power of the Director General, GSI, the CPMC
will seek the approval from the Ministry. Once the minutes of the Central Procurement
Management Committee (CPMC) is accepted by the Director General, GSI,/ Ministry, as
the case may be, the procurement process can be initiated by the respective purchasing
authorities as indicated in the Minutes.
(iv) After receipt of the approval for purchase from the Sanctioning Authority, the
Provisioning Authority/ User Division shall prepare a Procurement Indent (PI) in
prescribed format (Form No.1). The PI enclosing attested photocopy of PAC
recommendations and administrative approval of the sanctioning authority to be
forwarded to AP&M DIVN for procurement action. In case of the approval received from
the Central Procurement Management Committee (CPMC) the copy of the Minutes is
also to be enclosed to the P.I.
(v) The procurement of equipments / stores recommended by Sr. or Jr. PAC or CPMC which
are approved by the HOD/Director General / Ministry of Mines, needs no further
Administrative Approval and Financial Concurrence for initiating procurement action.
Respective Finance wing to make provision of funds.
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39. PLACEMENT OF PROCUREMENT INDENTS BY PROVISIONING

AUTHORITIES
[A] The provisioning authorities after obtaining Purchase/ Administrative Approval
(AA) should prepare the Procurement Indent (P.I.) in Prescribed form (Form No.1)
clearly indicating the nomenclature, quantity with specifications and forward to Assets
Procurement & Management Division for procurement of stores. The attested (with seal)
photocopy of PAC recommendation and Administrative Approval of the Competent
Authority should be enclosed to the P.I.
[B] For consumables, spares etc the requirement should meet the consumption of the
ensuing Financial Year.
[C] Separate indent to be placed for different categories of stores. Indents for indigenous
stores which have recurring consumption throughout the year should ideally be submitted
once in a year covering the requirement of the 12 months. These indents are called
Annual Indents. The indent should be submitted as early as possible in the beginning of
the F.Y and all indents should be submitted latest by 31st July.
[D] Regions /Units should submit their requirement to concerned divisional heads
sufficiently ahead so that the similar indents can be consolidated by the respective
provisioning authorities and can be forwarded to Central Procurement Authority. i.e COS
in CHQ and DCOS in Regions/Units.
40. The Assets Procurement & Management Division, on receipt of the P.I. examines
the P.I. for the following aspects:
1) Proprietary Article Certificate in case of Proprietary Stores
2) Purchase Advisory Committee Recommendations duly approved by the competent
authority
3) Estimated cost
4) Detailed Specifications.
5) Sources of probable Supplier, if available with the Indentor.
6) Consignee details with quantity
41. FUNDAMENTAL PRINCIPLES OF PUBLIC BUYING:
The authority delegated with Financial Powers for procuring goods in public interest will be
responsible and accountable to bring efficiency, economy, and transparency in matters relating to
public procurement and for fair equitable treatment with the suppliers and promotion of
competition in public procurement. The guidelines given below should be followed for Public
Procurement.
1) The specifications of the stores being procured should be broad based, so that there are large
number of participants and fair competition exists.
2) Offers should be invited following fair and transparent procedure
3) The procuring authority should be satisfied that the selected offers adequately meet the
requirement in all respect.
4) The procuring authority should satisfy itself that the price of the selected offer is reasonable
and consistent with quality required.
5) In each stage of procurement, the procuring authority must place on record in precise terms,
the consideration which weighed with it while taking the procurement decision.
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42. REGISTRATION OF FIRMS:
[A] Each Purchase Section should maintain a list of firms registered in the Register
No.IV . The list should be in two parts and in alphabetical order. The first part will show
the names and addresses of firms together with the stores for which they are registered.
The second part will show the names of stores classified under convenient and well
defined groups together with the names of the respective registered firms.
[B] The registering authority (COS/DCOS/ OIC Stores) will verify Credential,
manufacturing capability, quality control systems, past performance, after-sales service,
financial background etc, of the supplier(s) before registration.
[C] The supplier will be registered for fixed period 1 to 3 years depending on the
nature of the goods. New suppliers may also to be considered for registration at any time,
provided they fulfill all the required conditions.
[D] When a firm approaches or writes for registration (in case the name of registered
firms are very few, reference from the office can also be made to the firms of repute for
registration), the firm should be asked to submit information as per following proforma.
Note: 1) Since, now a days the items are being procured through CPP portal / GeM portal. The
firm registration part is taken care of by Ministry of Commerce in respect of GeM and E-Tenders
firms registrations by the concern Ministry.
Note:2) If any firm is unable to register and not willing for registration in the online bidding and
GeM bidding, the registration of those firms may be done as per guidelines of para 42 of Store
Manual..
PROFORMA FOR REGISTRATION OF FIRMS

GOVERNMENT OF INDIA
GEOLOGICAL SURVEY OF INDIA
No.___________/ Date.............
From:
The Controller of Stores / Dy. Controller of Stores,

Geological Survey of India.
To:
Messrs......................
Sub:-Enlistment of name as a supplier.

Ref: .................................
Dear Sir,
The following information/documents may please be forwarded with the application to consider
your request for registration:
1. Details about the accessories/equipment you deal with and about the materials for
which you are a stockiest.
2. Specified time, if any, when your show room/ works is open for inspection.
22
3. Name of the Govt. Organisations/reputed concerns with whom you are
dealing
4. Name and addresses of your Banker with branch, city, state, IEFSC No.
A/C No, and type of account.
5. GST Registration Number and photocopy of Registration certificate
6. Latest income Tax/GST clearance certificates
7. PAN No. and photocopy of PAN
8. Photocopy of Trade License, ESI, EPF etc
9. DGS&D Registration copy if available
10. CPP Registration copy if available
11. GeM Registration copy if registred
12. Udyog Aadhar registration and MSME/MSE copy
13. Non- Block list in any Govt. Organization letter in a affidavit form on Rs.100/-
non judicial stamp pater and duly certified by Registred notarized authority
Yours faithfully,
Controller of Stores / Dy. Controller of Stores /OIC (Stores)/Geological Survey of India.
-----------------------------------------------------------------------------------------
Note: Above enclosed Xerox copies should be attested by a Gazetted Officer and sealed with
name & designation.
[E] After receipt of reply with the Income Tax Clearance Certificate, a confidential
reference may be made to their Bankers, if necessary regarding their financial reliability.
If desired, inspection of firm's premises may also be done through a Gazetted Officer.
Report on Credential of the firm and the firm’s reliability is to be reported by a gazetted
officer. The firm's name may ordinarily be registered if the report of these enquiries are
satisfactory.
[F] Registration will be without limit as to time but may be cancelled without
notice for any of the following reasons:
(i) Failure to observe, while tendering, the instructions given in the tender forms.
(ii) Failure to quote in response to invitation to tender on five successive occasions.
(iii) Failure to secure a contract after 10 successive tenders had been submitted or
during a period of 3 years whichever is less.
(iv) Failure to perform contract or contracts satisfactorily.
(v) Any grounds which in the opinion of the Controller of Stores /
Dy. Controller of Stores renders the retention of a firm's name on the list is undesirable in the
public interest.
[G] Debarment from Bidding:- Conditions mention in Rule 151 GFR 2017.
[H] The list of firms should be reviewed once a year, for the purpose of eliminating name of the
firms for reasons enumerated above.
43. ENLISTMENT OF INDIAN AGENTS:
Now the enlistment of Indian agent under Compulsory enlistment Scheme as DGS&D is winding
up by 31-10-2017. As per amendment to the Rule 152 of GFR 2017.
Ministry / Department if they so required, may enlist Indian agents who desire to quote directly
on behalf of their foreign principals.
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44. PROCUREMENT PROCESS:
a) The Controller of Stores in CHQ, DCOS in Regions and OIC (Stores) in

Operational Units are the Procurement Authorities in GSI. These Procurement authorities
are authorized to place Purchase orders and enter in to contract for and on behalf of the
President of India. They are also authorized to place DGS&D/GeM Supply orders and to
open the Letter of Credits and other formalities towards the procurement of the
Indigenous as well as Imported Stores. They will do so with the approval of the
sanctioning authority.
b) The procurement process in the AP&M Division starts on receipt of the

Procurement Indent from various constituent departments.
c) The Procurement Indent found complete in all respects are registered in

Procurement Indent Register (PIR) (Register No. I) and a file no. is allotted to the Indent
as per the norms prescribed. (Guidelines for opening file is as per Appendix -I).
d) The Purchase Section should also maintain an Expenditure Register (ER)

(Register-II), to monitor the expenditure being incurred for those items whose
expenditure is limited to fixed value for whole Financial Year as per the Delegation of
the Financial Power. This register will therefore account for the expenditure as the PI
processed. The process will continue till the close of the F.Y or exhaustion the balance,
whichever is earlier.
45. PROCESSING OF PROCUREMENT INDENTS BY THE CONCERNED
PURCHASE SECTION.
a).All Procurement Indents received by the Purchase Section should be entered in the Indent
Progress Register (IPR) (Register No.III) where the items are serially numbered. A Serial
number to be affixed to the IPR against each P.I. and for easy identification it should be suffixed
by the respective Financial Year [e.g.01/17-18]. The Serial no. of the IPR will start afresh in the
beginning of each Financial Year. The entire information/data of procurement which are in
progress will carry forward for next financial year with New Serial no. and respective F.Y.
b) The purchase section thereafter will examine if stores can be procured (i) on GeM
/DGS&D (ii) on Proprietary Article certification basis or (iii) Import purchase or (iv) single
tender basis (iv) Limited Tender basis or (v) Open tender basis through CPPP (e-Tenders) and
accordingly it will be processed for procurement.
46. PROCUREMENT PROCESS TO BE FOLLOWED IN GSI:

i. Government E-Market Place (through GeM is Mandatory for all items which are
available on GeM portal / DGS&D)
ii. Single Tender Procurement
iii. Limited Tender Procurement (normal tender procedure/ E-Tender/ GeM)
iv. Open Tender/Advertised Tender and Global Tender Procurement(E-Tender)
v. Electronic Reverse Auctions(GeM)
vi. Import Purchase (Global E-Tender)
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47. SINGLE TENDER PROCUREMENT
The procurement from single source may be resorted to in the following circumstances
a) Procurement of Small Value Sores

All procurement whose value is less than Rs.25,000/- on each occasion can be procured on single
tender or without inviting tender on the basis of the certificate to be recorded by the competent
authority in the format as below: as per Rule 154 of GFR 2017.
“ I, ………………….., am personally satisfied that these goods purchased are of the requisite
quality and specification and have been purchased from a reliable supplier at a reasonable price.”
In that case, a quotation is to be obtained (not against formal tender enquiry) on verbal enquiry at
least to determine the price which is needed for obtaining financial sanction and funds provision
as well.
Note: Above rule is an abstract of GFR, however, for smooth implementation, the purchasing
authority can record the certificate and the sanctioning authority will accord financial sanction
accordingly.
b) Procurement of Proprietary Article Stores:
i) The Procurement can be made on single tender if it is in the knowledge of the user
department that only a particular firm is the manufacturer of the required goods. Spare part of
equipment/machinery are usually categorized as proprietary articles. Purchases, irrespective of its
any estimated cost, can be processed on obtaining Single Tender from Original equipment
manufacturer (or its subsidized India based company) in case of the item is of proprietary nature.
This process can be deployed towards the procurement of the spares from original equipment
Manufacturer (or its authorized supplier) so as to be compatible to the existing equipment. A
Proprietary Article Certificate (PAC) to this effect to be submitted by the Head of the user
department after seeking financial concurrence from the concerned finance wing. The Proprietary
Certificate should be as below:
ii) In case of Emergency and for strong technical reasons the required goods are necessarily
to be purchased from a particular source and the reason for such decision is to be recorded and
concurrence of the Finance wing as well as approval of competent authority (not less than
H.O.D.) is essentially required.
iii) For standardization of machinery or spare parts to be compatible to the existing sets of
equipment (only on the advice of a competent technical expert and approved by the H.O.D) the
required item is to be purchased only from a selected firm.
iv) There are certain reserved items to be procured from Khadi Village Industries
Commission (KVIC), National Textile Corporation (NTC), etc., these are governed by the
government instruction and to be followed as per the instructions from time to time
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Proprietary Article CERTIFICATE
Division/Wing
File No. & Date
Description of article/ item
Forecast of quantity/ annual requirement
Approximate estimated value for above
quantity
Maker’s name with complete address
Name(s) authorized dealers / stockists
I being indentor propose the above item for
purchase on PAC basis, and certified that
(Please tick the following)

a) This the only firm who is manufacturing / Yes / No
stocking the above item
b) A similar article is not manufactured / sold Yes / No
by any other firm, which could be used in
lieu
c) Reference of concurrence of finance wing Yes / No
to the proposal obtained
d) No other make/ brand will be suitable for
following reasons
History of PAC purchases of this item for past three years as below
Order / Tender Quantity Basic Rate on order Adverse
No.& Dt ordered + Taxed and total Performance
amount (Rs) Reported if
Any
Approval of the Head of Department/Financial Sanctioning authority exists vide:-
(Signature with Seal, date and designation of the Indenting Divisional Head)
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48. LIMITED TENDER ENQUIRY
Limited Tender Enquiry (LTE) is to be invited in case of estimated cost of materials valuing
above Rs.25,000/- and upto Rs.25.00 lakhs. In this case, Tender Enquiries are to be sent to the
known sources. Above 2.00 Lakh, it should be through e_Tende r (if item is not available in
GeM). The GSI procures the stores of varied range and as such the following norms are to be
adopted.
Note: However the above 2.0 lakh limit may change after introduction of MM Purchase
module through OCBIS.
i) Limited tender enquiries should be issued by speed / registered post to registered

suppliers, potential suppliers, past bidders, authorized dealers and DGS&D/GeM registered
firms whichever available with the respective Purchase Section.
ii) Web base publicity should be given i.e. tender to be uploaded in GSI’s official Website.
Note: Two- Bid System may be adopted if the stores are technically sophisticated in nature
even for smaller value stores at the discretion of the Purchasing Authority.
49. PURCHASE OF STORES THROUGH LIMITED TENDER WITH ESTIMATED

COST MORE THAN RS. 25.00 LAKH CAN BE ADOPTED IN CASE:
(a) The Head of the Indenting Department certifies that the demand is urgent and any
additional expenditure involved by not procuring through advertised tender enquiry is justified in
view of urgency. The department should also put on record the nature of the urgency and reasons
why the procurement could not be anticipated. The sources of supply are definitely known and
possibility of fresh source(s) beyond those being tapped is remote.
(b) There are sufficient reasons, to be recorded in writing by the competent authority
indicating that it will not be in public interest to procure the goods through advertised tender
enquiry.
(c) In both the cases the reason, to be recorded in writing by the competent authority,
indicating that it will not be in public interest to procure the goods through Advertised Tender
Enquiry.
(d) The certification of (a) or (b) above is to be accepted and approved by the Head of
Department (HOD)
(e) This exercise of obtaining approval of the HOD on such certification is preferably to be
accomplished at PAC (Purchase Advisory Committee) level and before the Procurement Indent is
submitted by the Indenter to the Purchase Section.
50. GLOBAL / OPEN TENDER:
In case of the estimated cost of materials to be purchased exceeds Rs.25.00 Lakhs, “Open!
tender” system for tendering is to be resorted. Wherever proposed procurement is by inviting
tenders from abroad the title of the tender should be Global Tenders.
(i) The notice is to be published in GSI Website, Govt. of India’s Tender website
maintained by NIC, CPP portal, and GeM portal.
(ii) GSI Purchase wings (of AP&M Division.) is competent to process the publishing
the Tender Notice in GSI Website, Govt. of India’s Tender website maintained by
NIC, CPP portal, and GeM portal.
27
(iii) Open Tender should be compulsorily in 2-bid system
(iv) The subsequent amendment issued if any are to be published as tender amendment
notice in GSI Website, Govt. of India’s Tender website maintained by NIC, CPP
portal, and GeM portal.
(v) For advertised (Open) tenders the prospective suppliers may be intimated by post /letters
to follow the tender advertisement posting in the web site as per the website address
given.
(vi) In order to promote wider participation and ease of bidding, no cost of tender document
may be charged for the tender document downloaded by the bidder.
(vii) The Tender Notices for Global Tenders to be sent to Indian Embassies Abroad as Well as
the Foreign Embassies in India. The selection of the Embassies will depend on the
possibility & availability of required goods in such countries.
(viii) The time period allowed for submission of bids should be minimum 30 days from the
date of publication of tender notice or availability of the bidding documents for sale,
whichever is later. However for Global tenders the minimum time to be allowed for
submission of bids should be 6 weeks from the date of publication of tender notice or
availability of the bidding documents for sale/ download, whichever is later for domestic
as well as foreign bidders.
(ix) For all Global Tender the publication should be done under the Head “GLOBAL!
TENDER!Enquiry” and bids are to be “invited throughout the globe”.
(x) Though it is not mentioned in GFR 2017 for tender publicity in leading newspaper but if
required and necessary to publish the tender notice in leading newspaper for attracting
more potential bidders/ vendors, the same may be done after approval of the competent
authority. It may be ensured that payment towards publication of tender to be made as per
DAVP rates in force.
51. TWO BID SYSTEM:
Two bid system (simultaneous receipt of separate technical and financial bids)-GFR 2017 Rule 163
I) For purchasing high value plant, machinery etc. of a complex and technical nature, bids
may be obtained in two parts as under:-
a) Techno-commercial bid (often called Technical Bid) consisting of all technical details
and offered specifications along with commercial terms and conditions : and
b) Financial bid (Often called Price Bid) indicating item-wise price, applicable charges for
the items mentioned in the techno-commercial bid.
II) Two Stage Bidding - Expression of Interest Tenders – Market Exploration
There are instances where the equipment/plant to be procured is of complex nature and the
provisioning authority may not possess the full knowledge of either the various technical
solutions available or the likely sources for such products in the market. To meet the desired
objectives of a transparent procurement that ensures value for money simultaneously ensuring
upgradation of technology & capacity building- it would be prudent to invite a two-stage
Expression of Interest (EoI) Bids and proceed to explore the market and to finalise specifications
based on technical discussions/presentations with the experienced manufacturers/suppliers in a
transparent manner. Expression of Interest (EoI) bids may be invited in following situations:-
28
i) It is not feasible for the Provisioning authority & Procuring Entity to formulate detailed
specifications or identify specific characteristics for the subject matter of procurement,
without receiving inputs regarding its technical aspects from bidders;
ii) The character of the subject matter of procurement is subject to rapid technological
advances or market fluctuations or both;
iii) The Provisioning authority seeks to enter into a contract for the purpose of research,
experiment, study or development, except where the contract includes the production of
requirements in quantities sufficient to establish their commercial viability or to recover
research and development costs; or iv) The bidder is expected to carry out a detailed
survey or investigation and undertake a comprehensive assessment of risks, costs and
obligations associated with the particular procurement.(Rule 164 of GFR 2017)
III) The procedure for two stage bidding shall include the following;-
i) In the first stage of the bidding process, the Procuring Entity shall invite EoI bids
containing the broad objectives, technical and financial eligibility criteria, terms and
conditions of the proposed procurement etc without a bid price. On receipt of the
Expressions of Interest, technical discussions/presentations may be held with the short-
listed manufacturers/ suppliers, which are prima facie considered technically and
financially capable of supplying the material or executing the proposed work, giving
equal opportunity to all such bidders to participate in the discussions. During these
technical discussions stage the procurement agency may also add those other
stakeholders in the discussions who could add value to the decision making on the
various technical aspects and evaluation criteria. Based on the discussions/presentations
so held, one or more acceptable technical solutions could be decided upon laying down
detailed technical specifications for each acceptable technical solution, quality
benchmarks, warranty requirements, delivery milestones etc., in a manner that is
consistent with the objectives of the transparent procurement. At the same time care
should be taken to make the specifications generic in nature so as to provide equitable
opportunities to the prospective bidders. Proper record of discussions/presentations and
the process of decision making should be kept;
ii) In revising the relevant terms and conditions of the procurement, if found necessary as a
result of discussions with the shortlisted bidders, the Procuring Entity shall not modify
the fundamental nature of the procurement itself;
iii) In the second stage of the bidding process, the Procuring Entity shall invite bids from all
those bidders whose bids at the first stage were not rejected, to present final bid with bid
prices in response to a revised set of terms and conditions of the procurement;
iv) Any bidder, invited to bid but not in a position to supply the subject matter of
procurement due to modification in the specifications or terms and conditions, may
withdraw from the bidding proceedings without forfeiting any bid security that he may
have been required to provide or being penalised in any way, by declaring his intention to
withdraw from the procurement proceedings with adequate justification;
iv) If the Procuring Entity is of the view that after EoI stage, there is likelihood of further
participation by many more bidders and to avoid getting trapped into a legacy
technology, the second stage bidding may not be restricted only to the shortlisted bidders
of EoI stage and it may be so declared in the EoI document ab-initio. Thereafter in the
second stage, normal OTE/GTE bidding may be done. Such variant of EoI is called ‘Non-
committal’ EoI.
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IV) Invitation of EoI Tenders:

In EoI tenders, an advertisement inviting expression of interest should be published. The
invitation to the EoI document should contain the following information:
a) A copy of the advertisement;

b) Objectives and scope of the requirement: This may include a brief description of
objectives and broad scope of the requirement. It may also include the validity period of
empanelment;
c) Instructions to the bidders: This may include instructions regarding the nature of supply,
fees for empanelment (if any), last date of submission, place of submission and any other
related instructions;
d) Formats for submission: This section should specify the format in which the bidders are
expected to submit their EoI;
e) The EoI document should be made available to the interested bidder as a hard copy as
well as on CPP portal and no EMD will be demanded form the firms those who wanted to
participate in EoI bidding.
f) Eligibility criteria: The invitation to EoI should clearly lay down the eligibility criteria,
which should be applied for shortlisting. Supporting documents required need to be
clearly mentioned. An example of EoI eligibility criteria is shown in Table 1. However,
appropriate eligibility criteria have to be designed, keeping in mind the specific
objectives of the EoI.
(V) The Techno-commercial bid and the financial bid should be obtained through CPP/ GeM
portal online. The techno-commercial bids are to be opened by the Tenders opening committee
at the first instance and to be evaluated by a Technical Evaluation Committee (TEC). At the
second stage, financial bids of the technically acceptable offers only should be opened on a
scheduled date in CPP /GeM portal for further evaluation and ranking / selection before awarding
the contract.
52. CONTENTS OF TENDER SCHEDULE /TENDER ENQUIRY (TE):
The description/details of the stores with specifications, drawings (if any) proposed to be
procured and terms and conditions of the contract is to be mentioned in Tender enquiry (TE). The
Tender schedule (i.e. T.E)therefore should consist of Notice Inviting Tenders incorporating the
details as given below:
1) Schedule of Requirement - (Annexure -A.)

2) Specifications & Allied Technical details- (Annexure –B)
3) Instruction to bidders - (Annexure –C)
4) Condition of contract - (Annexure – D)
5) Norms for Bid security/Performance Security Deposit-(Annexure – E)
6) Bank Guarantee format for Bid security and Performance Security - (Annexure ---F)
7) Integrity pact format (for the value of Rs. 1Crore and above)- (Annexure --G)
8) Other undertaking as per requirement of the case-(Annexure --H)
Note: - Payment Terms, Mode of Delivery, Place of Delivery, Consignee Location must be
mentioned in the “Condition of the Contract” of the TE.
53. SALE OF TENDER FORMS/ TENDER SCHEDULE/ TENDER DOCUMENTS
(a) As per Rule 161 (iv) no cost of tender documents may be charged for the
tender documents downloaded by the bidder irrespective of estimated
cost of tender.
(b) One copy of the tender set will be kept intact by the concerned office for
his records as office copy.
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54. PRE- BID CONFERENCE:
In case of Procurement of Sophisticated and costly equipments and contracts of special nature, a
provision may be kept in bidding/tender documents for pre-bid conference for clarifying
specifications and other technical details to the prospective bidders. This pre-bid conference
should be held sufficiently ahead of bid opening date. The date of Pre-bid conference is to be
mentioned in the tender enquiry document so that the prospective bidders can attend the meeting
before submitting tender. Not attending the pre-bid conference by a vendor will not be a factor to
discard the bid of that vendor.
55. NEGOTIATIONS:
a) Negotiations with the bidders after bid opening must be severely discouraged. However,
in exceptional cases the negotiation can be held specifically for sophisticated high value
/Imported Equipment etc. with the firm quoting lowest evaluated offer/price bid (L1) or
the only one evaluated offer/ price bid in respect of commercial as well as technical
aspects for the benefit and advantage of the buyer(GSI). Such negotiation will be held
against the recommendation of Tender Advisory Committee (TAC) and approval of the
H.O.D./ sanctioning authority. The H.O.D./ sanctioning authority will constitute the
Negotiation Committee. Normally, the TAC may act as the Negotiation Committee with
the approval of the H.O.D./ sanctioning authority. The recommendation of the TAC
followed with negotiations committee recommendation is to be approved by the H.O.D./
sanctioning authority, before obtaining financial sanction.
b) Normally 15 days time should be given to the firm for completing negotiations. However
it should be ensured that all formalities including negotiation etc are invariably finalized
within the validity period of the offer.
56. RE-TENDERING:
The re-tendering should be avoided as far as possible. The re-tendering, prima-facie indicates
lack of required home work done prior to issue of tender enquiry. It is therefore imperative to
send the tender enquiries to registered firms, potential supplier, and web posting for limited
tenders.
Re-tendering is to be resorted to only when the last tendering process (for same purchase) is
considered and declared as cancelled with sufficient justification on record.
Re-tendering may be necessitated for following cases:

i) Specification or terms of last tendering is faulty/ incorrect
ii) TAC (Sr./Jr.) recommends for re-tendering
a. Supplier, after issuing P.O., fails to deliver a part or full ordered materials. In that
case,
re-tendering for the part undelivered materials can be resorted to.
g) Rejection of all Bids is justified under GFR 2017 Rule 173(xix) & (xx) when
a) effective competition is lacking.
b) all Bids and Proposals are not substantially responsive to the requirements of the
Procurement Documents.
c) the Bids’/Proposals’ prices are substantially higher that the updated cost
estimate or available budget; or
d) none of the technical Proposals meets the minimum technical qualifying score.
Lack of competition at a. above shall not be determined solely on the basis of the number of
Bidders. Even when only one Bid is submitted, the process may be considered as per procurement
rules.
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57. LACK OF COMPETITION / MINIMUM NUMBER OF QUOTATIONS:
It is clarified that in case of Limited Tender Enquiry, the Tender enquiry should be issued/ sent to
maximum number of firms available (minimum 6/10 and any number). But for evaluating
Tenders/quotations/bids, it is not mandatory to receive minimum 3 quotations.
Sometimes the purchase organization may not receive sufficient number of tenders/quotations. A
situation may also arise where, after analyzing the tenders, the purchase organization ends up
with one responsive tender. In such situations,
i) the purchase organization is first to check whether, while floating / issuing the tender
enquiry, all necessary requirements like standard tender enquiry conditions, correct
addresses, industry friendly specification, wide publicity, sufficient time for formulation
of tenders, etc. were fulfilled. The tender is to be re-issued /re-floated after rectifying the
deficiencies and adding more addresses of vendors.
ii) If the received number of quotations on the date and time of tender opening is found to be
inadequate (1 or 2) to form a healthy competition based on the frequency of material’s
availability in the market, the received tender(s) may not be opened on the date and time
of scheduled tender opening and the date and time of the tender opening may be extended
and re-fixed. In that case, intimations are to be issued for such extension of tender
opening date to all vendors to whom the TE was sent, website publicity to be made and in
case of open tender advertisement through news paper is to be again published after
approval of the competent authority.
However, if after scrutiny it is found that all such aspects were fully taken care of and in spite of
that the purchaser ends up with one responsive tender only, EVEN AFTER THE SECOND
ATTEMPT OF TENDERING OR EXTENDING DATE OF OPENING TENDERS, then
contract may be placed on that tenderer provided the quoted price is reasonable.
Even when one bid is submitted, the process may be considered valid provided following
conditions are satisfied Rule 173 (xx) of GFR 2017.
a) The procurement was satisfactorily advertised and sufficient time was given for
submission of bids
b) The qualification criteria were not unduly restrictive; and
c) Price are reasonable in comparison to market values
However, it is necessary to ensure that the offered price is reasonable and commensurate to the
prevailing market rate. The price negotiation can be done with L1 bidder in exceptional case as
per CVC guide lines.
When a limited or open tender results in only one effective offer, it shall be treated as a
single tender contract GFR 2017 Rule 173(xxi).
58. PRICE NOT REASONABLE:
I) If the lowest price appears not reasonable, then, in the first place, the purchase
organization is to review its own data & details to check the reasonability of the obtained
price and whether the price so arrived is correct or not. If the price still appears not
reasonable, the purchase organisation may, strictly as an exception, negotiate (as per
Para 55) the price only with the bidder quoting lowest evaluated responsive tender (L-1)
in an attempt to bring down the same.
II) If L-1 reduces the price to the desired level within the 15% more than the estimated
cost in that case contract may be placed onL1. but if the firm does not agree, then
further action like re-tendering etc..
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III) Rejection of the Bids is justified Rule 173(xix) of GFR 2017 when
a) Effective competition is lacking.
b) All bids and proposal are substantially responsive to requirement of procurement
Documents.
c) The Bids/ Proposals prices are substantially higher that the updated cost estimated or
available budget or
d) None of the technical proposals meets the minimum technical qualifying score.
59. BID SECURITY:
a) The Bid Security or Earnest Money Deposit is collected along with the bid to safeguard
the government interest against the bidders withdrawing or altering its bid during the bid
validity period, in case of Advertised or Limited tender enquiry.
b) The Bid Security( Earnest Money)to be collected for stores with estimated value above
Rs. 1.00 Lakhs and should be equivalent to 2 to 5% of the estimated cost of the goods to
be procured as per Rule 170 of GFR 2017. With this background the purchasing
authority or the COS/DCOS may fix the Bid security amount on case to case basis. The
bid security amount thus calculated should be incorporated in the bidding documents.
The bid security may be accepted in any of the following forms.
i) Account Payee Demand Draft

ii) Banker’s Cheque
iii) Fixed Deposit Receipt
iv) Bank Guarantee from any of the commercial bank in an acceptable form,
safeguarding the purchaser’s interest in all respects.
v) The Bid Security should remain valid for a period of 45 days beyond the
final bid validity period or 6 months whichever is longer.
vi) Bid security will also accepted in multicurrency of equivalent to INR.
c) EMD/Bid Security Exemption: is as per point no.62
60. REFUND OF EMD/ BID SECURITY:
Bid Security of the un-successful bidders should be returned to them at the earliest after expiry of
the final bid validity and latest on or before the 30 days after the award of the contract.
61. FORFEITURE OF EMD/BID SECURITY:
Bid Security will be forfeited if the tenderer withdraws, amends, impairs, or derogates from the
tender in any respect within the period of validity of his tender and if the Bidder does not fulfill or
adhere to any of the conditions/clauses/points mentioned in the Tender submitted by them. If the
successful tenderer fails to furnish the required Performance Security, as per the P.O. clause, the
Bid security furnished will be forfeited as well.
62. EXEMPTION OF EMD/BID SECURITY:

Micro and Small Enterprises (MSEs) as defined in MSE Procurement Policy issued by
Department of Micro, Small and Medium Enterprises (MSME) or are registered with the Central
Purchase Organisation or the concerned Ministry or Department. or Startup as recongnised by
Department of Industrial Policy & Promotion (DIPP). – as per amendment to Rule 170(i) of
GFR 2017
However, Exemption of EMD/ Bid Security firms have to submit copy of valid registration
certificate and Udhyog Aadhaar along with bid/ Technical bid.
33
Clarification – The firm registered with any organization of State Government will NOT be
exempted from furnishing Bid security deposit.
63. PERFORMANCE SECURITY
(a) To ensure due performance of the contract, performance security is to be

obtained from the successful bidder before placing Purchase Order by issuing a “Letter!
of!Intent” or within a reasonable period after issuing the P.O, on exceptional foreign
procurement cases/ urgent requirements at the discretion of purchasing authority.
The Performance Security is to be obtained @ 5% to 10% of the order value from the
successful bidder irrespective of its registration status etc,.
[b] Performance Security may be furnished in the following form and it should be
valid up the period of sixty days beyond the date of completion of all contractual
obligations of the supplier including warranty period. It is the responsibility of the firm to
revalidation/ extension of the PS if the contract is extended .
i) Account Payee Demand Draft in favour of DG/ADG/DDG

ii) Fixed Deposit Receipt/ BG in favour of Director General/
ADG/DDG of concerned CHQ/ Region, GSI on account of
(Firm Name) Bank Guarantee from any commercial
bank (Recognised by Govt. of India) in an acceptable form,
Safeguarding the purchaser’s interest in all respects may be
acceptable.(Rule 170(i) of GFR 2017.
Note: 1) DD/FD/BGs issued by Co-operative bank to wards EMD or

Performance Bank Guarantees will not be acceptable .
Note:2) Foreign DD/FD/ BGs are acceptable issued by commercial bank /

confirmed from any of the commercial bank in India in an acceptable form,
safeguarding purchaser’s interest in all respect. In case of Global Tender Enquiry
(GTE) the performance security should be in the same currencies the contact and
must conform to Uniform Rules for Demand Guarantees (URDG-758)- as
International convention regulating international securities. the if issued bank
branch recognized by the RBI in the cases of foreign
[c) The Performance Security, in the form of Bank Guarantee (BG), forwarded
directly by bank only should be accepted (this should be incorporated in instruction to
bidders of (TE).
[d) However, if the BG is received directly from the supplier, the same should be
verified from the concerned bank to ascertain it’s genuinety through PFMS mode by GSI
bank (UCO Bank).
[e] Bid Security should be returned to the successful bidder on receipt of

Performance Security/PBG.
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[f] RENEWAL OF PERFORMANCE SECURITIES:
Where execution of the contract is likely to be delayed beyond the period for which the
performance security is furnished, the concerned purchase officer will take action well ahead of
the date of expiry of the validity of the performance security for its renewal. A Register (Register
No.V) to be maintained to monitor the validity of the Performance Security. The Register to be
maintained by the Stores Manager / Stores Officer concerned and to be reviewed periodically.
[g] REFUND OF PERFORMANCE SECURITY:
Performance security is taken for the due performance of an individual contract and becomes
liable to be refunded when the contractor duly performs and completes the contract in all respects.
The contractor is required to submit an application-cum– cash bill for refund of the performance
security, incorporating that he has not received any complaints from the consignee. (s), regarding
non-receipt, shortage or defects in the stores supplied under the contract.
[h] FORFEITURE OF PERFORMANCE SECURITY
Performance security taken for the due performance of the contract can be forfeited and credited
to the Government, in the event of a breach of contract. Bank Guarantee obtained towards
performance security should be invoked or DD/BG/FDR should be realised only when there is a
specific breach on the part of the contractor and strictly in terms of the relevant agreement. The
decision to invoke the guarantee should be taken by the head of the AP&M division. i.e. DCOS /
COS.
64. GUARANTEE/ WARRANTY
There may be certain stores of special nature which would demand a guarantee from the
supplying firm against defects, etc. for a certain period. The period of Guarantee /Warranty may
be in general for a period of 12 months from the date of installation.
65. OPENING OF TENDERS:
a) The Tenders/bids, irrespective of Technical bid or price bid, shall be opened by tender
opening committee on scheduled date and time of opening tender as mentioned in the
Tender Enquiry.
b) The Tender opening committee should consist of 2 (two) or more than 2 Gazetted
officers out of which at least one officer must be from the AP&M Division.
c) The normal tenders costing less than Rs.2.00 Lakhs will be opened by the two officer
committee. The tenders may be opened in presence of authorized representative (if
present) of the firm who have submitted the tenders and will be present for tender
opening with valid authorization.
d) The Tender opening committee will check the authority letter of the representatives of
bidders and allow them to attend the “Tender Opening” if their identities are found
satisfactory
e) Normally only one representative from one bidder may participate/ attend “Tender
Opening”.
f) After opening each envelop of Tender, the Tender Opening Committee member shall
scrutinize documents for (i) if prescribed Bid Security furnished or not (ii) correctness of
35
furnished Bid security (iii) if any registration certificate furnished with the bid in order to
substantiate exemption in furnishing Bid security, then correctness of the certificate
g) The Tender Opening committee member from the AP&M DIVN. will record the details
of the representative of the firm attended and obtain their signatures in the tender opening
register, it should also be signed by the Tender Opening Committee(TOC) members. The
Tender Opening Register.(Register No.VI)
h) If everything is found in order after first hand scrutiny of tenders, the tender opening
committee should read out the following particulars only from each tender opened by him
for the information of the representatives attending the tender opening.
i. Tender No. and the name, address of tenderers.

ii. Description of stores.
iii. Quantity offered in the tender.
iv. Unit price, statutory duties, GST etc. as written in respective tender
v. Rebate/discount offered if so, quantum and conditions if any.
vi. Delivery period offered.
vii. Terms of Delivery.
viii. Any other special conditions like packing charges deviations from
standard GSI condition etc.
ix. Whether Bid Security furnished or not.
i) Each tender shall be numbered serially and every page of the tender should be initialed
(signed) by the Tender Opening Committee members by RED INK. The TOC should
encircle the prices, delivery schedule, important conditions and taxes etc., duly initialed
with red ink. The TOC is to mention on the body of the first page of tender / techno-
commercial bid whether requisite bid security deposit furnished or not.
j) Purchase section should maintain a Tender Opening Register separately for “E_Open
Tender” and “Limited Tender” . The columns of the register should be:
Sl. Purchase Tender Date of Names of Details of tenders Remarks, if any,

No. File No. No.Dt Tender Vendors received and of the Tender
Opening to whom opened on the day opening committee
TE of opening tender members with
issued including signature and date
k) If any representative of bidder does not attend the tender opening on the schedule date
and time, any information in respect of subject tender should NOT be provided to any
bidder afterwards.
66. POSTPONEMENT OF TENDERS OPENING:
Request for postponement of tender opening date from the bidders/tenderers should be decided on
the individual merits with the approval of the COS / DCOS/ OIC Stores. The postponement
communication should be posted in the website. In case of open tender, the tender postponement
notice is to be published in CPP Portal/ GeM and GSI website.
36
67. LATE TENDERS:
Tenders received beyond the schedule date and time of the opening of tender will be treated as
late tender and will be summarily rejected.
68. INITIAL SCRUTINY OF THE TENDERS BY PURCHASE SECTION:
The officer concern should at the first instance examine the tender received and ensure that it is
complete in all respects wherever some details are missing necessary clarification may be sought
from the firm giving a target date for reply so that the procurement process is not delayed. It is to
be ensured that such clarification should not have any effect of changing the essentials of the
tender or its inter se position or would give an un-intended benefit to the bidder/tenderer.
69. PREPARATION OF COMPARATIVE STATEMENT:
There are two types of Comparative statement for two bid system – 1). TECHNICAL
Comparative Statement for technical evaluation by T.E.C on Technical Bids and 2). PRICE
Comparative Statement needed by the T.A.C for final tender evaluation. The Preparation of
Technical Comparative statement, in which important and precise technical implications are
involved, may be beyond the understanding of AP&M Divn. And hence they may indicate only
the commercial parts such as validity of offer, duties, taxes, EMD details etc. wherever
clarifications are required on EMD, Taxes, place of delivery etc. to bring all the offers in the same
plat form, the same may be obtained from the firm and the same may be incorporated in the
comparative statement. In short all commercial terms are clarified and then only it may be
forwarded to the indenting division, for their scrutiny on technical aspects and onward submission
to the Chairman of TEC.
a) For other cases i.e singe bid system, the concerned purchase section on receipt of the
tenders will prepare a Comparative Price Statement of all valid offers. The offers without
requisite EMD / EMD Exemption will be summarily rejected similarly the late quotation
will not be considered. So, those quotations should not take place in the comparative
statement.
b) The Comparative Price Statement will be prepared by the dealing hand of Purchase
Section the details concerning the offered rates, make, taxes, delivery schedule, quantity
offered, any other information relevant to the decision of the tender and to be calculated
against each item for comparison purpose (Form No.2).
c) All components associated (viz. taxes, duties, freight, handling etc. charges, discount)
with the quoted price are to be shown separately and to be taken into account summing
together while preparing price comparative statement.
d) The ranking of the offers should be made after comparing prices on equitable basis taking
in to account Customs Duty, GST, Freight & Forwarding, handling charges and Transit
Insurance etc.
e) In respect of Imported stores the conversion of Foreign Currency in to Rupees is to be

done taking in to account the BC selling rate of the State Bank of India on the date of
Opening of Price Bid.
f) The Comparative Statement should have the initials of the dealing hand, supervisory staff
and officer concern.
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70. THE TENDERS NEED NOT BE ACCEPTED UNDER THE FOLLOWING

CIRCUMSTANCES
a) Tender received late

b) In the form of FAX, Telex, Telegraph and e-mail
c) Tender not accompanied with Bid Security /Exemption
Certificate/ proper and valid certificates as sought in the tender
Enquiry
d) Ambiguous offers in respect of tender.
71. THE CONDITIONAL OFFER:
The conditional offer of the supplier for discount against quicker inspection or quicker payment
should be considered/ compared as per the price quoted without consideration of the discount.
72. POST TENDER REVISION:
The post tender revision which may affect the purchase decision or benefit of purchaser (GSI)
financially or technically is not acceptable. However, after the placement of the order if the
revision gives benefit to the purchaser (GSI) it may be accepted, with the approval of the
competent authority.
73. FORMATION OF TECHNICAL EVALUATION COMMITTEE (TEC)
The Constitution of the standing Technical Evaluation Committee (TEC) is similar to the
standing Purchase Advisory Committee, except that, there is no participation from AP&M
(erstwhile Material Management Division) and Finance Wing.
The constitution of the Technical Evaluation Committee for Sr. Committee/ Jr.Committee will be
done case to case basis by the DG in CHQ Kolkatta for Sr. TEC. The ADG/HOD CHQ,
Kolkatta for Jr.TEC.
In the regions/ wings/ SU/RSAS/MCSD/M-V by the ADG/HOD/DDG for both committees

(Sr.TEC/Jr.TEC)
a) Chairman –ADG/ Dy.DG level officer in Sr. Committee or a senior Director level in Jr.
Committee
b) Member from Indenting Division having knowledge about the material proposed
to be purchased.
c) Member from Similar to Indenting Division having knowledge about the material
proposed to be purchased.
d) Additional or outside member: as decided by the DG/ADG/HOD/DG
In addition to the above the Chairman may co-opt an additional Member, even from outside of
that region of GSI or from outside organization/ department as an expert who has knowledge on
the item proposed for procurement, if necessary.
Note:1) The details of the Indenting Division and Similar Division have already been stated in
the constitution of PAC.
Note: 2) The PAC Chairman initially will check the technical specification of indent before
PAC recommendations, Therefore the PAC chairman can be the chairperson for TEC for easy
38
technical evaluation. If the regular chairman of TEC is not available or not in station and if the
item is urgent, It is the HOD discretion to nominate the chairman/ alternate chairman of TEC.
74. DUTIES AND RESPONSIBILITIES OF TECHNICAL EVALUATION

COMMITTEE (TEC):
i) The techno-commercial offers are to be examined by the technical evaluation committee

on technical grounds and offer their recommendations on technical suitability/
acceptability of the offers.
ii) The committee in their recommendations should place on record, in precise terms which
weighed with it while recommending a particular offer and also similar way the precise
technical aspect for not considering it. These considerations are required to be
communicated to the firm whose offer has not been considered favorably.
iii) The Technical Evaluation committee (TEC) should never put any abstract ground without
substantiated by proper technical reasons /document for declaring an offer as technically
unacceptable.
iv) The bids received should be evaluated in terms of the conditions already incorporated in
the bidding documents/ Tender enquiry. No new conditions which was not incorporated
in the bidding documents/ Tender Enquiry should be brought in for evaluation of the
bids. Even no afterthought (which is not mentioned in the Tender enquiry) of any
member of the TEC should be applied in evaluating the technical bids. Determination of
a bids responsiveness should be based on the contents of the bid itself without recourse to
extrinsic evidence.
v) The Technical Evaluation committee (TEC) may recommend one or more than one
(many) offer(s) as technically acceptable. Rather, the TEC should recommend only the
technically suitable offer(s) based on the available records of the tenders, information
gathered from the bidder if necessary etc. comparing with the specification/ configuration
sought in the Tender Enquiry.
vi] Visit to the firms premises by the TEC members or observing demonstration of offered
machinery to verify the claim of the bidder mentioned in the technical bid is allowed
before furnishing recommendation by the TEC. It is not permissible once the price bids
are opened based on TEC’s recommendation.
Note: The Chairman of the respective TEC shall ensure that the Technical
Evaluation of the Technical bids must be completed preferably within 3-10 days, if
demonstration of quoted products is required, that should be completed within
reasonable time preferably 10-15 days.
75. FORMATION OF TENDER ADVISORY COMMITTEE (TAC):
The Constitution of the Tender Advisory Committee (T.A.C.) is same as Purchase Advisory
Committee (P.A.C.) as stated in para 30. There must be at least a member from the user /
indentor’s division, a member from Finance and a member from AP&MD.
a) The TACs can have Two-tire committees– Junior Tender Advisory Committee(Jr.TAC)
and Senior Tender Advisory Committee(Sr.TAC) basing on the financial value of the
purchase. In CHQ the Jr. TAC shall take up the procurement matters from estimated cost
more than Rs. 25,000/- to Rs.20.00 Lakhs and Sr.TAC from abvove Rs. 20.00 Lakhs and
above to the extent of DG’s Financial sanction power.
b) In Regions/Wings the limit will be above Rs.25,000/- to 5.00Lakhs for Jr. TAC, beyond
39
5.00Lakhs above to the extent of power of HoD’s financial sanction power is Sr. TAC.
c) The nominations of the officers for the various committees to be done following the
protocol that the chairman should be the Senior most member of the committee. The
Chairman can co-opt additional member or any expert officer for evaluation.
d) The Sr. Committee may be headed by the DDGs, and Jr. Committee may be headed by the
Director or as per the availability of the officers in the Region / Wing / CHQ. In Sr.
Committees all members should be heads of each division in normal situation.
e) In case there is no Dy.DG level officer posted in the Regional Head Quarter, other than the
HOD, the Sr. Committee (PAC or TAC) can be chaired by the senior most DDG/Director
of the Regional Head Quarters and to be nominated so by the HOD of that Region.
f) The Sr.T.A.C/Jr. T.A.C. will be constituted by the sanctioning authority.
Note: The Chairman of TAC will e nsure that the evaluation of the tenders is done
preferably within 5days. To early disposal of file the alternate chairman will conduct
the meeting when Chairman is on tour or leave.
76. DUTIES AND RESPONSIBILITIES OF TENDER ADVISORY COMMITTEE (TAC):
i] Tender Advisory Committee (TAC) is a committee who will evaluate Tenders both on
Technical and commercial points of view in case of One-bid tendering. In case of two-bids
tendering, TAC will evaluate commercial/ price bids in the light of the TEC’s
recommendation.
ii] Only the lowest quoted offered item subject to its technical suitability/ acceptability (read
with the points depicted from iii to vii below], will be the decisive factor for selection of
quotation.
iii] The TAC will put on record the clear justification for ignoring any offer and selecting an
offer as well.
iv] The TAC can not disqualify any offer on technical ground which once has been accepted
by the TEC as well as the HOD.
v] The TAC will never put any abstract ground without substantiated by proper technical
document for declaring an offer as unacceptable.
vi] The bids received should be evaluated in terms of the conditions already incorporated in the
bidding documents/ Tender enquiry. No new conditions which was not incorporated in the
bidding documents/ Tender Enquiry should be brought in for evaluation of the bids.
Determination of a bids responsiveness should be based on the contents of the bid itself
without recourse to extrinsic evidence.
vii] Fascination over any brand/make, without any justification on record, cannot be a decisive
factor for selecting or discarding any offer/bid.
Viii] The TAC after giving the recommendation will finally record the Undertaking as under, as
per CVC Office Order No.71/12/05 Dt 09/12/2005
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“!It!is!certified!that!none!of!the!committee!members!have!any!personal!interest!with!the!
companies!/!firms/agencies!participated!in!the!tender!process”.!
77. DGS&D RATE CONTRACT PURCHASE :

Rule 149 of GFR 2017 for GeM shall be applicable
78. PURCHAS E OF DGS&D RATE CONTRACT ITEMS DIRECTLY FROM MARKET
Rule 149 of GFR 2017 for GeM ( Government e_Marketing) shall be applicable
a) The GSI is however to make its own arrangements for inspection and
testing wherever required.
b) The discretion of Direct Purchase, in case of items available in GeM lies

with the Sanctioning Authority.
79. ADVANCE PAYMENT TO SUPPLIER:
Ordinarily payments for services rendered or supplies made should be released only after the
services have been rendered or supplies made. However, it may become necessary to make
advance payment in the following types of cases:
1) Advance payment demanded by firms holding maintenance Contract for servicing of

Air conditioners, computers, other costly equipments etc.
2) Advance payment demanded by firm against fabrication, contract, turnkey

contracts etc. Such advance payment should not exceed the following limits:
a) 30% of the contract value to Private Firms

40% of the contract value to State or Central Govt. Agency
or a Public Sector Under Taking,
b) In case of maintenance contract (AMC) the amount should not exceed
the amount payable for 6 months under the contract.
3) The Ministries or Department of the Central Govt. may relax in consultation

with their Financial Adviser concerned, the ceilings (including percentage laid
down for advance payment for private firms), mentioned above. While making
advance payment as above, adequate safeguards in the form of Bank Guarantee
etc. should be obtained from the firm.
80. PART PAYMENT TO SUPPLIERS:
The part payment to the suppliers may be allowed and released only for that quantity
which have been received in good condition subject to inclusion of terms i.e Part Supply
and Part Payment clause may be incorporated in P.O./ Job order / Work order in case it
is not mentioned in PO./ Job order / Work order, the sanctioning authority at his
discretion may allow part payment for part supply.
81. The Terms and Condition of the Contract:
All Government Purchases should be made in a transparent, competitive and fair manner to
secure best value for money. Some of the measures are as below:
All Essential information which a bidder needs for sending responsive bid, should be clearly spelt
out in bidding documents in simple language.
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a) The pre-qualification and eligibility criteria should be clearly spelt out

such as minimum level of experience, past performance, technical
capability, manufacturing facilities, and financial position etc.,
b) The date, time, place for sending bids
c) Date time and opening of the bids
d) Terms of delivery, validity of offers, payment terms etc,.
e) Arbitrary clause for settlement of disputes if any
f) The bidder should be given reasonable time to send their bids
g) Pre-bid conference in case of turnkey contracts or contracts of special
nature for procurement of sophisticated and costly equipment, a provision
for pre-bid conference, clearly indicating the time and place should be
incorporated. This date should be sufficiently ahead of the bid opening
date.
h) Criteria for determining bids received on a common platform.
i) Bids received should be evaluated strictly as per the conditions
incorporated in the bidding documents only.
82. BUY-BACK OFFER / EXCHANGE OFFER:
A] The item which will be proposed for buy back should be declared as surplus/ obsolete/
unserviceable as per the procedure by the competent authority at the first instance and under the
“Mode of Disposal” column of the relevant Survey Report it is preferable to be mentioned as
“buyback/ exchange” in stead of “auction sale”. This clause is applicable for specific case
approved by the competent authority.
B] When it is decided with the approval of the competent authority to replace existing old
items(s) with a new and better version, the department may trade the existing old item while
purchasing the new one. For this purpose, a suitable clause is to be incorporated in the bidding
document (Tender Enquiry) so that the prospective and interested bidders formulate their bids
accordingly. Depending on the value and condition of the old item to be traded, the time as well
as the mode of handing over the old item to the successful bidder should be decided and relevant
details in this regard should be suitably incorporated in the bidding document (Tender Enquiry).
Further, suitable provision should also be kept in the bidding document to enable the purchaser
either to trade or not to trade the item while purchasing the new one.
C] In the tender enquiry the buyer may offer physical inspection of the old item by the vendor and
sought for discounted / rebated offer against the exchange/ buy back.
83. PURCHASE ORDER (PO):
The Purchase Order (Form No.3) should be drafted to conform strictly to the proposals on the
file as approved by the competent authority and is not to be loosely worded. Unilateral insertion
of terms and conditions which are different from those of the tender will not bind the supplying
firm and must be avoided. The Purchase Order should contain no more and no less than what is
contained in the tender. Any special terms and condition, if advised by the T.A.C. in its
recommendation, are to be mentioned in the P.O/ JO/WO/SO.
Note; The GSI Purchase order format is not applicable if the purchase materialized through GeM.
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84. DISTRIBUTION OF THE COPIES OF PURCHASE ORDER
The original copy of the Purchase Order should be sent to the firm by Register Post / Speed
Post/e-mail(signed & stamped scan copy). A formal acknowledgement of the receipt of the
Purchase Order should be invariably insisted upon.
A minimum of 8 copies of Purchase Order should be made out for distribution as follows:
Original ..... Supplying firm

Copy No.1 ..... Indentor
Copy No.2 ..... Consignee
Copy No.3 ..... Inspecting Officer
Copy No.4 ..... Party Bill
Copy No.5 ..... Controller of Accounts / PAO
Copy No.6 ..... Vigilance Officer copy
Copy No.7 …. Guard file copy
Copy No.8 ..... Office copy
85. AMENDMENTS TO PURCHASE ORDER:
a] Ordinary amendments to the terms and conditions (including delivery period extension) of a
Purchase Order not having any financial implications will be issued by officer of AP&M Divn.
With the approval of indenting division.
b] Any amendment to P.O. in regard to financial involvement should be avoided as far as

possible. All cases of amendments having financial implications should be submitted with proper
justification to the sanctioning Authority for approval.
C] It is mandatory to provide /distribution amended copy of the order as mentioned in the main
PO/ JO/WO/SO.
86. FINANCIAL SANCTION AND PROVISION OF FUNDS:
A] Financial sanction is the permission accorded by the sanctioning authority for incurring
expenditure for a specific purpose and amount, from the Government exchequer.
B] The financial sanction never lapses if the process of purchase is in continuation (not cancelled/
abandoned) i.e once the quotations are accepted and the sanction is obtained, it does not laps. The
funds however have to be made available to meet the expenditure.
C] Funds will be provided by the respective finance wing/budget section after the Sanctioning
Authority has accorded financial sanction.
D] Provision of funds allotted by the finance wing/ budget section lapses with the end of a
Financial Year for which it was provided.
E] If a financial sanction and fund provision are obtained during one financial year, with the end
of that financial year the financial sanction will not lapse but the Funds provision will lapse. In
that case, a fresh budget/provision of funds for the new financial year is to be obtained but fresh
financial sanction need not to be obtained.
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F] If in any case modified financial sanction is required to be obtained due to (i) wrong
calculation while submitting/recommending to the sanctioning authority for obtaining sanction
OR (ii) modification/ change in financial factors on higher side for change in statutory payment
of Tax element etc. OR (iii) for any other reason and the already obtained sanctioned amount of
the sanctioning authority falls short for purchase, a fresh financial sanction for the entire (whole)
new amount is to be obtained from the sanctioning authority in cancellation of the earlier
sanction obtained towards the same purpose.
In case of modification of Financial sanction, [i] the Financial sanction only for the difference of
amount shall not be obtained.
The Additional Financial sanction shall be obtained from the same sanctioning authority. (for
Example: If the sanction is obtained from the Ministry / DG/HoD the additional sanction is also
to be taken from same competent authority). The sanction authority is applicable as per the
DFPR/ GSI compendium.
G] JOB / WORK ORDER: For Job/ works such as fabrication contracts turnkey contracts and
site preparation for installation of the equipments it becomes inevitable to entrust to the work in
the form of Job Order / Work order. The Job order/ work order may involve supply of stores as
well as completion of assigned job. For such Job works there is provision of advance payment as
per Rule 172(1) of GFR 2017.
87. PRICE INCREASES AFTER ISSUE OF PURCHASE ORDER
In case the supplier, after receipt of the confirmed P.O./JO/SO/WO intimates about increase of
price is not permissible. In that case the following steps should be followed.
i] Bid security is to be forfeited provided the P.O. is placed within validity of the
quotation period.
ii] in crease of Statutory taxes of Govt. the same may be allowed after placement of
PO/JO/WO/SO
Note: Under the provisions of CVC Circular No. 4/3/07 Dt.03-03-2007“ incase
L-1 backs out, there should be re-tender”
89. CANCELLATION OF PURCHASE ORDER:
The Purchaser may, without prejudice to any other remedy for breach of contract, by written
notice of default sent to the supplier, terminate the contract in whole or in part:
a). If the supplier fails to deliver any or all of the stores within the time period(s)
specified in the contract, or any extension thereof granted by the Purchaser: or
b). If the supplier fails to perform any other obligation under the contract.
90 (A). Government e -Market Place (GeM) (Rule 149 of GFR 2017):
DGS&D or any other agency authorized by the Government will host an online Government e-
Marketplace (GeM) for common use Goods and Services. DGS&D will ensure adequate publicity
including periodic advertisement of the items to be procured through GeM for the prospective
suppliers. The Procurement of Goods and Services by Ministries or Departments will be
mandatory for Goods or Services available on GeM. The credentials of suppliers on GeM shall be
certified by DGS&D. The procuring authorities will certify the reasonability of rates. The GeM
portal shall be utilized by the Government buyers for direct on-line purchases as under:
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i. Up to Rs.50,000/- through any of the available suppliers on the GeM, meeting the
requisite quality, specification and delivery period.
ii. Above Rs.50,000/- and up to Rs.30,00,000/- through the GeM Seller having lowest price
amongst the available sellers, of at least three different manufacturers, on GeM, meeting
the requisite quality, specification and delivery period. The tools for online bidding and
online reverse auction available on GeM can be used by the Buyer if decided by the
competent authority.
iii. Above Rs.30,00,000/- through the supplier having lowest price meeting the requisite
quality, specification and delivery period after mandatorily obtaining bids, using online
bidding or reverse auction tool provided on GeM.
iv. The invitation for the online e-bidding / reverse auction will be available to all the
existing Sellers or other Sellers registered on the portal and who have offered their
goods/services under the particular product/service category, as per terms and conditions
of GeM.
v. The above mentioned monetary ceiling is applicable only for purchases made through
GeM. For purchases, if any, outside GeM, relevant GFR Rules shall apply.
vi. The Ministries/Departments shall work out their procurement requirements of Goods and
Services on either “OPEX” model or “CAPEX” model as per their requirement/
suitability at the time of preparation of Budget Estimates (BE) and shall project their
Annual Procurement Plan of goods and services on GeM portal within 30 days of Budget
approval.
vii. The Government Buyers may ascertain the reasonableness of prices before placement of
order using the Business Analytics (BA) tools available on GeM including the Last
Purchase Price on GeM, Department’s own Last Purchase Price etc.
viii. A demand for goods shall not be divided into small quantities to make piecemeal
purchases to avoid procurement through L-1 Buying / bidding / reverse auction on GeM
or the necessity of obtaining the sanction of higher authorities required with reference to
the estimated value of the total demand.
90 (B). Electronic Reverse Auction (Rule 167 of GFR 2017):

i. Electronic Reverse Auction means an online real-time purchasing technique utilised by
the procuring entity to select the successful bid, which involves presentation by bidders
of successively more favourable bids during a scheduled period of time and automatic
evaluation of bids;
ii. A procuring entity may choose to procure a subject matter of procurement by the
electronic reverse auction method, if:
a. It is feasible for the procuring entity to formulate a detailed description of the
subject matter of the procurement;
b. There is a competitive market of bidders anticipated to be qualified to participate
in the electronic reverse auction, so that effective competition is ensured;
c. The criteria to be used by the procuring entity in determining the successful bid
are quantifiable and can be expressed in monetary terms; and
iii. The procedure for electronic reverse auction shall include the following, namely:
a. The procuring entity shall solicit bids through an invitation to the electronic
reverse auction to be published or communicated in accordance with the
provisions similar to e-procurement; and
b. The invitation shall, in addition to the information as specified in e-procurement,
include details relating to access to and registration for the auction, opening and
closing of the auction and Norms for conduct of the auction.
Note: PURCHASE THROUGH GeM in Two Bid System (Bidding in GeM).
After opening of the Technical bids in two bid system of GeM , all technical bids to be
downloaded from GeM portal and to be referred to indenter/ user division for comments
before submitting to the competent authority for approval for opening of the price bid.
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The Price bids of the technically accepted firms only will be opened through GeM for
award of contract to L1. Electronic Reverse Auction may be followed if required.
91 EXTENSION OF PURCHASE / WORK ORDERS:
A Purchase / Work Order can be extended against an existing Purchase/Work Order which was
awarded by the Procuring Authority. The sanctioning authority may approve for extension of
purchase order based on the end user comments. Then only procuring authority may seek
extension for a period of 3 months at a time and for 2 times only as a measure for continuity of
ongoing purchase / work order due to urgency and importance of the continuity of existing order.
Extension of purchase / work order may be sanctioned subject to the following conditions:
(i) The existing Purchase / Work Order was placed after following the prescribed norms i.e.
inviting tenders (limited or open etc.,)
(ii) There has been no downward trend in the prices since the existing Purchase order was
placed.
(iv) Extension of Purchase/Work Orders should be placed only with the approval of the
Competent Authority i.e sanctioning authority and there should be a mention as
“Extended Purchase Order”.
(v) Extension order shall be issued by the same Purchasing Authority who issued the existing
Purchase/Work order.
(vi) Every request from firms asking for extension of date of delivery beyond the date
stipulated in the purchase Order should be dealt with promptly and cautiously.
(vii) It is not necessary to issue piecemeal amendments for extension of the date of delivery.
One final amendment extending the date of delivery up to the date of actual supply will
be enough.
(viii) The amendment letter to the P.O., allowing extension of Delivery date/ period, may be
issued on later date but compulsorily before processing bill for making payment in order
to regularize the case provided the user/ indentor accepts receipts of delivery during the
extended delivery period without suffering any loss.
92 REPEAT PURCHSE ORDER followed with below note

Repeat purchase order may be placed against an old Purchase Order, subject to the following
conditions for the value more than Rs. 25,000/-.
(i). Provided the order value of the proposed Purchase Order (P.O) is not in excess
of the old Purchase Order
(ii). The Old Purchase Order was placed after following the prescribed norms i.e
inviting tender processes
There has been no downward trend in the prices since the old purchase order was
placed.
(iii) The repeat P.O can be issued with in 6 months from the original P.O
(iv) Repeat purchase order should be placed only with the approval of the Competent
authority i.e sanctioning authority and there should be a mention as “ Repeat
Order”.
(v) Repeat Purchase Order shall be issued by the same Purchasing Authority who
issued the previous one.
Clarification: “Repeat P.O.” can not be issued against the Old/Original Purchase Order
which was issued by any office/ region/ State Unit/Mission of GSI other than one that
intends to issue the “Repeat P.O.”
(vi) The item, supplier and price will remain same as was in Previous P.O.
(vii) The quantity of the Repeat P.O. is not exceeding to the Previous P.O.
Subject to fulfilling of all above criteria, a Repeat Purchase Order can be placed.
Note:1) The above clause may be followed meticulously in exceptional cases and in grave
urgency based on the recommendation of the PAC /CPMC and approval of the competent
authority.
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93. WATCHING OF DELIVERY:
It shall be the duty of the concerned Consignee to watch progress of delivery against Purchase
Orders placed by the purchase section. The date of delivery shall mean - the date on which the
stores in good conditions as per the PO are actually delivered to the consignee. If the supply is not
received on or before the Delivery Date as mentioned in the P.O., the consignee will intimate the
non-receipt intimation to the concerned Purchase section.
94. REMINDER FOR OVER DUE DELIVERIES:
When a firm does not affect deliveries according to the dates stated in the purchase orders, the
consignee should intimate the AP&M (M.M.D.) Division / Purchase Section about the same. The
AP&M Division, on receipt of consignee’s intimation or even otherwise also where no intimation
about the delivery of the stores has been received from the firm, shall remind the firm in the form
prescribed below. A limit of certain number of working days according to the distance of the
firms' headquarters should be given to the firm for replying:
: Format of Reminder for overdue deliveries:

To
M/s_____________
Ref: P.O.No. and date
Dear Sirs,
The following is a list of items which should have been delivered before the scheduled delivery
date…………:
1. ………
2. ………
It is requested to intimate the reason for failing the delivery date to execute the delivery and
probable date of early delivery.
Please note that the Geological Survey of India reserves the right to levy penalty for your default
in not complying with the delivery date stipulated in the purchase order.
Your reply should reach this office by …………. (date).
This reminder is issued without prejudice to our legal rights in the matter.
Yours faithfully,
Purchase Officer.
95. LIQUIDATED DAMAGES:
There should be a suitable provision in the terms & conditions of the contract for claiming
liquidated damages of appropriate amount from the supplier to take care of delays in supplies and
performance, for which the supplier is responsible. Such recovery through liquidated damages
should be without prejudice to the other remedies available to the purchaser under the terms of
the contract. Depending on the nature and value of the goods to be ordered and the urgency of the
requirement, a specific percentage of the delayed goods (or delayed services) for each week or
part thereof delays, is to be incorporated in the contract terms; Generally, the percentage is 2%
per month or part thereof. There should also be an appropriate maximum limit of such deduction,
to be shown as a specific percentage of the contract value of delayed supplies /services and
incorporated in the contract terms. This percentage is generally 10%. Any lower ceiling should be
clearly justified while formulating the contract.
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96. TOKEN LIQUIDATED DAMAGES:
There may be situations when charging full Liquidated Damages may not be justified as the
reasons for delay in delivery by the supplier may be largely due to circumstances well beyond
under his control but nevertheless these may not be considered adequate to waive off liquidated
damages altogether or there may be such deficiencies in service for which quantification may not
be feasible and no other remedy may be available. In such case, at the sole discretion of the
purchaser, Token Liquidated Damages up to 10% of the normal Liquidated Damages may be
imposed by the Competent Authority with the approval of IFA. Stipulations to this effect,
prescribing the kind of deficiencies and scale of Token Liquidated Damages chargeable should be
clearly brought out in the tender documents. This safeguard should be consistent with the
provisions of Performance Security.
97. POWERS FOR LIQUIDATED DAMAGE ETC.:
The powers of recovery of liquidated damages/ cancellation of order/risk purchase/refund or

forfeiture of security lies with the sanctioning authority. Recommendation for such action will be
made by the COS/DCOS/ OIC of AP&M Div.
98. PRICE PREFERENCE:
From time to time Govt. of India, Ministry of Industry, Small Industries Development
Corporation now Ministry of Micro, Small and Medium Enterprise (MSME) formulate the
policies towards the procurement of goods from Small Scale Industries (SSI) firm registered with
National Small Industries Corporation (NSIC), and accordingly, some benefit provided under the
scheme are (Development Commissioner (SSI) Letter No. D.O. No.21 (1)/98-EP&M Dt.
14.10.1999 and F.No. 22(1)/2003/EP&M dated 29.07.2003 and Public Procurement Policy for
Micro and Small Enterprises (MSEs) Order, 2012 Dt. 23rd March 2012
a). Issue of tender sets free of cost.

b). Exemption from payment of Earnest Money
d). Price Preference up to 15% over the lowest quotation of Large Scale Units (on
merits), however, if the SSI has established as a supplier, no price preference need be
given.
Example: The evaluated cost of lowest acceptable offer, which is from a large scale sector is
Rs.100/-. The evaluated cost of an acceptable offer from a Small Scale Unit, which is registered
with MSME/NSIC is between Rs.101/-to 115/-. This SSI is entitled to get the order at its quoted
price.
Also the price preference admissible to SSI unit is not mandatory, it is to be decided on case to
case basis, in consultation with finance and mention to that effect should make in the Notice
Inviting Tenders (NIT) / Expression of Interest/ Request for Proposal (RFP)
*Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 Dt. 23 rd March, at
point No.6 reads as : allowed to supply a portion of requirement by bringing down MSME price to
L1 price in a situation where L1 price is from some one other MSE and such MSE shall be allowed to
supply upto supply 20 percent of total tendered value
99. PURCHASE PREFERENCE/ Domestic Preferences in Public Procurement
As per the extant Govt. Policy the Central Public Sector Undertaking (CPSU) gets purchase
preference as per the Government O.M issued from time to time. Regarding Domestic
preferences in Public procurement OM No.F.18/3/2017-PPD Dt.06-04-2017, and Rule 153 (iii) of
GFR 2017 (GSI Circular attached in this manual)
**********
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CHAPTER – II
IMPORT PURCHASE
100. The necessity of Import Procurement :
a) Material sought to be imported is not available in India

b) Material available in India is not up to expected quality required for
scientific work
c) The material/spares proposed for import is only suitable for the existing
machine.
101. IMPORT PROCUREMENT PROCESS
Import procurement is similar to Indigenous Procurement up to the stage for placement of

Purchase Order.
The additional steps required for Foreign/Import Procurement are:
i). Tender Enquiry Heading should be “Global Tender Notice” for advertisement
ii). Copies of the tender notice to be forwarded to Indian Embassies and to
Consulates /Embassies on whose country likely suppliers may exist.
iii). Payment to be made in Foreign Currency/ remittance of money
iv). The terms and conditions for foreign purchase are different from those of
Indigenous.
v). The terminology for import procurement should be as per the International
Commercial Terms (INCO TERMS) formed by International Chambers of
Commerce (ICC) Paris.
vi). The consignment has to be cleared from customs authorities for air and sea
consignment.
102. SELECTION OF SUPPLIER

Same as Indigenous Procurement taking additional aspects into consideration i.e, Insurance,
Freight, Conversion of Currency and Indian Agency Commission, etc.,
103. CONVERSION OF CURRENCY:

If offers have been received in different currencies for foreign procurements all the quoted prices
(with different currencies) are to be converted in to a single currency for evaluation and
comparison of offers on equitable basis. For this purpose, all such quoted prices are to be
converted in to Indian rupees, as per the selling exchange rates established by RBI / SBI bank
in India on the date of Price / Financial Bid opening ( now it is automatically converted by the
CPP portal). The Indian Agency Commission, if any will also be worked out accordingly. The
Indian Agency Commission, quoted by the firm, generally forms a part of Ex: works value.
104. INDIAN AGENCY COMMISSION:
[a] Payment of Indian Agency Commission, to the OEM / Principal’s authorized agent in
India is permissible up to the limit of the Agency commission charged by the Principal
in the Tender and to be paid invariably in INR.
[b] The Indian Agency Commission if any, should be released through Party Bill Section
for payment in INR, only after satisfactory completion of all clauses of Purchase order
including supply, installation, commissioning and training clauses.
[c] There should be clear mention in the P.O. (in endorsement copy of the Indian Agent)
about the amount in INR which will be paid as Indian agency commission. This
conversion from foreign currency into INR will be made as per price bid opening
date.
49
[d] Payment of the Indian agency commission only for that INR amount as mentioned in
the P.O. will be made on any later day after completion of all PO terms satisfactorily
against the claim/ Invoice submitted by the Indian agent.
[e] The enlistment of Indian Agent: Ministries/Department is if they so required may enlist
Indian agents who desire to quote directly on behalf of their foreign principals
(N.F.26/2/2016-PPD) O.M of Govt. of India, Ministry of Finance, Dt.25-07-2017)
105. REMITANCE / PAYMENT TO THE SUPPLIER ABROAD.
When an International procurement is contemplated, the seller is not aware of the buyer, similarly
the buyer is not aware of the seller and hence exchange of goods and services against value
becomes difficult. Difference in currency and applicable laws of the country makes foreign
procurement further difficult. It is therefore to take care the interest of the both parties i.e. seller
and buyer (Importer and Exporter) the Documentary Credit is introduced which is governed by
the norms of the International Chambers of Commerce.
[a] In general there are 3 modes of making payment to the suppliers abroad:
1) Through Irrevocable Letter of Credit
2) Payment against Delivery through wire transfer/SWIFT
3) Credit Payment through wire transfer/SWIFT/Demand Draft after acceptance of
the material by the inspection committee.
106. APPROVAL FOR MAKING PAYMENT ABROAD:
Approval for making payment to the foreign supplier abroad by any mode of remittance is to be
obtained from the concerned sanctioning authority before approaching for such remittance or at
the time of obtaining financial sanction.
107. LETTER OF INTENT:

On the basis of selection of supplier by the committee, necessary expenditure sanction, and
permission for opening of the LC to be obtained from the Competent Authority. Accordingly, a
‘Letter of Intent’ will be issued to the supplier seeking Performance Security amounting to 10%
of the value of the stores.
Note: It is observed that for small value procurement, such as spares and consumables, the
supplying firm neither agrees for L/C procurement nor for arranging Performance
Security. It is therefore, wherever necessary for small value procurement say up to 10,000
USD are equivalent sum it become inevitable to waive off PS as well as LC procurement.
The alter foreign procurement process i.e CAD / SWIFT etc., is required to be applied.
108. CONTRACT / PLACING ORDER
The P.O must include all the terms and conditions, essential elements such as full description of
the material with specifications, price terms as FOB/ FCA/ CIP ctc,. Payment terms, Training if
any, required negotiable documents guarantee / warrantee period, agency commission if any,
delivery date etc,. (A copy of the Imports PO is as per Format - Form No. 3)
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109. LETTER OF CREDIT (L/C):
[a] A Letter of Credit is signed instrument embodying an undertaking by the banker of the
buyer to pay the seller a certain sum of money on presentation of documents
evidencing shipment of specified goods and subject to compliance with the stipulated
terms and conditions. The Letter of Credit is a distinct and separate transaction from
the contract on which it is based (PO in our case).
[b] There are generally in all 4 parties involve to the LC viz, Importer, exporter, and the
two banks located in the respective countries of the buyer and seller. All the parties to
the L/C have certain rights and responsibilities which are described in Uniform customs
practice for documentary credit (UCPDC –600) which has come in to effect from
1.1.1994 evolved by International Chamber of Commerce.
[c] The Letter of Credit procurement is adopted generally for costly and sophisticated
equipment. In this process the bank stands as the guarantor for making payment to the
foreign supplier only after receiving the document by bank evidencing the dispatch of
the goods by the supplier. Under the prevailing international terms (UCPDC –600) all
Letter of Credit are called Irrevocable Letter of Credit. Hence once the letter of credit is
opened, during its validity neither importer nor seller can back out from their
commitments, unless agreed mutually.
[d] The payment for Letters of Credit can be in one of the following modes mutually
agreed.
1). By Sight payment: - i.e. immediate payment on receipt of the documents generally by
Swift.
2). Deferred Payment: - i.e., the payment is made after a schedule deliberation as agreed
earlier such as 15 days, 30 days etc,.
3). By Acceptance: - generally known “Usance Credit” by acceptance of the L/C applicant,
this is also similar to ‘deferred payment’.
4). Payment after Negotiation: In this mode of payment the payment is released after
negotiation. GSI generally procure the materials through L/C with negotiable
Payment Terms. The negotiation period is normally 21 days.
110. DOCUMENTARY COLLECTION- CAD PAYMENT:
[a] The ‘Documentary! Collection’ is a process of collection of sum from the buyer by a
designated bank for making payment to the beneficiary against delivery of documents.
The Cash Against Documents (CAD) and Delivery Against Payment (DP) are generally
adopted for small value purchases and when the beneficiary firm does not accept the
Letter of Credit Procurement.
[b] Capital equipment and large procurement by foreign purchase are processed by
means of Letter of Credit (L/C). However, for small value purchases,
generally procurement of spares, consumables, etc, the beneficiary firm insists for CAD
/DA payment. The basic reason for not accepting L/C payments by foreign suppliers is
the L/C operating charges in the foreign countries is very high and amounts to substantial
part of the foreign procurement expenditure.
[c] For the purpose of exchange control, purchase of goods by the India from Nepal or
Bhutan will not be treated as import and no remittance of foreign exchange will be
allowed. The same are to be paid in Indian Rupees.
51
111. LC PAYMENT TERM:
Note: It is observed that as per the International Norms for foreign procurement
Irrevocable L/C is required to be opened. The L.C amount is considered as utilized only if
the L.C negotiable documents confirming the dispatch of the consignment are surrendered
to the bank. The present norms are to make 90% payment against dispatch documents and
balance 10% after satisfactory installation, training etc., in some exceptional it may be 80%
and balance 20% on mutual agreement.
On close scrutiny it is observed that 10% payment is carried forward to the next financial year,
amounting to surrender of this 10% amount. Also there may be instances where 90% payment
also could not be utilized. On the both instances the surrender is inevitable. This attracts the audit
objection and the attention of the Parliamentary Board.
It is therefore advised to ensure that
1). LC is opened such that the consignment is received well in advance of closing financial year.
2). To explore possibilities of LC payment terms, as given below on case to case basis by
incorporating in our payment terms.
Under the above payment terms though 90% funds will be allocated and LC will be opened for
100% value and balance 10% will be paid with afresh funds allocation.
b) In case of items procurement from abroad and payment through LC, the term
should be, normally, through Irrevocable L/C and 90% against dispatch documents and
balance 10% after receipt and satisfactory installation. in some exceptional it may be
80% and balance 20% on mutual agreement.
c) The alternate payment terms are CAD /DA and other payment terms as per the
necessity after receipt of material. Every effort should be made to protect the public
interest.
112. DIFFERENT PARTIES INVOLVED TO A LETTER OF CREDIT ARE:
1). Applicant: Customer (Importer) at whose request the LETTER OF CREDIT is opened by the
bank.
2). Issuing Bank: The Bank which issues (or opens) the letter of credit . The LC issuing bank’s
liability to pay and to be reimbursed from its customer becomes absolute upon the completion of
the terms and conditions of the Letter of Credit. The Issuing bank’s role is to provide a guarantee
to the seller that if compliant documents are presented, the bank will pay the seller the amount
due after verifying the documents as per Terms and Conditions of LC. The issuing bank is not
liable for performance of the underlying contract between the customer and beneficiary. The
issuing bank’s obligation to the buyer, is to examine all documents to ensure that they meet all the
terms and conditions of the Letter of Credit.
3). Beneficiary: The firm /person in whose favour L.C is issued, he is the supplier of goods. The
beneficiary is entitled to get payment as long as he can provide the documentary evidence
required by the Letter of Credit.
52
4). Advising Bank: The bank through which the LC is advised to the beneficiary, will be situated
in beneficiary’s country. This Advising Bank usually a foreign correspondent bank of the issuing
bank who will advise the beneficiary. If the issuing bank does not pay to the Advising Bank /
Beneficiary, the advising bank is not obliged to pay.
5). Negotiating Bank: The bank which negotiates the document drawn under the LC and
presented by the beneficiary is called negotiating bank. This bank will be situated in beneficiary’s
country. Generally, the advising bank also under takes the negotiation and hence it can be
advising and negotiating bank for the beneficiary.
113. OPENING OF LETTER OF CREDIT (L/C).
[a] The Purchase Order placed by GSI to the beneficiary firm with advise to
acknowledge it, certifying the acceptance of PO and its terms and conditions of
the contract. Accordingly, on receipt of the confirmation or Order
acknowledgement as well as the Bank Guarantee towards Performance Security
from the supplier, the importer (GSI) will approach his banker through Controller
of Accounts (COA) / Pay and Account Office (PAO) for opening of the L/C as
per terms and conditions of the contract (P.O). The approach for opening L/C is
to made through an application in prescribed format of the issuing bank .
Accordingly, the COA /PAO authorizes the GSI bank (normally UCO Bank) to
open the L.C.
[b] The Bank after opening of L.C, transmit the LC to the advising bank for onward
transmission to the beneficiary firm (Foreign Supplier), by SWIFT. The supplier
will go through the LC after it is received through the advising/negotiating bank
at overseas and will confirm the same if it is in order or will ask for amendments,
if necessary.
[c] Normally, Irrevocable LC is to be established.
[d] L/C will be opened for 100% of the Purchase Order/ Order acknowledgement
value with the instruction to make the payment as the P.O. payment clause.
114. REQUISITE DOCUMENTS TO BE FORWARDED FOR OPENING OF LETTER

OF CREDIT.
Following documents under a forwarding letter are to be submitted to the concerned PAO of GSI:
a) Application addressed to bank for opening of LC (as per the issuing bank’s format)
b) Purchase Order and amendments of PO, if any,
c) Order acknowledgement received from the vendor.
d) Sanction Order
e) Copy of Performance Bank Guarantee, if furnished by supplier as per PO clause.
f) Any other documents as required by the LC opening Bank.
PAO, in turn, with their approval and clearance will forward these documents to the LC issuing
bank.
115. ADVANCE PAYMENTS CLAUSE IN LC:
[a] Advance payments should be avoided as far as possible. However, in case of

import of capital equipment and high value items, GSI may pay advance up to
30% of FOB (gateway airport) value of the supply order / contract to the foreign
firm against proforma invoice and bank guarantee of equivalent amount i.e 30%
, when insisted upon by the firm before effecting payment and with special
permission form Competent Authority / Ministry.
53
[b] In case of orders placed on departments of foreign governments, government

research institutions etc, the department (GSI) may make 100% advance payment
or milestone payments on demand from the Foreign Government after obtaining
Bank Guarantee equivalent to advance payment, to protect the public interest.
116. VALIDITY OF L.C:
Normally validity of L.C is to be kept based on the period sought by the supplier to deliver the
ordered stores in the tender or mutually agreed.
117. INSURANCE COVER FOR IMPORTING ITEMS.
[a] Wherever necessary, the goods supplied under the contract, shall be fully insured
in a freely convertible currency against loss or damage incidental to acquisition,
transportation, storage and delivery in the manner specified in the contract. If considered
necessary, the insurance may be done for coverage on “all risks” basis including war
risks and strike clauses. Since the GSI imports sophisticated and costly equipments the
insurance coverage should be preferable from! exporters’! warehouse! to! importer’s
warehouse. The amount to be covered under insurance should be sufficient to take care
of the overall expenditure to be incurred by the purchaser for receiving the goods at the
destination.
[b] Where delivery of imported goods is required by the purchaser on CIP basis, the
supplier shall arrange and pay for marine/air insurance, making the purchaser as the
beneficiary. In that case, GSI should seek the quotation for “on CIP basis” and the P.O.
should be embodied with CIP clause and amount.
[c] Where delivery is on FOB/FAS basis, marine/air insurance shall be the

responsibility of the purchaser.
118. AIR CONSIGNMENT
Airlifting of the imported goods from abroad will be done Preferably through the National Carrier
i.e. Air India wherever applicable, in case of procurement on FOB/FCA basis. However, before
processing any contract involving import of goods through air, contemporary instructions in this
regard may be ascertained and followed. In case where Air India Flight do not operate or not in
convenient mode felt by the consignor or their freight forwarder, any other carrier can be availed.
119. FOLLOW-UP OF SHIPMENT :
[a] After establishing the letter of credit the importer has to intimate the details of
L/C to the supplier and subsequently follow up the supplier for prompt shipment of the
goods within the validity of the L/C or earlier.
[b] Wherever necessary, extension for validity of LC or any other amendment to L/C
can be authorized / allowed through the issuing bank considering merit of each case,
positively against written request from the supplier.
120. RETIREMENT OF DOCUMENTS:
[a] As soon as the goods are shipped by the supplier they will send the original
documents such as Bill of Lading (B/L – in case of consignment booked by ship) or Air
Way Bill (AWB), Invoice, Packing Slip, Warranty Certificates, Country of Origin etc., to
the negotiating bank and one set of non-negotiable documents to the importer(GSI)
directly. The importer (GSI) basing on the advance intimation received by fax / courier
54
will prepare Reserve Bank of India prescribed Form – A1 and submit to LC opening bank
along with advance intimation documents for arranging 90% payment (as mutually
agreed) to the beneficiary firm. [The LC opening Bank then, in some cases, delivers the
original documents to the applicant (Importer) for scrutiny of documents, the importer
verifies the documents and if found confirming to L/C terms, he certifies the same by
endorsing his signature with a stamp and returns the documents to the bank.] This process
is called Retirement of Documents.
The L/C opening bank on receipt of retired documents from importer verifies at their end and
endorses their certification. The L/C opening bank then advises the freight forwarder / carrier to
issue ‘Delivery!Order’, for facilitating release of consignment from customs.
The Freight Forwarder collects the charges for handing over Delivery Order to the importer. (GSI
will collect the delivery order form Bank and hand over to Clearing agent to collect “Delivery
Order” from foreign freight forwarder agent in station).
[b] In case of non-receipt of original Documents in a reasonable time by the LC
Opening Bank of the importer, to avoid demurrage and warphage charges, may submit
Indemnity Bond (AWB-- LC) as per bank format, (Annexure - G) to the bank for issuing
Authorization Letter, for collection of Delivery Order from Freight Forwarder.
[c] The Delivery Order is then submitted to the Clearing Agent for taking delivery of the
goods from the carriers/ Customs Authorities.
121. CUSTOMS AND PORT CLEARANCE:
[a] The following documents will be made available to the clearing agency well in
advance of the landing of consignment to facilitate clearance of air/ship consignments
with payment of Customs Duty/ Duty Exemption Certificate.
1. Original Bill of Lading duly endorsed by bank and consignee (for ship
consignments)
2. Original Air Way Bill (AWB)and delivery order (for air consignment)
3. Invoice
4. Packing List
5. Copy of Purchase Order
6. Technical Write-up and descriptive illustrated catalogue / literature in regard to
the consignment
7. Customs Duty Exemption Certificate (CDEC) if available
8. Delivery Order from carrier
9. And any other relevant documents viz
a) Essentiality certificate etc,.
b) Clearance for restricted items from Directorate General of Civil Aviation
(DGCA) / Bhava Atomic Research Center (BARC)
c) End User Under Taking in prescribed proforma provided by the supplier etc,.
[b] All goods imported into India have to pass through customs even the government
goods. The goods are examined, tested, appraised, assessed and the Customs Duty
wherever applicable is levied.
[c] The office of the Assistant Director (Shipping), DGS&D under Department of
Supply to the Government of India acts as clearing agents for Govt. departments. Their
services are available in most Metro Cities.
55
122. (A) DEMURRAGE / WAREHOUSE / TERMINAL CHARGES:
Any expenditure incurred as demurrage / warehouse charge is construed as cash loss and hence,
there should endeavor to clear all foreign consignments promptly to avoid payment of demurrage
/ warehousing charges.
(B) LOSS / DAMAGE / SHORT-LANDING:

If, loss / damages are suspected physically from outside before clearing, the matter is to be taken
up by the clearing agent. The case is to be resorted by the Indian agent of the supplier and the
carrier.
(C) SHORT SUPPLY

In case of short supply etc., noticed at consignee’s place, the same is also to be resolved by the
Indian Agent of the supplier, since the package of consignment is normally to be opened by them
and it is supplier’s duty to supply the stores as per the P.O.
123. INSTALLATION OF THE EQUIPMENT:
The indentor should ensure that the installation of the equipment is done within the 60 days after
receipt of the equipment by import or procured from local market .
124. ACCEPTANCE & ACCOUNTING OF IMPORTED STORES
The procedure for acceptance, inspection and accounting of imported stores will be the same as
applicable for indigenous items.
125. BALANCE 10% PAYMENT TO THE PARTY/ FIRM.
On receiving information form the end user / indentor regarding, complete delivery, installation,
satisfactory performance report of the instrument and completion of training, the balance 10%
payment will be made to the foreign firm through bank. In this case a fresh A1 form for the
balance 10% amount is to be submitted to the bank with the instruction to release the payment.
126. FORWARDING OF ORIGINAL EXCHANGE CONTROL COPY OF BILL OF

ENTRY
[a] After receipt of the Import Consignment, the clearing agent forwards two (2) copies of
Bill of Entry to GSI (Importer) duly signed and stamped by Customs Authority. These are
1) Exchange Control copy 2) Importer’s copy.
The Exchange Control copy of the Bill of Entry is to be forwarded to the LC opening bank
evidencing Import of goods in to India, for onward transmission to RBI, thus completing the
foreign purchase transaction.
Note: The non-submission of exchange control copy of Bill of Entry to RBI through bank attracts
punishment under Foreign Exchange Regulation Act (FERA).
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56
CHAPTER –III
127. ANNUAL MAINTENANCE CONTRACT/ COMPREHENSIVE ANNUAL
MAINTENANCE CONTRACT FOR INSTRUMENTS / EQUIPMENTS
127.1. ANNUAL MAINTENANCE CONTRACT (Popularly known as AMC/CAMC)
1.1 Maintenance Contract is normally concluded with a vendor for service,

preventive maintenance and maintaining smooth continuous functioning of machineries.
Normally it is concluded for a year period and is called ANNUAL MAINTENANCE
CONTRACT (Popularly known as AMC), as well in Comprehensive Annual
Maintenance Contract (popularly known as CAMC)
1.2 The machineries, e.g. any equipment/ instrument/ Computers and its peripherals/
Air Conditioner/ Office equipments which need periodic maintenance may be brought
under purview of AMC/CAMC provided (a) the item (machinery) should be an asset of
GSI and (2) Warranty/ Guarantee Period of the item (machinery) has expired.
1.3 The Head of the User Division of the item (machinery) will moot the proposal for
concluding of AMC/CAMC if he/she feels it essential. The proposal should be complete
with Machine description, cost, OEM, date of purchase/installation,
warranty/AMC/CAMC last expired or date of expiry coming forth. Justification for
proposing AMC/CAMC.
1.4 Purchase Advisory Committee’s recommendation is not essential, irrespective of

any financial amount involved, for the proposed AMC/CAMC of the machine if the
machine is to be maintained/serviced/repaired by the Original Equipment Manufacturer
(OEM) or their authorized service representative.
1.5 After receipt of such proposal from the Head of the User Division, the concerned
Section (of Asset Procurement and Management Division) will obtain quotation and
T&C from the Original Equipment Manufacturer (OEM) or their authorized service
representative. The Head of User Division will confirm the T&C of the Original
Equipment Manufacturer (OEM) or their authorized service representative for
AMC/CAMC. If needed, the concerned section of APM divn. will negotiate with the
vendor on commercial as well as in technical matters. Financial Sanction (for the amount
covering six months period of the AMC/CAMC – see Para 1.5 below) from the
sanctioning authority and funds allocation from budget section are to be obtained. Then
the AMC/CAMC can be concluded with Original Equipment Manufacturer (OEM) or
their authorized service representative for the period, T&C, value as per the quotation or
as settled after negotiation.
1.6 In case of Maintenance contract, (As per Rule 172 (1)(i) of GFR 2017) advance
payment can be made to the vendor, at the beginning of the contract
1.7 The AMC can be Comprehensive (i.e. maintenance and repair with supply of
Spare Parts by the vendor) or Non- Comprehensive (i.e. maintenance and repair without
supply of Spare Parts by the vendor). Different vendors use different nomenclatures for
Comprehensive or Non-Comprehensive AMC even with different terms and conditions.
All sorts of Maintenance Contract for machineries will be dealt in GSI by observing same
formalities. Terms and Conditions of the Contract can be negotiated and settled with the
vendor as per suitability of User/GSI and Government rules, if found necessary, before
entering into the AMC.
57
1.8 Preference should be given to the Original Equipment Manufacturer (OEM) or

their authorized service representative for maintaining the machineries and so
AMC/CAMC should be concluded with the Original Equipment Manufacturer (OEM) or
their authorized service representative. In case when the Original Equipment
Manufacturer (OEM) or their authorized service representative, for any reason, expresses
(in writing) their inability for entering into AMC/CAMC and maintain/service/repair of
the machine, the AMC/CAMC can be concluded with any vendor other than the Original
Equipment Manufacturer (OEM) or their authorized service representative.
1.9 In case when the AMC/CAMC is not concluded with the Original Equipment
Manufacturer (OEM) or their authorized service representative and the expenditure
involvement estimated beyond Rs. 25,000/=, the proposal of the Head of the User
division for need of AMC/CAMC is to be got examined by a Jr./Sr.PAC (as needed for
Purchase process) and approval of the Sanctioning Authority is to be obtained. Then, the
concerned section of APM Divn. will invite Limited Tenders from probable service
providing vendors, by post as well as through GSI Website. A duly constituted Jr./Sr.
TAC (as needed for Purchase process) will evaluate the tenders. Financial Sanction (for
the amount covering six months period of the AMC/CAMC – see Para 1.5 at last Page)
from the sanctioning authority and funds allocation from budget section are to be
obtained. Then the AMC/CAMC can be concluded with the selected firm for the period,
T&C, value as per the quotation or as settled after negotiation.
Manufacturer (OEM) or their authorized service representative, renewal of the
AMC/CAMC with the same vendor is permissible for continuously three years, including
the first year of entering into the contract, provided (1) the service rendered by the firm
during preceding period of Contract is satisfactory and confirmed by the Head of the User
division (2) Charge / cost of AMC (excluding statutory tax components) is not increased
(3) T&C is not changed.
1.11 In case when the AMC/CAMC is concluded with the Original Equipment
Manufacturer (OEM) or their authorized service representative, renewal of the AMC/
CAMC with them will continue till prices not revised excluding statutory charges.
1.12 For the purpose of renewal, examining the proposal of the Head of User
division, Jr. PAC / Sr.PAC’s vetting is essential. However Performance Security
Deposit @ 5 to 10% of the contract value will be obtained from the firm after issuing Job
Order and before making payment
1.13 The Asset Procurement and Management Division will issue a job Order/Work
Order for entering into AMC stating Period of AMC, T&C, Cost etc. and attach signed
prescribed form of the firm, if any.
1.14 Income Tax Rule for TDS (Tax deducted at source) will be applicable in case of
AMC for making payment since it will be treated as service and the rate of TDS will be
as per the relevant rule prevailing during the AMC period.
Manufacturer (OEM) or their authorized service representative, Bid Security Deposit is to
be obtained with Tenders. Performance Security Deposit @10% of the order value will
be obtained from the firm after issuing Job Order and before making payment. Norms for
obtaining and returning of BSD and PSD will be same as that of Purchase Process.
58
1.16 For some sophisticated equipments where there is no appropriate agency for its’
maintenance exists in the country. The maintenance of the equipments may require visits
of principle supplier from abroad and hence the advisory committee has examine the
expenditure involved in traveling lodging etc, as may be required by the maintenance
agency of abroad. This requires expeditious action by the indenting division, the
committee and the AP & M Division to avoid disruption of the functioning of the
equipment.
1.17 Advance payment to the AMC/CAMC holder has to be dealt exclusively as per
Rule 172 of GFR 2017.
*********
59
CHAPTER-III-A
128. PROCUREMENT OF SERVICES
128 (A) - OUTSOURCING OF CONSULTING SERVICES
1. "Consulting Service" means any subject matter of procurement (which as distinguished

from ‘Non- Consultancy Services’ involves primarily non-physical project-specific, intellectual
and procedural processes where outcomes/ deliverables would vary from one consultant to
another), other than goods or works, except those incidental or consequential to the service, and
includes professional, intellectual, training and advisory services or any other service classified or
declared as such by a procuring entity but does not include direct engagement of a retired
Government servant. (Rule 177 of GFR 2017)
Note: These Services typically involve providing expert or strategic advice e.g., management
consultants, policy consultants, communications consultants, Advisory and project related
Consulting Services which include, feasibility studies, project management, engineering services,
finance, accounting and taxation services, training and development etc.
2. Department may hire external professionals, consultancy firms or consultants (referred to

as consultant hereinafter) for a specific job, which is well defined in terms of content and time
frame for its completion (Rule 178 of GFR 2017)
3. The fundamental principles applicable, regarding engagement of consultant(s). Detailed

instructions to this effect may be issued by the concerned Ministries or Departments. (Rule 179 of
GFR 2017)
4. Identification of Services required to be performed by Consultants: Engagement

of consultants may be resorted to in situations requiring high quality services for which the
concerned Ministry/ Department does not have requisite expertise. Approval of the competent
authority should be obtained before engaging consultant(s).( Rule 180 of GFR 2017).
5. Preparation of scope of the required Consultant (s ) : The Departments should prepare in

simple and concise language the requirement, objectives and the scope of the assignment . The
eligibility and prequalification criteria to be met by the consultants should also be clearly
identified at this stage. (Rule 181 of GFR 2017)
6. Estimating reasonable expenditure: Ministry or Department proposing to engage

consultant(s) should estimate reasonable expenditure for the same by ascertaining the prevalent
market conditions and consulting other organisations engaged in similar activities. (Rule 182 of
GFR 2017)
7. Identification of likely sources. (Rule 183 of GFR 2017)

(i) Where the estimated cost of the consulting service is up to Rs. 25.00 Lakhs (Rupees twenty-
five lakhs), preparation of a long list of potential consultants may be done on the basis of formal
or informal enquiries from other Ministries or Departments or Organisations involved in similar
activities, Chambers of Commerce & Industry, Association of consultancy firms etc.
(ii) Where the estimated cost of the consulting services is above Rs. 25.00lakhs
(Rupees twenty-five lakhs), in addition to(i) above, an enquiry for seeking ‘Expression of Interest
( EOI) ’ from consultants should be published on Central Public Procurement Portal (CPPP) at
www.eprocure.gov.in, GeM and GSI Website. Enquiry for seeking Expression of Interest should
include in brief, the broad scope of work or service, inputs to be provided by the Department,
eligibility and the pre-qualification criteria to be met by the consultant(s) and consultant’s past
60
experience in similar work or service. The consultants may also be asked to send their comments
on the objectives and scope of the work or service projected in the enquiry. Adequate time should
be allowed for getting responses from interested consultants.
8. Short listing of consultants. On the basis of responses received from the

interested parties as per Rule 183 above, consultants meeting the requirements
should be short listed for further consideration. The number of short listed consultants should not
be less than three.( Rule 184 of GFR 2017)
9. Rule 185 Preparation of Terms of Reference (TOR).

The TOR should include
(i) Precise statement of objectives.
(ii) Outline of the tasks to be carried out.
(iii) Schedule for completion of tasks.
(iv) The support or inputs to be provided by the Department to facilitate the
consultancy.
(v) The final outputs that will be required of the Consultant.
10. Preparation and Issue of Request for Proposal (RFP). RFP is the document to
be used by the Department for obtaining offers from the consultants for the required service. The
RFP should be issued to the shortlisted consultants to seek their technical and financial proposals.
The RFP should contain:
(i) A letter of Invitation
(ii) Information to Consultants regarding the procedure for submission of proposal.
(iii) Terms of Reference (TOR).
(iv) Eligibility and pre-qualification criteria in case the same has not been ascertained
through Enquiry for Expression of Interest.
(v) List of key position whose CV and experience would be evaluated.
(vi) Bid evaluation criteria and selection procedure.
(vii) Standard formats for technical and financial proposal.
(viii) Proposed contract terms.
(ix) Procedure proposed to be followed for midterm review of the progress of the work
and review of the final draft report. (Rule 186 of GFR 2017)
11. Receipt and opening of proposals Proposals should ordinarily be asked for from
consultants in ‘Two bid’ system with technical and financial bids sealed separately. The bidder
should put these two sealed envelopes in a bigger envelop duly sealed and submit the same to the
Ministry or Department by the specified date and time at the specified place. On receipt, the
technical proposals should be opened first by the Ministry or Department at the specified date,
time and place.(Rule 187 of GFR 2017)
12. Late Bids. Late bids i.e. bids received after the specified date and time of receipt should
not be considered.(Rule 188 of GFR 2017)
13. Evaluation of Technical Bids: Technical bids should be analysed and evaluated by a
Consultancy Evaluation Committee (CEC/TEC) constituted by the Department. The CEC/TEC
shall record in detail the reasons for acceptance or rejection of the technical proposals analysed
and evaluated by it.(Rule 189 of GFR 2017)
14. Evaluation of Financial Bids of the technically qualified bidders: The Department shall
open the financial bids of only those bidders who have been declared technically qualified by the
Consultancy Evaluation Committee/TEC as per Rule 189 above for further analysis or evaluation
and ranking and selecting the successful bidder for placement of the consultancy contract.( Rule
190 of GFR 2017)
61
15. Methods of Selection/ Evaluation of Consultancy Proposals The basis of selection of the
consultant shall follow any of the methods given in Rule 192 to 194 as appropriate for the
circumstances in each case. (Rule 191 of 2017)
16. Quality and Cost Based Selection (QCBS):QCBS may be used for Procurement of
consultancy services, where quality of consultancy is of prime concern.
(i) In QCBS initially the quality of technical proposals is scored as per criteria
announced in the RFP. Only those responsive proposals that have achieved at
least minimum specified qualifying score in quality of technical proposal are
considered further.
(ii) After opening and scoring, the financial proposals of responsive technically
qualified bidders, a final combined score is arrived at by giving predefined
relative weight ages for the score of quality of the technical proposal and the
score of financial proposal.
(iii) The RFP shall specify the minimum qualifying score for the quality of
technical proposal and also the relative weight ages to be given to the quality
and cost (determined for each case depending on the relative importance of
quality vis-a-vis cost aspects in the assignment, e.g. 70:30, 60:40, 50:50 etc).
The proposal with the highest weighted combined score (quality and cost)
shall be selected.
(iv) The weight age of the technical parameters i.e. non- financial parameters in
no case should exceed 80 percent. (Rule 192 of 2017)
17. Least Cost System (LCS). LCS is appropriate for assignments of a standard
or routine nature (such as audits and engineering design of non-complex work s ) where well
established methodologies, practices and standards exist. Unlike QCBS, there is no weight age for
Technical score in the final evaluation and the responsive technically qualified proposal with the
lowest evaluated cost shall be selected. (Rule 193 of 2017)
18. Single Source Selection/Consultancy by nomination. The selection by direct

negotiation/nomination, on the lines of Single Tender mode of procurement of goods, is
considered appropriate only under exceptional circumstance such as:
(i) tasks that represent a natural continuation of previous work carried out by the firm;
(ii) in case of an emergency situation, situations arising after natural disasters, situations
where timely completion of the assignment is of utmost importance;
(iii) situations where execution of the assignment may involve use of proprietary techniques or
only one consultant has requisite expertise.
(iv) Under some special circumstances, it may become necessary to select a particular
consultant where adequate justification is available for such single- source selection in the
context of the overall interest of the Ministry or Department. Full justification for single
source selection should be recorded in the file and approval of the competent authority
obtained before resorting to such single-source selection.
(v) It shall ensure fairness and equity, and shall have a procedure in place to ensure that
the prices are reasonable and consistent with market rates for tasks of a similar nature;
and the required consultancy services are not split into smaller sized procurement. ( Rule
194 of GFR 2017)
19. Monitoring the Contract. The Department should be involved throughout in the conduct
of consultancy and continuously monitoring the performance of the consultant(s) so that the
output of the consultancy is in line with the Department’s objectives.
(Rule 195 of Rule 2017)
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128 (B). OUTSOURCING OF NONCONSULTING SERVICES
1. "Non-Consulting Service" means any subject matter of procurement (which as

distinguished from ‘Consultancy Services’), involve physical, measurable deliverables /
out come s , where performance standards can be clearly identified and consistently
applied, other than goods or works, except those incidental or consequential to the
service, and includes maintenance, hiring of vehicle, outsourcing of building facilities
management, security, photocopier service, janitor, office errand services, drilling, aerial
photography, satellite imagery, mapping etc. (Rule 197 of GFR 2017)
2. Procurement of Non-consulting Services.:

The Department may procure certain non-consulting services in the interest of economy
and efficiency and it may prescribe detailed instructions and procedures for this purpose
without, however, contravening the following basic guidelines.
(Rule 198 of GFR 2017)
3. Identification of likely contractors. The Department should prepare a list of likely and
potential contractors on the basis of formal or informal enquiries from other Ministries or
Departments and Organisations involved in similar activities, scrutiny of ‘Yellow pages’,
and trade journals, if available, web site etc.( Rule 199 of GFR 2017)
4. Preparation of Tender enquiry. The Department should prepare a tender enquiry

containing, inter alia :
(i) The details of the work or service to be performed by the contractor;
(ii) The facilities and the inputs which will be provided to the contractor by the
Ministry or Department;
(iii) Eligibility and qualification criteria to be met by the contractor for performing the
required work/service; and
(iv) The statutory and contractual obligations to be complied with by the contractor. (Rule
200 of GFR 2017)
5. Invitation of Bids.
(i) For estimated value of the non-consulting service up to Rupees 10.00 (ten) lakhs or less:
The Department should scrutinise the preliminary list of likely contractors as identified
as per Rule 199 above, decide the prima facie Eligible and capable contractors and issue
limited tender enquiry (CPP Portal /e_procurement / GeM and GSI website) to them
asking for their offers by a specified date and time etc. as per standard practice. The
number of the contractors so identified for issuing limited tender enquiry/ intimation
should be more than three. If any region/ state units do not having the registed firms/
supplier, then the open tender enquiry should be made through CPP portal and GSI
portal.
(ii) For estimated value of the non-consulting service above Rs.2.00 lakhs: The
Department should issue advertisement in such case should be given on Central Public
Procurement Portal (CPP) at www.eprocure.gov.in and on GeM. An organisation having
its own website should also publish all its advertised tender enquiries on the website. The
advertisements for invitation of tenders should give the complete web address from
where the bidding documents can be downloaded. (Rule 201 of GFR 2017)
5. Late Bids. Late bids i.e. bids received after the specified date and time of receipt should
not be considered. (Rule 202 of GFR 2017)
6. Evaluation of Bids Received. The Department should evaluate, segregate, rank the
responsive bids and select the successful bidder for placement of the contract. (Rule 202
of GFR 2017)
63
7. Procurement of Non-consulting services by nomination. Should it become necessary, in

an exceptional situation to procure a non-consulting service from a specifically chosen
contractor, the Competent Authority in the Department may do so in consultation with
the financial Adviser. In such cases the detailed justification, the circumstances leading to
such procurement by choice and the special interest or purpose it shall serve, shall form
an integral part of the proposal. (Rule 204 of GFR 2017)
8. Monitoring the Contract. The Department should be involved throughout in the conduct
of the contract and continuously monitor the performance of the contractor. (Rule 201 of
GFR 2017)
9. Any circumstances which are not covered in Rule 198 to Rule 205 for procurement of
non-consulting services, the procuring entity may refer Rule 135 to Rule 176 pertaining
to procurement of goods and not to the procurement of consulting services. (Rule 206 of
GFR 2017)
Note: Manual for outsourcing of consulting and other services 2017 may be referred for any
clarifications.
128 (C). SYSTEMS IMPROVEMENT – GUIDELIE REGARDIN HIRING OF

VEHICLES BY GOVERNMENT OFFICES (O.M no.13011/50/2016/Vig.) 13-09-
2016)
The Commission has come across instances of hiring vehicles owned by near ones/ relatives of
Government servants, for operational /staff car purposes, either without following the due
processes of tendering, or by following such procedure as an empty formality by getting three or
more quotes from interested parties at pre-determined prices. It is further seen that majority of the
vehicles so hired are not registred as taxi/ transport vehicles but are registered as private vehicles,.
There are also allegations that some officers are buying high end expensive cars in the names of
their relatives or persons known to them and are taking such vehicles on lease allegedly for
official purpose .
The commission is of th view that such a practice virtually amounts to carrying on private
business by the officers which is a prohibited conduct. Accordingly, the Commission advised
Ministry of Finance and DoPT on 12.08.2016 to prescribe guidelines and procedure to crub such
undesirable practices in hiring vehicles and that an open, transparent procedure through which
vehicles registered as taxi or public transport are hired to effect systemic improvements and
prevent such undesirable practices.
As advised by the Commission, the Department of Revenue, Ministry of Finance vide Circular
No.13011/50/2016-Vig Dt. 23-09- 2016 issued instruction to prevent corrupt/ undesirable
practices in awarding contracts for hiring of vehicles to Government offices. D/o Revenue
advised all HoDs and concerned officers of the attached / subordinate offices of the Department
to ensure that in addition to the existing provision/rules for hiring of vehicles, the following
instruction are duly complied with:
(i) Relevant provision of GFR are strictly followed while hiring of vehicles,
(ii) An open, transparent tendering procedure is adopted;
(iii) Only vehicles registered as taxi or public transport vehicle are hired;
(iv) Logbook is maintained as in case of Department vehicles.
64
CHAPTER –IV
RECEIPT AND INSPECTION
129. RECEIPT
All the receipts of stores should be dealt with in a separate section known as Receipt
Section, this section should deal with all the documents relating to the stores and
materials coming into the depot and it should be independent of the wards and other
sections of the depot. The material received should be stacked in the receipt section and
on no account be mixed up with the existing stock of stores in the depot. This material
should be handed over to the stocking section only after the stores have been inspected
and are found to acceptable and any other dispute about damage etc. is settled. In case
any quantity less than the invoiced has been received i.e. there is a case of shortage, the
quantity actually received and found to be acceptable may be passed on to the stocking
section for taking in books and receipt voucher for that quantity may be released to the
firm without delay. As an exception to the above, the only heavy items of stores and large
bulky consignments may be unloaded in the stacking wards provided that the custodian
responsible for the custody of such items witnesses the unloading and acknowledges the
receipt of the correct quantity of the material. In this case also materials should not be
mixed with other stores and they should not be issued till the inspection is over and the
material is taken on the books.
129(A) RECEIPT REGISTER
All the documents covering various kinds of receipts such as invoices, Railway receipts
etc. should be noted in a receipt register in the following proforma. Separate register may
be preferably opened for separate categories of stores.
1) Serial No.
2) Date of receipt of the voucher.
3) No. and date of the voucher.
4) Consignor.
5) Station for where consigned.
6) Particulars of material
7) Ref. to railway receipt or challan in case of local delivery
8) Date of receipt of material.
9) Date of sending material to the section concerned.
10) No. or name of section to which material has been sent.
11) Stock taking certificate number and date (to be allotted by the Store keeper of the
stocking section).
12) Initials of the Custodian in acknowledgement of the material.
a). When the material has been properly received, checked and inspected it should be sent
without any delay along with all relevant documents and receipt register to the section
where the material is going to be stocked. The storekeeper will sign the register in
acknowledgement of the stores, assign the stock taking certificate and at the same time
should return to the receipt section all except the ledger foils of the voucher after signing
them.
b). The receipt register should be inspected by the Depot Officer once in a fortnight to
see that there is no avoidable delay between the receipt of the material in the depot and its
accounting in a depot ledger and that the materials are not allowed to lie in the receipt
sheds indefinitely.
65
130. INSPECTION IN CASE OF PURCHASE THROUGH GeM

(DGS&D)Guideline given in the GeM portal may be followed.
Sl. No. STORES Stock Holding Authorities

Section in
In CHQ CHQ
1. Chemical Stores DDG / Director 38
(Chemical)
2. Petrological/ Paleantological / G&IG DDG (CGL)/Director 36
Stores, etc., (CPL)
3. Geophysical Store / Survey Stores DDG / Director 50
(Geoph. Instt.),
4. Drilling, Drilling Stores and Diamond Bits Controller of Stores 27A
5. General Stores such as Tent, Camp Controller of Stores 28
equipment, furniture , fixture, Office
Equipments and Others amenities items
6 Publication ,Map Stores & Drawing Stores Dy.D.G./ Director 43
(Map & Publication) ,
7 Motor Vehicle stores including Tyres, Controller of Stores 27B
Tubes & Batteries for
8 Vehicles, Workshop Equipments and tools. CE / Sup.Eng ( 23, 24
Engineering)
9 Stationery Stores Director (Admin) 5
10 Computer, Software, Peripherals & others Controller of Stores 28B(IT)

IT Equipments
131. RELEASE OF CARC /INSPECTION NOTE Guideline given in the GeM

portal may be followed.
132. LOCAL/ NON-LOCAL/ FOREIGN SUPPLY- INSPECTION
a). Each Purchase Order should contain a clause to the effect that the contracted stores
will be inspected before delivery and/or at the time of delivery. Inspection before delivery
may be at the firm's premises or elsewhere as convenient.
b). The Inspection Committee as named in the Purchase Order or his authorised
representative should, on receipt of intimation that the stores are ready to visit the firm's
premises or any other place where the stores are held and examine them thoroughly with
reference to specification, drawings samples or any other standard as is stipulated in the

purchase order. If the inspection committee is satisfied that the stores produced are
exactly what were ordered for, they should seal or stamp them in a conspicuous manner
so as to make subsequent identification of acceptance easy. Articles too small or
inconvenient to be sealed or stamped should be bundled and then sealed or stamped. The
bundling or packing should be done in such way that the stores cannot be interfered with.
After the inspection is over, the committee will submit a report in Form No.4. The first
copy of the report should be sent to the consignee, the second to the Purchase Section and
the third should be office copy.
c). Unless there are special reasons, no further inspection by the inspection committee at
the time of delivery will be necessary in cases where the stores have been duly inspected,
accepted and sealed or stamped. The consignee should however examine the stores
66
generally to see that they bear the seal or stamp of the inspection committee are complete
in all respects and are in good condition.
d). In case of pre dispatch inspection for indigenous / factory acceptance test (FAT for
foreign purchase) inspection at the firm's promises before delivery is considered
necessary. The stores should be inspected by the committee consisting of minimum three
(3) members of different division, out three one from AP&M Division
(COS/DCOS/SM/SO) at the time of delivery. The procedure for inspection and sealing,
etc. will be the same as laid down in previous paragraph.
e). The provisions of paragraph 132 will apply also in cases where the Inspector and the
consignee are the same authority.
f). If at the time of delivery the consignee finds some stores defective or otherwise
incomplete he should immediately call upon the firm to remove the unacceptable stores
and replace them with acceptable ones at their own risk and cost. In case the firm agrees
to replacement, the usual procedure to be followed by the Inspector and the consignee as
laid down in this section should be observed. In the event of the firm's not agreeing to
replacement, the matter should be reported to the concerned purchase section for taking
appropriate action.
133. SUPPLY FROM OUTSTATIONS
a). Consignments of stores arriving by rail, sea or air will be cleared by the Transit Bay
and delivered immediately to the consignee who should unpack them without any loss of
time. The stores should now be linked with the Inspection Report issued by the Inspector
and examined in the manner laid down in paragraph 132. In case any discrepancy or
defect is noticed, the despatch instructions as stipulated in the concerned Purchase Order
should first be gone through carefully to see whether any claim can legally be lodged
against the carriers. If this is tenable, a claim should be lodged within the prescribed
period and necessary papers passed on to the Purchase Section for further processing. In
case the discrepancy or defect is attributable to the supplying firm, procedure as laid
down in earlier paragraph should be followed.
b). Stores despatched by post do not pass through the Transit Bay. Barring this, the same
procedure as outlined in the proceeding paragraph should be followed in the case of
receipt of stores by post.
134. INSPECTION OF FURNITURE
a). The furniture should in the first instance be inspected at the firm's premises after
manufacture but before polishing. For the purpose of the inspection, a small committee
consisting of officers of whom one should preferable be the store holding authority or his
representative should be constituted under orders of Controller of Stores/Head of the
office. The Committee will examine the furniture thoroughly and it is only after they are
satisfied that the same conform to drawings, specification etc. and are free from any
defects, that they will stamp or seal them in the best possible manner and issue Inspection
Report in Form No.4 making it as preliminary. The firm should then be asked to proceed
with polishing, varnishing etc.
b). When the furniture is delivered at the consignee's end, he should follow the
instruction laid down in paragraph 132.
*********
67
CHAPTER - V
Storage and Issue
(All new Registers/ Ledgers/forms etc of stores will be phased out based on the
OCBIS MM Inventory module implementation and as per the circular of COS,
OCBIS,GSI.CHQ, Kolkata.)
135. STORE - HOLDING AUTHORITIES
a). It is the responsibility of each Store-holding authority to make arrangements for safe
custody, for keeping in good and efficient condition and for protecting from loss, damage
or deterioration, of all stores received by him. The keeping of proper accounts with a
view to preventing losses through theft, accident, fraud or otherwise and to making it
possible at any time to check the actual balance with the book balances is also the
responsibility of each Store-holding authority.
b). The Director General in respect of the Headquarters Office, the ADG/DDGs and
Directors in respect of the Regional and Circle Offices, will declare, as and when
occasion arises the names of the various Store-holding authorities showing the broad
categories of stores for which they are so declared.
136. ORGANIZATION OF STORES DEPOT.
a). The organization of the stores depot should be clearly laid down along with the duties
of its officer-in-charge. The officer-in-charge of a depot should be at least a Gazetted
Officer of the stores division subordinate to the Controller of Stores. He should be
responsible to the controller of Stores for the efficient maintenance of stocks of stores, for
the prompt service to the indenters served by the depot, for the safe custody of the stores
in stock, for the correct preparation and posting of initial documents, ledgers and
registers, for submission of the relevant vouchers, documents and returns on the
prescribed dates and for disposal of surplus and unserviceable stores.
b) The work in a stores depot consists of the following:

i. Receipt and inspection of stores
ii. Storage, maintenance and issue of materials
iii. Dispatch of stores
iv. Maintenance of ledgers and accounting of stores
v. Recoupment of stocks Disposal of obsolete, surplus and U/S stores
c). The stores depot wherever possible should be divided into various sub stores/section,
each section containing material of one or more class of stores. Each section should be
under the charge of a Store clerk/ Assistant Store Keeper / Store Keeper. Two or three
section depending on the importance of the importance of the stores should be placed
under the charge of Store Clerk / Assistant Stores Keeper / Stores Keeper, who shall be
further supervised by a Stores Officer or Stores Manager.
d). The duties of various staff have been laid down under Chapter-VIII. The
responsibility for custody of stores should be that of a SK/ ASK / Store Clerk, who
should be responsible for physical receipt, custody and issue of stores of his section.
Every SK/ASK should be assisted in his job by a Store clerk/ Store Attendant and a few
MTS erstwhile Group -D in his day to day work. The responsibility of the Store Keeper
should be with regards to the physical receipt, custody and issue of stores in the sections
under his charge, and he may also be known as the "Shed in charge". The Store Keeper
68
who ever holding of different stores should sign various issue notes, check recoupment,
submit recoupment in time and supervise all the work pertaining to his section under his
charge. The responsibility of the Stores Superintendent should be more of a supervisory
nature such as watching the security of the depot distribution of labour to sheds, stock
verification, supervise check of receipt and issue of material, maintenance of inventory of
surplus and dead stock, routing of correspondence to the Stores Office checking of
recoupment and general supervision of yard's sections and boundary walls etc. Thus the
Store Clerk / Assistant Store Keeper and Store Keeper are directly responsible for
physical custody of stores while the OIC is indirectly responsible. Security money as laid
down in Para 138 has to furnish by all the three categories.
137. STACKING OF MATERIAL
The location and method of stacking of material should ensure that the stacks could be
worked off in the order of receipt in the depot. The method of stacking to be used as far
as possible should be unit piling system i.e. so many deep to a row and so many rows to a
layer. This allows the existing stock at any time to be ascertained at a balance. In case of
small items, the system of packing boxes is convenient. Such material which is likely to
deteriorate when in contact with ground or floor should invariably be kept on Dunn age.
The lots should be so formed that access and approach to the material is easy. In case of
stores like rubber, tents, paints Cotton waste etc. There should be sufficient space for free
circulation of air. The stores should also be applied with preservations where there is
possibility of deterioration due to long storage.
138. SECURITY FROM STORE PERSONALS:
a). The Store Keepers, ASK, Store Clerks and the Stores Attendants should furnish
security of Rs.5,000.00, Rs.2000.00, Rs.1000.00 and Rs.500.00 respectively in the
acceptable form GFR-14 of the General Financial Rule 306 (1) of GFR 2017.
b). If security is furnished in the form of a fidelity bond, it should be ensured that the
persons concerned pay the premium necessary to keep it alive, on the due dates, and
continue to do so until a period of 6 months has elapsed since the vacation of office.
c).The bond should remain in the personal custody of the officers-in-charge of

Establishment Section(Sec-15). It shall be the duty of the Section to see that the bond is
kept alive up to the prescribed period.
d). SECURITY EXEMPTION MY BE GIVEN BY HOD:
The F.No.8 (9)/E.II (A)/2008 Ministry of Finance, Department of Expenditure E.II (A)
Branch, Officer Memorandum Dt.13th October, 2008. Para 2 reads as “ The Ministry has
examined references pointing out that in the pre-revised GFR 1963 ‘Heads of
Departments’ were also listed as competent authority to exempt Government servant who
officiate against the post of cash or store handling Government servant on short term
basis from furnishing security, Accordingly, it has now been decided to amend Rule
275(4) as in the annexure to this OM, so as to include ‘Heads of the Departments’ also as
competent authority to exempt such government servant officiating against the post of
cash or store handling government servant on short-term basis from furnishing security as
was earlier included under pre-revised GFR –1963. These orders w.e.f. from the date of
order issued.
69
e). The appointment of Store Clerk / Assistant Store Keeper/ Store Keeper be in direct
charge of stores does not in any way reduce the responsibility of the store-holding
authority to ensure by adequate supervision that all transactions relating to stores are
properly regulated and that losses and defalcations are prevented.
139. SECURITY OF THE DEPOT:
a). The Stores Depot should have suitable boundary wall all around and the passage for
the staff and the material coming inside and going outside be limited. These passages
known as gates should be guarded by Durwan. The Durwan should on no account leave
neither their posts until they have been properly relieved, nor they should smoke or idly
converse with any one while on duty. They should prevent all un-authorised persons from
entering the stores premises and personally satisfy themselves that the persons who are
entering have bonafide reasons for doing so. They should check all materials passing out
of the stores depot whether by carts, lorries carried by any person etc., with the relevant
documents, (i.e. gate passes, issue vouchers etc.) and should keep a record in their
registers. In this process they should take special care not to cause any more delay than
absolutely necessary.
b). All the sheds and godowns will be locked and sealed after the office hours and the
sealed godowns should be handed over to the security staff that will be on duty during the
night. Handing over and taking over of the sealed godowns should be done in the evening
every day in a register maintained for this purpose. Similarly, in the morning when the
depot opens, the seals should be taken intact from the security staff and the
acknowledgement passed in the register. There should be a provision for depositing of the
keys of different sheds/godowns at the gate with the Darwans. The keys may be handed
over in a small sealed container or box so that their unauthorised use is not possible. The
container/box should have a small opening covered with glass to the presence of keys can
be verified by the Darwans. At the same time if there is an emergency like fire etc. the
seals may be broken and the keys could be used for opening the godowns.
140. RECORDING OF TRANSACTIONS:
a). All transactions of receipts and issues of stores should be recorded strictly in
accordance with the prescribed rules and procedures, in the order of occurrence and as
soon as they take place. There should further be documentary authority in the form of
challan, Issue Voucher, Requisition etc. for each and every transaction of receipt and
issue as recorded in the prescribed registers.
b). As the Geological Survey of India is a Service Deptt. and as no proforma account of
any branch of its operations is required to be maintained, it is not necessary to keep value
accounts of stores in the strict sense of the term. The accounts to be kept should therefore
be a numerical one. The idea of providing a ‘Value’ or 'Price' column in the various
Forms and Registers prescribed for the maintenance of accounts of stores is to facilitate
compilation of certain statistical date and writing off of losses etc.
141. PAYMENT FOR STORES RECEIVED AGAINST PURCHASE ORDERS
a). ACTION BY CONSIGNEE: Stores received should be accompanied with the

challan in quadruplicate of the supplying firm. The original and duplicate copies will be
returned to the firm after recording thereon, over the signature of the Superintendent or
the Officer-in-charge, the acknowledgement of the receipt of the stores. Simultaneously,
necessary entries should be made in the appropriate stores ledger\stock register etc. and
70
duly initiated. The endorsement "Stores covered by the challan with the exception of
................ ... received in good condition. Entries made in the Store Ledger\Stock Register
as per page No. ..............................." should then be made on the triplicate and
quadruplicate copies of the challan under the dated signature of the Gazetted Officer-in-
charge. The triplicate copy should thereafter be passed on to Party Bill Section within 10
days from the date of receipt of the supply through a Transit Register exclusively opened
for this purpose. The quadruplicate copy should be returned as the office copy of the
Store-holding authority.
b). The Store-holding authority shall also intimate purchase Section and the indentor of
the receipt/non-receipt of the stores by the prescribed date and in any case immediately
on the receipt of stores. The intimation should be sent in form No. 5 immediately on the
date prescribed for delivery or immediately on delivery as the case may be.
142. ACTION BY PARTY BILL SECTION.
a). The firm will submit their bill in triplicate one of which will accompany the original
copy of the challan as receipted by the Superintendent or the Officer-in-charge of the
store. The Party Bill Section will compare the challan as now received with the one
received direct from the Store-holding authority and, in case of their agreeing with each
other, endorse the necessary "passed for payment" order under the dated signature of the
Officer-in-charge of the Section. The original copy of the bill should now be attached as a
voucher to a contingent bill (Form TR 30) and passed on to the Cash Section within 3
days from the date of its receipt for onward submission to the COA / PAO for payment.
The original copy of the challan as mentioned above should be tagged to the triplicate
copy of the bill and both retained as office copies in the Party Bill Section. The duplicate
copy of the bill also to be sent to the Cash Section along with the office copy of the
contingent bill (Form TR 30) should be retained in the Cash Section as the passed
voucher in support of the relevant entry in the Cash Book. In case of disagreement,
between the two copies of the challans the "passed for payment" order should be
endorsed for the quantity actually received as shown in the copy received direct from the
Store-holding authority.
b). An intimation slip in Form No. 6 should thereafter be sent to the Indentor, the
Purchase Co-ordination Section, the concerned Purchase Section and the Store-holding
authority.
c). Party Bill Section while passing bills received from supplier in respect of orders
placed issue intimation slips (Form -6) to the Office-in-charge concerned only.
d). Special point to be seen by the Party Bill Section before passing a bill is that the
triplicate copy of the challan does always contain the endorsement regarding the entry of
the stores in the prescribed register. It should also be seen that the supply was made by
the stipulated delivery date or by the period as subsequently extended.
143. ACCOUNTING OF STORES DEAD STOCK.
a). Every Government Office and an independent holder of dead stock should maintain
"inventory of dead stock" ( Register No.VII) such as furniture and fixtures tools and
plants, equipment and machinery and books of reference showing the name (brief but
clear description) of the articles and the date of their receipt. One item should be entered
on each page, the pages of each register should be numbered and each register have an
index showing contents arranged in alphabetical order and indication pages on which
71
each items will be found. The number of pages in the register should be indicated in the
Index and signed by Gazetted Officer.
b). List of general dead stock items used in the office should be framed by the Adm.
Branch and circulated to all concerned. List of special items like plant, machinery etc.
which are classified as Dead Stock items may be framed by the concerned divisional
Head and circulated to all concerned.
c). As soon as an item of dead stock is received it should be entered in the inventory of
dead stock, simultaneously arrangement should be made to inscribe or otherwise affix a
distinct number on every item so as to facilitate its identification.
No re-numbering will, however, be necessary in the case of stores received against an
early issue.
d). It should be remembered that the issue of any item of dead stock to individuals
belonging to the same office will not reduce the stock balance and as such need not be
exhibited in the Register of Dead Stock, but proper acknowledgement should be taken in
respect of issue so made.
e). If there is big office such as Central Headquarter or Regional Office, there is no
objection to the maintenance of sub-registers by individual Section\divisions.
144. CONSUMABLE STORES.
Consumable stores are those which are used up completely or lose their separate identity
as such in the course of particular operation for which they are meant e.g. chemicals,
paints, lubricants, wood, nails, screws, ropes etc. The terms also includes these stores
which are not ordinarily expected back after issue from stock e.g. glass tumblers, bulbs,
minor laboratory glass wares like test tubes, etc. The definition however, is not absolute.
The categorisation of stores between consumable and non-consumable largely depends
on the operation to which particular stores are put for the convenience and guidance of
the stores accounting staff, each Divisional Head should prepare a list of consumable
stores handled by his division, This list should invariably be approved by the Head of the
Laboratory / steam.
145. DEPOT LEDGER
The proforma given below should be used with regard to transactions for all types of
stores handled in the Depot. There shall be one ledger page for one item and the ledger
should be kept in steel cabinets of suitable pattern. Each ledger page or one particular
item should have a serial number. When a ledger is completed it should be kept under
lock and key after transferring the balance to the new ledger and closing the old ledger
with the initials of the Godown in-charge and a Gazetted Officer. As ledgers are
important documents, the steel cabinets in which they are kept should be locked when not
in use.
72
a). LEDGER Page
Section.. Description of stores..........

.................. Class............
Units ... . H.L. No......
Date Received Receipt Qty Rate Value

From Vr.No.
Stock taking
Certificate No.
1 2 3 4 5 6
Issued Issue Qty Value Initials / SO Remarks

to Vr. Of
SK/ ASK/
Store clerk
7 8 9 10 11 12 13
b). All types of stores irrespective of their use if they are transacted through the depot
should be entered in the ledger.
146. NUMBERING OF RECEIPT VOUCHERS
Receipt vouchers such as invoices, challan, transfer issue vouchers, Return Vouchers etc.
have numbers which has been assigned by the party preparing them. But these will have
no continuity or uniformity in relation to the sequence of the receipt voucher received in
the section of a depot. It is, therefore, necessary to assign separate serial No. to the receipt
vouchers. Such numbers shall be called stock taking certificate numbers. This number
should be a separate serial for each class of material in a section. The section index letter
number should be assigned as prefix to the Nos. All the Return Vouchers after assigning
the stock taking certificate stitched in suitable bundles and retained.
147. REQUISITIONING AND ISSUE OF STORES
a). All issue should be made on written requisitions submitted on prescribed from by the
indenting parties or where any issues are made on the orders of the Depot officers or the
Controller of Stores (Head of a Division where he is the stores holding authority) such
orders should be given in writing.
b). Requisitions for the stores should be placed only when funds are available and should
be signed Gazetted Officer.
c). One requisition should not contain more than 5 items and items of more than one
class.
d). separate forms should be used for requisitioning of stores and issue of stores. The
issue of stores form is as per Form no.7
73
e). The requisition form should be as per Form no. 8
f). The above form should be prepared in duplicate, one copy being retained as office
copy and the other forwarded to the stores Depot.
148. REQUISITION REGISTER
a). Each depot should maintain separate requisition for each division or region from
where the requisitions are received. This register should show the following particulars.
1) Sr. No.
2) Diary No. Dt.
3) Name & designation of the Requisition officer.
4) Description of Stores
5) Initial of the concerned stores officer receiving requisition
6) I.V No. & Date
7) Remarks .
b). This Requisition Register (Register No.VIII) should be maintained in the Depot
Officer in a Sub-section (Known as R.R. or Requisition Registration Section) attached to
the ledger section. The requisition on receipt from the indentor should be registered in
c). the requisition register and then forwarded to the concerned section with the
registration No. or receipt serial No. within 24 hours of its receipt in the depot. when the
requisition is complied with, the reference to the issue note should be quoted thereon and
sent to the ledger section for posting column 6 of the requisition register as record.
149. NUMBERING OF ISSUE VOUCHERS
On handing over the material to the indentor, the SK / ASK / S/C should endorse all
copies of the form with the remark "material removed (Issued) " and obtain the signature
of the representative / indentor. The issue voucher should not be numbered till the
material has been removed. Issue voucher No. should be separately serial under each
class and section and may commence on each month, half month or the year. The section
index letter should be assigned as prefix to Issue Serial No.
150. DISTRIBUTION OF ISSUE VOUCHER COPIES.
a). The issue vouchers are prepared in 4 copies and signed by the custodian,
Superintendent and concerned Stores Officer. The first copy is retained by the stores
section as their records and 3 copies are handed over to the indentor along with the
material. The fourth (4) copy is to be submitted at the gate of the stores as gate pass to the
security personal concerned. The details are also in the security register. The 2copy is
retained by the indentor and the 3rd copy is returned to the stores after incorporating the
stock entry details of indentors stock ledger. This 3rd copy duly stock certified is to be
signed by the indentor and to be forwarded to the stores section acknowledging the
receipt of the stores at the indentors stock. The stores division should record the receipt of
acknowledgement in their issue voucher copy, thus the completing the transaction.
b). The receiving of acknowledgement copy of the issue voucher in the stores depot is an
important check as it ensures correct receipt and accountable of the material. Where issue
voucher copy No.3 has not been received within a reasonable time the matter should be
taken up with the Indenting Officer and brought to the notice of Controlling Officer.
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151. SEPERATE ISSUE NOTE FORMS.
a). The indentor will make a requisition for stores in the Form No.8 and issue and stores
shall be issued in Form No.7 in 4 copies by the store keeper. The requisition in original
should be filed stores / shed. The Original copy of the issue voucher is retained in the
issue note pad itself, and three copies are given to the indentor. The indentor hand over
the fourth copy at the gate as gate pass. The second copy retained by the indentor and
third copy is returned to stores giving in the stock entry on the reverse of the Issue Note.
b). Where the stores are collected by the representative of the indenting officer from the
stores depot the same process will be adopted as above.
c). Issue vouchers which are the authority for making entries on the issue side of the
stores ledger should be numbered serially, arranged chronologically and stitched suitably
in bundles and retained with care. The Store Keeper should take acknowledgement of the
various stores issued by him together with the voucher in a register maintained by him
specifically for this purpose from the representative of the indentor. The proforma for this
register should be as below:
i) SL. No.
ii) Date of handing over the stores.
iii) Description of stores.
iv) Issue Voucher No. and date.
i) Acknowledgement of the person receiving stores and the issue voucher.
152. RETURN OF STORES
a). All the stores which are not required by the consumer whether, new, serviceable,
second hand, repairable or unserviceable should be returned on the Return Voucher (R.V)
Form No.9 to the nominated Stores Depot. Separate return vouchers should be prepared
for each class and for new, second hand and unserviceable stores.
b). This voucher should be prepared in 4 foils, 1st foil should be retained by the official
returning the stores and 3 foils i.e. 2nd, 3rd & 4th foil should be sent to his Divisional
Head/Office-in-charge for counter signature. One copy i.e. 2nd foil should be retained by
the Division and 2 copies i.e. 3rd & 4th foil sent after counter signature by the Division to
the officials who has to return the stores. The returning official will return the stores with
3rd & 4th foil to the depot nominated for return of the type & class of stores. The Depot
Officer should check the stores, post the ledgers and return one copy (3rd foil) duly
acknowledged to the returning officer. The depot for its record should retain the 4th foil.
c). Return stores voucher shortly known as Return Voucher is prescribed in 2 parts, Part I
is to be filled by the Officer returning the stores in which he shall fill all the particulars
regarding the quantity, condition of the stores, original Issue Voucher No. and date of
receipt challan No. through which he has initially received the stores purchase price or
book value, prescribed life, period put into use etc. In the remarks column the reason for
its return should be stated where it is due to closure of camp etc. In case of new stores it
has to be mentioned whether the return is due to its being obsolete or surplus etc. In case
of unserviceable/repairable stores it should be stated whether it is due to normal wear and
tear or due to other reason such as negligence, accident, fraud theft, etc. If there is loss or
deterioration in condition of stores due to reasons other than normal wear and tear, the
reference of competent authority's sanction for write off loss should be given.
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d). This form of Return Voucher can be used by the returning officer for return of stores
straightaway after counter signature of the Officer-in-charge of the Division/Divisional
Head, if the loss/deterioration in the condition of the stores is due to normal wear and
tear. It should be seen that the stores have outlived their prescribed life, if so fixed, in
case where the loss/ deterioration in the condition of the stores takes place due to reasons
other than normal wear and tear the competent authority's sanction for write
off should be first obtained by the office who is holding the stores through his Officer-in-
charge/Head of Division and only when the sanction has been received, he should return
the stores on the Return Voucher Form quoting the reference of the competent authority's
sanction.
e). The Depot Officer should specifically see before acceptance of the returned stores that
either the period put into use is equal to or exceeds the prescribed life and it carries the
certificate of normal wear and tear or reference of the competent authority's sanction for
write off of the loss is given in the cases which are other than normal wear and tear. If
these conditions are not fulfilled, he has the right to return the stores, or if the stores
cannot be returned he can inform the returning official that the same cannot be taken into
books and the stores are lying in the depot only at the risk of the latter.
f). Part II of the form of Return Voucher has to be filled in the depot after receipt and
inspection of the stores. Where the depot officers agrees with the condition of the stores
as mentioned by the returning officer by his visual inspection he can order the stores to be
accepted and taken on the proper books and in that case the acknowledgement copy can
be returned to the returning officer. In case where the depot officer does not agree with
the condition of the stores as stipulated by the Divisional Head or where the stores though
new or serviceable but are considered of being obsolete/surplus and for which there may
not be any demand in the foreseeable future, he may detain the Return Voucher and put it
up to the Survey Committee for its final opinion in the matter. The Return Voucher can
then be acknowledged and returned. The Divisional/Head/ Officer-in-charge of the
Division should carefully check all the entries before counter signature. The returning
official shall wait for the acknowledgement copy from the depot officer and in case it is
not received reminder may be issued. The Depot officer should also advise the returning
official about the likely delay in case the stores are to be put up before the Survey
Committee for determining their condition.
g). The Official returning the stores may reduce the balance from his ledgers after
recording the Return Voucher No. and date and the reasons for the return of stores. The
original copy of the Return Voucher and the one, which is received from the depot duly,
acknowledge should be kept in the records properly.
h). On receipt of Return Voucher in the depot this should be entered in "Register of
returned stores". (Register No.IX) The Return Voucher should be serially numbered in
the register and the serial No. may be entered at the time at the top right hand corner of
the Return Voucher. This register should have the following particulars.
i) SL.No.
ii) Dt. of receipt of Return Voucher in the depot
ii) No and date of the Return Voucher
iii) The mode of receipt of the stores (if it is through railway the railway
receipt No. and date should be given).
iv) Designation of the subordinate returning the stores.
v) Particulars of the stores returned
a) Description b) Quantity
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vi) Date on which the stores are received in the depot.
vii) Date on which the stores are posted in the ledger and the folio.
viii) Date on which copies of Return Voucher (3rd foil is returned duly
acknowledged to the returning official)
i). The quantity of the stores received in the Depot should be checked with the quantity
returned and if there is any discrepancy it should be immediately intimated to the
returning officer and to his officer-in-charge/Divisional Head, so that the returning officer
will be able to investigate the discrepancy. After the inspection has been done, the stores
may be sent to the concerned shed along with both the copies so that the stores are taken
into account and posted in the books. One copy (4th foil) is retained in the ledger section
for record and one copy (3rd foil) is sent to the return stores section, who after posting the
register shall return that copy to the returning official.
153. UNSERVICEABLE STORES SECTION
a). The Unserviceable Stores on receipt in the depot should not be posted in the ledgers
of new stores but such stores should be dealt in a separate section known as unserviceable
stores section. This section shall maintain the ledger for the various categories of stores
of unserviceable nature for which a standard nomenclature list should be separately
chalked out. Such nomenclature list is given below which may be modified to suit the
particular requirement.
1. Iron Scrap - Iron and steel items, G.I.Pipes and fittings etc.
2. Tentage Scrap - Tentage, Tarpaulin Hoods, Rain coats, Canvas etc.
3. Rubber Scrap - Rubber Boots, Suction and delivery Hoses etc.
4. Leather Scrap - Port-folio bags etc.
5. Wood Scrap - Packing Wood, Wooden poles etc.
6. Brass Scrap - All items of brass.
7. Unserviceable - All items of capital equipment.
8. Miscellaneous Scrap - Flexible wire, Insulators Bulbs, Switches, by weight i.e.,
Electrical Accessories etc.
9. Miscellaneous Scrap by numbers - rock roller bits, barrels, casings rods, drums,
tyres, tubes, flaps, batteries, glass bottles, petromexes, lanterns, torchlight etc.
and such other items.
Item 1 to 6 and 8 will be in weight while items 7 and 9 will be in numbers.
b). Such returned stores that may be new, second hand or repairable, or obsolete or
surplus and are not required to be kept for the use of the department, after inspection of
the survey committee may also be kept in this section under a separate ledger having one
sheet for each category or class of stores. This section shall prepare the Survey Report
and arrange recommendation of the survey committee and obtain the sanction of the
competent authority and thereafter take the disposal action in terms of the
recommendations. This section shall also arrange auction etc.
c). The new and serviceable stores if these are not surplus/obsolete may be transferred to
the concerned shed. The new and serviceable stores may be taken straightaway in the
ledgers for the new stores and a remark should be entered in the ledger for the items
which are second hand. The second hand stores should be issued first when the
demand for the new stores is received.
d). As a rule, no stores should be returned to the depot which are of repairable nature and
the field officer himself should get the stores repaired till it cannot further be repaired . In
other worlds, the stores returned to the depot should normally be those which have
outlived their life and are to be disposed off by auction etc. However, in rate cases when
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the stores have to be returned in repairable condition on closure of camps etc. (even in
such cases an attempt should be made to transfer the stores to other camps where these
can be used), these may be accepted by the depot, taken on the books through a separate
sheet of ledger which should be kept adjoining to the sheet of new stores, and such stores
may be got repaired by placing the work order on the workshop.
e). There may be cases when the new/serviceable/repairable stores lying in the stores
sheds have to be declared as surplus/obsolete on account of there being no demand for
such stores. This shall be so done in consultation with the concerned divisional head. The
survey report for these stores shall be prepared and survey arranged by the concerned
shed and only after approval of the competent authority for their disposal by auction has
been received that these stores should be transferred to the unserviceable stores section
for arranging auction etc.
f). A red line should be drawn across the pages of the stores ledger after the last entry for
a particular financial year has been made. A little gap also should be left below this line
before making entries pertaining to the next year.
154. STORES OTHER THAN DEAD STOCK AND CONSUMABLE STORES
a). This category of stores mainly comprises of those articles which are ordinarily meant
to be issued on loan to officers and staff for the due performance of the purpose for which
they were taken or on the expire of certain prescribed periods.
b). The accounting of these items of stores shall also be maintained in the general stores
ledger under proper class as in case of other items. Simultaneously with posting of receipt
in the ledger, a distinct no. may be inscribed or otherwise affixed on these so as to
facilitate identification where considered necessary, possible and expedient e.g. in case of
costly stores such as meters, camp tables, camp chair etc. It will be decided by the store
holding authority which items will require such identification marks. No renumbering,
however, shall be necessary in case stores received against an earlier issue. The issue
shall be made on issue Note form on receipt of requisition. The Issue Note will be
marked "On temporary loan to staff".
c). While posting issues in the Stores Ledger simultaneous entries should be made in the
Register of Loan of Stores (Register No.X). A number of consecutive pages should be
set apart for each person to whom stores are issued. As issues will be made only against
requisitions duly signed, it is not necessary o obtain the signature of the receiving officer
again on this Register.
d). Receipts should be posted exactly against corresponding issues unsquared issues
would thus show the stores outstanding against a particular individual on any date.
e). The register of Loan of Stores should be reviewed in the first week of June each year
and lists prepared there from showing the stores outstanding against each individual. The
lists should thereafter be forwarded to the respective persons with the request to
acknowledge their correctness. In case any discrepancy comes to notice, the same should
be/investigated and appropriate steps taken for its regularization. The process of
forwarding lists should be completed by the 20th June.
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155. SPECIAL TYPE OF ISSUES
a). Sometimes there are issues other than the normal issues within the department, which
are described below:-
i) Within the department (GSI)

Any item and quantity can be issued from one region and to another region, like one
camp to another camp, one division to another division, for temporary basis or
permanent issue with the approval of the competent authority of stock holding.
ii). Sale Issues of stores outside the department.

When any equipment or stores irrespective of the cost are to be issued after making
purchase by GSI, to the outside Department and was not required to be returned by the
other Department, to whom it was issued will be treated as SALE OF STORES for
which concurrence of the Ministry of Mines (MoM) is required before processing the
case.
Thereafter, the stores will be issued on regular issue vouchers quoting thereon the
authority under which these are issued and the full value of the stores (Total Purchase
cost). An additional charge of 2% of the purchase price should be made for the incidental
charges. The Department to whom the subject stores/ equipment is issued will make
collection from GSI, to carry the same there desired place. If transportation and forward
of material to be done by the GSI. The actual charges and handling charges to be
collected from the Department. A Gazetted Officer will sign these issue notes.
iii). Issue on loan to outside department for a specific period.
Issue under the category will be subject to the concurrence of the concerned divisional
head and the final approval of the HOD( Head of Department). In this case the items will
be issued on hire charges basis as well as subject to payment of repair charges, if
accruable on their return. The issue will be made on regular issue voucher quoting therein
the authority for issue and the words "on loan" will be super scribed on all copies of the
issue vouchers. A register for “Loan outside the department ” shall be maintained by the
stores depot in which all such issues will be entered and the return there of will be
watched from this register. These issue notes will signed by a Gazeted Officer.
iii). Issue for repairs/fabrication/printing.
In this category will fall issues made to the private parties for repair or for fabrication or
printing etc. for embodiment/incorporation of certain modification in the original
equipment or issue of sample items given to guide fabrication/manufacture to the
suppliers. Such issues will normally be made against suitable security deposit
safeguarding the interest of the Government. The occasion for such issue will arise only
after the sanction of the relevant competent authority has been obtained to incur the
expenditure for repair, for embodiment/modification etc. or for the purchase of the new
item (in the case of samples). While asking for the expenditure sanction in these cases,
the approval for issue of these should also be taken. The items will be issued on regular
issue Voucher with the words on loan and will also be entered in the loan register. These
issue notes shall also be signed by not less than a Gazetted officer, and the delivery of the
stores to the private parties should be done in the presence of godown in-charge.
Prepare acknowledgement in all these cases should be taken from the authority concern.
In case of item 2 and 3 above, steps should be taken to clear the loan as early as possible
by the concerned Store Keeper.
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156. CAPITAL STORES
i). Category of capital stores should be defined as item of plant, machinery, vehicles and
equipment other than spares, accessories, consumable stores and general stores, which are
comparatively much more valuable stores and require a central control about their
location, movement and utilisation etc. Each Divisional Head shall have the items of
capital stores of his division listed in GSI all equipments costing more than Rs. 1.00
Lakh with prescribed life period and requires installation also vehicles to be termed
as capital equipments. The respective Stock Holding Authorities and end user
should therefore maintain the Capital Equipment Register with them. The end user
should log all the details such as date of installation of the equipment, performance
data in hours / mileage, details about repairs and maintenance and expenditure
thereof. These stores should be given their registration No. for each individual item at the
time of initial receipt, which should be quoted at the time of each subsequent issue,
correspondence, periodical returns etc. The concerned Divisional Head shall maintain a
complete location, utilisation and other necessary details about these items in the form of
disposition charts. These item should be returned to the Central Stores Depot only when
they are to be surveyed off for disposal. The repair etc. should be got done by the
Divisional Head directly from the market or through the Engineering Division by
placing work order on him. The repairable capital equipment will therefore not pass
through the stores Division unless the repair is of a major and extensive nature, and the
repair has to be done by entering into a contract after calling tenders on a wider basis i.e.
outside the loan area.
ii) Such capital stores shall pass through the books of the stores depot if stores depot is
the consignee. The ledger for these shall be of the same form as for any other types of
stores i.e. an item will be shown in the balance side if it is physically available in the
depot and will be reduced from the balance that has been issued outside the depot.
However, a Central Control Register of all Capital Equipment, division wise shall be
maintained in the office of the Controller of Stores/DCOS/OIC Incharge to have a ready
idea about stores of capital equipment of the entire Department at one place. This register
shall be maintained in the proforma given below: This register shall be known as "Central
Control Register of Capital Assets" (Register No. XI) and an item of capital stores
should be entered into it as soon as it is first received and accepted after inspection etc.
and it has to be struck off only when it is disposed off.
This register should have nomenclature of the capital equipment on the top of the page
and shall have the following columns.
1) SL. No.
2) Dt. and month of the receipt.
3) Details of equipment with specification if any.
4) A/T/ No. Supply Order /PO No. and other particulars of supply.
5) Qty. received.
6) Price paid.
7) Scheme/Plan expenditure sanction against which received.
8) Regn. No.
9) Quantity issued/Disposed off
10) Authority for issue/disposal.
11) Closing Balance.
12) Tally card or page of the location register
13) Division/Section.
14) Remarks.
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iii) Location of each capital item will be maintained in Tally Cards of a register and this
should be kept up to date from periodical returns. Every Official who is holding an item
of capital nature shall be sending annual return in the 1st week of April to the Controller
of Stores/DCOS/OIC with a copy to the Divisional Head so that the location of the item
is verified every year. At the time of location of the item within the year intimation
should be sent by the officer concerned to the Controller of Stores /DCOS/OIC and
Divisional Head for correction in the records.
iv). Each capital equipment shall be carrying a running log book and "Repairs and
maintenance" log book and it shall be the responsibility of the officer in whose custody a
capital equipment is to maintain the log books properly and kept them neat and tidy. A
quarterly copy of the log books showing the total mileage run or hours spent the various
repairs carried out fitment of parts such as tyres and batteries number along with the date
of fitment, consumption of petrol etc. shall be intimated to the Divisional
Head/Controlling authority for his scrutiny. this will also constitute a duplicate record
with the Divisional Head/Controlling authority and shall be useful in case the original log
books are lost.
157. DRILLS AND VEHICLES
a). The Chief Engineer(Engineering) shall be the stores holding authority in respect of
vehicles through the Transport Officers. An account of these vehicles should be
maintained in the stock register of vehicles in Register No.XII, one page being set apart
for each vehicle. This register should have uniform No. of 100/200 machine numbered
pages and will show the stock position of vehicles held by G.S.I. or a region thereof as a
whole irrespective of whether such vehicles are directly under the charge of the Chief
Engineer (Engineering) or not. The disposition of vehicles from time to time will be
maintained in the charts or other records as he may be required to maintain under the
orders issued in a different context.
b). The Chief Engineer (Engineering) is also responsible for the registration of vehicles
as also for the renewal of certificate of fitness through the Transport Officer.
c). The disposition charts of the drills and other capital equipment shall be maintained by
the Drilling Division.
158. SPARE PARTS AND ACCESSORIES
a). For the purpose of their accounting in stores, spares parts and accessories for drills,
vehicles, machines, etc should be treated under a separate category. Spare parts and
accessories may be consumable or non-consumable depending on their nature and the
specific uses to which they are put.
b). All spare parts and accessories shall be accounted for in the general ledgers of the
Stores Depot in the particular class as any other type of stores. If an item is a costly item
and it if it is possible, necessary and expedient to inscribe or otherwise affix a definite
number on them so as to facilitate their identification, the same may be carried out. It
shall be decided by the stores holding authority in consultation with the concerned
Divisional Head as to which items will require such identification marks. No
renumbering shall however be necessary in such case if the stores are received against an
earlier issue.
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159. EMPTIES
a). Wooden boxes, tins and other containers received along with stores should be
preserved and disposed of at convenient intervals. b). The account of empties should be
kept in the same general ledger as for other stores.
c). As soon as a box is unpacked and the stores contained therein are taken out or the
material held in a container is completely used up the empties should be released and
taken into stock.
d). The receipt and issue of diamond tools should be recorded in a Register No.XIII
Diamond tools of the same type, size and make only may be entered in the same page.
The Register should have a uniform 200 machine numbered pages.
e). Diamond Tools come under the category of non-consumable stores. For adequate
circulation, diamond tools should be returned to the stock holding authority as soon as
withdrawn from use accompanied with return voucher and history sheet showing details
of their use such as the meterage drilled with bore hole number and type of rocks (soft,
hard and very hard) negotiated etc. The used diamond bits on receipt by the store holding
authority will be accounted for in a Register No. XIV and then transferred to the
unserviceable diamond bits Register No. XV. All the used bits received by the store
holding authority and accounted for as in Para 159 above, should be placed before a
committee consisting of technical officers in suitable lots. This committee will examine
these bits to determine i) If the tools are completely used up i.e. there is no possibility to
extract any diamonds and ii) If the tools are found to contain any diamonds which can be
economically extracted and recommend for salvaging of diamonds and resetting.
f). If the diamond tools are received from the field unused these should be entered in the
Register No.XIII as fresh receipts. If, however, used diamond tools are received, these
should be entered in the Register No.XIV.
g). If a tool is received completely used up i.e. from which there is no possibility to
extract any diamonds, necessary note to this effect should be made in the remarks
column. If it is otherwise the tools should be sent in lot for resetting new ones. When new
set bits are received back, these should be entered in the Register No.XIII according to
their size, type and make.
160. INTER CAMP TRANSFERS
a). "Stores transferred from one camp to another for whatever reasons it should be
accompanied with transfer voucher. The transfer of stores between two camps under the
same officer-in-charge should take place with the prior approval of the Officer-in-charge
as far as possible. Otherwise his post-facto approval should be obtained. If the two camps
fall under two different Divisional Heads then the prior approval from both the Divisional
Heads should be obtained before actual transfer. In case of real difficulty the transfer may
be effected subject to post-facto approval of the concerned Divisional Head/Officer-in-
charge. The transfer voucher should be prepared in three copies, the camp from which the
stores are consigned may retain the Original copy (1st copy) and send the stores along
with two copies to the camp to which the stores are transferred. One copy i.e. copy No.2
should be returned back to the first camp after recording the stock taking certificate and
the third copy is kept as record for the office of the camp where the stores are transferred.
This transfer voucher shall be the authority for making entries on the issue side of the
various ledgers in so far as the originating camps are concerned and the same should be
the authority for making entries on the receipt side of the ledger in so far as the other
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party is concerned. The columns suggested in the transfer voucher shall give the complete
history of the stores and even if the stores are transferred a number of times, the camp
transferring the stores will record its previous history available. Thus if that stores is
rendered unserviceable and the last camp has to initiate action for disposal or return to the
depot on return voucher as unserviceable, it can furnish all the details which are
necessary on the return voucher.
b). In case of capital stores, the transfer voucher shall be prepared in 5 copies, the two
additional copies are sent one each to the concerned Divisional Head and to the
Controller of Stores / DCOS.
c). With the copy of the transfer voucher to the Divisional Head, the copy of the repair
and running log books should also be furnished indicating the mileage/hours spent,
number of tyres and batteries, the date of their last fitment and other necessary
particulars. With the copy received in the Controller of Stores Office/DCOS/OIC the
Central Register of Capital Assets shall be posted with regard to change of location of
that item.
161. RESPONSIBILITY FOR CORRECT ACCOUNTING
It is the primary responsibility of all stock holding officers to see that the ledgers under
their charge are posted up to date in every respect and all receipt and issues are posted
immediately in such ledgers and no undue delay is allowed to take place in such postings.
162. CONTROL OF ISSUE
a). It is responsibility of every Divisional Head to see that the consumption of stores in
his Division is normal and fully justified. Such controls should be in the form of returns
from the concerned stock holding officers showing monthly consumption of issues of
specific items of stores. The issues shall match with the No. of machines in operation and
that the quantity consumed should reasonably agree with the consumption figures of the
previous month.
b). In the case of Petrol, Oil and Lubricants, the, mileage covered/hours worked by each
vehicle/machine during the month and the petrol, Oil and Lubricants consumed by each
vehicle/machine should be watched so that the average are within reasonable limits
and prompt action is taken for unduly high averages. In the case of diesel and
lubricants for stationery plants and engines, the No. of hours worked should be obtained
and the total installed power capacity, balance with the actual consumption of diesel and
lubricants and that the figures lie well within the established averages. A statement shall
be furnished by all the officers for vehicles/machine/plant etc. under his charge every
month to the respective Divisional Heads giving the averages of consumption of Petrol,
Oil and Lubricants. Any unusual cases of large consumption shall be brought
immediately to the notice of the Director General/ADG/DDG for investigation.
c). Vehicles going on convoy duties for Central Headquarters or Regional Head Quarter,
draw Petrol, Oil and Lubricants in the field for which no check is usually exercised at the
head Quarters. The field officer should make a transfer voucher for the Petrol, Oil and
Lubricants to the Head Quarter for its proper accounting and check.
********
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CHAPTER VI
PHYSICAL VERIFICATION AND REGULARISATION OF DISCREPANCIES
163. VERIFICATION OF STORES.
About 5 to 10 percent of the entries made on the receipt and issue sides of all Stock
Registers/Stores Ledgers of all store-holding authorities should be checked by Internal Audit
Section with reference to Challans, Requisitions, Issue Vouchers, etc. The entries so checked
should invariably be initialed. For the purpose of this check. Internal Audit Section will draw
up programmes sufficiently in advance under intimation to the concerned store holding
authorities. The work will continue throughout the year but spread over in such a way that the
percentage checking of all entries pertaining to a financial year 31st May following at the
latest. Important points arising out of this check should be brought to the notice of the
concerned store-holding authority and the Head of the office, where necessary.
164. VERIFICATION TEAM.
a). Immediately after the checking of entries as laid down in the preceding paragraph is over,
Internal Audit Section should obtain orders of the Head of the Department regarding the
formation of teams for conducting the annual physical verification.
b). Each team should consist of two or three officers depending on the volume and nature of
stores to be verified. The number of teams may be such as is considered necessary by the
concerned HOD of the Office. The individual official while working for physical verification
work will be known as stock verifier. The in- charge of the team or the senior most official
will be called physical verification officer. It is however, essential that the annual verification
is completed by the 31st September.( keeping in view of the filed programme).
c). Physical verification should not be entrusted to a person who is the store-holding authority,
or a nominee of or employed under the store holding authority or who is not conversant with
the Classification, nomenclature and technique of the particular classes of stores to be verified.
d). The order of the HOD, as soon as obtained, should be communicated to the officers
forming the teams as also to the various store holding authorities.
165. OBJECTIVE OF PHYSICAL VERIFICATION OF STORES
a). The objective of verification of stores is to ensure that the materials accord with the
description and specification shown in the stores ledgers, that actual balances of such stocks
agree with the balances appearing in the books and that excess or deficiencies if any noticed
on such verification are properly investigated and accounted for.
b). The Verification Team may, however, also examine whether proper arrangements exist for
the safe custody and proper storage of material against unnecessary deterioration from the
weather or any other cause and that the accounting of stores is properly maintained into the
books/ registers.
166. POCEDURE FOR VERIFICATION
a). Verification should always be conducted in the presence of the officer responsible for the
custody of the stores or of a responsible person deputed by him.
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167. FIELD BOOKS
a). The Internal Audit Section will issue "Field Books" to the Physical Verification Team for
recording the results of Verification. After noting down the class and N.L.No., unit and
description of stores in the "Field Book" the stock verifier will first verify the physical balance,
without knowing the ledger balance. The result of physical verification should be signed
jointly by the Stock Verifier and the official responsible for the custody of stores. The ledger
balance will then be noted and then discrepancy brought out. One or more items may be noted
on one page of Field Book. The entries should be made neatly and clearly. The stock
verification sheet No. and date will be quoted by the stock verifiers in the Field Books in case
of discrepant items. At the end of physical verification/or as soon as the physical verification
of particular class/classes noted in the Field Book is over, the Field Books will be deposited
with the Internal Audit Section.
b). The stock verifier should personally count, weight or measure all items of stores he
proposes to verify with the assistance of MTS’ where necessary. All details of verification i.e.
count, weight or measurement should be recorded in the field book in the order it is done and it
should be seen that no stock of the items under verification is lying in any part of the godown
or obscure corner.
c). The stock verifier will not only be responsible for what is shown to him, but will also be
responsible for seeing that nothing is left un-verified.
d). The initials of the representative of the Stores Division (Shed in-charge) in whose presence
the stock is verified should be obtained in the field book against the item in question as a token
of his acceptance on behalf of the Stores Division of the correctness of the entries made
therein. He should also furnish a certificate to the effect that all the stocks of the particular
item have been shown to the Physical Verification Team. The Physical Verification Team
should also take into account these stores whose receipt vouchers have not been posted in the
ledgers or where the Issue Vouchers have been posted but the stores are still lying on the
explanation of the Stores Division of the correctness of the entries made therein. He should
also furnish a certificate to the effect that all the stocks of the particular item have been shown
to the Physical Verification Team. The Physical Verification Team should also take into
account those stores whose receipt vouchers have not been posted in the ledgers or where the
issue vouchers have been posted but the stores are still lying, on the explanation of the Shed–
in-charge and make necessary provision.
168. STOCK VERIFICATION SHEET.
a). The Physical Verification Officer should prepare the stock verification sheets in the form
No.10 in the quintriplicate for all items of stores in which any discrepancy has been noticed
with regard to shortage, excess, reclassification etc. If the discrepancy is minor, due to wrong
description or a typing error it should be got rectified without preparing a stock sheet. These
verification sheets may be prepared class-wise, immediately after the verification of that class
is over, after giving reasonable time to the Custodian for searching or locating the reasons for
discrepancy (this should not normally exceed a day, during which the posting in ledger may be
suspended). The stock verification certificate should be prepared from the data in the field
book. The signature of the Store Keeper-in-charge of the section should be taken on all the
copies of the Stock Verification Sheets. The Stock Verification Sheets should be serially
numbered, and then posted in the ledgers. These should then be handed over to the Internal
Audit Section for pursuing the regularisation of the discrepancies further.
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169. DISTRIBUTION OF COPIES OF STOCK VERIFICATION SHEETS
a). Items of only one class should be entered in one stock verification sheet. The Physical
Verification Officer should hand over all the 5 copies to the Internal Audit Section, who will
retain one copy and send 4 copies to the stock holding officer through the Head of Division
concerned for recording his explanation. One copy will be retained by the stock holding officer
and three copies returned along with the explanation to the Internal Audit Section through the
Head of Division. The internal Audit Section shall send all the three copies to the Director
General,/DDG, Geological Survey of India for his orders. These should be dealt in the office
of the Controller of Stores at Central Headquarters and put up to the Director General for his
orders. One copy will be retained in the office of the Controller of Stores and 2 copies returned
to the Internal Audit Section with the orders of the Director General in original. One copy out
of these shall be retained in the Internal Audit and one returned back to the Store Holding
Authority. If it involves write off of the shortage an attested copy of the orders of the Director
General may also be forwarded to the concerned Deputy General Accountant General,
Commerce, Works and Miscellaneous by the Internal Audit Section.
b). It will be the duty of the Internal Audit Section to see that the stock verification sheets of
the concerned field/unit/Depot are finalised through the orders of the competent authority
within a reasonable time.
170). POSTING OF VERIFICATION RESULTS IN THE LEDGERS
a). Posting of verification results in the ledgers after the actual stock figures of an item of
stores have been ascertained and accepted by the Custodian , should be done in the following
manner:-
4. If there is no difference in the ground balance and the ledger balance, the remarks "stock
verified correct" will be written in black or blue ink on the ledger under the date of verification
and initialed by the stock verifier.
5. If the difference were excess i.e. the actual stock figures are greater than the book balance,
it shall be prepared for the excess showing the excess quantity in black/blue ink and posted in
the ledger as excess in stock. The date of posting shall first be recorded in the ledger in the
column for "date", "excess in stock" will be written in the second column "Received from", the
stock verification sheet number (Which shall be prepared as per instructions under para 168
above) will be written in the column "voucher number" . If, there are more than one item in the
stock verification sheet the serial number of the item should also be noted with the stock
verification sheet number in this column. The excess quantity will be recorded in the receipt
column in black/blue ink and the balance then struck by adding the excess to the book balance
. The entry should be initialed by the Physical Verification Officer.
6. The same procedure will be adopted by recording shortages, except that in column No 2
will be written by "Shortage in Stock" and the quantity short will be shown in red ink on the
Receipt side.
b). All entries of shortage quantity will be shown in red ink whether in the field book, the
stock verification sheet or the ledger.
c). All the columns of the stock verification sheet except last three i.e. explanation of the stock
holding officer, remarks of the Head of Division and orders of the competent authority shall be
filled by the Physical Verification team from the field book as well as the ledger. The rate and
value should also be noted from the ledger. In column No.8, the excess shall be shown with
blue or black ink while the shortage shall be recorded with red ink.
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171. OTHER DUTIES OF PHYSICAL VERIFICATION TEAM.
a). The Physical Verification Officer should scrutinise that stock books/ledgers are posted up
to date in every respect and no undue delay takes place in the posting of receipt/issue
vouchers.
b). The Physical Verification Officer should also scrutinise all stores records such as receipt
register despatch register, the credit note register, the requisition register, the Loan Register,
the personal Loan register, and Un-serviceable register, the preparing of the issue notes etc., to
see that these are properly maintained and there is no undue delay in the accountable disposal
of stores or its necessary follow up. He shall sign on the current page of the register in token of
having checked the register. He shall make separate notes in respect of each register regarding
the discrepancies noticed in regard to them in this report.
c). The Physical Verification Officer should also bring out in his report, all damages or
deterioration of the item in stock.
d). The physical Verification Team shall also prepare a list of stores class-wise in which there
is no issue for the last 2 years and over, and also cases where there is excess over two years
consumption keeping the consumption of last 3 years into account. These lists shall be given to
the Internal Audit Section a long with the report, who should send it to the stock holding
authority. The stock holding authority shall forward them to the concerned Divisional Head for
their remarks. One copy of the list along with the remarks of the Divisional Head will be
returned to the Internal Audit Section. If the Divisional Head wants to retain the stores and the
stores have not been still consumed after one more year, the next Physical Verification Party
shall scrutinise all the lists of stores prepared in the preceding year and prepare a fresh list
bringing out the stores which are lying unconsumed over three years or which are lying in
excess of three years requirement along with previous remarks of the concerned Divisional
Head. These lists shall be passed by the Internal Audit Section to the stock holding authority
who shall again put them through the concerned Divisional Head to the Director General/
HOD for his orders on the subject, whether the stores may be retained or disposed off.
e). A certificate for verification of stores with its results shall be recorded in the stock
ledger/store ledger under the dated signature of the physical verification officer.
172. TAKING OF UNACCOUNTED MATERIAL THROUGH STOCK

VERIFICATION SHEET.
If at any time i.e. not necessarily at the time of physical verification, certain unaccounted
material has to be taken on the books, it shall be so done through the same form as that of the
stock verification sheet. In this case the stock verification sheet shall be signed by the Godown
Superintendent and Officer-in-charge of the stores. Similarly, if there is any shortage in stock
or the book balance has to be corrected on the authority of any letter, such as write off
sanction, it may be so done through the preparation of the form of stock verification sheet after
quoting the competent authorities' orders thereon. These stock verification sheets shall be
prepared in a continuous serial number in a section and shall be known as different from the
stock verification sheet prepared by the Physical Verification Team. These can be checked by
the Internal Audit/External Audit.
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173. REGULARISATION OF DISCREPANCIES
a). Difference over 2% in quantity over the total transaction since the date of last verification
of the items or Rs.5,000/- in value should be investigated by the Physical Verification Team on
the spot and every effort should be made to find out the cause therefore and if there are any
special features it should be so reported to the Internal Audit Section.
b). The Store Keeper concerned should carefully see that the discrepancy is not as a result of
any accounting errors i.e. mistakes in noting down the quantities from the vouchers in the
ledgers etc. For this purpose he should verify all the vouchers posted from the date of last
verification with the ledger. He should also see that the discrepancy is not due to shrinkage and
drayage in the items which are susceptible to these phenomenon’s. If there is a corresponding
excess and shortage in analogous items (where size only differs)such adjustment may be
passed up to 2% of the transaction. Similarly in items which are issued by weight and measure
the discrepancy up to 2% may be allowed unless the value is over Rs.5000/- This should not
be construed to mean that the explanation up to 2% will be accepted as a matter of course. In
case of items accounted for in numbers there should normally be no discrepancy. However,
these discrepancies should be examined on merit of the case.
174. PERCENTAGE VERIFICATION BY STOCK HOLDING OFFICER.

a). Each stock holding officer shall conduct physical verification of at least 20- 100 items
under his charge monthly, which are of pilferable or costly nature. The results of this
verification shall be entered in the stock verification register maintained by the concerned
stock holding authority, in the form given at Form No.10. The stock holding officer may select
any items at random and verify the physical balance and then the ledger balance as per
procedure for verification described in above paras mutatis mutandis. One continuous serial
number will be followed in the register. The description of the item verified and the ledger
folio number together with the findings should be entered in the stock verification register. In
case of discrepant items, stock verification sheets shall be prepared on the same proforma as
per Para 237 above and the orders of the competent authority taken for regualarising the
discrepancy.
b). The Divisional Heads or other supervising officers shall also make use of this field for
inspection work. They shall verify a minimum of 20-100 items which are pilferable or
valuable during each of their visit to the particular camp and their finding in the register. They
may also check the discrepancies brought out in the register on previous occasions and action
taken thereon.
175. VERIFICATION OF VEHICLES.

a). The CE/SE/EE( Mechanical Engineer)E&T who is the store-holding authority for vehicles,
should obtain in the first week of April each year a certificate in the following form, from each
Region / OPN Units / Wings/ Circle/Division/Section to whom any vehicle has been allotted:-
Certified that Vehicle No ........................................

Registration No............................ is/was under my charge on the
31st March, 20............. The vehicle is serviceable /repairable/
unserviceable.
Station : Signature
Date : Designation.
b). In respect of vehicles in the Workshop, the above certificate should be obtained from the
SE/Executive Engineer. The EE, Mechanical Engineer himself should furnish the certificate in
respect of all other vehicles.
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c). The fact that the necessary certificate has been obtained from the concerned authority
should be recorded in the remarks column of the Stock Register of Vehicles. The Internal
Audit Section will check the correctness of these entries with reference to original certificates.
The checking should be done cent per cent.
d). Immediately after the checking is over the Internal Audit Section should draw up a report
embodying therein the result of such checking, for submission to the Head of the Office and
the concerned store holding authority. The report should be pursued by Internal Audit until it
is completely settled.
176. POWERS FOR REGULARISING ADJUSTMENTS AFFECTED

IN THE LEDGERS DUE TO PHYSICAL VERIFICATION OF STORES.
Note: These powers are to be exercised as per the latest guide lines on the mater delegation
down the line.( please refer the present delegation of Financial Power(DFPR))
a). The powers of Director General / HODs/ Mission Heads to sanction adjustment (shortages,
excesses, deterioration, damages etc.) affected in the ledger records/store books are
Rs.50,000/- in each individual case provided that the adjustments is not due to negligence,
carelessness or dishonesty of any staff. These powers shall also apply for write off deficiency
and depreciation in value of the stores noticed at the time of physical verification or otherwise.
b). In case of losses due to negligence, carelessness, dishonesty of any staff, where it is not
possible to effect the recovery of the cost of the stores from the employee concerned, the
powers of the Director General/ HODs/ Mission Heads is Rs.25,000/- in each case.
c). The term each case should be interpreted with reference to a given point of time. If on a
particular occasion the numbers of items are to be written off, the powers should be reckoned
with reference to the total value of the stores intended to be written off on that occasion and
not with reference to individual articles constituting the lot.
d). The value of the stores for the purpose of write off of the shortages and losses means the
book value wherever available, otherwise the replacement value.
e). All the sanctions issued to write off shortage in the value of stores should be communicated
to the concerned Internal Audit .
f). No formal sanction is necessary to regularize and bring into stock the excess found as a
result of physical verification. The orders of the Director General obtained on the statement of
excess in enough for the purpose.
177. LOSSES & DEFALCATION:
a). Any loss or shortage of public moneys, departmental revenue or receipt, stamps, opium,
stores or other property held by, on behalf of, Govt. irrespective of the cause of loss and
manner of detection, shall be immediately reported by the subordinate authority concerned to
the next higher authority as well as to the statutory audit officer and to the concern Principle
Accounts Officer, even when such has a loss has been made good by the party responsible for
it. However, the following losses need not be reported:-
b) cases involving losses of revenue due to: Mistake in assessments which are discovered to
late to permit of a supplementary claim being made.
ii). Under assessment which are due to interpretation of law by local authority being over ruled
by higher authority after the expiry of time-limit prescribed under the law, and
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iii) refunds allowed on the ground that the claims were time barred.
II). Petty losses of value not exceeding Rs.2,000/- ( Two thousand)
c). Cases involving serious irregularities shall be brought to notice of financial advisor or
Chief accounting authority of the ministry or department concern and the Controller- General
of Accounts, Ministry of Finance
d). Report of loss contemplated in ( a) and b) ) shall be made at two stages
I ). an initial report should be made as soon as a suspicion arises that losses as taken place.
II). The final report to be sent to the authorities indicated at a) and b) above after investigation
indicating nature extent of loss, errors or neglect of rules by which the loss has been caused
and the prospects of recovery.
The complete report may be submitted to Head of the Department who shall finally dispose the
case under the powers delegated to him vide DFPR Rules 1978. The reports, which he cannot
finally dispose shall be submitted to the Higher Authorities.
d). Loss of Govt. property due to Fire, Theft, Fraud :

Shall be dealt as prescribed above and all cases value of Rs. 20,000/- above shall be invariably
reported to the police for investigation as early as possible and a formal investigation report
should be obtained from the police.
e). All Losses of immovable property such as buildings, communications by fire, flood,
cyclone, earthquake, other natural causes etc,. Exceeding Rs. 50,000/- (Rupees Fifty
thousand), may be reported to the Govt. through proper channel.
f). In suitable cases Director General/Director(Admn)/ Dy.Director General will issue orders
within 8 days of such intimation, constituting Enquiry Committee of 1 to 3 members,
depending upon the type of case and amount involved. This enquiry Committee shall bring out
clearly the following points in its report:-
i) Brief history of the case leading to the loss.

ii) Error or neglect of the existing rules, which led to the loss.
iii) Deficiencies in the existing procedure which contributed to the loss and remedial
measures recommended for future.
iv) Fixing of responsibility for the loss or for non-observance of rules which led to the
loss.
v) Extent of total loss and how much of it can be recovered.
g). After the submission of the report on the loss, if it is found to be irrecoverable, the loss
should be written off by preparing Survey Report for irrecoverable loss of stores (From No.11
earlier form no.28). In case an enquiry committee has been appointed, the Survey Report shall
be made after the report of the enquiry committee.
178). RESPONSIBILITY FOR LOSS
An officer shall be held personally responsible for any loss sustained by the Govt. through
fraud or negligence on his part. He will also be held personally responsible for any loss arising
from fraud or negligence of any other officer to the extent to which it may be shown that he
contributed to the loss by his own action or negligence. The departmental proceeding to be
carried out as per Rule 37 of GFR 2017.
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179. BORE HOLE LOSSES.
There are also cases of irrecoverable losses of bore holes etc. where intimation in Forms DRF-
II-61 and DRFH-11-A-61 and Enquiry Committee is not essential. In such cases the Field
Officer will get the loss written off by preparing a Survey Report for irrecoverable loss of
stores (Form No.11 earlier form no.28) and attaching necessary history sheet with this report.
The powers of various officers in such cases are given under Para. 177.
180. POWERS TO WRITE OFF OF LOSSES
a). Once the loss has been established and the responsibility for it definitely fixed, efforts
should be made to recover the cost of the stores lost from the person or persons responsible.
While determining the amount to be recovered due regard should be paid to wear and tear as
well as the period that has elapsed and of the prescribed life of the stores involved.
b). The powers to write off in cases of irrecoverable losses as given in DFPR compendium
which enclosed with this manual may be referred.
c). All sanctions to write off of losses should be communicated to the COA / PAO with copy
to the Internal Audit Section.
181. DISTRIBUTION OF THE COPIES OF THE SURVEY REPORT FOR

IRRECOVERABLE LOSS OF STORES.
a). Survey Reports in form No.11(earlier form no.28) are essentially required in 4 copies by
the centralised authority in region (i.e. Administration Branch) who shall obtain competent
authority's write off sanction in all cases of loss except in cases of shortages found during the
course of physical verification. On receipt of 4 copies, 3 copies will be sent to the Director
General/ HOD for write off sanction. The office of the Director General/ HOD, will retain one
copy and send 2 copies duly write off sanctioned. One original copy will be retained by the
centralised authority. One attested copy will be sent to the concerned COA / PAO. The
concerned Divisional Head will send the original copy to the stock holding authority and retain
an attested copy for his record. The stock holding authority will reduce the balance from the
ledgers on the authority of this sanction.
b). After the sanction to the write off has been issued, necessary entries should be made in red
ink in the Stock Register/Stores Ledgers so as to reduce the book balance by the quantity for
which write-off sanction has been issued.
*********
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CHAPTER-VII
UNSERVICEABLE STORES, SURVEY AND DISPOSAL
182. UNSERVICEABLE STORES - SURVEY AND DISPOSAL
There should be a separate section dealing with unserviceable stores in a depot/ shed. All the
stores, which have been returned on, return voucher and have been found to be unserviceable
by the returned stores section shall be dealt by this section. Immediately on receipt of the
unserviceable stores these should be entered into the ledgers of unserviceable stores.
183. UNSERVICEABLE STORES LEDGER
a). There shall a nomenclature list of various categories of unserviceable stores, which need
not correspond, exactly with nomenclature list of new stores but the stores should be grouped
here into major categories, which is convenient from the point of view of holding auctions and
disposal. Each capital item may retain its original nomenclature with the word "U/S". In case
of stores other than the capital, all sizes of unserviceable rubber goods may be kept under one
heading unserviceable rubber goods scrap. All sizes of tarpaulins may be kept as U/S
tarpaulins. Tyres may however be kept separately such as U/S jeep tyres, truck tyres etc. as
these are comparatively costlier items. These are just illustrative examples for suggesting
elaborate nomenclature of unserviceable stores to be prepared. Each nomenclature of U/S
stores list shall have a number and separate ledger entry. The proforma for the ledger shall be
same as that of general ledger. The entry on the receipt side shall be made from the Return
Voucher and on the issue side on the strength of sale issue note. Rate and value columns in
case of unserviceable stores need not be filled.
b). The receipt of unserviceable stores by stores holding authority is a continuous process
throughout the year and as soon as sufficient material is accumulated to form a lot of a
particular category sufficient to attract a suitable bid, the lot should be closed and entered into
a register known as "Lot Register'. These lots so entered into the lot register shall be got
surveyed through the Survey Committee and after the approval of the competent authority for
disposal by auction has been obtained, these should be put to auction.
c). After a lot has been formed and surveyed, any fresh receipt of material should be put in the
second lot for that category of U/S stores. The Ledger balance shall, however, continue to
show full material available with the remark that lots of ...... numbers/Kg. has been segregated
for survey and disposal. The ledger balance will be reduced only on the authority of sale issue
notes, on which the material will be issued to the party taking delivery of the stores. In case of
capital stores intimation for the disposal shall also be given to the concerned Divisional Head
as well as to the office of the Controller of Stores so that such equipment may be struck off
charge from the register of capital assets through an extra copy of sale issue note.
d). The value realised in the auction from time to time should also be noted on the ledger so as
to arrive at the unit price of U/S stores .
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184. SURVEY COMMITTEE
a). All the unserviceable stores before declared as such and surplus for disposal will be
examined and surveyed by a team of Survey Committee.
b). The Survey Committee will normally consist of three officers and will be duly approved by
the Director General/ADG& HOD in CHQ / ADG & HOD/ DDG of State
Unit/RSAS/MCSD/M_V.
1). Junior Survey Committee : This committee will process the disposal of Un-serviceable/
surplus / obsolete stores, headed by a Director/SE/Supdtg./DCOS rank officer. This committee
will process the disposal of stores up to a book value of Rs. 10.00 Lakhs.
2). Senior Survey Committee: The Sr. Disposal committee Head by a DDG/CE/ Director/ SE
rank officer will deal the disposal of un-serviceable / obsolete / surplus stores, of book value
above Rs.10.00 Lakhs. The other members of Senior./Junior of the above committee should
include members from Custodian, Finance, AP&MD, similar division if available .(The similar
division member will be the same as per Jr.PAC, Sr.PAC). The chairman may co-pt any
member if require.
Note: The capital equipment such as high value Machines, Costly laboratory
equipment’s,! Vehicles! etc.,! survey! off! will! be! dealt! by! Sr.! Survey! off! committee!
irrespective of its book value .
c). The stock-holding authority shall prepare the forms for survey committee reports for the
material which is to be put up to the Survey Committee for survey. The forms of survey
committee report for the stores which are not of capital nature and capital equipment have
been prescribed at Form No.12 and 13. (earlier for no 29 and 30.)
185. FUNCTIONS OF THE SURVEY COMMITTEE
a). The Survey Committee should inspect critically the condition of all the stores:-
i) that has deteriorated in value for any reason

ii) broken or damaged in transit or while in stock
iii) lying in the custody of various stock holding authorities for a long time and
considered by the respective stock holding authority as having become surplus owing
to obsolescence or other causes.
iv) received as unserviceable from the fields/camps
b). The committee should determine after such inspection and offer their recommendations on
the Survey Committee's Form No.12 and 13, (earlier form No. 29 and 30) as the case may be:
i) The condition of the stores, whether these are unserviceable or dead surplus stores;
ii) The method of disposal i.e. by sale through e-auction/tender( Rule 219 of GFR 2017
maybe followed) or by issue to particular users of a particular division etc.
c). No stores in stock should be re-classified and declared unserviceable or dead surplus
without the sanction of the competent authority obtained on the recommendations of the
Survey Committee. The Competent authority competent to purchase a stores shall be
competent to declare the store as obsolete / surplus / un -serviceable (Rule 217 of GRF 2017),
thereby presently the Director General has got Powers equivalent to his sanctioning powers i.e
20Cr. (Twenty Cores) for disposal based on the original purchase price/replacement
value/book value of the stores with respect to each item of stores. The powers of the HODs/
ADG/DDG of the Regions / SU/RSAS/MCSD/M-V in this respect up to their sanctioning
powers. The function of the committee shall be only inspecting the physical condition of the
stores and then record their recommendations. In other words the information provided to
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them in the Survey Committee's Report form should be normally sufficient for them to
proceed further. In case of items of other than capital nature, the checking of the file etc.
wherever it has been so prescribed should be completed by the Depot Officer/Store holding
authority. However, in case of capital equipment, the Survey Committee should examine all
records such as Log Books etc. in addition to the inspection of the physical stores with its
condition. In this case, the committee may also prepare technical report citing reasons for
survey off due to its Beyond Economical Repairs
186. SURVEY COMMITTEE'S REPORT
a). Separate list of the articles should be made out in quadruplicate, class by class in the form
suggested under Para above, separately for capital and other than capital stores. The
Committee should after the most careful investigation, have their recommendations recorded
by the committee against each of the items on all the copies of the list, both as regards the
classification and the manner/mode of disposal. The Committee should initial each
recommendation and the members of the Committee including the Chairman should sign all
the copies of the list.
b). Three copies of the list thus completed and bearing signatures of the Committee should be
sent by the Stores Holding Authority to the Office of the Controller of Stores/ ADG/ DDG of
CHQ/Region/ SU/RSAS/MCSD/M-V as the case may be. The order of the Director General or
other competent authority in approval or otherwise of the recommendation of the Survey
Committee will be conveyed on these copies, one of which should be sent to the concerned
COA / PAO. The other should be retained in the office of the Controller of Stores/ADG/DDG
and the third should be transmitted to the Stores Holding authority concerned. One additional
copy will be made when the sanctioning authority is Director General, Geological Survey of
India, which will be retained in the Regional Office. Prompt action should be taken to
implement the orders of the competent authority on the recommendations of the Survey
Committee, in writing down the cost of the stores and in disposing of the material in the
manner approved.
c). In case of any items cost is beyond the powers of the HODs, the survey off sanction
should be obtained from the Director General through the office of the Controller of Stores,
CHQ.
d). The orders of the competent authority declaring stores as dead surplus or unserviceable will
be sufficient to cover the resultant loss if any, and no separate write off sanction will be
necessary.
e). Whenever the Officer-in-Charge of a field camp finds any stores including drills and
vehicles held by him as surplus to requirement, he should make arrangements for sending
them back to the concerned stores holding authority in convenient batches.
187. DISPOSAL IN THE FIELDS
a). Unserviceable stores which cannot be put into use even after repair, lying in the
fields/camps away from the headquarters, as found to be un-economical by way of their cost of
transportation vis-à-vis their expected sale value should not be back loaded to the
headquarters. Such stores, of capital/ non-capital nature, shall be disposed off at site/ camp
field. The Divisional head shall submit the proposal for constitution of the Survey committee
as per para 184.
94
b). If this survey committee after careful examination recommends that these stores cloth
items ( like tents and tarpaulin) may be destroyed at the field itself, it shall record the
following certificates:
i) it will not fetch any amount if the auction is conducted, at the field itself.
ii) the unserviceable stores are completely in rags
iii) the stores have outlived the life, wherever it has been prescribed.
c). Recommendations for destruction of U/S stores in the field have to be restricted to the
barest minimum. The category of stores to be tackled under the above procedure may be tents,
tarpaulins, wooden packing cases, gunny bags rusted iron borings, which are completely in
deteriorated condition and such like items.
188. SURPLUS STORES
a). Purely temporary excesses over immediate or estimate requirements are not really
surpluses, so long as issues can work them out over a comparatively short period of time.
Stores can be considered as real surplus to the requirement of the department only if they have
not been issued for a long time. Even amongst such items, there can be some, which it is
known could be utilised in the department in the near future and these may with advantage by
distinguished from the surplus stores which cannot be so consumed.
b). An essential prerequisite condition of declaring any items of stores are "Surplus" stock is
that such items have not been issued from stock for consumption of the department for a
period of 4 years. Such "Surplus" stocks should be further classified under two headings viz:-
(i) Movable Surplus :Comprises items of stores which have not been issued for a period
of 4 years but which it is anticipated will be utilised in the future.
(ii) Dead Surplus :Comprises items of stores which have not been issued for the past 48
months and which it is considered are not likely to be utilised in the department within
the next 2 years. No article, however, be classified as dead surplus until it has been
duly inspected by a Survey Committee and declared as such.
189. EMERGENCY STORES
a). These are items which do not ordinarily wear out and stocks of which are not readily
obtainable in India and it is essential to maintain their stocks to meet occasional emergencies.
In this category such items are spares and duplicate of important machinery to be maintained
for emergent use in case of failure should be included. Such stores are emergency stores and
though not issued for a period of 2 years or more should not be classed as surplus stores.
Classification of emergency stores along with the quantity thereof should be done under the
personal approval of the concerned Divisional Head and such intimation send to the Depot
Officer who should write the work "Emergency" on the ledger card for such stores and on any
transaction i.e. receipt, issue or periodical returns of such stores, the word "Emergency" should
be added to the nomenclature list number of such stores. After issue of such stores, further
recoupment should be done on the advice of the concerned Divisional Head.
b). Stores, which cannot be put to any use mainly because of improved substitutes and
varieties being available, should be considered as obsolete .
c). Unserviceable stores are those, which cannot be restored to serviceable condition with
economical repair.
95
190. DISPOSAL OF SURPLUS AND OBSOLETE STORES
a). List of surplus stores i.e. stores which have not moved for over 48 months consumption in
the department should be prepared by the Physical Verification Team every year class-wise.
This list should be put up to the respective Divisional Head for obtaining his remarks as to
whether there is any possibility of issue of the stores in the near future or whether the
concerned stores are to be treated as "Dead Surplus" or "Obsolete". The items, which are
recommended as dead surplus or obsolete by the Divisional Head giving the reasons and
justification therefore should be separately listed out in the proforma for report of the Survey
Committee and their survey arranged by the stock holding authority. In such cases the stores
shall be transferred to the unserviceable stores section only after the approval of the competent
authority for write off/ re-classification has been obtained. The unserviceable stores section
shall arrange their disposal.
b). There may be cases where the stores have been returned on Return Voucher and before
taking then on books it has been decided by the Divisional Head or on inspection by the
Survey Committee that the item are obsolete/dead surplus. In such case, the unserviceable
stores section should keep these items in a separate lot, enter into a separate sheet of ledger for
dead surplus/obsolete stores, arrange survey and take disposal action.
c). The items which have become unserviceable due to normal wear and tear, (or wherever the
life has been prescribed, the stores have outlived it), may be transferred to the unserviceable
stores ledger on the authority of certificate of unserviceability given by the Divisional
Head/Officer-in-Charge. No unserviceable stores should continue in the ledger of new stores
for any length of time in case of normal wear and tear. In case of stores rendered unserviceable
for reasons other than normal wear and tear or where the stores are obsolete/Dead surplus, the
sanction of competent authority should invariably be taken before transfer of these stores from
the stock book of New Stores till the time the sanction is received, suitable note should be kept
on the ledger of new stores indicating the present condition of stores and the reference under
which the action for reclassification/write off has been taken.
d). The Stores that have been found surplus /obsolete and unserviceable should be weeded out.
The details of the obsolete/ surplus stores to be circulated to the Government Departments
which are like to use these stores. The details of such obsolete / surplus stores should be
circulated within the GSI, to ascertain if these are required by any of the GSI offices. A
specific date, atleast 4 weeks from the date of issue of the letter to be given for various
agencies and GSI offices to report back if the requirement exists. If it is ascertained that there
is no requirement from any office of the GSI, or out side the same may be subjected to survey
committee and finally seeking the approval of the competent authority for its disposal.
e). Only after receipt of the Sanction from Competent Authority for disposal the matter may be
referred to the Disposal Agency.
f). The MSTC is the present Disposal Agency for GSI and hence the list of the Obsolete /
surplus and un-serviceable stores may be forwarded to MSTC by making suitable lot size for
its earliest disposal.
g). The MSTC is disposing the stores through e-action as such all preparation may be made to
finalise the reserve price as per the lots advertised by MSTC. This reserve price should be
communicated to MSTC confidentially by on line process as and when required by MSTC
without any delay. The delay in communication of reserve price may jeopardize the disposal
action and may lead to litigation / re-tendering etc,.
96
h). The offices of GSI is therefore advised to forward the list of U/s, obsolete, surplus stores to
the nearest MSTC office located for disposal action, through on line process.
i). The stores reported to the MSTC for disposal, will continue to remain under the custody of
the concerned store-holding authority until they are disposed off, in accordance with the MOU
entered between GSI and MSTC. It should be ensured that proper protection is given to these
stores till their removal by the purchaser and that the time lag between the declaration and the
actual disposal is required to be minimum. The disposal of tentages hitherto carried by Khadi
Village & Industries Commission (KVIC) in absence of revised offer from them, may be
forwarded to MSTC for disposal by competitive bids.
j). The sale-proceeds from disposal arranged by the MSTC will be credited to the Geological
Survey of India Account.
191. DIRECT DISPOSAL
a). Direct disposal should be resorted to only when disposal through the Disposal Agency
such as MSTC/KVIC is not in vogue, by following tendering process as is being followed
for procurement of stores.
b). The responsibility for the accumulation of surplus and obsolete stores shall be of the
concerned Divisional Head under whose indent the stores have been obtained. After the list of
surplus stores prepared by the Physical verification Team is circulated to the Divisional Heads,
they may give the recommendation regarding the stores to be treated as obsolete/dead surplus
or movable surplus also giving reasons thereof. If an item has been retained by the Divisional
Head for one year anticipating its issue, and this further continues to remain in stock without
issue during that year also and it repeated in the list of the next year, such position may be
brought to the notice of the Director General/ HODs Geological Survey of India after
obtaining further remarks from the Divisional Head. the Controller of Stores shall put up the
papers to the Director General/ HODs for obtaining his further orders for retention or disposal
of the stores in question.
c). The MSTC on finalization of disposal of obsolete / surplus / U/s collect the requisite bid
amount in the form of DD in favour of DG, GSI / ADG/DDG of the Regions / wings issues a
sale order to the highest acceptable bidder. A copy of the sale order along with bid
amount(security deposit plus balance bid amount) is forwarded to GSI.
d). MSTC is also responsible to collect requisite levy duties and GST/taxes and deposit it to
the govt. account
e). The MSTC collects the bid amounts from the bidders and forwards to the AP & M
division, for depositing in to the Govt. Account and issues the Release Order to the
bidder, with an advise to collect the material against Release Order issued to him with
proof of identification letter.
f). The bidder with appropriate identification letter approaches the AP & MD GSI, for
collection of the material against the release order issued to him. The materials then issued on
Issue voucher (sale issue note).
g). The Issue voucher shall be in three copies in case of stores other than capital. One copy
may be given to the party along with the stores which will form the basis for making the gate
pass and checking the stores at the gate. Acknowledgement of the party to be taken in 2 copies
out of which one will be kept by the store keeper. One copy passed to the ledger section for
posting in the ledger. In case of capital stores the sale issue note shall be in 5 copies, the 2
97
additional copes will be sent to the COS / DCOS/ Stock Holding Authority and the concerned
Divisional Heads for information and posting of their records about the disposal of the item.
The proforma for the sale issue note/ Issue voucher shall be the same as for ordinary issue
voucher except the order number and date shall be quoted.
h). The Release of U/S /Obsolete/Surplus to be supervised by the Custodian, Superintendent,

Officer concerned to ensure that store as per release order is being collected by the bidder.
i). After the stores have been delivered, the ledger of unserviceable stores shall be posted with
the copy of sale issue note. After posting the ledger, its issue note shall be passed on to the
requisition registration section for separate maintenance of the record of sale issue voucher
(sale notes) and watch to be kept that there is no missing serial number.
192. RESERVE PRICE
The reserve price based on the price obtained at past auctions and any other information
available should be fixed in advance of the auction by the COS/DCOS of Stores (Depot) for
each item of stores to be sold in order that the items may be withdrawn from the sale if the
bids are found to be unsatisfactory. However, the Depot Officer may accept bids lower than
the reserve price up to 25% where found acceptable provided the Officer doing so records his
reasons in writing.
1. ( Register No.XXIII - Ledger of U/S Stores)

2. ( Register No.XXIV - Lot Register of U/S Stores)
**********
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Index for Materials Management Manual 2018

CHAPTER I: PROFILE OF GSI AND ROLE OF AP&M DIVISION

42 Formation of TAC, Duties & Responsibilities of TAC………………. 75-76 39-41

CHAPTER-II: IMPORT PROCUREMENT

CHAPTER –III Para no Page no

103 Return of Stores………………………………………………………….. 152 75-77

CHAPTER – VIII -- ACCOUNTING OF STORES AT CAMPS

Sl No. VARIOUS FORM & NO USED IN GSI

Sl.No APPENDIX Para No Page no

Sl.No GSI Circulars

Sl.No CVC CIRCULARS Page No.

DFPR and GFR Amendment

1 Appendix – 6 Circular for Financial Power delegated by the Ministry

1. A PROFILE OF THE ORGANISATION

3. ROLE OF ASSETS PROCUREMENT & MANAGEMENT DIVISION IN GSI

5. Each procurement of sophisticated equipment requires careful analysis and

6. The Organisation chart of the Assets Procurement &

A). PRESENT HIERARCHY OF ASSETS PROCUREMENT & MANAGEMENT

Dy. Controller of Stores

ASST. STORE KEEPER

B) PRESENT HIERARCHY OF ASSETS PROCUREMENT & MANAGEMENT

Dy. Controller of Stores

ASST. STORE KEEPER

7. FUNCTIONS OF ASSETS PROCUREMENT & MANAGEMENT DIVISION

1). Procurement of Goods and Services with maintaining budget.

2). Store Keeping

3). Arrange Write-off stores and Disposal of Unserviceable stores

4). Job/ Service Contracts and Maintenance Contracts (AMC/CAMC/ASC)

i) As per the nature of the material

j) General stores including stationary

ii) The materials classified as per their condition are:

iii) as per the nomenclature of the material

iv). Geological Laboratory Stores: Geological Laboratory Equipment’s, accessories and

vii). Drawing Stores: Drawing instruments and Drawing stores

11. CODIFICATION OF MATERIALS

12. THE NECESSITY OF CODIFICATION:

MAIN GROUP (2 CHARACTERS) – To identify the major heads as follows:

01) Drilling Stores

SUB GROUP (2 CHARACTERS) – To identify type of materials under a main

14. MODE OF OPERATION (2 CHARACTERS) – To identify an item by its mode of

15. GSI CODED MATERIAL (4 CHARACTERS) – Finally identifies an item

17. PROVISIONING AUTHORITY (P.A)

installation, commissioning, training, repairs, maintenance and Annual Maintenance/ Service

The Provisioning Authorities are as per Table –I of this chapter.

18. A) CENTRAL TECHNICAL SPECIFICATION COMMITTEE (CTSC)

B) CPMC (Central Procurement Management Committee )

19. INDENTING AND PROVISIONING AUTHORITY

All Provisioning Authorities are responsible for provisioning of equipments, instruments,

b) Technical Specifications and name of the probable suppliers:-

20. PROVISIONING AUTHORITIES:

21. PURCHASING AUTHORITY

22. SANCTIONING AUTHORITY:

“Sanctioning authority” / “Competent authority” means the officer(s) who is delegated

Sanctioning Authority is de termined on the basis of value/cost of the materials to be

C) PROCUREMENT BY AP&M DIVISION

23) DIFFERENCE BETWEEN PURCHASING AUTHORITY & SANCTIONING

Note: It is clarified that SANCTIONING AUTHORITY and PURCHASING AUTHORITY are

24. PROCUREMENT BY LABORATORIES /WORKSHOP /DIVISIONS

26. STOCK HOLDING AUTHORITY

27. Various Stock Holding Authorities in GSI

The Various Stock Holding authorities are as given in Table -3

Sl. STORES Stock Holding Authorities

(A) Pre-purchase formalities.