Out of Turn Works - OOT Works

(many times asked. Very important question for GRP & General expenditure optional)

Click for PDF article on OOT works

ü Definition:  Works that are to be undertaken during a year, provided neither provided in the
Sanctioned works in the current year, nor included in the Sanctioned works of Previous years.

ü  Execution authority - should justify the need to undertake the work immediately (though not
included in the Sanctioned works) and also why it could not be anticipated/included in the Pink
Book/LAW.

ü Funds should be provided for OOT works - duly re appropriated within the same Plan Head from
the Itemized works.

ü CPDE - Chief Planning and Design Engineer   /   CE/P&D - Chief Engineer/Planning & Design  -
Nodal officer for OOT works in a Zonal Railway.
ü Prior Finance Concurrence of PFA/Sr.DFM is required for OOT works in Zonal Railway & Division
respectively.  
ü  Passenger Amenities works :-

1.   Emphasis / Importance should be on creation of amenities of durable and lasting nature.

2.    Funds should not be frittered / wasted on provision of superficial items like furnishings & furniture
etc.

ü Funds provided for OOT woks should be duly re appropriated within the same Plan Head from
itemized works.

ü Safety works under OOT - Should be completed within a maximum period of 8 months from the
date of sanction of Detailed Estimate.  Otherwise, the object of OOT for safety works itself is
defeated.
ü Before obtaining Out of turn sanction of GM for traffic facilities/ line capacity work, approval of
PCOM should be taken.  

ü Administrative approval of GM/DRM as stated below - should be obtained before incurring

expenditure on out of turn basis.

Plan Heads Sanctioning Powers Remarks

(as per MSOP)
GM DRM
PH 5300- 2.5 2.5 Annual ceiling of Rs.25 Crores (other than
Passengers & Crores Crores Lumpsum grant) for non-safety items.
Other user per case per case
amenities This restriction is not applicable in case of
PH 5200 - Staff 1 Crore Nil Safety works.
amenities
Other Plan Heads 2.5 Nil
Crores
per case
M & P Items 10 lakhs Nil Annual ceiling is Rs. 50 lakhs.  However, all
per case such proposals together with M&P items
sanctioned at CME level under LAW should be
within the Lump sum grant given by the Board.
ü  The above table useful for SOP related questions in the examination.
M&P Programme (Machinery & Plant)

M&P Programme
 
Source: 10th Chapter of Rolling Stock Code  Click for Rolling Stock Code
 
 

·        Investment decisions relating to the creation, acquisition and replacement of assets on the Railways are
processed through the 3 different Programs
 

·        They are 

1. Rolling Stock Program (Plan Head 21)

2. M & P Program (Plan Head 41 )  

3.  Works Program (Rest of the Plan Heads)

·        Click for article on Works Program

·        Click for article on Rolling Stock Program

·        Plan Head  41 - covers M&P items (under RB & GM powers)

  

·        2020-21 M&P Grant - Rs. 487 Crores

·        Nodal Officer - PCME  (for budget allotments & utilization of funds).  He is nodal officer for distribution
of Ceiling (preliminary M&P Programme) among various depts.  The overall ceiling should, however, be
followed strictly.

·        Machinery and Plants are expensive assets both to acquire and maintain.  Hence, it is important that
investments in M&P shall be made thoughtfully.
 
·        Items proposed under GM’s Out of turn sanctions should not be included in the regular M&P
Programme for Board’s sanction.
 
·        The monetary limits for submission of preliminary M&P proposals to Railway Board are revised
from time to time.
 
 
M&P Portal
 

·        Website address: http://www.irmnp.com/

·        Developed to allow easy creation and processing of M&P proposals by users on Indian
Railways.

Salient features of Portal

1.      Can create proposals in minutes and refine them as needed.

2.     Users can stay ahead of all the deadlines.

3.     Submit the proposals electronically to Zonal Hqrs and Railway Board  within no

time.

4.     Can track the sanction  of proposals issued by the Railway Board.

5.     Tracking the status of procurement (by COFMOW)

6.     Submit information about WIP - Works in Progress and receive funds accordingly.

7.     Keep the Asset Register updated automatically.

8.      User ID and Password of users by CME(Planning) of Zonal Railway/PU.

Preliminary M&P Program

 
·        Items included are   (Figures may vary from time to time. Please check latest amendments to
Model SOP)
 
ü Rs. 50 lakhs above - each item
  
ü  Rs. 30 lakhs above - each item (Electronic in motion weigh bridges)
 
ü All Road vehicles irrespective of cost (Exception is sanctioning of procurement of two
wheelers under M&P– under GMs powers)
 
·        Submit consolidated Preliminary M&P Programme  through M&P Portal maintained by Railway
Board.
 
·        Estimated costs of the machines indicated in the proposals should be present day realistic costs
and should include cost of essential accessories.
 
·         The present day cost  - adopt from  1. The latest compendium issued by COFMOW   2. M&P Portal
 
·        Costs for other machines may be obtained through market surveys.
 
·         Preliminary M &P Due Date:  September / October month of every year or date specified by the
Railway Board.  After which, the portal would disallow any subsequent submissions.
 
·        Final M&P Due Date - Discussed with the Railways by the Railway Board during December or
January of every year
 
End-loaded expenditure : 
 
·        In other works, there is steady outflow of cash as the project advances, and the trend of
expenditure is uniform.
 
·        But, in case of M&P procurements the booking starts only after a machine is dispatched and hence
the expenditure is end- loaded.
 
·        With an average lead time of 3 years, the value of W.I.P items is often therefore more than 3 times
the budget sanctions.
 

Difference between M&P and T&P

                                                                                                                     

M&P  - Machinery & Plant covers:

 
ü A machine that remains stationary and immovable.
ü That means job comes to machine and not vice versa.
ü All vehicles such as staff cars, Lorries, Diesel utility vehicles, Road mobile Cranes, Front end
loader/JCB cranes & Fork lifts.
 

T&P - Tools & Plant covers:

 
 ü All movable machines like pneumatic drills, power saws, tools & plants such as jigs and
fixtures.
ü Small tools and equipments required for maintenance of machines
ü All measuring instruments / Gauges (irrespective of their unit cost)
ü Upkeep of office such as   furniture, computers, printers etc.
ü Limit for Tools and Plant  - Up to Rs. 10 Lakhs each - Charged to Revenue.   If it is Rs.
above Rs. 10 lakhs, procurement of such T&P is processed under M&P.
 
 
Codal life:
 
·  Subject to modification from time to time as amended in Accounts Code.
·  It is merely an average economic life, assumed for the specific purpose of making long term
planning for replacements.
·  Normally condemnation should be on age and condition basis.
·  Condition basis arrived by derivative/derived of hours usage (double or single shift), load factor,
maintenance standards etc.
 
Annexure 10.2 of Chapter 10 of Rolling stock code.
 
S.No Codal life of machines Average
  Life in Yrs
1. Machine Tools like Lathes, Planners, Drilling, Boring and Milling machines 15
etc.
2. High Precision and special purpose machine like wheel lathes etc. 15
3. Tool Room and Testing Laboratory equipment 15
4. Foundry and Forge Equipment 15
5. Heat Treatment Equipment 15
6. Cranes – E.O.T 25
7. Power Generation Machinery & Switches 15
8. General purpose light machinery e.g. band saws, floor grinder etc. 10
9. Air compressor 15
10. Miscellaneous machines e.g. light cleaning machines, test equipment in 15
diesel sheds, workshops, depots and sick lines
11. Construction Machinery 15
12. Track Maintenance equipment 20
13. Station machinery e.g. weighing machines etc. 15
14. Miscellaneous machinery and equipment for hospital, offices etc. 10
15. Mechanical Weigh Bridges 15
16. Electronic-In-Motion Weigh Bridges 08
17. Diesel Pumps 10
18. Welding equipment including diesel welding sets 10
19. Diesel refrigeration equipment 15
20. Material handling equipment like FLT, Lister trucks etc., 10
21. Traversers 25
 22. Fuel station dispensation equipment 10
23. Bulldozers and other earth moving equipment 15
24. Motor Boats 10
25. Hydraulic re-railing equipment 15
26. Staff cars including Jeeps 07
27. Light Motor vehicles 10
28. Heavy Motor vehicles 10
29. Tractors 10
 

Creation of new assets on Additional account

 
·        Proposals should be supported with Financial justification and Rate of Return (10%)
(Chargeable to Capital)
·        Vetted by Associate finance
·        Vetting is not required for machines required on safety considerations  such as
medical/safety equipment for ART/ARME (chargeable to DF IV)
·        Other particulars such as Reduction in cycle time, improved quality and reliability,
reduction in monotony etc should indicate in the proposal.
 
 
Replacement proposals:
 
·        Chargeable to DRF  
·        Proposing one-to-one replacements should be avoided, unless
·        The requirements of the proposer have remained unchanged since the original
equipment was acquired and
·        Machines of higher productivity and reliability cannot be economically justified.
 
The following details - spelt out in the replacement proposal:
 
 

1.     Codal life of the machine and actual years worked along with the number of shifts per day.

2.     Jobs undertaken and the workload for the machine. 

3.     If reconditioning of the existing machine or outsourcing was considered and the outcome.

4.     Total number of similar machines in the load-centre and shortfall in capacity.

5.     Economics of acquiring one or two machines to replace a larger set.

6.     Replacement proposed should be substantially for same function and differences, if any, should be
clearly brought out with reasons. 
7.     The cost of replacement may be compared with original equipment and reason for any abnormal
increase explained. 

8.     Proposals for Road vehicles should accompany survey committee report comprising the condition
of the vehicle, expenditure incurred, mileage and recommendation.
9.     Reconditioning or Replacement: There are situations where partial/ full reconditioning of
machine is financially more viable in comparison to its condemnation and replacement.
 
Master Plan:
 
·        For utilization of space & Layout in Workshops/Repair Sheds.
·        Every Workshop or Repair Shed should have a Master Plan pinpointing locations of the machine to
be procured in additional / replacement account in future.
·        So that, as and when new machines are acquired, these should straight away get installed according
to this master plan.  
·        Critical review of 20 Years and above Machines and  Over aged machines incl: Cranes for their
continued retention, so that floor space is effectively utilized.   Retaining them only after a clear
certification of the in charge Officer duly certifying the sufficient load exists for the same. 
 
Works in Progress (WIP) Statement
 
·        Sanctioned and for which vetted indents are submitted, but not completed or closed.
·        Should state the status of procurement.
·        In absence of any clear indication of procurement, funds should not be allotted.
·        Due date: 15th December every year.
·        Funds projection  - through M&P Portal maintained by Railway Board.

Summary - Top of the WIP Statement

 
1.     Costing Rs. 2.5 Crores and above each
2.     Costing below Rs. 2.5 Crores each
3.     Sanctioned under GM's Powers  ( However list of items need not be sent to Railway
Board)
 
 
Budgeting :
 

·        Validity of Sanction  - 5 Years  - sanctioned under M&P

·        Validity of Sanction  - 3 years  - Sanctioned under GM's OOT powers

·        Above 2.5 Crores each itemised in Pink Book with Pink book number, allocation wise breakup separately

 
·        Allotment of M&P items - Less than 2.5 Crores each and sanctioned under GM's OOT powers  -
distribution by the Nodal Officer i.e.,  PCME and itemised in the LAW - List of Approved Works with a
unique LAW number.

 Four Categories -      M&Ps

 
Category A
 
·        Sophisticated and unique machines requiring extensive market survey
·        Specialized knowledge of the World of machine tools.
·        Procured by COFMOW only.

  Category B
 
·        Machines like EOT cranes, welding machines, compressors, Road Mobile Cranes,
Diesel Gensets etc., that figure frequently in the M&P Programs
·        Carefully procured, duly eliminating unreliable vendors from a highly competitive
market
·        Requirements from Zonal Rlys are in bulk.
·        Entering into Running / Rate contracts for 2 to 3 years with price variation clause
·        Consider ILM option  - Install, Maintain & Lease  like construction companies hire
cranes on long term basis
·        Procured by COFMOW only.

 
Category C
 
·        Special machines of unique and sophisticated nature for which domain knowledge
may not exist with COFMOW
·        Requirements are not in bulk
·        Procured by Zonal Railways but after seeking dispensation from COFMOW well in
time.

 
Category D
 
·        Other machines of smaller value below a certain limit barring certain excluded
items, as stipulated by RB.
·        Medical equipment whose procurement is best left to the user Railway.

 Notes:

  1.     M&P items costing up to Rs. 30 Lakhs each can be procured by Zonal Railways/Production
units on their own, without seeking dispensation from COFMOW subject to the exception list issued by
COFMOW and items covered under Rate contracts of COFMOW.
2.     Medical items equipments can be procured by Zonal Railways/Production units.
 
Budgetary Reviews:
 
·        PCME is Nodal Officer - He/She will critically review these projections recd from Depts
and submit to PFA duly giving the reasons for allocation wise variations with the Budget
Grant during the budgetary stages.
  
Asset Register of M&P:
 
·        On procurement, a unified 9 digit code number to be allotted for each machine.
·        On successful commissioning of a new machine, it is included in teh Asset register with
all the details.
·        No machine shall be kept in service without Unified Code Number, which is prominently
painted on it for easy identification.
·        On disposal (condemnation) or transferred to Other Railway, the same is removed from
the Asset Register of Parent Railway. 
 
1 2 3 4 5 6 7 8 9
Unit Sub Location Machine Group Individual machine No.
ICF/Division Shop like Machine shop Wheel Lathe, Cranes  
etc
 
Likely Descriptive Questions
 
1.     Essay question on M&P Progrramme
2.     Short Notes questions on A. Differences between M&P and T&P  B. Master Plan  C.
M&P Portal  D. Asset Register of M&P
 
Material for MCQs - Multiple Choice Questions
 
1.     Nodal Officer for M&P Programme in Zonal Railway  - PCME
2.     Validity for RB Sanctions  - 5 years
3.     Validity for GM Sanctions - 3 years (OOT - Out Of Turn)
4.     Unified code - 9 digits
5.     Categories of M&Ps - for M&P Programme - 4
6.     Dispensation of COFMOW not required - up to Rs. 30 Lakhs
7.      Plan Head for M&P - 41
8.     GM's Powers - M&P  - up to Rs. 50 Lakhs
9.     GM's Powers - Electronic Weighing Machine  - Up to Rs.30 Lakhs
10.                  Sanctioning of Two Wheeler for RPF post - by GM
11.                  T&P item up to Rs. 10 Lakhs - Charged to Revenue
12.                  T&P item - Rs. 10 Lakhs and above processed as M&P and charged to erstwhile
Demand No.16 (DRF/CAP/DF)
13.                  Medical equipments - of any cost - Procured by Zonal Raiways
14.                  Rs. 2.5 Crores and above - itemised in Pink Book
15.                  Below Rs. 2.5 Crores - included in the LAW - List of Approved Works
16.                  LAW Full form - List of Approved Works
17.                  WIP  Full form - Works In Progress
18.                  With an average lead time of 3 years, the value of W.I.P items is often
therefore more than 3 times the budget sanctions.
19.                  All Road vehicles Proposals irrespective of its cost to be included in the M&P
Programme (except Two Wheelers, which can be sanctioned by GM)
20.                  Vetting of Associate finance is required for all M&P Proposals of New Assets on
Additional Account (Except for Safety and Medical equipments - charged to DF)
 EMD AND SD IN STORES CONTRACTS

Authority : 1)2018/TRANS CELL/STORES PROCUREMENT dated 02.01.2019  -  Click here

                      2) 2004/RS(G)/779/11/pt dated 27.03.2019   - Click here

EMD – Rates for Stores Contracts

Estimated value of Stores EMD (rounded off to nearest higher Rs.10

tender
Up to Rs. 5 Lacs NIL
Above Rs. 5 Lacs to Rs. 20 2 % of estimated value of the Tender subject to maximum
Crores Rs. 20 Lacs
Above Rs. 20 Crores to Rs.100 1 % of estimated value of the Tender subject to maximum
Crores Rs. 50 Lacs
Above Rs.100 Crores 0.5 % of estimated value of the Tender subject to maximum
Rs. 1 Crore

ü  Offers submitted without EMD shall be summarily rejected.

ü  Automatic online release of EMD of unsuccessful tenderers immediately after finalization of the
Tender.  
EMD is exempted in the following cases
1.       Estimated value of Stores tender up to Rs.5 Lacs
2.       MSEs (Micro & Small Enterprises) registered for the Tender item.
3.       Other Railways and Govt departments
4.       Indian Ordinance factories
5.       Railway PSUs (Public Sector Undertakings) and PSUs for the group of items that are
manufactured by them.

Exemption from EMD in Stores contracts

ü  Shall be decided prior to issue of Tender for Single Tender, PAC items etc

ü  Suitably incorporated in Tender conditions

ü  Requires personal approval & Finance concurrence as detailed below.

Required Headquarters Field units
(Divisions, Depots, construction etc)
Personal Authority competent to accept the Authority competent to accept the Tender
Approval Tender based on estimated value based on estimated value thereof, but
thereof, but not below the level of not below the concerned SAG level
PCMM on case to case basis (ADRM, CWM, CAO etc) on case to case
basis
Finance not required required
concurrence
is

SD – Security Deposit in Stores contracts

ü  10 % of the Contract value, subject to maximum of Rs.5 Crores.  Rounded off to nearest higher Rs.
10.  No ceiling for SD in Global Tenders for procurement of Stores.
ü  Shall remain valid for a period of 60 days beyond the date of completion of all contractual
obligations.

ü  Deposit SD within 14 days of issue of LOA – Letter of Acceptance.

ü  No extension of time for submission of SD

ü  The EMD submitted by successful tenderer shall be automatically adjusted towards the SD.  The
balance SD amount should be deposited within 14 days of the issue of LOA. 

ü  Otherwise (i.e., Balance SD not desosited), the EMD shall be forfeited and case be dealt with as
that of withdrawal of offer by the Tenderer as per extant instructions.

ü  In case of failure by contractor to meet deliveries for any lot, Railways may cancel the contract for
default part by forfeiting SD commensurate to that lot.

ü  Risk purchase clause shall not be applicable wherever SD clause is applicable.

ü  Wherever SD clause is not there, Risk purchase will be made as per extant guidelines.

SD is exempted in the following cases

1.       Estimated value of Stores tender up to Rs.1 Lac
2.       Other Railways and Govt departments
3.       Indian Ordinance factories
4.       Railway PSUs (Public Sector Undertakings) and PSUs for the group of items that are
manufactured by them.

Exemption from SD in Stores contracts

ü  Shall be decided prior to issue of Tender for Single Tender, PAC items etc

ü  Suitably incorporated in Tender conditions

ü  Requires personal approval & Finance concurrence as detailed below.

Required Headquarters Field units (Divisions, Depots,
construction etc)
Personal Authority competent to accept the Authority competent to accept the Tender
Approval of  Tender based on estimated value based on estimated value thereof,
thereof, but not below the level of but not below the concerned SAG
PCCM on case to case basis level (ADRM, CWM, CAO etc) on case to
case basis
Finance not required required
concurrence
is

LD – Liquidated damages for delayed supply

ü  0.5 % of the price of stores per week or part of the week of delay

ü  Upper limit – 10% of the value of contract (irrespective of delays

 Major Changes in Plan Heads

of Capital Segment of Demand No. 83 (for 2020-21) -Ministry of Railways   (Erstwhile

Demand No. 16)

·         Authority: RBA No. 77/2019  issued under  Letter No.2017/AC-II/3/2 dated 29.08.2019 – ACS

No.143  Click here

·         The whole exercise is trimming the Number of Plan Heads duly merged PHs into the similar
nature of PH and deleting the PHs which are not required in present circumstances.  Some PHs
are renamed duly giving the effect of merger. Overall 7 Plan Heads are deleted (some are merged
in other PHs)

·         Major Heads for Works expenditure are

ü  5002 – Capital outlay on Indian Railways – Commercial Lines

ü  5003 – Capital outlay on Indian Railways – Strategic Lines

·         Accounting Classification of Works expenditure   - 8 digit numerical code like follows.

 
1 2 3 4 5 6 7 8
Source of Finance Plan Head (Minor Detailed Head Primary Unit
Head)

 
  

·         Sources of Finance

 
Numerical Code Source of Finance Remarks

(First 2 digits in
Classification)
20 Capital
21 DRF – Depreciation Reserve Fund
23, 33, 43 & 53 DF I, II, III & IV respectively
25 Capital Fund
26 RSF – Railway Safety Fund
27 SRSF – Special Railway Safety Fund Not in operation.  It was
ceased in the 2008 year.
28 Capital – Nirbhaya Fund
29 RRSK - Rashtriya Rail Sanrakshak
Kosh
84 EBR – IF (Extra Budgetary Resources
– Institutional Finance)

The following Sources of Finance are ceased

 
Numerical Description Remarks
Code
22 OLWR – Open Line Works Click here for reasons
– Revenue
24 ACSPF – Accident Accident compensation is transferred to erstwhile
Compensation, Safety & Demand No.12 & SMH 10 – Miscellaneous Working
Passenger Amenities Expenses.  Safety is chargeable to DF –
Fund IV.  Passenger amenities chargeable to DF - I

Changes in Plan Heads (Latest as per ACS – 143)

Deleted Plan Heads

 
 Plan Head Description Remarks
No
12 Purchase of New Lines Deleted
34 Taking over of Line Wire from P & T Dept
37 Traction Distribution Works Merged into PH
3600
52 Amenities for Staff Merged into PH
5100
62 Investments in Govt Commercial undertaking – Merged into PH
Public undertaking 6100
63 Investment in Non – Govt undertaking incl: Merged into PH
JVs/SPVs 6100
83 New Lines (Construction) Dividend free project

Note:  PH 13 – Restoration of dismantled lines – Deleted already.

Modified Plan Heads

 
Plan Previous New Description Remarks
Head Description
No
11 New Lines New Lines
(Construction)
36 OEW – Other Electrical Works Previous PH 3700 –
Electrical Works Excl: Traction Distribution
Traction Distribution Works is merged into
Works PH 3600
51 Staff Quarters Staff Welfare Previous PH 52 –
Amenities for Staff is
merged into PH 51
53 1. Passenger Passenger & Other Not much change.
Amenities Railway Users Only two parts are
amenities combined as one part
2. Other Railway
Users amenities
61 Investment in Govt Investment in Previous PHs 62 &
Commercial PSU/JV/SPV etc 63 are merged in PH
undertaking – Road ( Govt & Non Govt) 61
services

Existing Plan Heads (Total -27)

 
Plan Description Remarks
Head
No
11 New Lines
 14 Gauge Conversion
15 Doubling
16 Traffic facilities
17 Computerisation New one
18 Railway Research New one 2009 year
21 Rolling Stock
22 Leased Assets – New one – 2016 year
Payment of Capital
component of Lease
charges to IRFC etc
29 Road Safety Works – New one
Level Crossing
30 Road Safety Works New one
(ROB/RUB)
31 Track Renewals
32 Bridge Works, Tunnel
Works & Approaches
33 S & T Works
35 Electrification
Projects
36 OEW – Other Ph 3700- Traction Distribution Works is merged
Electrical Works incl: into PH 36
TRD works
41 M & P – Machinery &
Plant
42 Workshops incl:
Production Units
51 Staff Welfare 1. Previous name of PH 51 is Staff Quarters

2.PH 52- Amenities for staff is merged into PH 51

53 Passenger & Other Not much change. Only two parts are combined
Railway Users’ as one part
Amenitities
61 Investment in Previous PHs 62 - Investments in Govt
PSU/JV/SPV etc Commercial undertaking – Public undertaking &
( Govt & Non Govt) 63- Investment in Non – Govt undertaking incl:
JVs/SPVs are merged in PH 61
64 Other Specified
Works
65 Training / HRD New one – 2016 year
71 Stores Suspense
72 Manufacturing
Suspense
73 Miscellaneous
Advances
81 MTP – Metropolitan
Transport Projects
82 Transfer to SRSF – On books only. But not in operation
Special Railway
Safety Fund

 
 %%%%

Additional PG calculation

If the Tenderer offered lower than the Tender Value

  excerpt of Para 16 (4) (h) of Revised GCC for Works-July  

2020  Click for Revised GCC 2020

 
"The tenderer who has offered lower total cost as compared to tender value by more than 10 %, shall
be required to submit additional Performance Guarantee of value equal to half   the percentage of
tender value by which offer is lower than 10%. (e.g. in a tender costing Rs 100, if contract value is Rs
80, additional Performance Guarantee shall be [0.5x{(100-80)-10}] percentage of tender value.)"

Object : To discourage the Contractors to quote the unreasonable rates and doing
incomplete  work  or abandon the work after awarding the same, because of non viable/non
feasible rates.

Example A:

Tender value is Rs 100.  Tenderer offered rate is Rs 80 only. So calculation of PG is as follows:

  PG Rate on Contract/Tender Value Calculation PG Amt

(Rs)
Original PG 5% of Contract Value Rs. 80 5/100x80 4.00
Additional PG 0.5 % of 10 i.e., {(100-80)-10} 0.5/100x10 0.05
(additional

Performance    Guarantee of value

equal

  to half the percentage of    tender value

by which offer is lower than 10%.

Total PG     4.05

 
 Example B:

Tender value is Rs 100.  Tenderer offered rate is Rs 70 only. So calculation of PG is as follows:

  PG Rate on Contract/Tender Value Calculation PG Amt

(Rs)
Original PG 5% of Contract Value Rs. 70 5/100x70 3.50
Additional PG 0.5 % of 20 i.e., {(100-70)-10} 0.5/100x20 0.10
(additional

Performance    Guarantee of value

equal

  to half the percentage of tender value

by which offer is lower than 10%.

Total PG     3.60

In Simple , calculation of Additional PG is 0.5 % of  (90 % of Tender Value - Accepted Offer value)

Note:

If the Lowest quote is Rs. 90 and above against Tender Value of Rs. 100, the PG is just 5 % of
Contract Value only.

&&&&

Posted by Nageswara Rao M, 9492432160 at 8/16/2020 06:18:00 PM No comments: 

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Labels: Additional PG, Performance Guarantee, PG
Saturday, April 20, 2019
Performance Guarantee

Performance Guarantee
(as per GCC 2018)  Click here
Ø   Introduced in lieu of risk action procedure (contracts rescinded due to failure of
contractors)

Ø The successful bidder shall have to submit the Performance Guarantee - 5%  of the Contract
value
Ø    Time limit: within 21 days from the date of issue of Letter Of Acceptance (LOA).

Ø    Extension of Time limit: Beyond 21 days and up to 60 days from LOA by the Authority who is
competent to sign the contract agreement.

Ø    Penal interest of 12% per annum  - beyond 21 days, i.e. from 22nd  day after the date of issue of
LOA.

Ø    If 60th day happens to be a declared holiday in the concerned Railway office, submission of PG can
be accepted on the next working day.

Ø    PG shall be valid up to the Date of completion of the work plus 60 days.   In case the completion time
extended, the validity of PG extended to cover such extension plus 60 days.

Ø    If contractor fails to submit PG,

A.    the contract shall be terminated

B.     b)  forfeiting EMD and other dues, if any payable against that contract. and

C.      c) the failed contractor shall be debarred from participating in re-tender for that work.

Ø    After work started, whenever the contract is rescinded or withdrawn,

A.  the security deposit shall be forfeited
B.   the Performance Guarantee shall be encashed and
C.    the balance work shall be got done independently without risk and cost of the failed
contractor.  (This is the main objective of introducing the Performance Guarantee procedure.
Before that, the balance work is to be carried out by inviting fresh tenders and if any higher
charges on account of the fresh tender, the same is at the risk and cost of failed contractors)
D.  The failed contractor shall be debarred from participating in the tender for executing the balance
work.

Ø    Variations to the value of Contract - PG

A.   Up to 25 %  increase of original contract value - No additional PG.

B.   Beyond 25 % increase of original contract value - Additional
 5 % PG for the excess value over the original contract value shall be deposited by the contractor.
C.   If the value of contract decreases by 25% of original contract value , PG amounting to 5% of
decrease in the contract value shall be returned to the Contractor on the basis of his request.

Ø    The Performance Guarantee (PG) shall be released after physical completion of the work based
on 'Completion Certificate' issued by the competent authority .

Ø    The Security Deposit shall, however, be released only after expiry of the maintenance period and
after passing the final bill based on 'No Claim Certificate' from the contractor.

Performance Guarantee - various forms for submission

(i)     A deposit of Cash;

(ii)    Irrevocable Bank Guarantee;
(iii)   Government Securities including State Loan Bonds at 5% below the market value;
(iv)   Deposit Receipts, Pay Orders, Demand Drafts and Guarantee Bonds. These forms of
Performance Guarantee could be either of the State Bank of India or of any of the Nationalized
Banks;
(v)    Guarantee Bonds executed or Deposits Receipts tendered by all Scheduled Banks;
(vi)   A Deposit in the Post Office Saving Bank;
(vii)  A Deposit in the National Savings Certificates;
(viii) Twelve years National Defence Certificates;
(ix)   Ten years Defence Deposits;
(x)    National Defence Bonds and
(xi)   Unit Trust Certificates at 5% below market value or at the face value whichever is less.
(xii) Also, FDR in favour of FA&CAO (free from any encumbrance) may be accepted.
((((((((())))))))

RITES

Click below for official website of RITES

https://ritesltd.com/
  

·         Incorporated in the year 1974 as a Public limited company under the Companies Act, 1956

·         Full form : Rail India Technical & Economic Service

·         A Government of India Enterprise under the aegis of Indian Railways. Hqrs: Gurgaon, Haryana

·         Multidisciplinary organization of Consultants, Engineers and Project Managers in transport &

infrastructure sectors.

·         Offers comprehensive services from concept to commissioning of projects in Railways, Urban

transport, Highways, bridges, renewable energy and export packages of rolling stock and railway
related equipment.

·         RITES is the nominated agency of Indian Railways for export of rolling stock manufactured at
the Production Units of Indian Railways.

·         A Mini Ratna Enterprise, Schedule A, an ISO 9001-2008 company

·         Operational experience of 43 years

·         Global presence -- extended its services in nearly 62 countries

·         Only export arm of Indian Railways for providing rolling stock overseas (other than Thailand,
Malaysia and Indonesia).

·         Integrated Check Posts  - RITES has completed these Posts at the borders of neighbouring
countries in a first of its kind project in India.   These are the world-class facilities for passenger &
cargo movement in similar to Airports. Examples:  Attari check post on India-Pakistan border,
Petropole check post on Indo-Bangladesh border, Agartala check post on Indo-Myanmar border.
·         SAIL RITES Bengal Wagon Industry Pvt. Ltd - Joint venture of RITES & SAIL - with the
object of setting up of State-of-the-art Wagon factory at Kulti, West Bengal   - Assured off-take
by Indian Railways for manufacture of 1200 high end specialized wagons and rehabilitation of 300
wagons per year.

·         Financials -2016-17

v  Profit after tax - 331 Crores

v  Rs.10.34 lakhs  - Profit per employee  (Total employees -3200)

v  Total Income 1509 Crores

v  Share Capital -200 Crores

v  Profit after tax to Share Capital  -  166 %

****

Posted by Nageswara Rao M, 9492432160 at 4/28/2018 11:47:00 AM No comments: 

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Friday, April 27, 2018
RLDA - Rail Land Development Authority

RLDA

 RLDA - Rail Land Development Authority

 Setup in the year 2006 as a Statutory Authority under the Ministry of Railways

 VISION:  To emerge as India's leading Public Land Development Authority.

 Object behind the set up of RLDA

1.     The need for considerable increase in internal generation of resources for such investment had
been realized by the Indian Railways for some time.
2.    Indian Railways is the biggest landlord in India having nearly 10.65 Lakh acres across all over the
country.

3.     Out of 10.65 lakh acres, 9.50 Lakh acres are using by the Railways for operational
purpose.  Balance 1.15 Lakh acres are vacant and susceptible for encroachments.

4.     Generation of Non-tariff revenue by development of 1.15 Lakh acres of vacant land for
commercial purposes

5.      Creation of Infrastructure assets for Indian Railways.

 Member, Engineering, Railway Board is the Ex-officio Chairman of the RLDA.

  RLDA’s expenses are met out of grants provided by Indian Railways. The entire earnings
generated from development of railway land is transferred by RLDA to Indian Railways.
 Earnings of RLDA for the last 3 years (2009-10, 10-11 & 11-12) are Rs.2500 Crores.  

 There is a scope of big jump in the earnings of RLDA, since many sites and MFC's will be
come into function.

 Authorisation of vacant land to RLDA - stages

1.     Land which is not required for operational purposes in the foreseeable future - identified by the
Zonal Railways.
2.      Once identified, the details of such vacant land would be advised to Rly. Board.
3.     Such plots of land would thereafter be entrusted to RLDA by Railway Board in phases for
commercial Development.
      

·         Commercial development of vacant railway land   -  steps:

1.      Inspection of the sites to ensure that these are free from any encumbrances/encroachments and
are prima-facie suitable for commercial development.
2.    Survey done for each individual plot of land by engaging a reputed real estate consultant to
identify the possibility of commercial development.
3.     Once identified potential revenue from such site, call for an EOI - Expression of Interest or RFP -
Request For Proposal from Developers for commercial development through the PPP route
( Public Private Partnership)
4.    Awarded the site to the Developer through Open Bidding process.

·         .  Identified 138 sites so far and they are at different stages for development as
         Commercial places.

 M F C - MULTI FUNCTIONAL COMPLEX:

 Apart from development of vacant Railway land on commercial lines, Railways planned to
utilise AIR SPACE over Railway Assets such as Railway Stations for generation of Non-tariff
Revenue.

 MFC's will provide facilities like Shopping, Food stalls/Restaurants, Book stalls, PCO
Booths, ATMs, Budget Hotels, Parking spaces etc at Railway stations.

 MFC's will given to PSUs i.e., RVNL, IRCON , RITES (through MOU - Memorandum Of
Understanding) and to Private players (through Open bidding process)  - Lease basis on upfront
lease premium or Revenue sharing for a period of 30 to 45 years.

  After the lease period, MFCs would be transferred to the railways. Thus good opportunity
for Railways in regard to creation of infrastructure assets.

 So far sanctioned 163 MFCs, redevelopment of 5 Railway Stations and 14 Railway

Colonies.

  Real estate consultants like Knight Frank and JLL are advising RLDA in planning and
marketing the MFCs sites. 

·         Several leading brands, retail, hotel chains  and developers have expressed their interest in
MFCs being developed by RLDA and prominent among them are Pantaloon, Cafe Coffee Day,
The Loot, Woodland, Apodis Hospitality, Krishnan Palace Residency, WH Smith (Travel News
Services).
·         MFCs at 26 railway stations developed jointly with IRCON ISL (Infrastructure & Services
Ltd)  and RITES have already been completed and are waiting for being leased out, prominent
places being Haridwar, Udaipur,Raipur, Madurai, Allahabad, Jabalpur, Burdwan, Manmad, Guntur.
  RLDA has prepared a plan for fast-tracking the development of 75 complexes in the
current financial year 2013-14.

Development of Railway Stations

  RLDA has also been entrusted by Ministry of Railways for development of five railway
stations at Chandigarh, Anand Vihar (Delhi), Bijwasan (Delhi), Habibganj (Bhopal) and
Shivajinagar (Pune) into modern railway stations with excellent facilities for rail users. 

 These stations are being developed through IRSDC - Indian Railway Stations Development
Corporation Ltd., a joint venture company created by IRCON and RLDA in which the former is the
majority partner.

                                                                                                            *&*&*&*&
 Posted by Nageswara Rao M, 9492432160 at 4/27/2018 05:37:00 PM No comments: 
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List of Railway PSUs

Railway PSUs – Public Sector Undertakings & other Orgnizations

SN PSU FULL FORM

1 RITES Rail India Technical & Economic Services ltd

2 IRCON IRCON International ltd (former name -Indian Railway

Construction Company ltd )

3 CRIS Centre for Railway Information Systems

 4 IRFC Indian Railway Finance Corporation

5 CONCOR Container Corporation of India ltd

6 KRCL Konkan Railway Corporation Limited

7 RCIL/RAILTEL Railtel Corporation of India Limited

8 IRCTC Indian Railway Catering and Tourism Corporation ltd

9 PRCL Pipavav Railway Corporation Limited

10 RVNL Rail Vikas Nigam Limited

11 RLDA Rail Land Development Authority

12 DFCCIL Dedicated Freight Corridor Corporation of India Limited

13 MRVC Mumbai Railway Vikas Corporation ltd

14 BWEL Bharat Wagon & Engineering Co. Limited

15 BSCL Burn Standard Company Limited

16 BCL Braithwaite & Company Limited

Posted by Nageswara Rao M, 9492432160 at 4/27/2018 05:31:00 PM No comments: 

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Labels: Railway PSUs
Thursday, April 26, 2018
CONCOR - RAILWAY PSU

CONCOR  - CONTAINER CORPORATION OF INDIA

·         A Navaratna CPSE under the Ministry of Railways (granted the status in the last year 2014-15).
It is the first Navaratna CPSE (Central Public Sector Enterprise )of Indian Railways.

·         Incorporated in the year 1988 and commenced operations in the year 1989.

·         Headquarters is at New Delhi.

·         Present Chairman & Managing Director : V Kalyana Rama, IRTS 1987 batch officer
·         Started with the existing 7 ICDs (Inland Container Depot) taking over from Indian Railways in
the year 1989.  Now it has a network of 79 ICDs (Inland Container Depot)/CFSs (Container Freight
Station)

·         Indian Railways first ICD is at Bangalore in the year 1981.

·         Operates three core businesses 1) Cargo carrier 2) Terminal Operator 3) Warehouse Operator

·         Plans for setting up of 15 MMLPs – Multi Modal Logistic Parks during 12 th Five year plan for
providing seamless connectivity and one stop solution for customers.

·         Cargo handled during the year 2016-17 is 3.11 Million TEUs- TEU means Twenty foot
Equivalent Unit.

·         Net Profit is Rs.858 Crores during the year 2016-17.  It is listed in the NSE & BSE. 55% shares
owned by promoter group i.e., Indian Railways.  Rest of the 45 % shares owned by the Public

·         Pioneer/Developer of containerization in the world- Malcolm McLean He was an American

transport entrepreneur who developed the modern shipping container which revolutionized
transport and international trade in the second half of the twentieth century. 

·         Containerization led to a significant reduction in the cost of freight transportation by eliminating

the process of transportation by lorry to the port, unloaded into a warehouse and then reloaded
into the ship 'piece by piece' and also improved reliability, reduced cargo theft, and cut inventory
costs by shortening transit time. 

·         CONCOR  - Monopoly in the Container business in India, though 15 private players entered in
this segment  to

%%%%

MSOP - Model Schedule Of Powers -2018

 First MSOP issued in October, 2017.  The revised MSOP issued in  July 2018 
What is Delegation ?

 Entrusting of Authority, Power and Responsibility to another. (normally from a Boss to

subordinate Manager) to carry out specific activities.
 Process of distributing the work among Members in Organization.  (Similar one is Head of
the Family distributing the wedding work among the family members)
 One of the core concepts of management leadership. 
 Shifting power as well as responsibility to team members. 
 Empowering frontline officials with adequate administrative financial powers.

What is Power ?

I can do anything in the World, if I have Power & Money.  Am I right ?

 MSOP is Initiative of Railway Transformation Cell

Transformation Cell

 ·       Constituted by Railway Board on 09.03.2017.

 ·   PED - Principal Executive Director  is in charge of the Transformation Cell.  Under him 8
Nodal Executive Directors work, drawn from different disciplines like Traffic, Engineering,
Mechanical, Electrical, S&T, Personnel, Accounts ,etc.
           
 It hires young professionals — MBAs, BTechs, CAs — from the private sector to assist.
·           
 It overrides all the other existing Directorates for issuing the orders/circulars duly taking the
approval of CRB and other related Member.
·           
 During the last two years, four directorates have been created to look into specific areas.
These include ,non fare revenue, mobility, environment and heritage.
·           
 
Achievements of Transformation Cell so far:
 
1.    Model SOP - in delegation of more powers to DRMs and other branch officers.
2.    Uniformity of provisions in Works, Earnings & Services contracts
3.    New GCC
4.    Re engagement of retired staff and officers

 SOP of SCR is a template for MSOP. 

President of India/Railway Board ➜ General Managers ➜ Subordinate Officers like

PHODs,HODs, DRMs, Branch Officers etc
de•President of India
nt of India

Negative Powers to GMs

 Top of all rules mentioned in Finance Code Volume I – Chapter V – Annexure II is

“without previous sanction of the higher authority (i.e., Railway Board)”

 GM’s powers available in I R Finance Code -Chapter V -Annexure II – stated in Negative

sense

 Example: S.N. 4  - To the creation of Work charged posts of above JA Grade against
Construction/ Survey/ Scrap Sales / M&P estimates .  Interpretation is GM may have powers to the
creation of Work charged posts up to JA Grade against the above estimates only. 

 Another example: S.N. 10(c)  - To the grant of reward in excess of Rs. 5,000 in each
individual case.   Interpretation is “GM may have powers to grant or reward up to Rs. 5,000 in
each individual case.  

Salient features of MSOP 2018

1. 420 pages 

2. Additional Delegation as per local requirements

3. More powers to DRMs and Branch Officers like Station Directors

4. If no PHOD is posted, the CHOD can exercise the powers of PHOD

5. AGM can exercise the powers of GM unless the transaction requires personal
sanction of GM

6. Miscellaneous matters including CTIs, IT, PR.

7. Part G of this document contains the SOP for RPF which includes the latest delegations for
RPF in March 2018, over and above those existing in Section C (Miscellaneous) of this
SOP.

8. Powers delegated to DRMs are generally the same for CWMs (in SAG).

9. Principal Chief Security Commissioners (PCSC) of RPF will exercise the powers available
to PHODs for matters concerning them. 

10. Similarly, the ADRMs (NFSAG) will exercise the same powers as ADRMs (SAG).

11. Also, the branch officers in Senior Scale (Independent Charge) will exercise the same
powers as available to divisional officers in JAG/SG.

12. A branch officer is an officer in the division who directly reports to DRM and is to be
treated as independent incharge for all purposes.

13. Also, wherever CWMs are in SS/JAG/SG, the CWE or concerned SAG officer in
HeadQuarter will exercise the same powers as applicable to CWMs (in SAG) for matters
pertaining to workshops/depots. 

14. The Station Directors and the Administrators of the Central Hospitals, both in
JAG/SG, will exercise the same powers as available to Branch Officers. 

15. Wherever finance concurrence is not required, it has been specifically mentioned.
Wherever nothing is mentioned it should be presumed that finance concurrence is
required. 
 Sources for MSOP: 

1. Indian Railways Codes and Manuals

2. Circulars issued by various Directorates like Commercial,Transformation Cell etc
3. GM’s Negative powers as per Annexure II to Chapter V of IR Finance Code Volume One 

Parts of MSOP

Par Matters
t

A Works

B Medical

C Miscellaneous

D Stores

E Commercial

F  Establishment (Gaz & Non Gaz)

G Security

Annexures

Annexure Delegation of Powers to 

1 GMs

2 GMs & DRMs

       

Need of MSOP

1.  Setting up of a Benchmark
2. Uniformity across all Zonal Railways in implementation of decisions (especially officers who
are transfer from one Zonal to another Zonal Railway frequently)
3. Simplification of procedures / work process on IR
4. Familiarity of the orders, rules and procedures for the Officers on transfer from one Rly to
another

Procedure for issue of Correction Slips to MSOP

 Respective PHODs shall initiate the proposal for correction.
  DGM(G) is the nodal officer for MSOP
  Proposals received from PHODs will be examined by DGM(G) and process for finance
concurrence
  After finance concurrence, the draft correction slip is vetted
  DGM(G) will issue Correction Slip/Corrigendum with the personal approval of GM
  If it’s direct delegation, correction can also be issued without the consent of the department
  Corrections can also be issued by the Rly Bd

Some Important delegation of powers to GMs & DRMs

SN Item Existing Delegation Revised Delegation

1 Consultancy Contracts Rs. 1 Crore per case No Limit

2 Plan Head 5 - Staff welfare Rs. 20 Lakhs per case Rs. 1 Crore per case
(Quarters, Hospital, Schools
etc)

3 Ceremonial occasion Rs. 2 lakhs - each case  Rs. 5 Lakhs each case

4 Software development No powers Rs. 2.5 Crores each

case

5 Estimates required New Works - Rs. 50 thousands Both: Rs. 5 Lakhs and
and above above
Revenue work - Rs. 2 Lakhs
and above

6 Zonal contract Rs. 2 Lakhs Rs. 5 Lakhs

7 Outsourcing of P.Way activity GM has powers Now DRMs have

powers

8 Licensing of Railway land for No powers DRMs have powers

sidings

9 Provision of passenger facilities GM DRM

by trusts, private persons

10 New UTS cum PRS GM DRM

11 Earning contracts PHOD - Above 15 Crores Full powers

DRM - up to 15 Crores

12 Refund of fares PHOD/HOD/DRM/ADRM - Rs. Full powers

20 thousand

13 Two/Four wheelers under M&P Nil GM - Full powers for

two wheelers to RPF

14 Service contracts DRM - Rs. 20 Crores DRM - Rs. 100 Crores

 15 Approval of Tour programs of Required Not required (within
GM & DRMs India)

16 Inter Railway/Inter Divisional  - Full powers to DRMs

Transfers

Last, but not least, MSOP (having 420 pages) is not meant for “By Heart”. It is just a
Reference book.

Posted by Nageswara Rao M, 9492432160 at 3/11/2021 10:28:00 AM No comments: 

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Tuesday, September 29, 2020
Quotations - Dispensing with calling of Tenders

Quotations - Dispensing with calling of Tenders

·      for works which are urgent in nature and to accept offers received in response to
quotations.

Delegation of Powers as per MSOP - Item 5 (f) of Works Matters Part A

Authority Powers Annual Ceiling (Rs)  

GM Unlimited Unlimited  

PHOD/CHOD/HOD 10 Lakhs 1.20 Crores  

DRM/ADRM/SAG per case

JAG/SG/SS 2 Lakhs per 10 Lakhs Safe running of trains – Finance

case concurrence not required
 (Independent
 charge)

JAG/SG/SS 5 Lakhs per 60 Lakhs (incl: safe All other works incl: Safe running of
case running of trains) trains. With Finance concurrence
 (Independent
charge)

Other important points as per MSOP

1.    Finance concurrence is necessary except for work is of urgent nature and directly related
to safe running of trains.

2.    Exercised by the officers with their own administrative approval and no separate administrative
approval is necessary.

3.    The powers should be exercised sparingly.

4.    The circumstances under which quotations have to be called should be spelt out.

5.   Provision in Sanctioned estimate.

6.    The work should not be split up for the purpose of bringing it within the ambit of this dispensation

7.   Should not be for fancy items (expensive, but of low utility)

8.    For works which are urgent in nature.

9.   At least 3 well experienced contacters/agencies.  They need not necessarily borne in the
Approved list.

10.                      A Register showing the full particulars of works authorized through quotations shall be
maintained by the officer and shall be sent to associate finance while seeking their concurrence.

11.                      Cross utilization of powers of equivalent officers in a division/single administrative unit

shall not be allowed.

12.                      Notice period of at least 7 days from the date of NIQ (Notice inviting Quotation)

13.                     In case of emergency, the period can be reduced with approval of the authority
accepting quotation.

TWO PACKET SYSTEM OF TENDERING

Many times asked - 1991 - (WO), 1992 (W), 1995 (WO), 2000 (W), 2004 (WO)

ü  (clause 7 A of GCC - General Conditions of Contract )

 
ü  Main Object: To assess the tenders technically without being influenced by the financial bids

How:
ü  Tenderers submit their offers/quotations in two sealed envelopes. 
1) First cover - Technical and Commercial offer  - for scrutinize the capability, possession of
appropriate plant & machinery, financial strength and experience etc,
2) Second offer - Financial offer
ü  Both individual sealed packets i.e., technical and financial should be sealed in one envelope.

ü  If the offers of first packet are found acceptable by the Competent Authority, the second packet shall be
opened and the tenders shall be  processed for finalization in the normal manner.

ü  If the first packet is not acceptable for the Tender Committee, the second packet (financial bid)
of such tenderer will be returned to the party without open.

ü  However if Tender committee feels clarifications regarding designs, specification etc required based on
first packet, discussions shall be held with the each tenderer separately,   after obtaining approval of
competent authority.

When  - Two packet system is adopted

1.       Techno - economic- evaluation: For all works contract tenders requiring Techno economic
evaluation
2.       Above Rs. 10 Crores - Mandatory - If the works contracts tender is valued over and above Rs. 10
Crores (except in cases, where reasons for not following two packet system should be recorded with
approval of not below of HAG level Officer and the concurrence of FA&CAO)

3.       Below Rs. 10 Crores - Optional - Decided by the Tender Inviting authority with the concurrence of
associated finance but keeping in mind of the item No.1 supra.

ü  Not applicable -  to the projects covered by World Bank loan (for which separate procedure is
prescribed)

ü  For Railway Board letter on Two packet system of Tendering - Click here

Material Management  - 2018-19

Source:  Year Book 2018-19

·         Total purchases - Rs. 62,134 Crores

Procured by %
Zonal Rlys & PUs 63
Railway Board 36
Others 1

·         Total Number of Depots - 262

·         Total Number of items stocked - 1.3 Lakh

 
·         Scrap Sales - Rs. 4192 Crores

·         E-Procurement started in the year 2010-11

·         Single Web portal IREPS - Indian Railways Electronic Procurement System -   for Goods, Services,
Works, Earning, Leasing & Sale of Scrap

·         IREPS - आपूर्ति - (Apoorthi) Android app  - enables access to useful information at one
go.

 
·         System of Lot Publishing, instead of traditional catalogue publishing, has been rolled out for re-Auction
in January, 2019.  This has made paradigm shift in the method of disseminating information pertaining
to the available scrap for sale to prospective bidders in a transparent manner.

·         Common use Goods and Services available on GeM are reserved for procurement through GeM
portal ( Government E Marketplace

Turn Over Ratio - TOR

 

·           Meaning: Ratio of Stores Balances at the end of financial year to Total issues during the year.

·         Formulae = Stores Balances as on 31st March/Total Issues during the year x 100

·         Stores Balances = Stores in stock + Stores in Transit + Purchase Suspense + Sales Suspense +
Stores Adjustment Account

·         Calculated separately with fuel and without fuel

·         Expressed in Percentages

TOR 2014-15 2017- 2018-

18 19
Without Fuel 15 10 9
With Fuel - 8 6
  

****

Umbrella works
(Most Important question)

«  What is Umbrella works ?  

«  Answer: To brought similar works at different locations  under one umbrella and approved as a
Single work at Railway Board level.

«  The concept of Umbrella works is introduced in the year 2018-19

«  Objects:

ü  Flexibility to sanction works throughout the year  

ü  Channelize the Railway Investments in identified focus areas 

«   Umbrella works - two  types:

             i.            Umbrella  works    b e l o n g s t o   one  Z o n a l   Railway

            ii.            Umbrella works  belongs to more than one Zonal Railway.

«  Umbrella works under plan head 11, 14 , 15 , 31 and 35 - will be finalized by Ministry of Railways. Upon
receipt of communication from railway board zonal Railways will prepare DPR finally approved works will
be appearing as itemized works in the next year pink book if formally sanctioned or with '#' if sanction to be
obtained.

«  For other planheads and for works spreading over more than one zonal Railway, Addl.member member/
PED will be the nodal directorate and will distribute the total cost and outlay provided in the book against
umbrella on need basis to each zonal railway.

«  Ist phase - 80% of cost of Umbrella work - Approved by GM.

«  2nd Phase -
Additional 20% cost of Umbrella  work  shall  be approved  by  General  Manager throughout  the year as  the need  aris
es with  the prior  approval  of Board.

«  GM can sanction upto Rs50 crores and if DPR exceeds more than Rs50 crores the same shall be sent to
Rly board for its sanction. Initially general manager can sanction up to 80% of the umbrella cost.

«  Various works sanctioned under umbrella works, called sub- works of particular umbrella and shall be shown
separately in LAW book.

«  Detailed estimate will be sanctioned for each individual work separately under an umbrella work.

«  The division-wise distribution of both above umbrella funds will be decided at zonal headquarters.
2019-20 Works Programme specifies

1.      The new works shall be sanctioned merely as Umbrella work.

2.      The name and cost of Umbrella work under different Plan  Heads shall be decided jointly by the Executive
Directors of Nodal directorate  in consultation with associate directorates and associate finance directorate
in Railway Board Office.

Advantages:

1.      Umbrella works entails Zero Based Budgeting indirectly in real terms

2.      Utilise the investments in identified areas

3.      Gives flexibility to Zonal Railways to prioritise the works .

Works Programme
       Source: Clickfor 6th chapter of Engineering Code

 
       Investment decisions relating to the creation, acquisition and replacement of assets on the Railways are processed through the 3 different
Programmes

Rolling Stock Programme- Machinery & Plant- M&P Works Programme

RSP
Plan Head 21 Plan Head 41 Remaining Plan Heads
Click for article in this Blog Will be Posted in this Blog Present article

  Works Programme - 4 Stages

I   II   III   IV
Advance   Advance   PWP   FWP
Planning Scrutiny of
Major Schemes

Stage One - Formulation of Schemes as a part of Advance Planning:

Works Programme is not an isolated exercise for the year, but is part of a continuous planning
      
process from the level of Division to Railway Board.

Divisions - Plan for such works - either improvement in operations or remove bottlenecks etc within the
      
Division itself.

      Zonal Railway or Railway Board - Major Investment proposals which benefit a Zonal Railway or the
Indian Railways as a whole should be planned.
 New Lines, GC, Doubling & Other Line capacity works - Rs. 5 Crores and above - Detailed
      
Traffic & Engineering Surveys should be carried out.

New Marshalling yards, Goods terminals, Tranship yards -  Work study teams should go into the actual
      
working before proposed.

       Rate of Return - 10 % and above

       When number of works - to achieve common objective - The ROR for entire scheme should be worked out.

If the Work covers two Zonal Railways, the Zonal Railway in which the major portion of the work falls
      
should obtain figures from the contiguous /neighboring Zonal Railway for submitting joint figures of cost
and financial implication i.e., ROR to the Railway Board.

Stage Two - Advance Scrutiny of major schemes before PWP

       All schemes costing Rs. 20 lakhs or above  - worked out comprehensively with full details such as

1.       Technical features

2.       Cost break up

3.       Benefits expected to accrue

4.       ROR

5.       Sketch map

      Zonal Railways ensured that the cost of the project have been arrived at after the fullest possible
investigation incl: ROR.

After scrutinized by Railway Board, the Zonal Railways should be advised of the acceptance with or
      
without any modifications for inclusion in the PWP.

Track Renewal works - Rs. 20 lakhs and above - Proposals should comprise 1) Traffic density 2) Age
      
of Track  3) Condition of Track components.  These are initially scrutinizing keeping in view of the
availability of P.Way materials, Progress of works already sanctioned etc, before inclusion in the PWP.

Stage Three - PWP - Preliminary Works Programme

 PCE - Principal Chief Engineer  - Responsible for preparation & submission of PWP in Zonal
      
Railway

The overall priorities within the ceilings given by the Railway Board  - fixed by PCE duly
      
consulting GM and other PHODs

 Railway Board lay down the financial limits under Various Plan Heads.  Zonal Railways has to make
      
out their programmes for the following year duly vetted by the PFA.

        Permissible Cost (PC) = Ceiling (C)  X Norms (N)  - Throw Forward (TF)

       Ceiling = The Lumpsum Grant allocated to a particular Division. 

       Norms = Likely Period of completion of works as per Norms stipulated by the Railway Board for PWP.

       Throw Forward = Throw Forward of ongoing works under Each Plan Head.

  June / July Each Year - Railway Board should convey the total outlay under each Plan Head within
      
which the Works Programme should be framed by the Zonal Railway.

       Preference should be given to Works in Progress.

Definition of Works in Progress: A work which has been sanctioned and for which funds have been
      
allotted whether in the original or supplementary budget of a year should be treated as a "work in
progress" for the next year.

       Select the New works which are expected to yield the maximum benefit(ROR) to the Railway.

1st September or any date fixed by the Board - Submission of PWP to the Railway Board with
      
proper financial appraisal of each work together with comments of PFA.

      Project cost  - Based on firm data both as to quantity and rates at current price levels.  Also consider
the increase in prices during the intervening period between PWP and FWP.  But no other increase on
account of change in scope of the Project should be allowed.

      Each investment proposal should be accompanied by a detailed plan showing the scheduling of the
project to match the traffic requirements and the financial outlay proposed for the year  - for realistic
funds allocation by the Railway Board.

       The Works Programme is compiled in the following format :-

Form E. 618

Works Programme 2020-21

    Demand No...............................                                 Figures in thousands of rupees)

Expenditure Outlay for

Particularso
Item No. Authority Cost to end of Balance
f Works 2019-20 2020-21
3/2019
1 2 3 4 5 6 7 8
               

Note :--Years have been shown in the form for the purpose of illustration.

Stage IV -  Final Works Programme - FWP

After examining the Individual Railways PWP and discussions with the GMs, the Railway Board
      
will decide the works which should be undertaken during the following years FWP.
  The Zonal Railways will modify their PWPs as a result of the Railway Board's decision and
      
send their FWP to the Railway Board by the stipulated date.

      The Demand shall be for gross expenditure, the credits or recoveries being shown in the form of
footnotes to Demands.

FWP 2020-21 Salient features:

      Focus should be on completion of already sanctioned works (Works in Progress) so as to complete

them in a time bound manner and utilize the investment made by Railways.

      Review of works which are sanctioned, but not commenced till now in spite of lapse of considerable
time.  Such works might have lost relevance in the present scenario and need to be dropped.

       New Work should propose only  - When the proposed work cannot be deferred for next year.

       New works shall be sanctioned only as "Umbrella Work"  Click for article

      Zonal Railways should limit their works proposals , as the new Umbrellas shall generally be
lower than the previous year by at least 50%  (except for Safety works)

  IRPSM
 
Ø  Full form is “Indian Railways Projects Sanctions & Management.

Ø  That means it has two broad divisions.  1) Sanctioning of new projects i.e., Works Programme  and 2)
Management/Monitoring of such sanctioned Projects.

Ø  Web based application i.e., usable only with an internet connection and uses HTTP (Hyper-Text
Transfer Protocol) as its primary communication protocol.

Ø  Developed by CRIS, New Delhi ( All the system administration functions, viz Operating System,
Database, Application Server besides day to day operation – responsibility of CRIS)

OBJECTS OF IRPSM

Ø  Online creation and forwarding of “NEW WORKS” proposals from the Zonal Railways and Production
Units to the Railway Board duly replacing the exsting manual system.
  

Ø  Modifications to the “Works in Progress”

Ø  Printing of Works programme, Pink Book and other sanction books after sanction by Railway Board.

Ø  Monthly updation of status of various works by Executing agencies like Sr.DEN, Sr.DOM etc.

Ø  Monitoring of all Works/Projects.

TYPES OF USERS

LEVEL/USER PLAN HEAD CO WORKS PROGRAMME SANCTIONING

ORDINATOR CO ORDINATOR AUTHORITY
DIVISION Branch officers like Sr.DEN/Co DRM
Sr.DOM, Sr.DME etc
ZONAL PHODs CPDE – Chief Planning & GM
RAILWAY Design Engineer
RAILWAY - EDCE(G) – Executive Railway Board &
BOARD Director Civil Engineering Minister for Railways
(General)

List of Plan Heads and Plan Head Co-ordinators

PH No PH Name Plan Head Co-ordinator

Divisional Zonal Rly/PU
11 New Lines
14 Gauge Conversion
15 Doubling
Sr.DOM COM
16 Traffic Facilities
35 Electrification Projects
81 Metropolitan transport projects

PH No PH Name Plan Head Co-ordinator

Divisional Zonal Rly/PU
29 Level Crossing Gates CTE
30 ROB/RUB CBE
31 Track Renewals CTE
32 Bridge Works Sr.DEN/Co CBE
51 Staff Quarters PCE
52 Staff Amenities PCE
64 Other Specified works PCE
  

PH No PH Name Divisional Zonal Rly/PU

17 Computerisation Sr.EDP CCM
33 S&T Sr.DSTE CSTE
36 Other Electrical Works Sr.DEE CEE
42 Workshops Sr.DME CWE
53 Passenger amenities & other rly. User amenities Sr.DCM CCM

IRPSM @ DIVISIONAL LEVEL

Ø  Creation of “New Works” proposal with justification & Abstract Cost.

Ø  Forward to Finance (Sr.DFM) for vetting

Ø  Sanction of Proposal  - by DRM (if within DRM powers)

Ø  Forwarding of proposals to Zonal Railway ( If beyond DRM’s powers)

Ø  Adding all the Works sanctioned under DRMs powers – to the list of “IN PROGRESS” works in IRPSM.

Ø  Assigned unique Project ID as explained below.

Ø  Reporting of status every month for each work by respective Exexutive Agency.

Ø  Generation & Printing (if desired only) of Works Programme reports.

IRPSM @ ZONAL RAILWAY LEVEL

Ø  Examination and processing of  “New Works” proposals as received from Divisions will be forwarded by
CPDE – Chief Planning & Designs Engineer the respective Zonal Plan Head Co ordinators.

Ø  Creation of “New Works” proposals.

Ø  Forward to Finance (FA&CAO) for vetting.

Ø  The vetted proposals forwarded by Plan Head Co ordinators will be checked and then forwarded to GM
through PCE for Sanction.

Ø  Sanction of Proposal  - by GM (if within GM powers)

Ø  Forwarding of proposals to Railway Board ( If beyond GMpowers)

Ø  Adding all the Works sanctioned under GM powers – to the list of “IN PROGRESS” works in IRPSM.

Ø  Assigned unique Project ID as explained below.

Ø  Defining Funds availability & Sanction limits for Zonal Railway HQ & Divisions.
Ø  Reporting of status every month for each work by respective Exexutive Agency.

Ø  Generation & Printing (if desired only) of Works Programme reports.

IRPSM @ Railway Board Level

Ø  Forwarding of proposals received from Zonal Railways by EDCE(G) to Nodal Directorates for respective
Plan Heads.

Ø  On line shortlisting, Recommedning & Forwarding to EDCE(G)

Ø  Above 5 Crores each -  Proposals forwarded by Nodal Directorates to EDF(X) – I & II for Finance
Concurrence.

Ø  Below 5 Crores each – Online shortlisting, recommending & forwarding to EDCE(G) by Nodal
Directorates through concerned AMs (Additional Members) for Plan Heads.

Ø  Compiliation of all shortlisted proposals (Below 5 Crores each) by EDCE(G) for meeting of AM’s
committee

Ø  At any time, ON LINE YELLOW SLIP can be attached on-line and file can be moved out of the normal
path for consultation.  All yellow slip communiations will be kept off the general record. provision for the
off-the-record consultation on Proposals.

Ø  Such shortlisted & recommended proposals for each Plan Head with On line consent and remarks of
Finance will be processed by Nodal Directorates through EDCE(G) on the file for approval of Board &
Hon’ble Minister for Railways.

Ø  Assigned unique Project ID as explained below.

UNIQUE PROJECT ID  - 14 DIGIT

1 2 3 4 5 6 7 8 9 10 11 12 13 14
Zonal Division Plan Year of Authority sanctioned Executing Agency Serial
Rly Head sanction (like GM,DRM etc) (Like Sr.DEN or Number
Sr.DOM)

UNIQUE PROJECT ID  - 14 DIGIT  -

an example of Passenger Amenities Work (Plan Head 53) Sanctioned by GM in Mumbai Division of
Central Railway

0 1 0 2 5 3 1 6 3 0 0 0 0 7
Central Railway Mumbai Plan Head 2016-17 GM Not identified Serial Number
Division

Hence Project ID for the above work is “01025316300007”

 ADVANTAGES OF IRPSM

Ø   A paperless office .  All files will move online without involvement of physical files.

Ø  Completely reduce transit time of file from one office to another.  Proposals reach Boards office within
no time.

Ø  All requisite justification, plans, drawings, sanctions and permissions will be attached to the proposals.

Ø  Online monitoring the work in progress of all the works.

Budget - Different types

 Budget - Different types

Traditional Budget or Incremental Budget

  Prepared using a previous period’s budget or actual performance as a base, with

incremental amounts added for the new budget period. 

 The allocation of resources is based upon allocations from the previous period.

 This approach is not recommended as it fails to take into account changing circumstances. 

 Moreover, it encourages “spending up to the budget” to ensure a reasonable allocation

in the next period.

  It leads to a “spend it or lose it” mentality.

Advantages 

1. The budget is stable and change is gradual.

2. Managers can operate their departments on a consistent basis.
3. Simple to operate and easy to understand.
4. Conflicts are avoided when departments appear to be treated similarly.
5. Coordination between budgets is easier to achieve.
6. The impact of change can be seen quickly.

Disadvantages 

1. No incentive for developing new ideas.

2. No incentive to reduce costs.
3. Encourages spending up to the budget so that the budget is maintained next year.
4. The budget may become out-of-date and no longer relate to the level of activity or type of
work being carried out.
5. The priority for resources may have changed since the budgets were originally set.
6. There may be budgetary slack built into the budget, which is never reviewed. Managers
might have overestimated their requirements in the past in order to obtain a budget which is easier
to work within, and which will allow them to achieve favourable results.

Integrated Budget

Integrated Budget = Revenue + Works + Earnings Budget

Budget Budget

·         Source: Para 622 E (Engineering Code)

·         Object: In order to co-relate the decisions relating to Investment decisions, a consolidated

Budget called Integrated Budget including Revenue Budget, Works Programme and the
Machinery and Rolling Stock Programmes should be submitted by the Railways along with
the preliminary Works Programme.

·         Prepared under the personal guidance of GM and with the assistance of PFA.

·          The Integrated Budget includes:

1. Projections of Traffic and Earnings

2. Works expenditure

3. Revenue Working Expenses

4. Estimated financial Results for the ensuing/ following year

5. The projected Operating Ratio

6. Rolling stock requirements on account of Replacement and Addition Account

·          Covering Note to the Integrated Budget:  Bring out the effect of Budget proposals on the
efficiency of operations as indicated by the Operating Ratio and the financial viability of the system
as revealed by the financial returns on Capital investment.

·         Revised Integrated Budget:  After discussion of the PWP – Preliminary Works

Programme, a revised Integrated Budget should be submitted alongwith FWP – Final Works
Programme duly taking into account the changes that might have taken place in the meantime.
 

&&&&

Outcome Budget

Conversion of Financial Outlays into Physical

Outcomes

Check the Table (end of the article) for clear examples of the
conversion

Backdrop:

●     The existing budget system, although involves proper checks and validations at various
levels relies heavily on expenditure figures of previous years which are then incremented as
per the revised requirements in the next year.

● The present system consists of comparison of expenditure incurred viz-a-viz

budget estimates/allotment without estimating the final outcome expected to be
achieved.

●     The Performance Budget was introduced in the year 1969  following the
recommendations of the ARC - Administrative Reforms Commission.

● For long, a need was felt to address certain weaknesses in the performance
budgeting system, such as lack of a clear relationship between the financial and
performance budgets and inadequate target setting for the ensuing year.

● To obviate the above lacunae, the Outcome Budget was introduced in the year
2005-06 in the Ministry of Finance.

 
In Indian Railways:

●     Implemented from 2006-07 onwards in Indian Railways and other ministries.

●     Applicable for all works of Rs. 5 Crores and above

● Simply Outcome Budget means  “Converting Financial Outlays into Physical

Outcomes”

● Mechanism of “Checks & Balances”

● It is a Progress Card on what Railways have done with the amount assigned in the
previous annual Budget.  

What is:

● Measures estimated outcomes of all Govt projects and checks whether money has
been spent for the purpose it was sanctioned or not.

 Method:

 ● It is an evolving & dynamic process

● The actual physical performance of the Previous Year, Current Year & targeted
performance during the Next Year is analysed.

● Achieved by defining Intermediate & Final Outcomes, Standardising Unit Costs,

Capacity building for needed efficiency, ensuring regularisation & adequate flow of funds.

● Reviewing every 3 months, benchmarking, effective monitoring & evaluation,

identifying areas where funds to be reallocated.

 Advantages:

1. Outcome of the Projects - Not only in monetary terms, but also physical outcomes
2. Helps Management to control expenses & introduce discipline in expenditure.
3. Govt projects become more result oriented
4. Reduce costs by identifying Projects that do not contribute enough outcomes.
5. Fixing the accountability.

Examples:
 Activity Financial Physical Outcome
Outlay

1. Substantially
Earthing of Rs. 30 reduced rate of signal
signals to reduce Laksh failure in the section
the incidences of from X to X-A
failure due to 2.  Enhanced
frequent lightning throughput of section
(in nos.) in terms of GTKM and
NTKM of freight
trains, 
3. Increased coach
kilometres / Passenger
kilometres for
passenger(PKM)
trains 
4. Saving
monetized in Rs …
lacs per month

1. Improved
Fitment of fuel 45 lacs specific fuel
efficiency kit in per kit consumption from F to
diesel F- A
locomotives (in 2.   Saving of HSD
nos.) oil in liters per month
3.  Saving
monetized in Rs …
lacs per month

1. Reduced
3 Development of Rs. 50 detention of rake from
Goods shed with lacs X to X-A
state of the art 2.  Enhanced
facilities loading in tons
3.  Freight revenue
expected to be
increased by Rs….
lacs per month

1. Elimination of
4 Road Over Bridge Rs. 200 accident at LC gates.
(ROB)/ Road lacs 2.   Increase in
Under Bridge maximum train speed.
(RUB) - Removal 3.  Reduction in
of LC gates train detention.
4.   Increase
throughput.
 5.  Increased
GTKM,NTKM &CKM
andEnhanced Traffic
Earnings
6.  Revenue
expected to be
increased by Rs
….lacs per month

*****

Z B B – ZERO BASED BUDGETING

Salient Features:

ü  A technique of planning and decision making which reverses the working process of
traditional budgeting.

ü  In traditional budgeting (incremental budgeting), Managers justify only increases

over the previous year’s budget and what has been already spent is automatically
sanctioned.  No reference is made to the previous level of expenditure.

ü  By contrast, in Zero-based budgeting, every department function is reviewed

comprehensively and all expenditures must be approved, rather than only increases.

ü  Requires the budget request be justified in complete detail by each Manager

starting from the Zero-base.

ü  The zero base is indifferent to whether the total budget is increasing or decreasing.

ü  ZBB is especially encouraged for Government budgets because expenditures can

easily run out of control if it is automatically assumed what was spent last year must be
spent this year.

ADVANTAGES:

ü  Efficient allocation of resources, as it is based on needs and benefits.

ü  Drives Managers to find cost effective ways to improve operations.

ü  Detects inflated Budgets.

ü  Useful for especially Service Departments like Telecom, Railways etc, where the output
is difficult to identify.
 ü  Identifies and eliminates wasteful and obsolete operations.

ü  Eliminates the “spend it or lose it” mentality of traditional budgets/incremental

budgets.

DISADVANTAGES:

ü  Difficult to define decision units and decision packages.

ü  Time consuming and exhaustive.

ü  Difficult to understand and communicate the budgeting because more managers are
involved in the process.

ü  Forced to justify the every detail related to the expenditure.  So not suitable for R & D
depts.

&&&&

Performance Budget

Purpose: 

 To motivate the employees about commitments to produce positive results

Salient features:

 Cost & Benefit of each activity is analysed regarding allocation of funds.

 Involves work measures, benchmarking & unit cost.

Consists of: 

1. Identify the targets and methods of evaluating performance of each unit of an Organization.
2. Taking into account of Inputs - Resources and Outputs - Services
3. To be completed within a particular Time frame
4. Allocation of Funds based on specific goals

Advantages: 

1. Improves Performance in continuous manner

 2. Makes clear Program Goals/Objectives/Fixing targets for performance
3. Justifies - Reallocation of Resources on the basis of Performance.
4. Higher transparency & accountability to Taxpayers
5. Better Cost estimation enables to allocate Funds to various projects by their importance.

Limitations: 

1. Focus more on Targets, not on means of achievement

2. Focus more on Quantity, not on Quality.
3. Data may be manipulated to reach targets to get Funds
4. Becomes ineffective without a Proper system of Accounting & Reporting
5. In Govt Organizations like Indian Railways with multiple agencies, disagreement may arise
on Spending priorities.

%%%% 

Posted by Nageswara Rao M, 9492432160 at 3/11/2021 09:43:00 PM No comments: 

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Labels: Books & Budget, Budget, Incremental Budget, Integrated Budget, Outcome Budget, Performance

Budget, Traditional Budget, ZBB, Zero Based Budget
Tuesday, May 1, 2018

Z B B – ZERO BASED BUDGETING

Z B B – ZERO BASED BUDGETING

Salient Features:

ü  A technique of planning and decision making which reverses the working process of traditional budgeting.

ü  In traditional budgeting (incremental budgeting), Managers justify only increases over the previous
year’s budget and what has been already spent is automatically sanctioned.  No reference is made to the
previous level of expenditure.

ü  By contrast, in Zero-based budgeting, every department function is reviewed comprehensively and all
expenditures must be approved, rather than only increases.

ü  Requires the budget request be justified in complete detail by each Manager starting from the Zero-
base.

ü  The zero base is indifferent to whether the total budget is increasing or decreasing.

ü  ZBB is especially encouraged for Government budgets because expenditures can easily run out of
control if it is automatically assumed what was spent last year must be spent this year.

ADVANTAGES:
ü  Efficient allocation of resources, as it is based on needs and benefits.

ü  Drives Managers to find cost effective ways to improve operations.

ü  Detects inflated Budgets.

ü  Useful for especially Service Departments like Telecom, Railways etc, where the output is difficult to identify.

ü  Identifies and eliminates wasteful and obsolete operations.

ü  Eliminates the “spend it or lose it” mentality of traditional budgets/incremental budgets.

DISADVANTAGES:

ü  Difficult to define decision units and decision packages.

ü  Time consuming and exhaustive.

ü  Difficult to understand and communicate the budgeting because more managers are involved in the process.

ü  Forced to justify the every detail related to the expenditure.  So not suitable for R & D depts.

Official Language Policy

1.      Compliance of Section 3 (3) of OL Act, 1963 i.e., the following documents have to be issued in bi-
lingual form (Hindi & English) by all Central Government offices throughout the country.

a)      Resolutions
b)      General Orders (incl: circulars, reservation charts, notices & memoranda)
c)      Rules
d)     Notifications
e)      Administrative reports/press communiqué
f)       Administrative and other reports and official papers laid before Parliament
g)      Contracts & Agreements
h)      Licenses
i)        Permits
j)        Tender notice
k)      Tender form

2.      Compulsory training for acquiring working knowledge of Hindi - for non Hindi speaking employees
( Group C & above)

3.      Compulsory training in Hindi Typewriting & Stenography  -  staff working in respective fields

4.      Question papers for all Dept promotional exams (LDCE, 70% Exam etc) - should be in bi-lingual form

5.      10% of Total marks of paper either in General Knowledge or Professional ability must be set on OL
policy.  But answering question is not compulsory.  Answer to such question can be either be in Hindi or
English.

6.      Interviews - Option of Hindi should be given to candidates

7.      The following should be in bi-lingual.

a)      Rubber stamps
b)      Office seals
c)      Standard forms
d)     Description on items of stationery/Sign boards/Name boards / Name badges

8.      International form of Indian Numerals i.e., 1,2,3.........9 ( Instead of Devanagari numerals

i.e., १, २, ३....... ९ )  - should be used in official transactions.

9.      Letters received in Hindi   -  Reply in Hindi only.

10.  Applications/appeals/representations given in English, but signed in Hindi - Reply should be in Hindi by

administration.

11.  Computers & other electronic equipments - Purchased with bi-lingual facility only.

12.  Letters to State Govt offices located in A & B regions  - should be in Hindi.  In case the letter is English, it
should have a Hindi translation also.
****

Steps taken by Indian Railways - To promote the use of Rajbasha

1.      Imparting Hindi language training to the staff - to increase the use of Hindi in original correspondence &
internal work.

2.      Increasing the use of Hindi medium for general training programme.

3.      Preparing various incentive schemes & doing developmental work.

4.      Provision of software application in computers for encouraging to work in Hindi.

5.      Setting up of Hindi libraries.

6.      Conducting various Hindi competitions like Essay writing, Antyakshari, Quiz etc.

7.      Conducting Hindi Samaroh & awarding prizes to staff for doing exemplary work in Hindi.

8.      Operating Rajbasha shield scheme to encourage the units/Divisions in using Hindi.

9.      Conducting examinations like Pragya/Praveen for staff. 

&&&

KHS - Kendriya Hindi Samithi

·         Apex body - implementation of Hindi as Official Language.

·         Object:  for providing macro-level guidance in policy formulation and for overseeing the implementation of
policy decisions by ensuring inter-Ministerial and inter-Departmental coordination for the implementation of
Official Language Policy, the Official Language being Hindi.
·         Chairman - Prime Minister ,  Vice Chairman - Home Minister 

·         Members -  Total 41  -  Includes Minister of State for Home, 6 Central Ministers,  6 Chief Ministers (two
each from Regions ‘A’, ‘B’ and ‘C’ respectively)  

Working Knowledge  -  Hindi

A.    Passed 10th class with Hindi as one of the subjects (2nd or 3rd)

B.     Passed Pragya examination conducted under  Hindi Training scheme. 

C.     If He/She declares himself/herself to have such knowledge in the form annexed to these rules. 

D.    80% of staff acquired Working knowledge in Hindi - Entire 100% staff deemed to be acquired the Working
knowledge in Hindi.

***

Tidbits - Official Language policy

ü  Article 343(1) of Constitution of India  -  Hindi in Devanagari script is the Official Language.  (Dev - God, 
Nagari  - Town)

ü  Numerals - International form of Indian Numerals like 1,2,3.........9  (Instead of Devanagari numerals
i.e., १, २, ३....... ९)

ü  Language used in Supreme Court  - English

ü  8th Schedule of Constitution  - 22 languages are recognized as Official languages.

ü  Official Language Act - 1963  (as amended in 1967)

ü  Official Language Rules - 1976  - Applicable to entire India except Tamilnadu state.

ü  Letters received in Hindi to be answered in Hindi  - 100 %

ü  14th September - Hindi Diwas -  on this day in 1949, Constituent Assembly adopted Hindi as Official
Language.   

ü  Rule No. 6 of Official Language Rules, 1976  -  It shall be the responsibility of the persons signing such
documents to ensure the same are made, executed or issued in bi-lingual.   It is one of the items of
Parliamentary committee on OL. 

ü  Implementation of OL - Responsibility lies in Head of Office.

ü  Parliamentary committee on OL  - 30 members  ( LS -20,   RS-10)

ü  Representation may be submitted by employee in Hindi.  If so, the reply should be in Hindi only. 

ü  Kendriya Hindi Samithi (KHS)  - Apex body  - Chairman is Prime Minister.

Regions A,B, & C – Section 8 of Official Language Act, 1963

  
Region No of States & UTs Correspondence
A 11 100 %
B 6 85 %
C Rest of A & B 55 %

Region A  - 11 States & UTs  - 100% Correspondence

Remember BIMARU – Bihar, Jarkhand, Madhya Pradesh, Chattisgarh, Rajasthan, Uttar Pradesh, Uttaranchal, 
-  7 Staes

Remember  - H2  - Haryana & Himachal Pradesh – 2 States

New Delhi , Andaman Nicobar Islands – 2 UTs

Region B -  6 States & UTs – 85 % Correspondence

Remember Western India  - Gujarat, Maharashtra,  Dadra Nagar Haveli,  - 3 States & Uts

Punjab, Chandigarh,  Daman & Diu  - 3 States & UTs

Region C -  Sates and UTs other than those referred to in A & B Regions   -  55 % Correspondence