Indian Railway Codes and Manuals-Stores code- Vol-I-Chapter-8 (VIII)
PURCHASE THROUGH THE DIRECTORATE GENERAL OF SUPPLIES AND
DISPOSALS
801. List
of items that may be purchased only through the Agency of the Directorate
General of Supplies and Disposals.—Except in cases where stores are arranged
through the Agency of the contractors in accordance with paragraph 1101 of the
Indian Railway Code for the Engineering Department, the purchase by
Govt. Railway's through the Agency of the Directorate General
of Supplies and Disposals of the items of railway stores enumerated in Appendix
VI as it may be amended, modified or curtailed from time to time, to this code
is obligatory.
802. Paragraph
801 is subject to exceptions in the following cases .—
(i) In respect of items of Stores for which the Directorate
General of Supplies and Disposals has entered into rate or running contracts,
the Controller of Stores may, at his discretion, make direct purchases up to a
limit of Rs. 10,000/- in each case and not exceeding Rs. 50,000/- in aggregate
(in each case) in any one year if the stores are urgently required or can be
more conveniently obtained locally or from the nearer station. (Authority :
Board's letter No. 81 F (S)/l/PW-7/l, dt. 28-4-81).
(ii) In respect of other items of Stores, the Controller of
Stores may not use the Agency of the Directorate General of Supplies &
Disposals for any purchase up to Rs. 1,00,000/- and under in each case.
(Authority: Board's letter No. 81 F (S)/l/PW-7/l, dt. 28-4-81).
(iii) In case of emergencies where non-acquisition of the
Stores concerned is likely to hold up work, direct purchases, limited to the
quanitity required to tide over the emergencies may be made up by the Railway
Administration, the Controller of Stores exercising these powers up to a limit
of Rs. 25 lakhs only in each case. In respect of purchases exceeding Rs. 25
lakhs but not exceeding Rs. 5 crores, sanction of the General Manager should be
obtained.
803. Rates.—If
the rates payable for stores obtained through the agency of the Directorate
General of Supplies and Disposals are higher than the rates for similar classes
of stores obtained by direct purchase, the facts should be brought to the
notice of that Department promptly indicating the supplier and any other relevant
details.
804. Inspection.—All
articles except machine tools purchased through the Directorate General of
Supplies and Disposals should be inspected and tested by that Department. With
regard to machine tools, the Controller of Stores should indicate, on all
indents thereafter, whether he desired them to be inspected by Railway staff or
by the Directorate General of Supplies and Disposals.
Note.—The option in respect of machine tools, should be
exercised only when inspection during manufacture is considered unnecessary by
the Directorate General of Supplies and Disposals.
805. Indents.—Indents
for stores should be prepared on the form prescribed by the Directorate General
of Supplies and Disposals. Supplies of these forms can be obtained as required
from the Directorate General of Supplies and Disposals.
806. Method
of preparing indents.—Indents may contain any number of items provided all
items on any one indent follow the same main categories. In preparing indents
sufficient information should be given to enable the Directorate General of
Supplies and Disposals purchasing office to understand exactly what is required
and for what purpose. Specifications and drawings when
available should accompany all indents. In the absence of
specifications, the technical staff of the Directorate General of Supplies and
Disposals will, in consultation with the Indentor, prepare these and also
specification drawings where necessary. Detail drawings should
be ordinarily supplied by the Railway themselves. In order to avoid references
back to the indentors and consequent delay in supply, all necessary details
should be included in the indents.
807. Co-ordination
of Indents.—One of the main functions of the Directorate General of Supplies
and Disposals is the co-ordination of indents from various railways and
Government Departments for Stores obtainable in India, thereby enabling
purchases to be made in bulk with consequent saving in cost to the consuming
Railway or department.
808. Annual
Indents.—In order to secure these advantages, indents should be combined as far
as practicable and consolidated annual indents should be submitted to the
Directorate General of Supplies and Disposals showing the total requirements of
all classes of stores obtainable in India for which there is constant demand
and for which the quantities required are sufficiently large that bulk purchase
would lead to economy. The maximum advantage in combining demands will be
secured if it can be arranged for all annual indents to be submitted on the
same date. To enable the Directorate General of Supplies and
Disposals to combine the demand of all Railways and Departments as far as
possible, annual indents for the Railways' requirements should reach the
Directorate General of Supplies and Disposals not later than the dates fixed by
him. (Paragraph 601).
809. Periodical
Indents.—Indents for Stores, of which it is not possible for the department to
foresee their requirements, e.g. machinery, plant etc., for construction works or
other special or urgent requirements may be submitted at any time to the
Directorate General of Supplies and Disposals.
810. Estimated
cost of Indents.—The estimated cost of the stores indented for, based on the
last price paid for similar stores or on any more recent information as to
prices should invariably be shown in the indents. No order
will be placed by the Directorate General of Supplies and Disposals when the
indentor's estimated cost is likely to be appreciably exceeded without first
obtaining his concurrence.
811. Certification
of Indents.—It is the duty of the indenting officers to see that indents are
not placed without provisions for funds to meet the bills for payment as and
when they are received.
812. Stores
for works.—The procurement of stores for works may be initiated immediately
after the works have been included in the works, machinery and rolling stock
programme subject to:—
(a) Commitments for advance procurement of
materials restricted to ceiling %ages fixed from time to time.
(b) Indents for advance procurement of materials
valued over Rs. 25,000/- scrutinised by Finance Department in respect of
reasonableness of the quantities indented.
(c) Indenting officer certifying that the
available stocks on hand and the delivery schedule of the outstanding orders
have been taken into account.
(d) Deli very of materials required to be so
ordered that they are received only in the year in which they are required.
-The provisioning of funds for works should be made realistically based on
prescribed ceilings and agreed priorities for completion and with the
"advance" and "current" procurement of materials should be
dpvotailed with the sanctioned budget provision.
A funds register in the form indicated below should be
maintained so that the indenting/ordering and delivery of materials are planned
in accordance with the time schedule and funds allocation for each project. The
following form of certificate should be given on all such indents.
"The stores included in this indent are required for
the work for which provision has been made in the Works, Machinery and Rolling
stock programme approved in the Railway Board's letter
No.........................dated...................and the dates of deliveries
required have been indicated in
813.
Stores for General Purposes.-—In respect of indents for stores for the general
purposes of the railway as distinguished from stores required for sanctioned
works, the funds should have been provided in the current year's grant or
arranged for by obtaining advance grants for the next year from the Railway
Board. A certificate in the following form should be given on such indents
:—
Note.- Advance allotments are required for entering into
commitments for "general purposes" stores both imported and
indigeneous whether obtained directly or through the Director General of
Supplied and Disposals for delivery in the succeeding year or thereafter. With
a view, however, to ensure executive control on Stores Balances and legislative
control on the advance commitments, specific allotment for General Purposes
Stores subject to a ceiling limit of 80% of the actual Purchases of general
purposes stores (excluding coal, coke, fuel oil and grain shop stores) of the
preceding years, are required to be fixed and approved by the Govt. In respect
of coal. coke and fuel oil the specific requirement for such advance allotment
should be worked out by the Railway and submitted for approval of ihe Govt. In
order to fix the advance allotment each year, the Railway administrations
should furnish by 25 th June each year, the following information duly checked
by their F.A. & C.A.O.
The value of stores balances on 31st
March of the preceding year.
2. The value of stores consumed in the
preceding year.
3. The value of advance indents sent
forward during the preceding year.
4. The value of actual purchases in the
preceding year.
5. The amount of specific allotment
required for the " current financial year.
After the allotment has ! 'en fixed and approved by Govt.
FA & CAO will not only certify availity of fund on each advance dent, but
it will also be his duty to check in consultation with C.O.S. (CME in respect
of fule) that the quantity ordered for each item of stores is reasonable in
view of past consumption, stores in stock and on order and future requirements,
(fixation and communication of advance allotment of a year based on the actual
purchases of the previous year is possible only after close of previous years
accounts. With a view, however, to avoid delay in sending forward indents in
the next year, according to the time table laid down by the Directorate General
of supplies and disposals an adhoc allotment will be made to the RI. . in the
month of March each year). (To be enforced with effect from 1-4-77)
814. Deleted.
815. Types
of Directorate General of Supplies and Disposals Contracts.—Of the items, that
have to be purchased for railways through the Directorate General of Supplies
and Disposals, some are obtained through contracts let by the Director General
of Supplies and Disposals against schedules of estimated annual requirements
submitted by the Railways. These contracts may be either
running contracts, Rate Contracts or Fixed contracts.
816. Running
Contracts.— Running Contracts are those contracts where quantity variation by_±
25% is permitted. The DGS&D finalises these contracts on
more than one suppliers also. The running contract does not
give any details on consignee or their requirements. Supply
against the contract is ordered by placement of supply orders by the DGS&D
from time to time, where details of consignee and quantity required by each is
specified. The details of the supply orders are based on the
indents submitted by the various indentors. However the indentors
are normally not allowed to operate the running contracts.
817. Rate
Contracts.—Rate Contracts are another type of contracts finalised by the
DGS&D on one or more suppliers. No consignee particulars
are mentioned in this type of contract also. Rate Contract however is operated
by Direct Demanding Officers nominated in the contract. Depending on the
requirement the COS or even the depot officers of the Zone/Railways & also
Divisional Stores Officers may be nominated as Direct Demanding Officers. There
is normally no quantity restriction for placement of order against a Rate
Contract.
818. Fixed
Contracts.—"These are let for fixed quantities included in the indents
placed on the Director General of Supplies and Disposals. These are generally
let for individual indentors' requirements and do not have any quantity
variation clause."
819. Causal
Indents (Adhoc Indents).—Adhoc indents for items that are not covered by
Programme Indents should be submitted to the Directorate General of Supplies
and Disposals as and when occasion demands and that department will arrange to
procure the stores and place order for delivery to the party named in the
indent
820. Purchase
Order.— Orders for items for which the Director General of supplies and Disposals
have entered into rate or running contracts should be prepared on form S 714
and distributed as shown in paragraph-716.
821. Despatch
and Acceptance of Stores.—When the stores have been inspected and passed by the
Inspecting Officer, he will furnish the supplier with a Despatch Memorandum in
duplicate as an authority to despatch the stores detailed
therein. (This should not be confused with Inspection
Certificate). The supplier will then despatch the stores and
will prepare his bills as detailed below, unless he has received special
instructions to the contrary. Any instructions for
booking stores at specially reduced freight rates should be issued by the
indenting officers direct to the supplying firm.
822. Receipt
Notes.—In the case of indents on Directorate General of Supplies and Disposals
or orders against rate or running contracts. Receipt Notes Pt. I to IV in the
names of the suppliers through DGS&D should be prepared by the Railways
Inspecting Officer or the Depot Officer concerned, for acceptance, on due
receipt of materials (In the case of railways with centralised inspection and
receipt arrangements, the Receipt Notes should be prepared by the Railways
Inspecting Officer after receipt of the materials). Pt. II
after acceptance should be retained by the Controller of Stores and not sent to
the suppliers, while Pt. I & IV should be disposed of as in the case of
direct purchase by railways, (vide para 723).
823. Payment.—The
pay and Accounts Officer (Ministry of Urban Development) pays all bills for
stores purchased by the Directorate General of supplies and Disposals and raise
debits against the departments concerned.
824. 90%/95%/98%
payment against despatch of stores.—As a general practice, unless special
orders have been issued regarding particular suppliers or supplies, the
Director General of Supplies and Disposals makes payment of 95 per cent and in
some cases of 98 per cent of the total amount of the suppliers bills on the
authority of the Inspection Certificate which will quote the number and date of
the Railway Receipt on which the stores were despatched to the indentor and
will also contain a certificate by the Officer-in-charge or the Inspection
organisation concerned, to the effect that the stores billed for have been
inspected and passed and that they have been despatched under the railway
receipt of the number and date as shown therein. Copy No. 2,4, & 5 of the
Inspection Note are required to be sent to the consignee by the
contractor. The consignee will record Receipt Certificate on
these and return copies 2 & 5 to the contractor for claiming balance 5% or
2% payment from Pay & Accounts Officer (Ministry of Urban Development) on
the authority of Receipt Certificate recorded thereon by the consignee. In case
of purchases by Controller of Stores, reference to Railway Receipt No. on the
Inspection certificate should be recorded by Stores Accounts Branch while
passing payments.
825. 100
per cent Bills.—The supplier may, if he prefers to do so, obtain 100% payment
after the stores have been received, inspected and accepted by the consignee.
In that case the supplier will submit copy No. 1, 2, 4 & 5 of the
Inspection Note issued by the Inspection Organisation . The
consignee after examining and accepting the stores will record Receipt
Certificate on all the four copies and return copy Nos. 1,2 & 5 to the
supplier for obtaining 100% payment from Pay & Accounts Officer (Ministry
of Urban Development) on the authority of Receipt Certificate recorded on these
copies. In the case of Stores delivered to consignee (not despatched by Rail or
sea) the procedure will be similar to the one as is prescribed in paragraphs
824 and 825, mutatis mutandis.
826. Deleted.
827. Shortages
etc.—Any complaints regarding shortages of or damage to stores should be taken
up in the first instance by indentors with the supplying firms & carrier
direct. The Directorate General of supplies and Disposals
should be addressed in regard to these matters only in the event of the indentor
being unable to obtain satisfaction from the firm or the carrying railways.
Multiple choice questions:
Question
1:
Who is responsible for purchasing
railway stores according to the rules mentioned in the document?
A. Controller of Stores
B. Directorate General of Supplies and Disposals
C. General Manager
D. Railway Board
Answer: B. Directorate General of
Supplies and Disposals
Question
2:
Under what condition can the
Controller of Stores make direct purchases up to Rs. 10,000/- in each case?
A. If the stores are urgently
required
B. If the stores are unavailable elsewhere
C. If the stores can be obtained locally or from the nearer station
D. Both A and C
Answer: D. Both A and C
Question
3:
What is the limit for direct
purchases by the Controller of Stores for items not covered under rate or
running contracts?
A. Rs. 10,000/-
B. Rs. 50,000/-
C. Rs. 1,00,000/-
D. Rs. 5,00,000/-
Answer: C. Rs. 1,00,000/-
Question
4:
What must be done if the rates
payable for stores obtained through the Directorate General of Supplies and
Disposals are higher than direct purchase rates?
A. Notify the Controller of Stores
B. Return the stores
C. Bring the facts to the notice of the Directorate General of Supplies and
Disposals
D. Cancel the order
Answer: C. Bring the facts to the
notice of the Directorate General of Supplies and Disposals
Question
5:
Who is responsible for inspecting
and testing articles purchased through the Directorate General of Supplies and
Disposals?
A. Railway Board
B. General Manager
C. Directorate General of Supplies and Disposals
D. Controller of Stores
Answer: C. Directorate General of
Supplies and Disposals
Question
6:
What is required to be shown in the
indents for the estimated cost of stores?
A. The last price paid for similar
stores
B. Any recent information on prices
C. Both A and B
D. Only the highest price ever paid
Answer: C. Both A and B
Question
7:
What is the maximum percentage for
quantity variation in Running Contracts?
A. ±10%
B. ±15%
C. ±20%
D. ±25%
Answer: D. ±25%
Question
8:
What document must the supplier
obtain to claim 100% payment after the stores have been received and accepted?
A. Inspection Certificate
B. Receipt Certificate
C. Despatch Memorandum
D. Supply Order
Answer: B. Receipt Certificate
Question
9:
Who is responsible for payment of
bills for stores purchased by the Directorate General of Supplies and
Disposals?
A. Controller of Stores
B. Railway Board
C. General Manager
D. Pay and Accounts Officer (Ministry of Urban Development)
Answer: D. Pay and Accounts Officer
(Ministry of Urban Development)
Question
10:
What should the indenting officers
ensure before placing indents?
A. Availability of funds
B. Supplier's approval
C. Quantity accuracy
D. Technical specifications
Answer: A. Availability of funds
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