Merge AVNL-2

Delegation of Financial Powers
of AVNL
as on 01.10.2021
FOREWORD
The financial powers delegated to AVNL and its units have originated from various Govt. letters/ erstwhile OFB orders
issued over the years.
As per these delegated powers, the respective competent financial authorities will exercise their powers for procurement
and other activities as defined herein. It is also to be noted that all procurement decisions will be taken at the level of
TPC where Chairman of the TPC is the competent financial authority for the procurement case.
The Powers will be exercised subject to availability of budget. Exercise of all financial powers would require financial
concurrence unless otherwise specifically waived. Apart from these general stipulations, certain specific restrictions are
attached to some items of delegations and have been indicated under ‘Remarks’ column.
While exercising the financial powers, the provisions of relevant procurement manual should be complied with. In these
delegated financial powers, wherever ‘Full Powers’ are indicated, the same will be limited to the ceilings imposed by
DPE/Government of India as revised from time to time.
These financial powers have been resolved and approved by the Board of AVNL in the Board Meeting held on 02.09.2021
at Avadi, Chennai, and will be effective from 01.10.2021.
Financial Division, AVNL Hq will be the custodian of these delegations of financial powers. It is possible that some
doubts may arise during implementation of these powers by various units under AVNL. Finance Division, AVNL is
authorized to issue any clarification, if required. In case of any difference of opinion, the decision of Director (Finance),
AVNL will be final.
ABBREVIATIONS
AVNL - Armoured Vehicles Nigam Limited
AGM - Additional General Manager
CFA - Competent Financial Authority
DDP - Department of Defence Production, Ministry of Defence
DGM - Deputy General Manager
Dir - Director
Sr. GM / GM - Sr. General Manager / General Manager of AVNL Unit
Jt. GM – Joint General Manager
WM - Works Manager
LTE / OTE - Limited Tender Enquiry/Open Tender Enquiry
LPC - Local Purchase Committee
MMTC - Metals & Minerals Trading Corporation
NC - New Capital
OFB - Ordnance Factory Board
PFC - Plan Finalisation Committee
PSU - Public Sector Unit
RR - Renewal &Replacement,
STC - The State Trading Corporation of India
IPL - Itemized Price List
JWM (SG) - Junior Works Manager (Selection Grade)
INDEX
Sl. No. SUBJECT PAGE NO
1 PROCUREMENT OF STORES
2 PROCUREMENT OF PLANT & MACHINERY
3 DELIVERY PERIOD, LD, SD, ADVANCE PAYMENT & PAC
4 ISSUE OF ITEMS ON RETURNABLE & NON-RETURNABLE BASIS
5 DESPATCH OF STORES
6 DISPOSAL OF SURPLUS (SERVICEABLE & UNSERVICEABLE) ITEMS
7 CIVIL TRADE / EXPORTS
8 EXPENDITURE ON SCHEMES, PROJECTS & CIVIL WORKS
9 REGULARISATION OF LOSSES
10 CONSULTANCY
11 CONTINGENT, MISCELLANEOUS AND GENERAL MATTERS
12 MEDICAL
14 TPC/TEC STRUCTURE AT AVNL HQ
15 TPC/TEC STRUCTURE AT AVNL FACTORIES FOR PROCUREMENT OF STORES
TPC/TEC STRUCTURE AT AVNL FACTORIES FOR PROCUREMENT OF PLANT & MACHINERY
16 COMPOSITION OF CIVIL WORKS COMMITTEE (CWC)
17 TPC STRUCTURE FOR PROCUREMENT OF MEDICAL STORES AT FACTORY HOSPITAL
18 TDC STRUCTURE AT AVNL FACTORIES
19 DECLARATION OF HEAD OF DEPARTMENT (HOD) & COMPETENT AUTHORITY
AUTHORISATION TO DIRECTORS OF AVNL BOARD TO EXERCISE POWERS OF AVNL
20
BOARD
Definitions:
1) AVNL Units:
The following entities under AVNL;
a) AVNL Corporate Office,
b) AVNL Production factories: HVF, EFA, OFMK, VFJ & MTPF
c) AVNL non-production entities: OFIL AV, OFIL MK, OFIL AM, Mumbai Office
2) Stores:
All Stores / Goods / Services (*) which are incidental or consequential to Production or Maintenance such as;
a) Inputs and aids for production such as all articles, material, commodity, livestock, furniture, fixtures, raw materials, spares, instruments,
equipment, medicines, components, assemblies, sub-assemblies, tools, gauges, jigs, accessories, process materials, production consumables,
indirect consumables, IT products / items, software, technology transfer, licenses, patents or other intellectual properties purchased or
otherwise acquired but excludes books, publications, periodicals etc., for a library.
b) Maintenance aids, including spares, tools & tackles etc.,
c) (*) Services (production related) which are incidental or consequential to the supply of such goods, i.e. Hiring of personnel, conversion, job-
work, material handling, packing, unpacking, preservation, transportation, insurance, Training, delivery, maintenance support, technical
assessment, consultation, system-study, software development, maintenance conservancy etc.,
Note:
i) Hiring of skilled & unskilled personnel under category of services mentioned in definition of Stores is only applicable for personnel
engaged in Production, Quality control & Maintenance, Material handling etc.,
ii) Transportation under this definition of Services is only applicable for transportation, incidental or consequential to the supply of
Production Goods.
All the Financial powers are irrespective of currency of payment.
3) Head of Unit (HOU):
a) SR. GM / GM posted to a factory will be the Ex-officio Head of Unit and exercise these Delegated Financial Powers.
b) For other than factories, the Head of Unit will be decided by CMD and notified by the respective Unit’s Office Order.
4) Competent Financial Authority (CFA):
Competent Financial Authority (CFA) exercises the Delegated Financial Powers through respective TEC / TPC, unless otherwise stated.
Delegation
Concurrence
Sl. No. Nature of Power / Reference AVNL Units AVNL Board Remarks
of Finance
Authority Extent Authority Extent
Procurement of Stores from Indigenous JWM (SG) / MM Rs. 2 Lakh
Sources / Foreign Sources, through; AWM / MM Rs. 10 Lakh
WM / MM Rs. 50 Lakh
i) GEM - - Cases valuing upto Rs.
Jt.GM or DGM / MM Rs.5 Cr. 10 Lakhs will be
ii) Multiple offer situation in LTE / AGM / MM Rs.25 Cr. processed on file, as
OTE / GTE (*) Sr.GM / GM Full Power non-TPC cases.
1a Yes
iii) PSU (DPSU / CPSU / SPSU) (*) In case of GTE
cases, relevant and
iv) Rate / Running contract placed by Director looking latest Govt. Orders to
All Heads of non-production Full
AVNL / MoD Rs.5 Cr. after be followed.
units including AVNL CO. power
procurement
v) Itemized Price List (IPL) approved
by MoD.
Delegation
Concurrence
Sl. No. Nature of Power / Reference AVNL Units AVNL Remarks
of Finance
Procurement of Stores from AGM / MM Rs.10 Crs.
Indigenous / Foreign Sources in single Sr.GM / GM Rs.50 Crs.
tender / RST through;
Approval-in principle (AIP) shall be
i) Proprietary Articles Certificate obtained from Director (Operations) /
Director
1b (PAC) basis, All Heads of non- Full Power AVNL before issuing TE in respect Yes
production units (Operations)
Rs.1 Cr. of procurement on single tender basis
ii) Single Known Source basis (SKS), including AVNL valuing Rs. 25 Crs. or more.
CO.
iii) Where resultant single acceptable
offer is received against LTE / OTE
Delegation
Concurrence
Sl. No. Nature of Power / Reference AVNL Units AVNL Remarks
of Finance
i) Procurement of Stores from Indigenous / Foreign AGM / MM Rs.25 Crs.
- - Approval-in principle (AIP)
Sources, through Single tender from a source Sr.GM / GM Full Power shall be obtained from
nominated or identified or developed by Customer /
Director (Operations) /
User / Collaborator / TOT provider / Joint Venture All Heads of
1c AVNL before issuing TE in Yes
partner / Co-production partner / Design Agency. non-production Director Full respect of procurement on
ii) Procurement from TOT provider under License units including Rs.1 Cr.
(Operations) Power single tender basis valuing
agreement / Joint Venture partner / Co-production AVNL CO.
Rs. 50 Crs. or more.
partner
Delegation
Sl. Concurrence of
Nature of Power / Reference AVNL Units AVNL Board Remarks
No. Finance
Director/ Rs. 10
Operations Crs.
Procurement of Stores against ab- Sr. GM ₹10 Only in case of urgent requirement and urgency to be
1d Yes
initio single tender /GM Lakhs recorded in VSL TPC minutes in defined manner.
CMD Full
Power
₹ 10
Director/
Crs. For new input item of Made to Order (MTO) Category
Placement of Development Order Operations
Sr. GM for IR&D project.
1e for new item of input required for ₹ 2 Crs. Yes
/GM This provision can be invoked using LTE / ab-initio
IR&D Project
Full STE without resorting to OTE
CMD
Power
₹ 10
Director/
Crs.
Operations For an item of Made to Order (MTO) Category to be
Placement of Development Order Sr. GM
1f ₹ 2 Crs. indigenised, this provision can be invoked using Yes
for item to be indigenised /GM
LTE/ab-initio STE; without resorting to OTE
Full
CMD
Power
Note for Sl. No.1f: After successful development of the item, the firm will be considered as Established vendor for the item.
Delegation
Sl. Concurrence
Nature of Power / Reference AVNL Units AVNL Board Remarks
No. of Finance
Cash purchase of all Stores / Goods i) This power may be
and Services which are incidental or invoked in case of stock
2 consequential to the supply of such AWM/WM/MM Rs. 2000/- out condition/ production No
Goods such as, Transportation, or maintenance held up
Insurance, Training and Maintenance (reasons to be recorded).
DGM/MM Rs. 5,000/-
JGM/MM Rs.10,000/- ii) In conformity with

Rule 154 of GFR 2017.
AGM/MM Rs. 15,000/-
Sr.GM/GM Rs. 25,000/-
Note for Sl. no. 1 & 2 only
i) AGM as Head of the Cost Centre having integrated purchase function as well as Jt.GM, DGM, WM & AWM working
under him/her or AGM heading purchase function (Material Procurement section) as well as Jt.GM, DGM,WM and AWM
working under him/her, will exercise such power.
ii) Production and Maintenance Officers after obtaining necessary sanction from the Officers responsible for purchase
function will complete all associated formalities to position the material on urgent basis.
iii) It is also clarified that Production as well as Maintenance Officers do not have the power to approve / sanction Cash
Purchase to position direct / indirect items.
Nature of Delegation
Sl. Concurrence
Power / AVNL Units AVNL Board Remarks
No. of Finance
Reference Authority Extent Authority Extent
Rs. 50 This should be accepted only after
AGM
Spot Payment for Lakh other modes of payments are not
Dir Full
3 purchase of accepted by the firm. Payment to be Yes
(Operations) Power
Stores/Goods made only after full acceptance and
Sr. GM /GM
Rs. 1 Cr delivery of stores.
Delegation
Sl.
Nature of Power / Reference Factory/Unit AVNL Board Remarks Concurrence of Finance
No.
Purchase of all Stores / Goods and
Services which are incidental or Rs. 2.5 1. In conformity with Rule
4 Sr.GM/GM
consequential to the supply of such Lakh 155 of GFR 2017
Goods such as,
It shall be ensured that Yes, Concurrence of Head of associated
procurement qty shall not Finance attached to Sr.GM/GM of AVNL
Transportation, Insurance, Training spilt for the purpose of factory shall be Considered as appropriate
and Maintenance through Local avoiding the tendering Financial Advisor for purpose of
Purchase Committee (LPC) to meet process. financial consultation for LPC
requirement irrespective of
urgency. Hiring of manpower services
while complying to
all the rules / stipulations for
such services.
Delegation
Sl Factory/Unit AVNL Board Concurrence
Nature of Power / Reference Remarks
no of Finance
5 Direct Procurement of stores of These powers will be exercised subject to the condition that action to cancel/ reduce the requirements
Ordnance Origin. projected on depots is taken simultaneously with the action for Local Purchase and in all such cases
the justification for the requirement being deemed urgent will be the responsibility of DGOF and the
FR (Financial repercussion) if any, as a result of the cancellation / local procurement action will rest
with DGOF.
5a When the requirement is urgent Sr. GM/GM Full Power --- --- Limited to supplies for Yes
and factories do not have three months requirement
adequate time to project
requirement on depot and obtain
the same.
5b When the supplies from the depot Sr. GM/GM Full Power --- --- Limited to supplies for Yes
are not forthcoming and the stock three months requirement
level in the factory has fallen
down and the production activity
is likely to be affected.
PROCUREMENT
OF
PLANT & MACHINERY
Sl Nature of Power /Reference Delegation Concurrence of
no Remarks Finance
Factory/Unit AVNL Board
6. Procurement of Plant & Machinery under New (i) A careful appraisal of the proposed investment should be carried out from
Capital and Renewal & Replacement, including various angles such as Prioritization of expenditure, scrutiny of demand from the
contract for Modification and /or relevant out turn, assurance of reasonable IRR, cost benefit analysis etc. In case of any
Reconditioning of P&M. deviation/short coming found in such appraisals and if the investment is still
considered necessary on any other ground, approval of AVNL Board will be obtained.
(ii) Govt. sanctioned projects under ‘New Capital’ implies that AVNL has already
identified various categories of P&M, while obtaining sanction. The procurement shall
be made in accordance with guidelines/ procedures laid down by AVNL.
(iii) As per DDP letter No. 5(12)/D(Prod)/B dated 26.07.2010, the difference
between powers for procurement under New Capital Head for Govt. sanctioned
projects and not covered under Govt. sanctioned projects ceases to exist.
(iv) As per DDP letter No.5(12)/D(Prod)/Bdated26.07.2010, the investment can be

made for creation/augmentation of capacity required for production (including
diversification/augmentation) /manufacture of products for Defence Forces, Civil
Trade, Export and MHA.
(v) Fin Power is irrespective of currency of payment.
(vi) PFC approval by AVNL required. Unless otherwise specified.

Delegation
Sl. Concurrence
Nature of Power / Reference Factory/Unit AVNL Board Remarks
No. of Finance
Rs. 100 Crs.

Director/
AGM Rs. 10 Crs.
Operations
Procurement, Modification and /or
Re-conditioning of P&M through Full Power
6a Sr. GM / GM Rs. 50 Crs. Yes
LTE/OTE/GTE under RR and NC CMD (limited to
(PFC approval by AVNL) power of MOD)
HOD other
Rs. 25 Crs.
than
Sr.GM/GM
Sl Nature of Power / Delegation Concurrence
no Reference Remarks of Finance
6b Procurement, Modification Sr.GM / ₹ 1 Cr --- --- i) Demands to be examined Yes
and / or Re-conditioning of GM and approved by Fy level PFC
P&M through LTE/OTE/GTE headed by Sr.GM/GM associating
under senior most officer of Engg. &
(PFC approval by Factory) User and AGM/Finance or Fy
Finance Head.
ii) The power excludes

Passenger vehicles and air
conditioners
iii) Factories shall forward the

statement of such approvals to
AVNL under appropriate
proforma
iv) Procurement shall adhere to

laid down procedures, CVC
guidelines, existing provisions of
AVNL-PM /AVNL-P&M as
revised from time to time
v) No capital investment should be

made in Non-Core area.
Nature of Power / Delegation Concurrence
Sl Reference Remarks of Finance
no Factory/Unit AVNL
Board
6c Procurement, Modification Sr. GM/ GM Rs. 2 Cr Director/ Rs. 10Cr PFC approval by AVNL is Yes
and /or Re-conditioning of Operations required
P&M on Single Tender/
Resultant Single Tender or
Proprietary Items under:
RR and NC.
(PFC approval by AVNL)

CMD Full Power
Director/ Rs. 10Cr PFC approval by AVNL is

HOD other than Rs. 1Cr Operations required
Sr.GM/GM
CMD Full Power

Sl Nature of Power / Reference Delegation Concurrence
no Factory/Unit AVNL Board Remarks of Finance
7 Erection & Commissioning of Addl.GM Rs. 50Lakh --- --- Fin Power is irrespective Yes
P&M including installation of of currency of payment
Services, e.g. distribution of Steam, when Erection &
Compressed Air, Oil etc – Sr. GM Full power Commissioning is done
Departmentally. /GM, through Contract
8 Erection & Commissioning of Addl.GM Rs. 20 Lakh Director/ Rs. 10 Cr Yes

P & M including installation of Operations
Services, e.g. distribution of steam,
compressed Air, Oil etc
– through Contract.
Sr. GM /GM Rs. 50 Lakh CMD Full
Power
Sl Nature of Power/ Reference Delegation Concurrence
no Remarks of Finance
Factory/Unit AVNL
Board
9 Repair of MT vehicles including Sr. GM /GM Full power HOD/AVNL Full power Subject to Yes
Motor Cycles, all Material Competitive tendering,
Handling equipment – through & HODs (within (within provided that cost of [Financial
Contract. limits of limits of repair does not Concurrence not
economical economical exceed 20% of required upto
repairs) repairs) market value of the Rs. 25000/- for
item or Rs. 25,000/- cases at AVNL
for 2-wheeler HQ]
and Rs. 1 lakh for 4-
wheeler whichever is
less. In all such cases
an estimate would be
prepared and vetted
by finance wing of
factory before
issuance of Tender
for conclusion of
10 Repair of Company Ambulance Medical Full power --- --- contract. Yes
vehicles through contract Officer-in-
Charge of (within
Factory limits of
Hospital economical
repairs)
11 Purchase of Hospital specific CMO I/C Rs. 5 Lakh in Director/HR ₹15 Cr i) Subject to Yes
equipments/ Instruments from each case competitive
trade Tendering
Sr.GM/GM
ii) PFC approval by
Rs. 75 Lakh in
Competent
each case
Full Power Authority for
CMD Procurement cases
beyond
₹ 2 Lakh.
12 Maintenance Cover /Repair of CMO I/C Rs. 5 Lakh in Director/ ₹25 Cr By competitive Yes
Hospital Equipment/Instruments each case Operations tendering where
through contract services not covered
through AMC and not
Rs. 10 Lakhs provided by
Sr.GM/GM in each case Full Power manufacturer or their
within budget CMD authorized agent
provision
13 Maintenance of Computers Head of ODC Full power
14 Scientific equipment/ laboratory equipment, Sr.GM/GM Rs. 10 Lakhs --- Yes

Test and Measuring instruments /Systems for in each case
Quality Control, Quality Assurance and data (No PFC Procurement
acquisition Required & beyond
may be Rs. 10 Lakhs to
processed be processed
through Store through
Procurement) respective PFCs
of P&M.
15 Scientific equipments/ laboratory equipments Head of ODC Rs. 25 Lakhs

in each case
Factory/Unit AVNL
Board
16 Sanction for expenditure under Sr. GM/GM * 15% of original Director/ Full Power * Provided Yes
RR & NC in excess of amount sanctioned amount Operations (i) Value of order
sanctioned by PFC/AVNL (Both falls within
RR & NC) or Financial powers of
Sr. GM/GM
Rs. 3 Cr (ii) Requisite fund is

whichever is available and
less. Full power
for procurement (iii) The Purchase is
Through GeM not a Resultant
Single Tender case.
17 Sanction of expenditure in excess --- --- CMD 15% of the Yes
of original sanctioned amount by sanctioned
Govt. or AVNL amount of
the Project
Or
Rs. 3 Crs
whichever is
less
DELIVERY PERIOD, LD, SD,
ADVANCE PAYMENT & PAC
Delegation
Sl. Nature of Power / Concurrence of
AVNL Units AVNL Board Remarks
No. Reference Finance
JWM (SG) / MM
AWM Full Power

WM
DGM (As per the power of
TPC which concluded Extension shall not be
JGM the contract) given in cases where Yes, only in cases
Extension of Delivery Director Full
18 higher rate has been paid / where LD is being
Period (Operations) Power
Further, contracted for shorter waived off.
AGM Sr.GM / GM may delivery.
extend DP up to 3 years
for cases beyond the
DPF of Sr. GM / GM.
Sr.GM / GM
Sl Reference Remarks of Finance
no Factory/Unit AVNL Board
19 Waiving off Liquidated JWM(SG) As per the For the cases Yes
Damages. power of beyond Sr. GM /
AWM TPC/Non- GMs DFP,
TPC which waival of LD
concluded may be
WM, the processed by
contract TPC – I (Fys)
DGM,
Jt.GM,
AGM,
Sr. GM
/GM
20 Waiving off Performance JWM(SG) As per the Director As per the , Yes
Security Deposit power of (Operations) respective
TPC/Non- power of
AWM TPC which TPC which
concluded the CMD concluded
WM, contract the contract
DGM,
Jt.GM,
AGM,
Sr. GM/GM
Sl Nature of Power / Delegation Remarks Concurrence of
no Reference AVNL Unit AVNL Board Finance
21 Lodging of Security Deposits Sr. GM / GM Full power Yes
with suppliers of Gas
Cylinders.
22 Issue of Proprietary Article Sr. GM / GM / Full power Yes

Certificate (PAC) / Single Heads of non-
Known Source (SKS) production
Certificate for purchase units (Only for
non-production
purpose)
no Factory/Unit AVNL Board Remarks of Finance
23 Advance payment for Steel Items Sr. GM 100% Payment - - Yes
to the Main producers in Govt /GM within14daysof
Establishments / Public Sector presentation of
like SAIL etc. Bill with Proof
of Inspection &
Dispatch
24 Advance payment to suppliers. Sr. GM Not exceeding Respective Not Subject to receipt Yes
/GM 15% of Contract TPC exceeding of Bank guarantee
value on 15% of for 110% of the
recommendation Contract advance amount.
of respective value
TPC
no AVNL Units AVNL Board Remarks of Finance
Authority Extent Authorit Extent
y
25 Advance payment to Private as well as Sr.GM/ GM Full power --- --- Yes
PSU Oil Companies.
(Upto 100% of
their Financial
powers for local
purchase of Oils
& Lubricants)
26 Contractual advance payment as per Sr.GM/ GM Full power Yes

contracts entered into by AVNL under
its delegated powers, where such
advance payments are to be made to
Electricity Boards and Companies,
Municipalities, Public Sector
Undertakings and Autonomous Bodies
under Central and State Govt and Local
Bodies like Jal Nigam.
Sl Delegation Concurrence
no Nature of Power / Reference AVNL/Units AVNL Board Remarks of Finance
27 Stage Payments. Authority – AVNL Board Yes
Upto 50% of CIF Value. This is admissible on drawl of proof samples and
subject to production of Bank guarantee for the amount. Where the proof
samples of a lot fail in proof, interest will be charged on stage payments at the
prevailing rates on Bank loans until the stage payment is recovered from Bank
guarantee.
i) This power should be exercised only in rare cases and should not be
used as a matter of routine.
ii) This power cannot be sub-delegated by the AVNL
iii) Cases where a difference of opinion between the Directors of AVNL

exists, should be referred to the Ministry for decision.
iv) The exercise of this power will be subject to AVNL’s securing

appropriate price reduction and ensuring adequate safe guards in the form of
Bank guarantees etc.
v) The existing delegation upto 2% of CIF Value for other advance

payments, earnest money and provisional payments will continue.
ISSUE OF ITEMS
ON RETURNABLE
&
NON-RETURNABLE BASIS
AVNL/Units AVNL Board
28 Issue of capital items for repair Sr. GM /GM Full power For such issues AVNL Yes
and overhauling to Private Firms, unit will obtain
State Undertakings and Govt. Security Deposit
Depts. equivalent to Book
Value or Market value
plus 5% on the
inclusive rate.
In the case of
PSU’s/Govt Depts/
Firms of repute,
Indemnity Bond may
be accepted on
consideration of
merit.
29 Issue of Stores and Materials Sr. GM Full power Yes
from factory stock to Private /GM
Firm / Govt. Dept. and State
Undertakings subject to
recovery or adjustment of cost
thereof as computed by finance
and Accounts Branch.
AVNL/Units AVNL
Board
30 Air-Lifting of Stores– Subject to the
provisions that
(i) Within India Sr. GM /GM Rs. 20 Director/ Rs. 1 Cr necessary control Yes
Lakhs per Operations is exercised in
occasion case of Air-
lifting of stores
and it should be
(ii) From abroad Sr. GM /GM Rs. 50 Lakh CMD Full power Resorted to only
in case of
per extreme urgency.
occasion
DESPATCH OF STORES
AVNL/Unit AVNL Board

31 Collection / Despatch of items Sr. GM /GM Full power Yes
other than the cheapest mode of
carriage.
AGM Rs. 10 Lakh
in each case
Sl Nature of Power Delegation Concurrence
no / Remarks of Finance
Reference Factory/Unit AVNL Board
32 i) Issue of samples/components of items being imported to Indigenous vendors as loan for development :- General
Manager of AVNL Factories can issue store / material / components as loan against Security Deposit equivalent to book value or
market value, whichever is higher plus 5% over the book/market value plus another 5% on the inclusive rate. These will be
returnable within six months from the date of issue. In exceptional cases, however, the Sr.GM/GM of Factories may extend
this period upto one year (other than critical and perennial imported items) / one and half years (critical and perennial imported
items) for reasons to be recorded in writing. If the loan is not returned within this specified time, the security deposit should
be forfeited and the transaction closed.
Items in short supply may not be issued on loan. However, for critical and perennial imported items/components, samples may be
issued to potential Indian vendors for a reasonable period as mentioned above, to promote Make in India. Sr.GM / GM can issue
samples of critical/perennial imported items of any value duly supported by Security Deposit. Developed sample, handed over by
the firms, may be tested by concerned Factory on NCNC basis. Transaction in this regard will be made strictly as per the
SOP. (issued by erstwhile OFB/MM vide letter No.10/6/Del.Fin.Power/MM(P&C) dated 28.06.2017 and any changes
brought out by OFB/MM or AVNL from time to time
ii) Sr.GM/GM/AVNL can issue store/material to private firms as assistance towards completion of orders placed on the firms
for supply to factories, against the security deposit equivalent to book value or market value, whichever is higher, plus 5%
over the book/market value plus 5% on the inclusive rate. On completion of order by the firm, the transaction will be adjusted as a
payment issue. If any portion of the store issued to the firm is returned to the factory, as not consumed for the order, a
proportionate refund of the security deposit will be afforded to the firm.
Incase of items of issues ex-manufacture by AVNL factories as assistance programme, the price will be fixed by taking
maximum estimated cost plus 20% of the same to cover contingencies.
iii) The Sr.GM/GM/ AVNL can also issue the stores/materials as assistance towards completion of orders placed on another
Dept. of Central/State Govt. and State Undertaking at book value or market value, whichever is higher, plus 5% as
departmental charges. On completion of the orders the transaction will be adjusted as payment issue.
In cases of items of issue ex-manufacture by AVNL Fys as assistance programme, the price will be fixed by taking maximum
estimated cost plus 20% of the same to cover contingencies.
no Reference AVNL/Units AVNL Board Remarks of Finance
iv) The Sr. GM /GM / AVNL can issue stores/ materials to private firm for fabrication/manufacture of the product / completion
of order against the security deposit equivalent to book value or market value whichever is higher, plus 5% over the book/market
value, plus another 5% on the inclusive rate. In exceptional circumstances and in the case of well established and reputed
firms, Sr.GM/GM/ AVNL may waive security deposit if they are satisfied that the organizations interests are adequately
safeguarded.
Incase of items of issue ex manufacture by OFs as assistance programme, the price will be fixed by taking maximum
estimated cost plus 20% of the same to cover contingencies.
v) Sr.GM/GM/AVNL can also issue stores/materials from the factory stock to other department of the Central/State Govt.
and State Undertaking for fabrication of stores/components without security deposit for the execution of contract entered
into by them under their financial powers. They will, however, ensure that such stores are used only for execution of
particular contract of the Sr. GM /GM/AVNL.
vi) Sr.GM/GM/AVNL can also issue instruments and machines other than capita items, to well established and reputed firms,
State undertaking and Govt. Departments for repair/ overhauling without any security deposit if they are satisfied that
organizations interest is adequately safeguarded.
DISPOSAL
(SERVICEABLE & UNSERVICEABLEITEMS)
no Nature of Power/Reference Remarks of Finance
AVNL/Unit AVNL
Boar
d
33 Declaration of Surplus Yes
Serviceable Stores: 1. The power is for
declaration of
surplus for
(i) Drums, Containers & Sr.GM/GM Full power --- --- further disposal
Packages subject to
recommendation of
the Stock
(ii) Other than Drums, Sr.GM/GM Rs. 1 Cr. Director/ Full power Review Committee.
Containers & Packages per case Operations
2. For serviceable
stores, a loss
statement
(iii) Medicines or healthcare CMO I/C Rs. 1 Lakh Director/ Full power required to be
related items per case Operations
generated.
Sr.GM/G
M Rs. 1 Cr.
per case
34 Declaration of Unserviceable Sr. GM / GM Full The power is for Yes
Stores, Scrap, Swarf, Obsolete power declaration of
and Waste Material surplus for further
disposal subject to
recommendation of
the Stock Review
Committee
35 Declaration of Unserviceable Plant Sr. GM /GM Full Before declaring Yes

& Machinery beyond economic power any item of P&M as
repair. unserviceable and
surplus, all avenues
for its cost
effective
reconditioning have
to be explored.
36 Declaration & Disposal of Surplus, --- --- Director Rs. 20 lakhs Subject to the Yes
Serviceable Plant & Machinery. (Operation) in each case condition that
normal procedure of
disposal is resorted
CMD Full power to.
no Nature of Power / Reference AVNL/Units AVNL Board Remarks of Finance
Authority Extent Authority Exte
nt
37 Disposal of Serviceable/ Sr. GM /GM Full power Subject to Yes
Unserviceable Stores, Scrap, condition:
Swarf , Obsolete and Waste
Material. ₹ 50 lakh 1. Declaration of
AGM per case serviceable /
unserviceable
stores as per Sl. No.
33 & 34
JGM/DGM
Rs. 20 lakhs 2. Normal
per case procedure of
disposal to
be followed.
38 Disposal of Unserviceable Plant & Sr. GM /GM Full power Yes
Machinery beyond economic
repair. where
Book Value
is less than
5% of
original
book value
Note: -
(i) Disposal procedure as laid down in erstwhile OFB P&MM Division Circular No. 212/2/MM dated 15.06.1981,
Circular No. 14/4/LP/Policy/MM/Stores dated 22.03.2018 or modified from time to time may be followed.
(ii) The disposal shall be effected by Public Auction done through MSTC/AVNL/ DDP/ MoD Nominated agency. Open Tender /
Limited Tender mayberesortedtowiththeproperjustificationandpriorapprovalofDirector/ Operations.
(iii) Rate/Running Contract may also be concluded with the prior approval of Director/ Operations.
no Nature of Power Remarks of Finance
/ Reference
AVNL/Units AVNL
Board
39 Waiving of Ground rent Sr. GM Full Also applicable for Yes
/GM Power rejected stores / P&M
supplied by vendors,
lying in factory
premises.
CIVIL TRADE / EXPORTS
(Will be decided later on)
no Nature of Remarks of Finance
Power/Reference AVNL/Units AVNL Board
40 Pricing of AVNL Sr. GM /GM Full powers Director/ Power to quote Expenditure Yes
products against Civil (For quoting Operations minimum price to incurred for
Trade. Prime Cost include DM + 50% various products
(DL + DM) plus of DL + Cost of under these
20 % of Total Spl. Tools, if any, + powers are to be
OH subject to Cost of Spl. kept in view
MOD letter No. Packing, if any, + while pricing the
1/4/1/55/D Cost of utilities respective
(Prod) dtd e.g. power, water, products to be
28. 10.1957 as fuel, etc, exported.
amended) wherever such cost
exceeds 8% of
Direct Material +
suitable provision
for LD.
41 Pricing of AVNL --- --- Director/ Power to quote Expenditure Yes
products against Operations minimum price to incurred for
Export. include DM + 50% various products
of DL + 8% FOB under these
charges + agency powers are to be
commission + kept in view
suitable provision while pricing the
for LD. respective
products to be
exported.
LD shall not be treated as loss. Offer/BQ quoted by AVNL
shall include 10% LD in price. (For civil trade as well as
AVNL/Units AVNL
42 Rectification/ Replacement Sr. GM Full power Director/ Full Powers Yes
after issue to Civil Trade/ /GM Operations for
Export (As per requirements
contractual beyond
obligation) contractual
obligations
43 Issue of consumable free Sr. GM /GM Full power Expenditure Yes
samples which are likely to be incurred for
expended in trials. various
products under
these powers
are to be kept
in view while
44 Issue of samples of non- Sr. GM /GM Full power pricing the Yes
consumable items for trials on respective
returnable basis. products to be
exported.
45 Expenditure for transportation Sr. GM /GM Full power Yes

of samples such as shipping
costs, insurance, agency
charges etc.
46 Supply of free samples to Sr. GM / Full Subject to Yes
customers GM Power recording of
reasons
47 Incidental Expenditure :
Rs. 2 Lakh per
Sr. GM / GM Rs. 1 Lakh All Directors case
Not Required up
a) Customers hospitality per case to Rs. 40,000
for Sales promotion
Full Power
CMD
b) Expenditure on Sr. GM / GM Full power

Advertisement &Publicity
EXPENDITURE
ON CIVIL WORKS,
SCHEMES &
PROJECTS
Delegation
Concurrence
Slno Nature of Power / Reference AVNL/Units AVNL Board Remarks
of Finance
For Fys. - Capital Works
i) Upto Rs.10.00 Lakhs in each case,

GM/ Sr.GM can sanction capital works.
ii) In all cases, where RIC of the

proposal is more than Rs.10.00 Lakhs,
Acceptance of Necessity (AON) to be
approved by
Director (Operation)/AVNL in the form
Rs. 25
of Annual Development Plan (ADP)
Issue of Acceptance of Necessity & Administrative Director/ Crs in
Rs. 1
Approval (MES and Departmental works) and AGM Operations each
Cr. iii) Capital civil works include new civil
placement of contract (Departmental contracts only) case
works & special repairs.
for capital civil works for Ammunition magazines,
50 Yes
Production buildings. Production Buildings include
iv) Admin Approval (AA) will be issued
buildings/ installations required for support services Sr. GM
Rs. 5 by respective HODs on the basis of
etc. which are directly related to production /GM
Crs. approved Annual Development Plan
activities. CMD Full
(ADP)
power
v) Direct contract to be finalized through
competitive tendering after approval of
competent authority.
vi) The power of revision of Admin

Approval will be limited to an upward
variation of 10% of the financial value
of original Admin Approval, within the
financial powers delegated under this
item.
47
Delegation
Sl. AVNL/Units AVNL Board Concurrence
Nature of Power / Reference
No. Remarks of Finance
Extent Authority Extent
Authority
i) Upto Rs.10.00 Lakhs in each case, GM/

Sr.GM can sanction capital works.
ii) In all cases, where RIC of the proposal

is more than Rs.10.00 Lakhs, Acceptance
of Necessity (AON) to be approved by
Director (Operation)/AVNL in the form of
Rs.15
Director/ Annual Development Plan (ADP)
Cr in
Issue of Acceptance of Necessity & Administrative Operations
each
Approval (MES and Departmental works) and Sr. GM Rs. 3 iii) Capital civil works include new civil
case
placement of contract (Departmental contracts only) /GM Crs works & special repairs.
51 Yes
for capital Civil works for other than production
buildings including roads but excluding residential iv) Admin Approval (AA) will be issued by
accommodation and amenity buildings. respective HODs on the basis of approved
Annual Development Plan (ADP).
Full
CMD v) Direct contract to be finalized through
Power
competitive tendering after approval of
competent authority.

Approval will be limited to an upward
variation of 10% of the financial value of
original Admin Approval, within the
financial powers delegated under this item.
48
Delegation
Sl. Concurrence
Nature of Power / Reference AVNL/Units AVNL Board Remarks
No. of Finance
Annual Civil Plan to be approved by
Director/ Operations.
Capital Civil works include new civil works &

special repairs.
₹ 15 Cr
Issue of Acceptance of Necessity & Direct contract to be finalized through
Director/ in each
Administrative Approval (MES and competitive tendering.
Operations case
52 Departmental works) and placement of Yes
contract (Departmental contracts only) for The power for revision of Admin Approval
capital Civil works for AVNL CO Building.. will be limited to an upward variation of
10% of the financial value of original
CMD
Admin approval, with in the financial powers
Full
delegated under this item.
Power
Value to be noted in the block capital register
of AVNL
49
Delegation
Sl. Nature of Nature of Power/ Concurrenc
AVNL/ Units AVNL Board Remarks
No. Reference e of Finance
i) Upto Rs.10.00 Lakhs in each case,

GM/ Sr.GM can sanction capital
works.
ii) In all cases, where RIC of the

proposal is more than Rs.10.00
Lakhs, Acceptance of Necessity
(AON) to be approved by Director
(Operation)/AVNL in the form of
Annual Development Plan (ADP)
Issue of Acceptance of Necessity
iii) Capital civil works include new
& Administrative Approval
civil works & special repairs.
(MES, Central Public Works Rs.15 Crs.
Rs.3 Cr. Director
Department/ Other Govt. in each
Sr.GM (for placement (Operations) iv) Admin Approval (AA) will be
53 Agencies and Departmental case Yes
/GM of departmental issued by respective HODs on the
Works) for capital civil works for
contract only)* basis of approved Annual
amenity buildings including
Development Plan (ADP).
residential and hostel
accommodation. Full
CMD v) Direct contract to be finalized
powers.
through competitive tendering after
approval of competent authority.

Approval will be limited to an
upward variation of 10% of the
financial value of original Admin
Approval, within the financial powers
vi) Scale of accommodation/ laid

down norms are to be followed.
50
Delegation
Nature of Nature of Power/ Concurrence
Sl. AVNL/Units AVNL Board Remarks
Reference of Finance
No. Authority Extent Authority Extent
i) Case more than Rs. 50 Lakhs will
be treated as Capital works.
Sr.GM /
GM
Issue of Acceptance of Necessity Rs. 50 Lakhs in each case ii) Direct contract to be finalized
& Administrative Approval (MES through competitive tendering.
and other Govt Department
54 - - Yes
Works) and Direct Contract iii) The power for revision of
(Departmental works) for Rs.20 Lakh Admin Approval will be limited to
AGM
Revenue Civil work In each case an upward variation of 10% of the
financial value of original Admin
approval, within the financial
powers delegated under this item.
i) Direct contract to be finalized
Issue of Acceptance of Necessity Sr.GM / through competitive tendering.
& Administrative Approval (MES GM Full power
and other Govt Department ii) The power for revision of Admin
55 Works) and Direct Contract Approval will be limited to an Yes
(Departmental works) for AGM Rs.1 Cr. upward variation of 10% of the
Periodical Services of buildings in In each case financial value of original Admin
revenue grant. approval, within the financial
powers delegated under this item.
i) Completion cost of project shall
be limited to sanctioned cost or
Full power including issuance of Re-appropriated cost for civil works.
Sr.GM / admin approval for civil works
Issuance of Admin approval for
GM sanctioned by MOD/DDP/ AVNL, ii) Admin Approval can be issued to
execution of Civil Works against
56 provided the works are proposed - - MES/ DRDO/ Public Works Yes
MOD/ DDP/AVNL Sanctioned
to be executed through Organisation (PWO) for engagement
projects.
MES/CPWD/ DRDO/Public of Consultant for design activities,
Works Organisation provided the expenditure can be met
from total sanctioned cost of
projects including contingency.
51
Sl. Nature of Nature of Power/ Delegation Remarks Concurrence
No. Reference of Finance
57 Re-appropriation within a “Project - - Director Full power within the Yes
Sanction” of amount debitable to the (Operations) sanctioned cost of the
same “demand for grant” between project, enhanced
plant & equipment and civil works within the original
and vice versa. limits.
58 Re-appropriation of buildings Sr.GM/GM Full power - - Yes

entailing no alteration and no cost.
59 Expenditure from the Estate Fund for Sr.GM/GM Upto Rs.2 Lakhs in - - Yes
Development and upkeep of Estate. each case subject to
the ceiling of total
annual receipts
60 Testing of Building, Structures etc., in Sr.GM/GM Full power for testing - - Yes
connection with issue of annual by Govt. Depts/ PSUs
stability certificate to the State and Autonomous
Authorities. Institution
52
Sl. Nature of Nature of Power/ Reference Delegation Remarks Concurrence
No. of Finance
61 Demolition of Buildings Sr.GM/GM Full Yes
powers
62 Issue of Acceptance of Necessity & Sr.GM/GM Rs. 2 Director Upto Rs.5 i) Direct contract to be finalized Yes
Administrative Approval (MES and other Crs. (Operations) Crs. In through competitive
Govt Department Works) and Direct each case tendering.
Contract (Departmental works) for ii) The power for revision of
Operation & Maintenance Contract as Full Admin Approval will be limited
per clause no 4.5 of SOP for Civil Works in powers to an upward variation of 10%
AVNL-2021. CMD of the financial value of
original Admin approval,
within the financial powers
63 Issue of Acceptance of Necessity & Sr.GM/GM Rs. 2 Director Upto Rs.5 i) Direct contract to be finalized Yes
Administrative Approval (MES and other Crs. (Operations) Crs. In through competitive
Govt Department Works) and Direct each case tendering.
Service Contract as per clause no 4.4 of Admin Approval will be
SOP for Civil Works in AVNL-2021. CMD Full limited to an upward variation
powers of 10% of the financial value
of original Admin approval,
53
64 Issue of Acceptance of Necessity & Sr.GM/GM Rs.10 Director Full i) Direct contract to be finalized Yes
Administrative Approval (MES and other Lakhs (Operations) power through competitive
Govt Department Works) and Direct tendering.
Consultancy Services as per clause no 4.6 Admin Approval will be
of SOP for Civil Works in AVNL-2021. limited to an upward variation
of 10% of the financial value
of original Admin approval,
Sl. Nature of Nature of Power/ Reference Delegation Remarks Concurrence

No. of Finance
64 Issue of Acceptance of Necessity & Sr.GM/GM Rs.10 Director Full i) Direct contract to be finalized Yes
Administrative Approval (MES and other Lakhs (Operations) power through competitive tendering.
Govt Department Works) and Direct ii) The power for revision of Admin
Contract (Departmental works) for Approval will be limited to an
Consultancy Services as per clause no 4.6 upward variation of 10% of the
of SOP for Civil Works in AVNL-2021. financial value of original Admin
approval, within the financial
powers delegated under this
item.
54
55
AVNL CWC LEVEL-I
1. CMD/ AVNL Chairman

2. Director (Finance) Member Finance
3. Director (Operations) Member
Member Secretary
4. GM/AGM/ JtGM/ WM looking after civil works
at AVNL CO *
* Senior most Officer would officiate as Secretary
AVNL CWC LEVEL-II
1. Director (Operations) Chairman

2. Director (Finance) Member Finance
3. GM/AGM looking after civil works at AVNL Member
Member Secretary
CO*
4. Jt.GM/ WM looking after civil works at AVNL
CO#
* Senior most Officer will attend.
# Senior most Officer would officiate as Secretary
56
COMPOSITION OF CIVIL WORKS COMMITTEE (CWC) FOR CIVIL WORKS AT AVNL UNIT LEVEL
UNIT / FACTORY LEVEL CWC LEVEL-I
1. Sr. GM / GM Chairman
2. ADDL.GM/ JT.GM (EO/CIVIL) Member
3. ADDL.GM/ JT.GM of User Section Member/User
Member Finance
4. ADDL.GM(FINANCE)/ JT.GM
(FINANCE)/DGM(FINANCE)/WM(FINANCE)* Secretary
5. JT.GM/ DGM/ WM (EO/CIVIL) **
* Senior most Officer would act as finance member.

** Senior most Officer would officiate as Secretary.
UNIT / FACTORY LEVEL CWC LEVEL-II
1. ADDL.GM (EO/CIVIL) Chairman

2. ADDL.GM/ JT.GM of User Section Member/ User
3. JT.GM(FINANCE)/DGMFINANCE)/WM(FINANCE)* Member Finance
4. JT.GM/ DGM/ WM (EO/CIVIL) ** Secretary
* Senior most Officer would act as finance member.

** Senior most Officer would officiate as Secretary.
57
R&D
58
Nature of Power / Reference Delegation Concurrence
Sl.No. Remarks of Finance
AVNL Units AVNL Board
65 Sanction of expenditure and Sr. GM/ Rs. 5 Crs. per Director/ ₹ The power is for expenditure Yes
closure for applied Research GM project within Operations 15Crs in the areas of
& Development for carrying budget provision process and product
out product &process improvement, cost
improvement and (subject to reduction
development of New and product
approvalof R&D
products. development.
finalization
committee)
CMD Full
power
59
Sl.No.Nature of Power / Reference Delegation Concurrenc
Remarks e of Finance
Authority * Extent Authority Extent
66 Sanction of additional Sr. GM Limited to Director/ Full power The power is for Yes
expenditure for the /GM additional 100% Operations expenditure in the
Sanctioned R&D Projects of the original areas of process
sanction cost. and product
Total revised improvement, cost
value of project reduction and
(original value+ product
additional development
value) should
not exceed the
financial power
of Sr.GM/GM
as at S.No.58
* Note for Sl. No. 59: Above financial ceilings are of revised cost of the project i.e. original sanction amount plus additional fund
being proposed to be sanctioned.
60
Sl.No. Nature of Power / Reference Delegation Concurrence
Remarks of Finance
67 Sanction of Extension of Sr. GM Upto 2 yrs Director/ Full power No
PDC for Sanctioned R&D /GM from the Operations
Projects date of
sanction for
projects
sanctioned
by Sr.GM/
GM
68 Approval of Short Closure ----- ----- Director/ Full power Yes

of IRD Projects Operations
61
REGULARISATION
OF LOSSES
62
Sl. Delegation Concurrence
No. Nature of Power / Reference Remarks of Finance
69 Loss of Stores not due to theft, Sr. GM /GM ₹ 20 Lakh Director/ Full Sr. GM/GM to Yes
fraud or neglect. per case Operations power forward half yearly
report to AVNL,
AGM ₹ 5 Lakh convening BOE to
per case investigate the loss
and compliance of
CMO I/C ₹5000 per other provisions
case with laid down in
annual limit FR PtI.
of ₹ 50000
70 Loss of Public Money not due to Sr. GM /GM ₹ 2.5 lakh Director/ ₹ 10 Lakh Sr. GM /GM to Yes
theft, fraud or neglect. per case Operations per case forward half yearly
report to AVNL,
convening BOE to
AVNL Full Power investigate the loss
Board and compliance of
other provisions
laid down in
FR PtI
63
Sl.No. Delegation Concurre
Nature of Power / Reference Remarks nce of
AVNL Units AVNL Board Finance
71 Loss of stores due to theft, fraud or Sr. GM ₹ 5 Lakh Director/ ₹ 20 Lakh Subject to convening Yes
neglect. /GM per case Operations per case BOE to investigate the
loss and compliance of
other provisions of FR
AVNL Full Pt I
Board Power
72 Loss of Public Money due to theft, Sr. GM ₹ 1 Lakh Director/ ₹ 5 Lakh Yes
fraud or neglect. /GM per case Operations per case
AVNL Board Full

Power
73 Waiving of irrecoverable Sr. GM / 10 Director/ Full power (a) All cases in which Yes
compensation or loss arising due to GM Lakh Operations waiver is granted are to
failure of contracts, refund claims per be recorded annually
on Customs, Railways, Port Trust, case with brief justification
Shipping companies etc. not due to .
negligence of staff.
(b) The waiver of
loss will,
64
Sl.No. Nature of Power / Reference Delegation Concurrence
Remarks of Finance
Inter-alia, take Yes
into accounts the
specific terms
&conditions,
contained in the
contract.
74 i) Sanction for demurrage, Sr. GM ₹ 1 Lakh Director/ Full power Yes

wharfage /GM in each case Operations
Sr. GM ₹ 1 Lakh Director/ Full power Yes

ii) Regularisation / Settlement of
/GM in each case Operations
demurrage (container detention
charges)
65
Sl Delegation Concurrenc
no Nature of Power / Remarks e of Finance
Reference AVNL Units AVNL Board
75 Loss due to rejection in Sr. GM /GM Upto an additional Director/ Full Power Yes
manufacture. (Excluding 100% of Operations
development stage). unavoidable
Rejection
percentage catered
in the
standard estimates
subject to:-
(a) Full powers

where there is no
negligence.
(b) ₹ 10 Lakh
where there is
negligence.
Note for sl no. 75:The delegation is subject to the condition that reason for irrecoverable losses and unavoidable losses due to rejection
are to be fully investigated and placed on record and that remedial action taken to prevent
recurrenceandtoreduceunavoidablerejectioninmanufactureinfutureshouldalsobeplacedonrecord
66
CONSULTANCY
67
76 Contracts for engagement of Sr. GM / Full AIP shall be Yes
consultant /specialist / GM power obtained from
consultancy firms (other than Director (HR)
foreign consultancy)
77 Engagement of Chartered Sr. GM /GM Full power AIP shall be Yes

Accountants / Cost Accountant / obtained from
Valuer / Company Secretary / Tax Director (HR).
consultants / Service providing
firms
68
no Nature of Power / Reference Remarks of Finance

78 a) Contract for Acquisition of Sr. GM / ₹ 2 Cr. Director/ ₹ 5 Crs. Yes

Research Services (CARS) GM Operations
from Govt. Academic
Institutions (IITs, NITs, etc), Full
CMD
Govt. owned Laboratories Power
(CSIR, DIAT etc.) against the
sanctioned in-house R&D
project..
b) Contract for Acquisition of

Director/ ₹ 5 Crs.
Research Services (CARS) Sr. GM / ₹ 2 Cr. Yes
from Private Institutions GM Operations
against the sanctioned in-
house R&D project. CMD Full
Power
Enclosure-II
Detailed Procedure for Acquisition of Contract Services for R&D
1. Procedure for placement of Contract for Acquisition of Research Services:
1.1 Generation and Approval of Research Service Qualitative Requirement (RSQR):

The requirement for acquisition for research services will be raised through a statement of case, internal to Factory, by
those who need that service. The requirement shall be in the form of a Research, Service Qualitative Requirement
(RSQR). The officer not below Jt.GM of the factory will approve the RSQR.
12 Solicitation of offers for provision of Research Services Provider (RSP)

a) The approved RSQR will be sent to potential providers of research services, as identified by the approver of the
RSQR, and formal offers solicited from them. To ensure continuity of work expected to of work expected to last more
than eighteen (18) months, RSPs should be asked to identify at-least two key personnel who will engage in the work.
Note: The task of identifying the potential providers of research services is exclusively matter of technical judgement alone
based on the knowledge and experience of the approver of the RSQR, This judgment will be exercised by the approver in the
light, inter-alia of previous experience with pedigree of intellectual resources of, uniqueness of facilities and quality and
technical merit of research personnel available at he institutions) solicited to provide the research service.
b) The offers of provision of research services, and their revisions, from such solicited RSPs shall be made by them in
the format at Annex-I.
c) The validity of an Offer from an academic institution for the provision of research services shall not be invalidated
merely on account of the date of its receipt by Factory
.
1.3 Selection and nomination of RSP
a) Selection and nomination of RSP based on the offer made by each potential Research Service Provider (RSP) will he
made by the competent authority ( Based on the value of acquisition, competent authority has been defined in the last
para of the proposal separately). Reasons for nomination will be recorded on-file.
1.4 Placement at Contract for Acquisition of Research Services:
a) The Contract for Acquisition of Research Services shall be placed by the factory on the nominated RSP, following
acceptance of its Offer by competent authority.
b) All Contract for Acquisition of Research Services shall be placed in the form in Annex -2.
1.5 Acceptance of Contract for Acquisition of Research Services by Academic Institution;

The Contract for Acquisition of Research Services as placed by the factory on the institution, shall be deemed
accepted by the Institution when a copy of Contract for Acquisition of Research Services is returned to issuing factory
by the RSP, signed by the latter’s competent authority.
1.6 Amendments to Contract for Acquisition of Research Services;
a) Normally, a need for financial amendments to Contract for Acquisition of Research Services should not arise.
However, such amendment scan be made in cases in which unforeseen circumstances/events predicate additional
expenditure. Approval of such amendments shall be put up by approver of RSQR to next higher competent authority
with justification for approval.
b) All amendments to Contract for Acquisition of Research Services shall be in the form specified atAnnex3.
c) All amendments to Contract for Acquisition of Research Services shall be authorized by CA (Competent Authority),
except that amendments resulting in an increase in the Total Financial Commitment shall require the approval as per
(a) of para 1.6 above ,to accept an Offer.
2. Financial provisions in Contract for Acquisition of Research Services;
2.1 Advances, work-in progress and schedule of payments:
a) The factory may take payments of advances and/or make progress payments for executing the contract. Such
payments shall be made against the Contract for Acquisition of Research Services and after certification by the
cognizant Financial Authority of the RSP that the money already released against previous demands have been
utilized for the purposes for which they were provided.
b) Advances or progress payments are interim payments, which shall be deducted from the total sums, due to the
research provider institution.
c) Except with the specific written pre-agreement of the factory, the research provider institution shall not use for any
purposes other than those specified in the Contract for Acquisition of Research Services, any material or services for
which advances or progress payments have been made,
2.2 Financial guarantee:
a) No bank or other financial guarantees are requirement for Contract for Acquisition of Research Services.
b) For Work whose estimated time for completion is six (6) months or less, the RSP shall submit only those reports as
relate to the purchase of equipment by the RSP within thirty (30) days of such purchase.
c) For Contract for Acquisition of Research Services in which the estimated time for submission of the final report is
more than six (6) months, the research provider institution shall provide the factory/ODC, not later than thirty (30)
days after end of each half-yearly financial statement showing the actual expenditure incurred, against each of the
entries at Item 9.1in the CARS, for the execution of the contract upto the end of the preceding half-year.
d) Books of accounts pertinent to each Contract for Acquisition of Research Services shall be maintained separately by
the RSP and those shall be open to the factory. The factory, or other authority specified by them may inspect all such
books, bills, vouchers and other financial records at any time until the accounts relating the Contract for Acquisition
of Research Services are settled. The research service provider shall supply the factory with such financial documents
as are necessary for final settlement of claims, without explicit request by the factory, within three (3) months after
submission of the final report.
3. Delivery schedule:
3.1 The outcome of the contract (invariably a set of reports/ documents/ records in hard-copy or machine-readable
form/sub-systems etc) shall be delivered at the time or times and in the manner specified in the contract..
3.2 The research provider institution shall inform the factory promptly of any occurrence that is likely to cause delay in
delivery of contracted outcomes. The factory shall determine, in the light of circumstances reported, the extent of
change(s) required in the delivery schedule of the contract.
Note : The above covers only unexpected technical difficulties, gross delays in deliveries by suppliers of purchased
equipment or consumables, illness or other justifiable cause of unavailability of research personnel and similar unforeseen
circumstances.
3.3 An extension of the time limit for execution of the contract, or as a postponement of delivery shall require the explicit
approval of the Competent Authority who has approved the contract.
4.1 Short-closure of Contract for Acquisition of Research Services :
The Contract for Acquisition of Research Services may be short-closure at any time during the currency of its
execution if the factory feels that no useful purpose will be served by continuing the implementation of contract for
Acquisition of Research Services. The short-closure of Contract for Acquisition of Research Services will be
approved by the AVNL and after receiving justification for the same recorded in the file. This is to be put up by
Competent Authority who has approved the contract in form of a Board Paper to full Board. The short-closure will be
deemed to be effective from the day the short-closure order is received by the institution. Subsequent to this short-
closure the RSP will submit a technical report on the work done till short-closure, The money left unspent on the date
of receipt of short-closure order by the RSP shall be returned to factory. All equipment and unused consumables
acquired out of contract monies shall also be returnee to factory.
Note: The factory will ensure delivery of any short-closure order to the institutions (with a copy to the investigator(s)
within ten(10) working days of the decision to short-close by AVNL.
5. Reports:
5.1 Reports giving details of the progress of the work shall be sent to the factory at intervals as specified in the conditions
of the contract.
5.2 On completion of the contract, the RSP will submit a final report (ContractorReport).
5.3 All reports shall be in a format conforming to Indian Standard IS : 1064-1980, bound with Bibliography Description
sheet conforming to IS :9400-1980.
6. Ownership of Intellectual Property:
6.1 The ownership of intellectual property, whether or not legally protected (e.g. by patent), generated by research
performed under a Contract for Acquisition of Research Services shall vest in AVNL.
6.2 Notwithstanding the above, all documents and information detailing the technical performance of Contract for Acquisition
of Research Services (including pertinent laboratory notebooks, sketches, photographs, video tapes of experiments,
electronic date acquisition records and other similar shall be the property of AVNL, whether or not in the physical
possession of AVNL.
7. Disclosure and use of information by the research provider institution:

The research provider institution will ensure that the documents supplied by the factory are not disclosed to any person other
than a person authorized by the factory. Any pattern, sample or information supplied by factory to the RSP
In documentary or other physical form is the property of the factory and shall be returned to the factory after
execution of the contract, unless their disposal is otherwise provided for in the Specific Conditions of Contract.
8. Publicity relating to contracts:
The existence of the contracts or the status of their execution shall not be published by the RSP in the media or in its
Periodic/ Annual Report except with the written consent of AVNL.
9. Communications:
Allcommunicationsaffectingtheperformanceofthecontract,oritstermsandconditions,shall
becontractually,validonlywhenconfirmedbyformalamendmentstoContractforAcquisition of Research Services made
by the original signatories to the contract.
10. Compliance with law:
Notwithstanding anything contained in a Contract for Acquisition of Research Services, the RSP shall be solely
responsible for complying with all laws in force in India.
11. Settlement of disputes;
All disputes relating to a Contract for Acquisition of Research Services shall be settled mutually between the RSP and
agency placing the Contract for Acquisition of Research Services. Any remaining unresolved disputes shall be
referred to final binding settlement by CMD/AVNL or his authorised representative.
Competent Authority (CA) is the Authority competent to accept an Offer. This authority shall be three levels as
follows :
CA-I: The Jt.GM nominated by GM of the factory for this purpose where the estimated expenditure in the office
received from RSP is up to Rs. 5 Lakh
CA-II : The General Manager of factory where the estimated expenditure in the Offer received from the RSP is up to
Rs. 20 Lakh
12. In case of going for private Institutions, Units have to follow the open tendering process by framing the
suitable terms & conditions.
Annexure — I
Summary Offer of Provision of Research Services
1. Title of Service qualitative Requirement (RSQR): Office

Number: date
received:
Revised on:
2 RSQR Document Ref. Date of Issue Issuing Factory ODC: Remarks of RSQR
Nos. YY MM DD initiation
3. Name of Research Service Provider (RSP) 4 RSP’s Ref. No. Judgment of GM/Fy;
making this offer:
3. (a) RSP’s address for correspondence:
Date:
Pin code:
Telephone: Fax:
Email.
5.(a)Key personnel of RSP to be
deployed: 5 (b) RSP’s sub-
contractors/consultants
a) Name: Institute/Company:
b) Name: Institutes/Company:
6. Principal technical feature of offer as related to RSQR:
7. Equipment that RSP requires to be positioned by Factory/ODC:
8.Estimated time to complete provision research services and submit Final Report Months:
9.1 Estimated expenditure (as enclosed on revise) on : ₹ in lakhs
a) Personal:
b) Equipment:
c) Others:
Total:
9.2 Required schedule of payments (₹ in lakhs)
a) Initial advance:
b) at Performance Milestone I of RSQR:
c) at Performance Milestone II of RSQR:
d) at Performance Milestone III or RSQR:
e) On submission of Final Report
Total:
10. Reference rates to R&D work being 11. Offer as above valid till data:
performed by RSP for Armed
Services/DRDO/other S&T
(including foreign) agencies:
12. Signature of competent authority of
RSP: Name:
Designation:
DELEGATIONOFFINANCIALPOWERS: AVNL
CONTINGENT MISC
&
GENERAL MATTERS
DELEGATIONOFFINANCIALPOWERS: AVNL ASON 01.10.2021 rev-05 82

Sl Nature of Power / Delegation Concurrenc
no Reference Remarks e of Finance
Authority Authority Authority Authority
80 Miscellaneous &Contingent Not

expenditure (both recurring Sr.GM Full power necessary
and non-recurring) other /GM upto
than Purchase of stationary, ₹ 40,000/-
printing of forms,
Mementos and small gifts.

no Nature of Power / Reference Remarks of Finance
81 a) Miscellaneous & Contingent Not
expenditure on Purchase of necessary
Stationary/Computer Sr. GM /GM Full power up to
Stationary :- ₹ 40,000
b) Non-standard Stationery Sr. GM /GM Full power

items through tender.

no Remark of Finance
s

82 Sanction of expenditure for purchase of Head of Full power Subject to yes
computers & software including ODC approval
accessories. in AAP /
ARP
83 Powers for printing Forms etc. Sr. GM /GM Full Yes

Power
AGM Rs. 1 Lakh

Sl Nature of Power / Reference Delegation Remarks Concurrence
No AVNL Units AVNL Board of Finance
84 Sanction and purchase of new Sr. GM/ GM Full power Not required
Office equipment. upto Rs.
40,000/-in
each case.
85 Repair of the old Office Sr. GM/ GM Full power Not required
equipment. upto Rs.
40,000/-in
each case.
86 Telephone Sr. GM /GM Full power Subject to Yes

to sanction general order but not
residential and instruction required for
and office regarding payment of
Telephones economy and recurring
and entitlement rentals, call
Telephone issued by and shifting
Circuits. Govt. charges.
of India.

Sl no Nature of Power / Reference Delegation Concurrence
Remarks of Finance
87 Cash Awards for effecting Sr.GM/G ₹ 10,000 Director Full power Not required
economy in manufacture M per (HR) upto
individual ₹ 5,000
88 Cash Awards or Awards of Sr.GM/G ₹ 5,000 Director Full power . Yes

Wrist Watch including Award of M or (HR)
Wrist Watches to the retiring Wrist Watch
employees valuing upto
₹ 5,000 per
individual

89 Expenditure on Award of Sr.GM/GM Full (i) Maximum price of Yes
Long Service Badges power Silver Medal /Gold
(Service Medal)after plated silver medal not
completion of 25 years of to exceed₹2000/-
service and Gold Plated
Silver medals at the time of (ii) Spouse of the
retirement/ superannuation to deceased employee who
be given to employees. die in harness will also
be posthumously
awarded with Gold
plated Silver
Medal.

90 Presentation of Memento and Sr. GM /GM ₹ 5000 Director/ Full Power Yes
small gifts to high dignitaries per case HR
during their visit to factories &
Training institutes.
91 Sanctioning of Honorarium Sr. GM /GM Upto ₹ Director/ Full power Yes

. 5000 HR
per
individual
per case

92 Sanctioning fee to HQrs. as well Sr. GM / Upto ₹1,000 Yes

as Fy. Personnel. GM in a
Financial
year in each
case.
93 Issue of Protective Clothings Sr. GM Full Power Subject to Yes

and other items of Physical /GM scale as laid
Protection of Employees. down for Ord.
Fys. &
against item
No. 23 of
Annex to
schedule V of
DFPR.
94 Compensation under the Sr. GM Full power Yes
Workmen’s Compensation Act. /GM upto the
ceiling
prescribed in
WC Act for
all employees
defined as
"Worker" of
the Factory.

95 Grant of Ex-gratia financial
assistance to Ordnance Factories
Employees /their families in
accidents in Factory while on duty No
Sr. GM ₹ 25 Lakh
i) In case of death - grant to /GM in each case
family
Sr. GM ₹ 1 Lakh
ii) Incase of Serious injuries grant /GM in each case
to the employees
96 Grants and Loans Sr. GM Full Subject to Yes

/GM power Budget
Provisions and
entitlement as
per Rules.

97 Authorisation of Provisional Sr. GM Full power Yes
Payment /GM wherever
payments are
prima facie
clearly due.
98 Admitting time-barred claims Sr. GM Full power Director/ HR Full Power AVNL Board Financial
/GM upto 3 years sanction is concurrence is
required required
where claims where Audit
become time Authorities are
barred under not in a position
any provisions to
of investigate the
La claims due to
w limited
relating to period of
Limitation preservation of
vide FR Pt-I record.
Rule189

99 Waiving of time-bar for the claims --- --- CMD 6 Years AVNL Board Yes
including those which cannot be sanction will
investigated by Audit Authorities be required
due to non-availability of records. where a claim
Director/ becomes time
HR Upto 5 years barred under
on Administrative the provisions
matters. of any law of
limitation.
Director/ Upto 5 years

Operations on matters relating
to purchase of
Stores
Director/ Upto 5 years

Operations on matters relating
to P&M
100 Waiving of Security clearance for --- --- Director/ Full power Not
Govt. Servants who officiate in HR necessary
leave vacancy.

No Remarks of Finance
101 Powers to waive over-payment of --- --- CMD Full power Subject to principles Yes
Pay & Allowances. laid down in GFRs
102 Powers of re-appropriation. --- --- Director/F Full powers Subject to general Yes
inance instructions permissible
re-appropriation
between the Sub-Heads
with in Minor Heads
controlled by
AVNL.

Sl. No. Nature of Power / Delegation Concurrence of
Reference Remarks Finance
103 Re-appropriation of Govt. --- --- Director Full power Yes

Accommodation for School, /HR
W.W.A., Bank and other
Welfare activities.
104 Execution of Lease Sr. GM / ₹ 10,000 Director Full power Yes

GM per year in /HR
each case
105 Leasing out of Land in --- --- Director Full power Subject to the conditions Yes
AVNL Factory to Kendriya /HR that it will be regulated
Vidyalaya Sangathan. in accordance with the
General Orders issued by
M of D, QMG in regard
to Lease of Land.

Sl. No. Nature of Power / Reference Delegation Concurrenc
Remarks e of Finance
106 Hiring of Office accommodation --- --- Director (i) Upto Yes
and accommodation for amenity /HR ₹ 100,000
purpose (Mess, Guest House, Per month
Holiday Homes etc.)
CMD Full power
107 Cash purchase including Services AWM/WM Rs. 2,000 1. In conformity No

to be booked under I&M head (for With Rule 154
purpose other than production & Of GFR 2017
maintenance) in each case. DGM Rs. 5,000
2. Also
JT. GM Rs. 10,000 applicable to
equivalent ranks
AGM Rs. 15,000 in establishments
other than the
factories
Sr.GM/GM Rs. 25,000

Reference Remarks of Finance
Sl. No.
108 Cash purchase to meet the CMO I/C ₹ 15,000 --- --- In conformity with Rule No
requirement of the Hospital. each item 154 of GFR 2017
in each
transaction
within budget
provision
109 Uniform for Canteen Sr. GM Full power --- --- Yes
Employees. /GM

Delegation Concurrence
Nature of Power / Remarks of Finance
Sl. No.
Reference AVNL Units AVNL Board
110 Provision of Utensils/ Sr. GM Full power . Yes
Furniture/Equipment of /GM
Canteens

Delegation Concurrence of
Remarks Finance
Sl. No. Nature of Power / Reference AVNL Units AVNL Board
Extent Authority Extent
Authority
111 Purchase of Book: Sr. GM Full power Not necessary
Technical, Professional, Scientific /GM upto
& other categories of Books, ₹ 10,000
Periodicals, Journals & e-books.
112 Purchase of Technical, Professional, Full power

Scientific and other category of Medical
Books, Periodicals, Journals & e- Officer-in-
books. Charge
DELEGATIONOFFINANCIALPOWERS: AVNL ASON 01.10.2021- rev-05 100

Sl no Nature of Power / Reference Delegation Consultation
Factory/Unit AVNL Remarks with Finance
113 Whole job contract for upkeep/ Sr. GM Full power Yes
Maintenance of Office and AVNL/ /GM
Govt. property including conservancy
but excluding Civil Works.
114 Whole job contract for kitchen & Sr. GM Full power Yes
Catering services. /GM
DELEGATIONOFFINANCIALPOWERS: AVNL ASON 01.10.2021-rev-05 101

Remarks with
Factory/Unit AVN Finance
L
115 Energy Audit through accredited Sr. GM /GM Full power Yes
Energy Auditors.
116 Purchase of Postage Stamps for

Franking Machine. Sr. GM /GM Full power Yes
117 Institution of Legal Proceedings Sr. GM /GM Full power Not

and Defending Legal Cases in required
Courts and Arbitration AGM Rs. 40,000 upto
Engagement of Legal Practitioners Per case Rs.20,000
JT.GM/DGM
Rs. 20,000
Per case
WM Rs. 5,000
Per case

Sl Nature of Power / Reference Delegation Consultatio
no Remarks n
Factory/Unit AVNL with
Authority Extent Authority Extent Finance
118 Manufacture of Components Sr. GM ₹50,000/ Not applicable Yes
and Semi for stock towards /GM to obsolescent
anticipated services. and perishable
items
119 Contracting for testing of

items/sub-assemblies
(i) at Govt. Test House Sr. GM /GM Full power Yes
AGM ₹20,000 Each

case
(ii) at NABL accredited labs
AGM/QC Full Power
(iii) Testing of medicines in
Govt Test House or in
NABL accredited lab.
Medical Officer ₹20,000 Each
(iv) Testing/inspection I/C case
assistance from Govt Test
House/ NABL accredited
Head of ODC ₹20,000 Each
labs/institution.
case

Sl. Nature of Power/Reference Delegation Remarks
No.
Factory/ Unit AVNL
120 All expenses related to Recruitment Sr. GM / Full power ----
Process including engagement of GM (Schedule V, Rule
Recruitment Service Provider (RSP) 13 of DFPR 2005)
Sl. Nature of Power/Reference Delegation Remarks

No.
Factory/ Unit AVNL
120- All expenses related to Hiring Sr. GM / GM Full Yes
A of Professionals for various Power
technical/ accounts/ audit/
clerical services/Asset
Valuation / Company Secretary
/ Cyber Security audit / etc

S Nature of Power/Reference Delegation Remarks Consultation
L Factory/Unit AVNL with
N Authority Extent Authority Extent Finance
O
121 (a)Nomination of Employees to

training/seminar: Sr.GM/GM Full Power Not
(i) Govt./Semi Govt. necessary
Institutes within India
without course fee
(ii) Govt./Semi Govt. Sr.GM/GM ₹80,000 Director/ HR Full Power Not

Institutes within India with necessary
course fee up to
₹40,000
(iii) Non Govt./External Sr.GM/GM Full Power Not

Institutes within India necessary
without course fee
(iv) Non Govt./External Sr.GM/GM ₹80,000 Director/ Full Power Not

Institutes within India with HR necessary
course fee up to
₹40,000

L Factory/Unit AVNL with
N Finance
O
(v) Nomination of Officers -- -- Dir (HR) Full Power Group-A / Not

from the Organisation to long Group-B necessary
term training in reputed officers as up to
national Institute like, NDC, applicable ₹40,000
IIPA, DIAT, DSSC, IIM,
MDI etc. as per the policy
guidelines of AVNL.
(vi) Any long term pre-approved Director/HR Full Power

training programme for
probationary Gr.A officers in
reputed Govt. Institutes.
All
(vii) Any long-term/short-term -- -- CMD Full Power employees Yes
training in Foreign Country as Necessary
applicable

L Factory/Unit AVNL with Finance
N Authority Extent Authority Extent
O
(b) Conduction of
training(Regular/Distance
mode with/without campus
exposure) for skill and
specialized knowledge
upgradation: All
categories
of Officers
(i) Design/Conduction of Sr. GM/GM ₹50,00,000 Dir (HR) Full Power Not necessary
&Employees
Product and process specific up to
training for skill upgradation, ₹40,000
relevant to the Factory in
Factory premises with reputed
Govt./National Institutes
under intimation to AVNL

S Nature of Power/Reference Delegation Remarks Consultation with
L Factory/Unit AVNL Finance
N Authority Extent Authority Extent
O
ii) Conduction of any long term Director/HR Full Power All Not necessary up to
/short term training with the categories of ₹40,000
reputed Institutes in Officers &
regular/distance mode with/ Employees
without campus exposure by OFIL
(c) Online mode of training: Sr. GM / GM Rs. 80,000 Director/ HR Full Power All Not necessary up to
categories of ₹40,000
Training of Officials from the Officers &
Organisation to online training Employees
programmes as per SOP/Policy
guidelines.

NOTE for Sl No. 121:
• For b (i) - AoN will be obtained from Director/ HR for cases beyond ₹5 lakhs. Completion report and Impact
Assessment report will be forwarded to AVNL. Concurrence of Finance will be required for cases having
value more than₹40,000/-.
• Approval of Director/ HR is not required in case of pre-approved courses.
• TheFinancialPoweristobecalculatedfortheentiretrainingirrespectiveofno.ofparticipantsforthattraining in that
financial year.
• All nominations will be subject to AVNL/Policy, all training conducted/nominated to be reported to AVNL
periodically as per the policy/SOP.
• Sr.GM/GMmaynominateOfficers/EmployeestoexternalInstitutesonlywhenthesamearenotavailable internally.
• The expenditure towards the training fees granted for the courses asper the delegation is to be met from the
training budget of the concerned unit and is to be contained within its allocated budget.
• Short term course means any course up to two weeks and long term course means courses beyond two weeks.

MEDICAL
DELEGATIONOFFINANCIALPOWERS: AVNL as on 01.10.2021- rev-05 110

Sl. Nature of Power / Delegation Consultation
No Reference Remarks with
Factory/Unit AVNL Finance
122 Grant of advance for Medical Sr. GM Full power as Director/ HR Full power
Treatment including purchase of /GM per Central as per Central
appliances for Serious ailment All HODs Services Services
in the Heart/Eyes, Lungs, Medical Medical
Kidney, Brain and Cancer cases Attendance Attendance
etc. for Critical patients under Rules(CSMA) Rules(CSMA)
CSMA Rules.
Minor Head 054
123 Authorization for movement of Sr. GM Full power as Director/ HR Full power as
Patients by higher than entitled /GM per CSMA rules per CSMA
class of travel including Air All HODs except rules except
Travel along with an attendant movement of movement of
by same class on patient by AC patient by
recommendation of Specialist. Ist Class and by A/C Ist Class
Air and by Air
Minor Head 054

Sl Nature of Power / Delegation Consul-
no Reference Remarks tation
Factory/Unit AVNL with
Authority Extent Authority Extent Finance
124 Consultation with Sr. GM i) ₹135 to 270 --- i)135 to 270
Specialists of all disciplines /GM (Outdoor (Outdoor
of Allopathic Systems in Consultation fee) Consultation fee)
Factory Hospitals for
outdoor /indoor treatment of ii)₹200 ii) ₹200
the entitled patients where (as conveyance (as conveyance
the Specialist centre is not charges) charges)
available or the centre is not
having the required iii) Actual rates iii)Actual rates of
Specialists in position. of the prevailing the prevailing
CGHS at the CGHS at the
city/nearest city city/nearest
(as investigation city(as
charges for each investigation
charges for
consultation)
each
consultation)
125 Purchase of all items such as Sr. GM/GM Full Power Director/ HR Full Subject Yes
medicines or other items Power to
related to healthcare will be competiti
considered under “medical Medical ve tender
store”. Officer-in- ₹25 lakh and
charge in each case. budget
provision

Remarks with Finance
Factory/Unit AVNL
126 Purchase of medical stores viz. Sr. ₹ 2.5 Lakh In conformity Yes
medicines and other health care GM/GM with Rule155
related items upto ₹2.5 lakh of GFR 2017 Concurrence of Head
through LPC in each case of Office of associate
finance attached to a
Sr.GM/GM shall be
considered as
appropriate financial
advisor for purpose of
financial consultation
for LPC
127 Purchase of ration stores items Medical ₹ 3 lakh --- Subject to Yes
which are not available at ASC Officer-in- in each case competitive
supply or are required on urgent Charge within tendering.
basis from trade. budget
provision.
Note: Wherever relevant, the provisionsofOFMR-2009(Ordnance Factory Medical Regulation)as amended

from time to time, be complied with.

TPC/TEC
STRUCTURE FOR
AVNL BOARD
BOARD LEVEL TPC & TEC FOR PROCUREMENT OF STORES

Constitution of Tender Purchase Committee (TPC) and Technical Evaluation Committee (TEC)
for AVNL for procurement of Store
(A-1) TPC & TECLEVEL-I
(a) Financial Powers are irrespective of RE and FE.

(b) The TPC will be the Competent Financial Authority for release and revalidation of Foreign Exchange (FE) for
the cases decided by them. Accordingly, FE release as necessary may be done in the TPC meeting itself at the
time of deciding the case.
CMD/AVNL - Chairman
Director/ Operations -Member
Director/ Finance -Member
GM (Operations) - Member
Jt. GM/ WM (looking after procurement section) - Member Secretary
(B) TPC & TEC LEVEL-II

(b) The TPC will be the Competent Financial Authority for release and revalidation of Foreign
Exchange(FE)for the cases decided by them. Accordingly FE release as necessary may be done in the TPC
meeting itself at the time of deciding the case.
Director/ Operations Chairman

Director/ Finance Member
GM (Operations) Member
Jt. GM / WM (looking after procurement section Member Secretary
AVNL BOARD LEVEL TPC & TEC FOR PROCUREMENT OF PLANT AND MACHINERY
DELEGATIONOFFINANCIALPOWERS: AVNL as on 01.10.2021-rev-05
Constitution of Tender Purchase Committee (TPC) and Technical Evaluation Committee (TEC) Authority:
A. TPC & TECLEVEL-I

(b) The TPC will be the Competent Financial Authority for release and revalidation of Foreign Exchange (FE) for the
cases decided by them. Accordingly FE release as necessary may be done in the TPC meeting itself at the time of
deciding the case.
CMD / AVNL - Chairman

Director/ Operations -Member
Director/ Finance - Member
GM (Operations) -Member
Jt. GM / WM (looking after procurement section) - Member Secretary
B. TPC/ TECLEVEL-II

(b) For procurement of Plant & Machinery, Approval-in-Principle (AIP) shall be obtained by AVNL from DDP in respect
of procurement having value ₹10 Crs or more.
(c) The TPC will be the Competent Financial Authority for release and revalidation of Foreign Exchange (FE) for
thecasesdecidedbythem.AccordinglyFEreleaseasnecessarymaybedoneintheTPCmeetingitselfatthe time of deciding the
case.
Director/ Operations Chairman

Director/ Finance Member
GM (Operations) Member
Jt. GM / WM (looking after P&M procurement section) Member Secretary
SPECIAL NOTES :
1) PFCs will be chaired and approved by Director/ Operations. Investment summary/technology upgradation/key
modernization areas will be brought before the Board in a consolidated manner for information.
PFCs for a particular year should be completed by31 st December of the preceding year to ensure proper investment
projection. PFCs pertaining to AVNL factories will be attended by AGM/ JtGM/ WM/Engg/AVNL and rep of
Director/ Finance.
2) The secretary of respective TPC/TEC shall provide a full brief of the cases in stipulated time to the Chairman and
each member. He should put up the brief only after he is fully satisfied on the above account. Important points
needing special attention / consideration should be highlighted.
3) All extant orders will be followed.

TPC/TEC STRUCTURE
FOR AVNL FACTORIES
FOR PROCUREMENT OF STORES

in AVNL Factories
(i) The Financial powers are irrespective of RE & FE.
(ii) All direct purchases above Rs. 10,00,000 will be made on the basis of recommendation of relevant Tender Purchase
Committee. Procurement of stores valuing upto Rs.10,00,000/- would not be required to be processed by TPC. These
cases would be processed by the Officer-in-Charge of MM Division (JWM(SG)/AWM/WM/DGM/JtGM level posted in
material Management section as per their delegated financial powers) and the same would be submitted for pre-audit to
Finance before release of Purchase Order.
(iii) All cases required to be approved by TPC, should be sent to Finance so as to reach the Finance representative two
days in advance so that, he/she can study the same before attending the meeting.
(iv) In case of disagreement with the finance member, the CFA can overrule the finance member as per the procedure given
in the relevant clause of AVNL Procurement Manual as amended time to time.
(v) All cases where “Make or Buy” decision is involved, especially all IFD cases will be carefully decided by
Sr.GM/GM in consultation with Director/Operations to optimize full utilization of available capacities with the
AVNL Factories and reasons clearly recorded if it is decided to go to trade when capacities are available in the
AVNL Factories based on the guidelines issued on the subject.
(vi) Nodal agencies and procedures for procurement of bulk common materials should be decided by Director/ Operations
and the performance of nodal agencies right from necessity/TE stage onwards should be carefully watched and
monitored.
(i) Wherever GM finds it appropriate to supplement the In-house capacity at AVNL with Trade action, he is authorized
for same after placing on record full justification for such on action.
Sr. GM/GM/ to organize TPC, may release appropriate order and authorize lower level / upper level officer
for respective TPC wherever designated level officer is unavailable in the factory / unit.

A. TPC & TECLEVEL-I
For procurement of stores/components etc under Financial Power of Sr. GM/GM
Sr. General Manager /General Manager -Chairman
Addl.GM/MM # - Member/MM
Addl. GM /User Section # - Member/User Section
Addl. G.M /QC # - Member/QC
AGM/JtGM/Finance * - Finance Member
JtGM /MM $ - Member /Secretary
# Jt. GM/MM, Jt. GM/User Section, Jt. GM/QC will attend the Level-I TPC in the absence of respective
AGMs with the written approval of Sr. GM/GM recording reason for the absence of original incumbent.
* Senior most available officer in finance will attend the Level-I TPC in case AGM / Jt. GM has not been
assigned the finance function or in the absence of AGM/Jt.GM finance with reasons to be recorded.
$ In absence of Jt. General Manager/ MM, the next senior most officer of MM (Dy. General Manager/ Works
Manager) will act as Member/Secretary.
B. TPC & TECLEVEL-II

For purchase of stores /components etc. under Financial Power of Addl..GM
Addl.GM/MM -Chairman
Addl.GM/Jt.GM/User Section # -Member/User Section
Addl.GM/Jt.GM/QC # -Member/QC
AGM/JtGM/Finance * -Finance Member
Jt.GM/Dy.GM/MM $ -Member/Secretary
# Jt. GM/MM, Jt. GM/User Section, Jt. GM/QC will attend the Level-I TPC in the absence of respective
AGMs with the written approval of Sr. GM/GM recording reason for the absence of original incumbent.
* Senior most available officer in finance will attend the Level-I TPC in case AGM / Jt. GM has not been
assigned the finance function or in the absence of AGM/Jt.GM finance with reasons to be recorded.
$ In absence of Jt. General Manager/ MM, the next senior most officer of MM (Dy. General Manager/ Works
Manager) will act as Member/Secretary.

C. TPC & TECLEVEL-III
For purchase of stores/ components etc under Financial Power of Jt. GM
Jt. GM / MM / DGM (MM) $ - Chairman

Jt. GM/DGM(User Section) # - Member/User Section
Jt.GM/DGM/QC # - Member/QC
Jt.GM/DGM/WM/Finance - Finance Member
DGM/WM/AWM/MM * - Member Secretary
$ In the absence of Jt.GM/MM & DGM/MM, AGM/MM will chair TPC level III.
D. TPC & TECLEVEL-IV
For procurement of stores under Financial Power of DGM/WM
DGM/WM/ MM $ - Chairman
DGM/WM/AWM/User Section - Member/User Section
DGM/WM/AWM/QC - Member/QC
DGM/WM/AWM/JWM(SG)/ Finance - Finance Member
AWM/JWM/MM - Member Secretary
$ If there is no DGM/WM/MM in a factory, Jt.GM/MM will chair TPC Level-IV
NOTE :
The function and responsibility of Member Secretary will be as under:-

(i) To provide the brief of the procurement case in stipulated time to each Member and Chairman of the TPC after
satisfying himself of the correctness of the brief;
(ii) To present/highlight the salient features;
(iii) To record the minutes of TPC meeting for implementation,
(iv) Member Secretary of the TPC will also be responsible for decision taken collectively by the TPC.

TPC/TEC STRUCTURE
FOR AVNL FACTORIES
FOR PROCUREMENT OF
PLANT & MACHINERY

for procurement of Plant & Machinery in AVNL factories
(i) Financial Powers are irrespective of RE and FE.

(ii) The TPC will be the Competent Financial Authority for release and revalidation of Foreign Exchange (FE) for the
cases decided by them. Accordingly FE release as necessary may be done in the TPC meeting itself at the time of
deciding the case.
(iii) Technical CST shall be authenticated by Jt. General Manager/ Dy. General Manager/ Works
Manager of the Engg. Office and the User section.
(iv) Financial CST/ Ranking statement shall be authenticated by Jt. General Manager/ Dy.
General Manager/Works Manager of Engg. Office and Accounts rep.
A. TEC/TPC LEVEL -I
For procurement of Plant & Machinery cases under financial power of Sr. GM/GM
Sr. General Manager/ General Manager - Chairman

Addl.General Manager/Jt.GM Engg. Office # - Member
Addl. General Manager/ User Section # - Member
AGM/JtGM/Finance * - Member
Jt.General Manager/DGM/WM/ Engg Office $ -Member Secretary
# In absence of Addl. General Manager/ Engg Office or Addl. General Manager/ User section, the next senior most
Officer of Engg Office or User section (Jt.General Manager/ Dy.General Manager/Works Manager) respectively
will attend the meeting.
* In absence of AGM/JtGM/Finance, next senior most officer in finance will attend the meeting.
$ In absence of Jt.General Manager/ DGM/Engg. Office,the next senior most officer of Engg. Office (Works
Manager/ AWM) will act as Member/Secretary.

B. TEC/TPC LEVEL-II
For procurement of Plant & Machinery cases under financial power of Addl. General Manager
Addl. General Manager/ JGM(Engg Office) -Chairman

Addl. General Manager/User Section # - Member User
AGM/ Jt.GM/Finance -Member
Jt. GM/ Engg Office $ -Member Secretary
# In absence of Addl. General Manager/ JtGM User section, the next senior most Officer of User section
( Dy. General Manager/ Works Manager/ AWM) will attend the meeting.
$ In absence of Jt. General Manager/ DGM/ Engg Office, the next senior most Officer of Engg office
( Works Manager/ AWM) will act as Member/Secretary.
C. The function and responsibility of Member/ Secretary will be as under:-
(i) To provide the brief of the procurement case in stipulated time to each Member and Chairman of the TPC after
satisfying himself of the correctness of the brief;
(ii) To present/highlight the salient features and record the minutes of TPC meeting for implementation.
(iii) Member/SecretaryoftheTPCwillalsoberesponsiblefordecisiontakencollectivelybytheTPC.
TPC STRUCTURE
FOR
CONSTITUTION OF TENDER PURCHASE COMMITTEES (TPCs) FOR HOSPITAL RELATED
PROCUREMENT AND PURCHASE OF MEDICAL STORES
TPC structure for procurement of Hospital related medical stores through LTE/OTE will be same as that for Stores
purchase.
EXERCISE OF FINANCIAL POWERS OF Sr.GM/GM FOR PROCUREMENT THROUGH LTE/OTE/STE UNDER CONTINGENT,
MISCELLANEOUS AND OTHER HEADS (LABOUR CONTRACTS, MAINTENANCE –M&E, I&M, TRANSPORT (NOT
INCIDENTAL/ CONSEQUENTIAL TO PRODUCTION) ETC)
1. The finalisation of cases upto ₹3 lakhs of procurement under Contingent, Miscellaneous and other Heads (Maintenance –M&E, I&M,
Transport (Not Incidental/Consequential To Production)etc.) will be treated as non-TPC cases. These cases shall be processed on file.
This is not applicable for Labour Contract cases. Labour contract cases will continue to be treated as TPC-I cases..
2. The finalisation of cases beyond ₹3 lakhs of procurement through LTE/OTE/STE under Contingent, Miscellaneous and other Heads
(Maintenance –M&E, I&M, Transport (Not Incidental/Consequential To Production) etc. where the Sr.GM/GM is the competent
financial authority shall be done in TPC Level – I of the Establishment.
3. In addition to goods, procurement/engagement of services can be made through LPC in line with the clarifications available in DPM
2009 issued by MOD. Further LPC provision as per latest provisions of Rule 146 of GFR 2017 shall apply to all cases of
goods/Services procurement irrespective of urgency.
4. The finalisation of cases of procurement through LTE/OTE/STE under other Heads (Labour Contracts) where the SrGM/GM is the
competent financial authority will be done in TPC Level – I of the Establishment.
5. Hiring of services for providing skilled manpower in Clerical Staff/ Accounts/ Finance will be decided in TPC-I.
TDC STRUCTURE FOR
AVNL FACTORIES
1. Tender Disposal Committee (TDC)–Level-I
Sr. General Manager/ General Manager -Chairman

Addl.GM/ Jt.GM (looking after disposal) -Member
Addl.G.M/ QC -Member
AGM/ Jt.GM/ Finance - Finance Member
Jt.GM/ DGM/ WM/ Stores - Member/ Secretary
2. Tender Disposal Committee (TDC)–Level-II
Addl.GM/ MM/ Stores -Chairman

Jt.GM/ DGM/ MM/ Stores -Member
Jt.GM/ DGM/ WM/ QC -Member
Jt.GM/ DGM/ WM/ AWM/ Finance -Finance Member
WM/ AWM/ Stores - Member/Secretary
3. Tender Disposal Committee (TDC)–Level-III
Jt.GM/ DGM/ MM/ Stores -Chairman

WM/ AWM/QC -Member
WM/ AWM/JWM(SG)/ Finance - Finance Member
WM/ AWM/ JWM(SG)/ Stores - Member/Secretary
AUTHORISATION TO DIRECTORs OF AVNL TO EXERCISE POWERS OF
AVNL BOARD
(a) The Powers of the AVNL Board can be exercised by the Directors concerned, so far as they are relevant to the
functioning of their area subject to the condition that where financial implications are involved, the concurrence
of Director/Finance would be required.
(b) The above exercise of powers would however be subject to:

(i) The purchase of materials by the AVNL Board would be based on the decision of the Tender Purchase
Committees, which have been constituted by the Board.
(ii) All new capital schemes and all matters which require the approval of the Ministry will be put up to
the AVNL Board.
(iii) All proposals for availing of consultancy or for sale of consultancy by the factories would be put up to
the AVNL Board for approval.
(iv) On all issues, considered major by the Directors concerned, the papers would be shown to the
Chairman before issue of executive orders so that necessary co-ordination and uniformity could be
taken care
*****End of DFP****

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Delegation of Financial Powers

JGM/MM Rs.10,000/- ii) In conformity with

Sr.GM/GM Rs. 25,000/-

Note for Sl. no. 1 & 2 only

(iv) As per DDP letter No.5(12)/D(Prod)/Bdated26.07.2010, the investment can be

(v) Fin Power is irrespective of currency of payment.

(vi) PFC approval by AVNL required. Unless otherwise specified.

Rs. 100 Crs.

ii) The power excludes

iii) Factories shall forward the

iv) Procurement shall adhere to

v) No capital investment should be

(PFC approval by AVNL)

Director/ Rs. 10Cr PFC approval by AVNL is

CMD Full Power

8 Erection & Commissioning of Addl.GM Rs. 20 Lakh Director/ Rs. 10 Cr Yes

14 Scientific equipment/ laboratory equipment, Sr.GM/GM Rs. 10 Lakhs --- Yes

15 Scientific equipments/ laboratory equipments Head of ODC Rs. 25 Lakhs

Rs. 3 Cr (ii) Requisite fund is

AWM Full Power

22 Issue of Proprietary Article Sr. GM / GM / Full power Yes

26 Contractual advance payment as per Sr.GM/ GM Full power Yes

ii) This power cannot be sub-delegated by the AVNL

iii) Cases where a difference of opinion between the Directors of AVNL

iv) The exercise of this power will be subject to AVNL’s securing

v) The existing delegation upto 2% of CIF Value for other advance

AVNL/Unit AVNL Board

35 Declaration of Unserviceable Plant Sr. GM /GM Full Before declaring Yes

45 Expenditure for transportation Sr. GM /GM Full power Yes

b) Expenditure on Sr. GM / GM Full power

i) Upto Rs.10.00 Lakhs in each case,

ii) In all cases, where RIC of the

vi) The power of revision of Admin

i) Upto Rs.10.00 Lakhs in each case, GM/

ii) In all cases, where RIC of the proposal

vi) The power of revision of Admin

Capital Civil works include new civil works &

i) Upto Rs.10.00 Lakhs in each case,

ii) In all cases, where RIC of the

vi) The power of revision of Admin

vi) Scale of accommodation/ laid

58 Re-appropriation of buildings Sr.GM/GM Full power - - Yes

Sl. Nature of Nature of Power/ Reference Delegation Remarks Concurrence

1. CMD/ AVNL Chairman

* Senior most Officer would officiate as Secretary

AVNL CWC LEVEL-II

1. Director (Operations) Chairman

# Senior most Officer would officiate as Secretary

UNIT / FACTORY LEVEL CWC LEVEL-I

* Senior most Officer would act as finance member.

UNIT / FACTORY LEVEL CWC LEVEL-II

1. ADDL.GM (EO/CIVIL) Chairman

* Senior most Officer would act as finance member.

68 Approval of Short Closure ----- ----- Director/ Full power Yes

AVNL Board Full

74 i) Sanction for demurrage, Sr. GM ₹ 1 Lakh Director/ Full power Yes

Sr. GM ₹ 1 Lakh Director/ Full power Yes

(a) Full powers

77 Engagement of Chartered Sr. GM /GM Full power AIP shall be Yes

AVNL Units AVNL Board

78 a) Contract for Acquisition of Sr. GM / ₹ 2 Cr. Director/ ₹ 5 Crs. Yes

b) Contract for Acquisition of

1. Procedure for placement of Contract for Acquisition of Research Services: