Indian Railway Codes and Manuals-Stores code- Vol-II-Chapter-23 (XXIII)
CHAPTER
XXIII
SALE OF
RAILWAY MATERIALS
2301. Railways purchase and stock stores only in such
quantities as their requirements warrant and a need for the sale of such stores
should not arise under normal circumstances. Sales of railway materials are
therefore generally of obsolete and unserviceable stores and scrap the
accumulation of which, it has not been possible to avoid. Occasionally, excess
stocks of ordinary stores have to be disposed of. Railway stores should
therefore bs sold only when it is found that for financial and administrative
reasons, it is expedient to sell than keep them in stock. Exceptions to this
rule are cases of materials urgently required by other railways or Government
departments and of petty sales to quasi-railway institutions providing amenites
for the railway staff.
2302. Sales may be affected In one of the following
ways.—
(i) by public auction;
(ii) by inviting tenders for purchase (paragraph 2320 to 2324) ar submitting
tenders offering to sell (paragraphs 2237 to 2239); and
(iii) by direct sale.
2303. No materials which are not overstocks or surplus
to requirements or obsolete, unserviceable or scrap should be sold by aucticn
or tender. Subject to the above restriction, the actual method of sale adopted
should be appropriate to the circumstances under which the sales are affected
and to the nature of the articles sought to be sold. Except when the amount
involved in a sale is less than Rs. 100 (or the sale is by direct
negotiations), effective publicity should be given to the sale, by
advertisement notices in the daily press and in commercial and technical
journal and, wherever this is possible, by mailing special notices to likely
buyers.
2304. Powers of General Managers.—The powers of the General
Manager to sell railway material and stores is limited only by the canons of
financial propriety. He has, however, to obtain the previous sanction of the
Railway Board to the sale of the following classes of assets :—
(i) a portion of the line; (ii) any item of authorized rolling stock or (iii)
any other asset costing more than rupees one lac.
2305. Extent powers may be Deleted.—The General Manager may
delegated to officers subordinate to him his powers to sell railway materials
and stores to the extent indicated in paragraphs 2306 to 2312.
2306. Sale of Stores to other Railways.—Full powers to sell
any stores to other Railways at full book rates or higher plus the usual
percentage charges (paragraphs 2328 and 2329) (Supervision charges are not
levied on stores sold to other Government Railways).
2307. Sale of "Over stocks" of "Ordinary
Emergency or Special Stores" by Tender. Full powers to sell and adjust the
difference between book rate and sale value.
2308. Sale by Direct Sale of Materials referred to in
paragraph 2307.—Full powers to sell at book rate or purchase rate whichever is
higher plus the usual percentage charges.
2309. Direct sale of books, forms, stationery, petty
stores and clothing for menial staff.-Powers to sell at the book rate or
purchase rate whichever is higher, plus freight incidental and supervision
charges, to the following :—
Railway Employees' Cooperative Credit Society, Railway Institutes., Government
Railway Police Department, Indian Posts and Telegraph Department. Railway
Battalions, Railway Regiments and other similar bodies.
2310. Sale by tender, of scrap and unserviceable, surplus and
obsolete stores and adjustment of the difference between the book value and
sale value Full powers to dispose such material by tender and to adjust the
difference between the book value and sale value.
2311. Direct sale of maternal referred to in paragraph 2310
Powers to sell at book value or at a loss not exceeding Rs. 200, on each sale.
If as a condition of sale, freight is to be borne by the administration, value
of such freight should be taken into consideration in computing the loss. This
rule applies to all cases of sales.
2312. Sale by public auction of material referred to in paragraph
2310 and adjustment of the differences between the book value and sale
value.—Full powers.
2313. Centralized Control of Sales.—The Controller of
Stores is responsible for the sale of railway stores irrespective of whether
the stores are in his custody or not and no sale may ordinarily be affected
without his knowledge and approval. Stores intended for sale should ordinarily
be sent to the nearest stores depot or any particular depot the controller of
Stores may assign to particular kinds of stores, and sales shall, as a rule, be
affected from those stores depots only.
2314. If the freight and loading charges likely to be incurred
on transporting unserviceable and scrap materials to the stores depots for
disposal, are likely to be heavy an incommensurate with the value the articles
may fetch by sale later on, District and Division officers may sell with the
prior concurrence of the Controller of Stores, such stores at the spots at
which they lie or at any other convenient centre.
2315. The Chief Engineer may arrange for the sale of
unserviceable wooden sleepers and bridge timbers without prior reference to the
Controller of Stores.
2316. The prior concurrence of the Controller of Stores is
not necessary to the sale of such items as grass, trees, fish and fruit, which
may be arranged by the Chief Engineer.
2317. Sale to Employees.—The Genera manager may, in
consultation with his Financial Adviser, frame suitable rules for the sale of
small quantities of material and stores for the bonafied use of railway
employees.
2318. Responsibility for Execution of Sales.—When a
definite sanction to a or a contract for a sale of certain items is communicated
to an executive officer by the Controller of Store or the General Manager, the
duty of taking all further action, such as intimation to tenderes the
quantities available for delivery, the recovery of ground rent & c, will
devolve on the executive officer in charge of the material to be sold, who will
be responsible for seeing that the terms and conditions of sale are observed
strictly and for advising the Accounts officer, Stores, and the Controller of
Stores of the satisfactory completion of the transaction.
2319. Sale by Public Auction.—The procedure to be followed
in the conduct of sales by public auction is detailed in Chapter XXIV.
2320. Sale by Invitation Tenders.—In inviting tenders for
the sale of stores it should be seen that:—
(a) The tender notice which is published gives clear particulars of the
materials to be sold, approximate quantities thereof and the place and the
probable date of sale; and
(b) tender forms containing the conditions of agreement are available to
intending tenderers at nominal prices fixed by the Controller of Stores.
2321. Conditions of Sale Agreement—All agreements for sale
should provide, inter-alia clauses stipulating the following conditions, viz.,
In case of sale tenders, the Tendering firms should deposit the earnest money equal to 5% of the amount
offered subject to a maximum of Rs. 2,00,000/- without which the Tender will not be
considered. The security deposit of 10% of the sale value will be deposited by
successful Tenderer before ordering sale.
(Authority Board's letter
No. 98/RS (G)/779/10(CS) dated 31-10-2007).--acs no.5
(b) Failure to adhere to any of the conditions prescribed in the tender will
disqualify the tenderer.
(c) If the purchaser of any materials desires to send it by rail, it will be carried
at public tariff rates only.
Note.—When there is any intention to allow the
materials offered for sale to be carried by the purchaser by rail at other than
tariff rates applicable to the public, the freight concession, which should
have been previously sanctioned by the General manager for the particulars sale
and item of stores, should be expressed in unambiguous terms and included among
the conditions of sale in the tender notices and advertisements. Such
concessions when granted should apply only to :—
(i) condemned railway materials which are in such
a condition that they cannot be readily sold for the use for which they were
originally made; and
(ii) the carriage of such stores from place of
sale to first destination.
Such concession can be granted by a railway on its
home line only; necessary certificate regarding the category of stores may,
however, be granted by the officer issuing the stores to enable the purchaser
to obtain similar concessions on foreign railways if the first destination
happens to be on a foreign railway.
(e) The purchaser should pay to the Treasurer of
the Railway the agreed amount less the earnest money already deposited within
fourteen days of the date of intimation of the acceptance of the tender by the
railway.
Note.—Where, for any reason, the exact amount
payable cannot be ascertained or when a system of part deliveries has been
agreed to on the basis of part payments, a suitable amount should be stipulated
as payable by the purchaser as an advance of purchase price, to be adjusted
after the exact amount is known. In such cases, the earnest money of the
successful tenderer should not be refunded till the conclusion of the contract
and deliveries of materials should be controlled so that the outstanding of the
purchaser payable to the railway do not at any time exceed the advance.
(e) The purchaser should take deliveries of
materials purchased within a stipulated period of time.
(f) The Railway should reserve to itself the right
of withdrawing from sale any material at any stage without assigning reasons.
(g) Mis-description or error in quantity should
not invalidate a sale. No sale shall be invalidated by reasons of any defect or
fault in any of the material. A refund will be made to the purchaser when the
weight or number delivered is less than the quantity paid for.
(h) Except in special circumstances the delivery
of the material sold will only be permitted on production of receipt for the
payment of the sale value to the Railway. All weighments, counting and loading of
material will ordinarily be done by the Stores Department and charges for
loading should be paid to ths Railway at ths rates prescribed for the purpose
before the delivery of the materials.
(i) The loading will be done in the presence of the purchaser or his
representative but if he does not attend, such loading will be done in his
absence and no claim on the ground that wagons were not loaded properly or that
weights were subsequently found to be less, will be entertained in any
circumstances.
(j) Delivery will not be made on the stores
premises nor any weighment or counting permitted for re-sale among the
purchasers themselves or to others on such premises.
(k) The stores will remain Railway Property until
all the conditions of sale are fulfilled-The mere payment of the purchase money
does not constitute the complete purchase and materials will become the
property of the purchaser only after the sale has been completed and the stores
have been removed from Railway premises or despatched according to the
instructions of the purchaser.
(l) In the event of its being found impossible to
complete delivery after the payment has been made, a refund of the value of the
undelivered goods will be made to the f purchaser, who will have no claim for
further compensation from the railway.
(m) Materials not removed within the stipulated
time will be subject to storage charge at rates that will be fixed by the
Railway.
2322. The Stores Tender Committee.—All tenders for stores
amounting to Rs. 2 lakh or over should be submitted to a Stores Tender
Committee before acceptance. Acceptances of tenders should be promptly
intimated simultaneously to the tenderer, the Accounts Officer, Stores, and the
Executive Officer for the delivery of stores.
2323. Weightment and delivery of Stores sold.—Weighments
and deliveries of any stores sold by whatever manner of sale should ordinarily
be made in the presence of an Accounts Stock Verifier who should attest the
weighment registers and other initial records according to the procedure prescribed
in paragraphs 2426 to 2433.
2324. Where the successful tenderer is another Railway or
Government Department, the conditions indicated above in paragraph 2321 (a),
(c), (d), (h), (i) and (m) may be suitably modified, as earnest money need not
be taken from such bodies and payment will be usually made by book adjustment.
2325. Sales by Submission of Tenders.—Railways may also
submit tenders in response to public invitations for tenders for supplying
materials, whether such invitations are issued by railways, other Government
Departments or by private bodies. This method of sale is particularly suitable
where the railway is pressed to dispose of its 'overstocks' and surplus stores'
in such cases, the procedure detailed in paragraphs 2237 to 2239 should be
adopted.
2326. Direct Sales.—Direct sales may be either of :—
(a) stores of which the railway has only normal stock;
(b) items of ordinary, emergency or special stores in which the railway is
over-stocked;
or
(c) surplus stores of any class including scrap, sale of which has been
recommended
by the Survey Committee and approved by the General Manager.
Note—With efficient store-keeping, over-stocks of emergency or special stores
should not ordinarily arise.
2327. Direct Sale of Stores with Normal Stocks.—The sale of
stores which have not been overstocked, is prohibited. Such sales may, however,
be made if they are required to meet the emergent needs of other Government
Departments, railways or local authorities or by Railway's contractors for use
on the railway's "works" provided that the selling railway's needs
are not adversely affected thereby. The above restriction, however, does not
apply to stores, of which the stocks are in excess of the railway's normal
requirements. The rate at which the stores will be sold in the above cases will
be either the book rate or the purchase rate, whichever is higher.
2328. Freight and Incidental Charges.—Freight at public rates
should be added to the cost of stores fixed as indicated in paragraph 2327 in
all cases of direct sales of stores mentioned in paragraph 2326(a). When such
freight is not known or cannot be estimated with reasonable accuracy, the
freight should be taken to be 5 percent or such other percentage as may be
fixed for the Railway Board. An additional charge of 2 percent should be made
for- 'incidental charges'.
2329. Departmental Charges.—The total cost i.e., prime
cost, freight and incidental charges, of ordinary stores sold directly should
then be increased by 12 1/2 per cent to cover the cost of supervision, storage,
interest on outlay, & c. except when the sale is to other Government
Railways.
NOTE.—The levy of the departmental charges on the cost of stores issued to
Neutral Control Staff may be foregone by railways by mutual consent.
2330. Direct sale of "Overstocks" and Surplus
Stores.—The direct sale of such stores of all classes, including scrap, may be
either :—
(a) petty sales to employees and private parties for total value in each case
of not more than Rs. 100; or
(b) sales to other departments of the railways, other railway and other
Government Departments.
2331. (a) The rates at which surplus stores may be sold
should be the book rates (which would have been suitably modified by the Survey
committee) or the rates at which similar articles have been sold in recent
auction or tender sales, whichever may be higher. Where similar articles have
not been sold at recent auctions but have withdrawn owing to the reserve prices
that had been fixed not having been reached, such prices should be taken to be
the prices applicable in the case of these sales. Additional charges for
freight, incidental charges and supervision, vide paragraphs 2328 and 2329 may
be added at full or reduced rates or altogether foregone by the authority
empowered to sanction the sales. In the case of petty sales, the cost is
payable strictly in advance to the railway.
(b) The rate at which "Overstocks" may
be sold should be the book rate or purchase rate whichever is higher. Fereight
and incidental charges and departmental charges should be levied on all such
sales as a general rule, departmental charges may however be waived in any
particular case with the sanction of the General Manager.
2332. Sanction to Sales.—Whenever the Controller of Stores
proposes to make a sale which is not within his powers, he should submit to the
general Manager a Minute Sheet (in quadruplicate) containing particulars of the
proposed sale, making special mention of the book value of the stores, the
proposed rate of sale and the total loss (if any) involved in the transaction,
with justification for incurring such losses. The General Manager will intimate
-his approval by endorsing his sanction to the sale on all the four copies
which will then be distributed as follows:—
One copy each direct to the Accounts Officer Stores, and the Statutory Auditor.
One copy to the Controller of Stores.
One copy to be retained as office copy.
One receipt of the sanction, the Controller of Stores should issue a Sale Order
to the Depot Officer concerned.
2333. In cases falling within the powers of sale of the
Controller of Stores, the Sale Order itself will constitute the sanction.
2334. Sale Orders.—Orders for sale of railway stores should
be made out in quadruplicate on Form S. 2334 shown below.
2335. The first foil of the Sale Order should be forwarded
to the purchaser, and the second third and fourth foils to the Accounts
Officer, Stores, who should countersign all the three copies of the Sale Order
that are sent to him in token of his having audited them. The Acc-counts Officer
should then return the second and third foils to the Controller of Stores and
retain the fourth foil as his record (or send the same to the local Accounts
Officer, if any, dealing directly with the depot concerned). In the case of a
centralized Accounts Office the Sale Orders should be arranged in chronological
order and filed for record and reference. Where the Sale Order is sent away to
a Local Stores Accounts Officer, the Headquarters Office should maintain a
Register of Sale Orders (S. 2335) (Manuscript) as shown below, in which should
be noted each Sale order before despatch to the Local Store: Accounts Office.
The Loacal Stores Accounts Officer should keep the sale Order filed in
chronological order for reference and record.
Form No. S 2335
1. Sale Order number.
2. Date.
3. Reference to sanction of higher authority.
4. Class.
5. P.L. No.
6. Quantity.
7. Book Rate.
8. Sale rate and condition of sale.
9. Loss on sale.
10. Gain on sale.
11. Audit remarks.
12. Initials of Accountant.
13. Initials of Gazetted Officer.
14. Reference to Issue Note number and date.
15. Remarks.
The Controller of Stores should retain the third foil as
his office record and send the second foil to the Depot Officer concerned, who
will have to issue the material. In case where the Sale Order itself
constitutes the sanction, the copy to the purchaser should not be sent before
the Sale order has been audited by the Accounts Office.
2336. The depot should enter the particulars of the Sale
Order in a manuscript register (S. 2336) to be maintained for the purpose and
sene the Older itself to the depot store keeper Grade III in charge of
materials concerned for arranging the despatch of the materials. The depot
store keeper grade III in charge of materials should note the Sale order and
then send it to the Accounts Stock-Verifier as an intimation that he should
attend the weighments and issue of the material. The Stock Verifier should than
proceed to winess the weighment, when he will hand over the Sale order to the
depot. After the despatch of the material, the reverse of the Sale order form
(second foil) should be filled in and returned to the Controller of Stores.
Weighments should also be witnessed by the authorised representative of RPF
wherever the security of the Depot is under the RPF department.
Deliveries in Instalments
2337. Delivery Orders.—The following procedure should be
followed in all those cases in which the stores sold are either delivered in
installments or when the deliveries are effected by an officer who is not an
immediate charge of the stores depot.
2338. Delivery Orders (S. 2338) should be prepared in
quadruplicate, in a form similar to the Sale Order (S. 2334) mutatis mutandis
and distributed in the same manner except that the second foils will be detained
by the issuer till the entire quantity sold has been delivered. The cash
receipt for the full amount due on delivery should be attached to the office
copy.
2339. On completion of the delivery, the officer issuing
the stores will send to the Controller of Stores a completion report
accompanied by the delivery orders (second foils) after filling therein the
particulars of the issue notes and the railway receipts, if any, under which
the several installments of deliveries have been made.
Multiple choice questions:
Question
1
Under what circumstances should
railway stores be sold?
a) When there is a shortage of
storage space
b) When financial and administrative reasons make it expedient to sell
c) When the stores are in high demand
d) When new stores are purchased
Answer: b) When financial and administrative reasons make it
expedient to sell
Question
2
Which types of stores are generally
sold by railways?
a) Newly acquired stores
b) Obsolete and unserviceable stores and scrap
c) Regular stock items
d) High-demand items
Answer: b) Obsolete and unserviceable stores and scrap
Question
3
Which method is NOT mentioned as a
way to sell railway materials?
a) Public auction
b) Inviting tenders
c) Direct sale
d) Online marketplace
Answer: d) Online marketplace
Question
4
What is the minimum amount involved
in a sale that requires effective publicity through advertisement?
a) Rs. 50
b) Rs. 100
c) Rs. 500
d) Rs. 1,000
Answer: b) Rs. 100
Question
5
Which of the following is NOT a
class of asset that requires the previous sanction of the Railway Board before
sale?
a) A portion of the line
b) Any item of authorized rolling stock
c) Office supplies
d) Any asset costing more than rupees one lac
Answer: c) Office supplies
Question
6
To whom can the General Manager
delegate the powers to sell railway materials and stores?
a) Other General Managers
b) Officers subordinate to him
c) External auditors
d) Local government officials
Answer: b) Officers subordinate to him
Question
7
Who has full powers to sell any
stores to other railways?
a) General Manager
b) Controller of Stores
c) Depot Officer
d) Finance Officer
Answer: a) General Manager
Question
8
What is the restriction on the sale
of materials by auction or tender?
a) Only new materials can be sold
b) Only materials not overstocks or surplus to requirements can be sold
c) Only materials that are overstocks, surplus, obsolete, unserviceable, or
scrap can be sold
d) Only materials with a book value exceeding Rs. 1,000 can be sold
Answer: c) Only materials that are overstocks, surplus, obsolete,
unserviceable, or scrap can be sold
Question
9
Who is responsible for the sale of
railway stores, regardless of whether the stores are in his custody?
a) General Manager
b) Controller of Stores
c) Depot Officer
d) Financial Adviser
Answer: b) Controller of Stores
Question
10
In which case can district and
division officers sell stores without sending them to the nearest depot?
a) When the stores are in high
demand
b) When transporting costs are high and incommensurate with the sale value
c) When instructed by the General Manager
d) When stores are urgently required by other railways
Answer: b) When transporting costs are high and incommensurate with
the sale value
Question
11
Which officer may arrange for the
sale of unserviceable wooden sleepers and bridge timbers without prior
reference to the Controller of Stores?
a) General Manager
b) Chief Engineer
c) Depot Officer
d) Financial Adviser
Answer: b) Chief Engineer
Question
12
Who is responsible for ensuring that
the terms and conditions of sale are observed strictly and for advising the
Accounts Officer, Stores, and the Controller of Stores of the satisfactory
completion of the transaction?
a) General Manager
b) Controller of Stores
c) Executive officer in charge of the material to be sold
d) Financial Adviser
Answer: c) Executive officer in charge of the material to be sold
Question
13
What must the tender notice
published for the sale of stores include?
a) The names of potential buyers
b) Clear particulars of the materials to be sold
c) Historical value of the items
d) Details of other tenders
Answer: b) Clear particulars of the materials to be sold
Question 14
What percentage of the amount offered should the tendering firms deposit as earnest money?
a) 2%
b) 5%
c) 10%
d) 15%
Answer: b) 5%
Question 15
What is the maximum amount of earnest money that tendering firms need to deposit?
a) Rs. 50,000
b) Rs. 1,00,000
c) Rs. 1,50,000
d) Rs. 2,00,000
Answer: d) Rs. 2,00,000
Question 16
What should be the security deposit percentage of the sale value that successful tenderers need to deposit before ordering the sale?
a) 5%
b) 10%
c) 15%
d) 20%
Answer: b) 10%
Question 17
What is a consequence of failing to adhere to any of the conditions prescribed in the tender?
a) Reduced sale price
b) Disqualification of the tenderer
c) Increase in earnest money
d) Extension of tender validity
Answer: b) Disqualification of the tenderer
Question 18
How should the purchaser of any materials transport the goods if they desire to send it by rail?
a) At discounted rates
b) At public tariff rates only
c) At concession rates
d) At a flat rate
Answer: b) At public tariff rates only
Question 19
What should be done if the purchaser does not attend the loading of the material?
a) Loading will not be done
b) Loading will be done in his absence and no claim will be entertained later
c) A penalty will be imposed
d) The sale will be canceled
Answer: b) Loading will be done in his absence and no claim will be entertained later
Question 20
What is the status of the materials until all conditions of sale are fulfilled?
a) They become the purchaser's property immediately
b) They remain Railway property
c) They are held in escrow
d) They are insured by the purchaser
Answer: b) They remain Railway property
Question 21
What happens if it is found impossible to complete delivery after the payment has been made?
a) The purchaser will receive a full refund for undelivered goods
b) The purchaser will receive a partial refund
c) The purchaser can claim compensation
d) The sale will be considered invalid
Answer: a) The purchaser will receive a full refund for undelivered goods
Question 22
To whom should all tenders for stores amounting to Rs. 2 lakh or over be submitted?
a) General Manager
b) Controller of Stores
c) Stores Tender Committee
d) Financial Adviser
Answer: c) Stores Tender Committee
Question 23
Who should be present during weighments and deliveries of any stores sold?
a) Purchaser
b) Controller of Stores
c) Accounts Stock Verifier
d) General Manager
Answer: c) Accounts Stock Verifier
Question 24
What is the procedure for sales to another Railway or Government Department regarding earnest money?
a) They must deposit earnest money
b) Earnest money need not be taken
c) They must deposit twice the earnest money
d) They are given a discount on earnest money
Answer: b) Earnest money need not be taken
Question 25
Who has the authority to waive the levy of departmental charges on the cost of stores issued to Neutral Control Staff?
a) General Manager
b) Controller of Stores
c) Financial Adviser
d) Railway Board
Answer: d) Railway Board
Question 26
What should be added to the cost of stores in all cases of direct sales mentioned?
a) Handling charges
b) Tax charges
c) Freight at public rates and incidental charges
d) Discounted rates
Answer: c) Freight at public rates and incidental charges
Question 27
In which cases may direct sales of stores with normal stock be made?
a) Only when there is excess stock
b) To meet emergent needs of other Government Departments, railways, or local
authorities
c) When there is a storage issue
d) When they are close to expiration
Answer: b) To meet emergent needs of other Government Departments, railways, or local authorities
Question 28
What is required for delivery of material sold?
a) Written permission from the General Manager
b) Production of receipt for payment of the sale value
c) A signed contract
d) Approval from the Controller of Stores
Answer: b) Production of receipt for payment of the sale value
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