It is not always economical for the
Railways to make all the materials used
in maintenance.
Some items are procured from others,
and some are produced in the Rly.
Workshop.
Some Reasons for Making:
- Lower Production Cost
- Unreliable or Unsuitable Suppliers
- Assure Adequate Supply (Quantity)
- Utilize Surplus Labor Capacity
- Obtain Desired Quality
- Protect Special Design or Quality
Some Reasons for Buying:
- Lower Acquisition Cost.
- Inadequate Capacity.
- Reduce Inventory Costs.
- Ensure Alternative Sources of Supply.
- Item is Protected by a Patent or Trade
License.
Items which are not stocked at Feeding
Stores Depot.
Non-Stock indent can be placed for an item,
at most twice in a year, at an interval of six
months.
Items that are directly procured from trade
(market)
Drawn on S.1302 for indent value less than
Rs.50,000/-
Drawn on S.1302–A for indent value more
than Rs.50,000/-
50000
28
Obtain “Budgetary Quotations”
from a minimum of three firms to
ascertain the rate of the item.
Clear description of the item,
including IS / RDSO specification.
Indent quantity should be assessed
critically.
Head of Allocation to which the
expenditure is to be charged, should be
clearly indicated.
LPO (Last purchase particulars &
Rate) if any, should be linked.
If the purchase is being made for the
first time and if Indenter knows some
of the likely suppliers, give list of those
suppliers.
Obtain Non-stock certification
from feeding stores depot.
Send the indent to Divisional
office (C&W wing) for further
processing.
At Div. office, the indent will be
registered.
Funds Availability will be
certified.
Obtain signatures of Indenting,
Controlling & Approving
authorities as per the SOP.
As per present delegation - all N S requisition should
be countersigned by the officer of user dept. according
to the competency
◦ Requirements up to Rs.25,000/- can be approved by an
Assistant Officer.
◦ The requirements valuing Rs 25,000/- to 2 lakh- can be
approved by a Sr. Scale Officer.
◦ The requirements valuing between Rs. 2 lakhs to 15
lakhs can be approved by a JAG / SG Officer.
◦ Requirements between Rs. 15 lakhs to Rs. 45 lakhs can
be approved by a SAG Officer.
◦ All requirements above Rs. 45 lakhs can be approved
by DRM / PHOD.
(Authority: RB, L/No: 2017/Trans/01/Policy. Dt. 18.10.17 )
For non safety items costing less
than Rs.2.5 Lakhs Finance
concurrence (Vetting) is NOT
necessary.
For safety items costing more than
Rs. 10 Lakhs Finance concurrence
(Vetting) is necessary.
(Authority: RB, L/No: 2017/Trans/01/Policy. Dt. 18.10.17 )
All Non stock purchase at Depot/Div level will require
essentiality of purchase certification.
For Safety items - Essentiality Certification
valuing upto 2 lakhs by JAG/SG level and
exceeding Rs. 2 lakhs by field Officers at
SAG level.
For Non Safety items - Essentiality
Certification valuing upto 1 lakh by JAG/SG
level and exceeding Rs. 1 lakhs by field
Officers at SAG level.
(Authority: RB,L/No: 2007/RS (G) / 779/1 Dt.
16.02.09)
Issue of PAC (Proprietary Article
Certificate), if necessary
PAC - Schedule of Powers:
Upto 75,000/- Indenting official JS
Upto 2 Lakh - Indenting official SS
Upto 15 Lakh/ - JA Grade /SG Officer
Upto 25 Lakhs - SAG Officer
Above 25 Lakhs – PHOD
(Authority: RB, L/No: 2017/Trans/01/Policy. Dt. 18.10.17 )
Submission of indent to Stores (AMM / DMM /
Dy.CMM / COS)
SOP of sanctioning power:
If AMM, indent value upto Rs. 3 Lakhs.
If DMM, indent value upto Rs. 8 Lakhs.
If Dy. CMM, indent value upto Rs.15 Lakhs
If indent value more than Rs. 15 Lakhs, indent
should be sent to COS office.
(Authority: RB, L/No: 88/RS (G)/779/14 PT. Dt. 27.02.15, item no-
1.0/A)
Obtaining quotations
from firms by Stores by
floating Tender enquiries
Sending the docket with opened
quotations to Indenting officer
(I.O) for Technical Suitability &
Rate reasonability
Scrutiny & Technical suitability by
I.O
Issue of P.O
Receipt of Material
Indenting of excess quantity
Splitting the quantity
Quoting Higher rate
Vague description
Un attested corrections / over
writings in the indent
10 % variation is allowed between the
indent rate and lowest quoted rate by
firms
Ex.-If the rate quoted in indent is
Rs.100/- then the lowest quoted rate by
firms should be between Rs.90/- &
Rs.110/-
If exceeds 10%, justification should be
given by I.O.
Purchase
Manufactured by Workshop
Return Stores
Depot Transfer
Transfer of stores from the other
Railway or department.
Purchase of materials for Railway are
arranged either as:
Direct purchase by the Railway
Administration.
Purchase by the Railway board, DLW,
CLW, ICF, COFMOW.
Purchase through the agency of Central
Purchase Organization of the Government
such as The Director General of Supplies &
Disposals (DGS & D).
The Railway Board mainly arranges the
procurement of Rolling Stock complete
units & fuel. In addition Rails, Fish
plates, cast iron sleepers, wheels, tyres,
axles, imported steel, certain nominated
critical items like Train Lighting cells,
Train Lighting lamps etc
Items which are not arrange by the
Railway Board and items which are not
required to be purchased through the
Central Purchase Organization are
procured by the Railway direct through
the Controller of Store.
It is obligatory for the Railway to use the
agency of the DGS & D for purchase of items which are
not peculiar to Railways, if the annual requirement of
such items is Rs.1 lakh or more.
If, however, DGS & D have entered into a rate or
running contract the railways are required to use the
agency of DGS & D for such item under Rate &
Running contracts even though the requirement is less
than Rs.1 lakh.
Returned Stores:
All the materials no more required by
the consuming departments should be
returned to the nominated stores depots
for taking disposal action.
Transfer of Stores from the other Railway:
In some cases, it has been observed that the
material is not available with own Railway but the same
is lying with other railway. In this case the material is
transferred from that Railway.
Depot Transfer:
Sometimes a depot has particular type of material
lying since longtime and depot does not require the
material. But the same material may be required to
nearby depot. In this condition the material is
transferred from one depot to other depot.
