STORES FINANCE AND NEW

DEVELOPMENTS IN IR
PROCUREMENT POLICY
HARISHA VELLANKI, IRAS’12
Dy FA&CAO S&W
 PROCUREMENT BY STORES DEPT

• Recoupment of Stocks/Demand generation

• Receipt and Inspection
• Storage and issue of materials
• Maintenance of numerical ledgers/bin cards
• Inventory Control
• Disposal of surplus stores and scrap
 CLASSIFICATION OF STORES

Stock Non-Stock
• Planned • Not planned
• CP • One time
• Stocked in • Received by
depots the consignees
• PL number • No PL Number
 INVENTORY CONTROL OF STOCK
ITEMS: ABC ANALYSIS

• Pareto Principle: Majority of activities (70-80%)

governed by few attributes (10-20%).
• Annual Consumption Value:
• 70% value represented by A Cat. Items
• 20% value by B Cat. Items
• 10% value by the rest, C Cat. Items
• Does not acknowledge the importance of an item
 VED CLASSIFICATION

• Vital, Essential & Desirable items

• Vital items are critical for operation and do not
permit any corrective time, need immediate
replacement
• Essential items are also critical for operation,
but operation does not come to stand still at
once, some corrective time is available
• Remaining items are known as desirable items
 THE MATRIX

V E D

AV AE AD
A CRITICAL SCRUTINY DISCOURAGE
PROCUREMENT

BV BE BD
B

CV CE CD
C LIBERAL
ROUTINE
PROCUREMENT
SCRUTINY
 PROCUREMENT PROCESS

Predispatch
Raising Receipt and
Approvals and Submission of Evaluation and Inspection and
Indent/Generatin Issue of NIT Acceptance/Mate Storage
Finance Vetting bids Issue of PO supply of
g Demand rial Inspection
material
AIS-HISTORY SHEET
 2
1435850/2022/O/o CH.OS/PE/PCMM/SCR
 3
1435850/2022/O/o CH.OS/PE/PCMM/SCR
DRAFT PO
 Firefox https://www.ireps.gov.in/fcgi/runfrm
1880
1545693/2022/O/o CH.OS/PA/PCMM/SCR
SOUTH CENTRAL
RAILWAY
P.O.No.: 25215003.1. dated DRAFT PURCHASE ORDER
(NON-STOCK)
To, From,
LOTUS WIRELESS TECHNOLOGIES INDIA OFFICEOF THE PRINCIPAL CHIEF
PRIVATE LIMITED-VISAKHAPATNAM MATERIAL MANAGER
B-7, EEIE, B-Block, Industrial park, 6TH FLOOR,
Autonagar Visakhapatnam,PIN 530012 RAIL NILAYAM
Andhra Pradesh,India Tel SECUNDERAB
( vcode::9602 ) AD
( Industry type : MSE ) 500025
Ph.:04027786
333
Website:
https:/
/www.ireps.g
ov.in/
With reference to your Bid Id No.13462845 dated 17/02/22 against this office Tender No.25215003 opened on ,
please deliver to the Consignee(s) mentioned below, the under mentioned articles free of incidental charges
subject to Indian Railways Standard Conditions of Contract (Latest Edition) and General Conditions of Contract
for the Stores Department of this Railway and to the addendum to the same subject applicable to this Contract.

Total Order Value: Rs.42,42,35,186.00 (Rupees Forty-Two Crore Forty-Two Lakh Thirty-Five Thousand One
Hundred Eighty-Six only)
SVC :APPLICABLE, PVC :NOT APPLICABLE, Safety : NO, Option Clause : APPLICABLE, Time Preference : NOT
APPLICABLE
PL No : Item Qty : 76 Set Inspection agency : Others
1621N467
Description : Supply, fitment and commissioning of DPWCS for AC Tap changer Electric locomotives as per
RDSO specification
No.RDSO/2008/EL/SPEC/0074,Rev.1 dated 14.12.2011 and with amendment No.1 issued vide RDSO letter
No.EL/3.1.3/WMUCS dated 27.07.2015 duly deleting item No.2 of the amendment and BIU conforming to
RDSO M.P Directorate specification M.P.0.01.00.31 (Rev-01) February 2021.(One set consists of two units of
DPWCS to be fitted in two locomotives). Make / Brand : LOTUS WIRELESS AMC, Comprehensive annual
maintenance for Distributed power wireless control system (DPWCS)as per specification
No.C/E/ELS/KZJ/SPEC/05 (DPWCS CMC Document). Detailed CAMC terms and conditions as per enclosed annexure of
CAMC.]
Basic Rate: Rs. 47,30,544.00 (Rupees Forty-Seven Lakh Thirty Thousand Five Hundred Forty-Four only)
PO DELIVERY SCHEDULE Frei Othe
Consignee Sr. S.Tax/VAT
Commenc Complete Ordered Qty. ght r
e Char Charges
ges II
SR.DEE/ELS/KZJ , SCR 6 months GST @ 18
001 76.000 -- --
(Telangana) %
Other Terms and Conditions
1. Inspection: 1. Prototype Inspection by RDSO. 2. Routine Inspection by Dy.CEE/D&D/CLW.

2. Payment Terms: (1)For Prototype supply: 100% payment shall be made after successful completion of field

trial of prototype units subject to submission of 10%. BG of the total value of the prototype. The

same will be released after successful completion of warranty period.BG should be valid for period of

6 months beyond complete of warranty period. (2)80% payment For Regular supply after

clearance/approval of prototype 80% payment shall be made on receipt of the items in satisfactory

07/07/2022, 11:31 12
condition, against suppliers challan certified by consignee Gaz. Officer, and Inspection certificate issued
of 3
by the nominated inspection agency. Balance 20% payment shall be made after successful installation

commissioning and acceptance of the equipment by consignee subject to submission of 10% BG of the
 Firefox https://www.ireps.gov.in/fcgi/runfrm
1881
1545693/2022/O/o CH.OS/PA/PCMM/SCR
SOUTH CENTRAL
RAILWAY
P.O.No.: 25215003.1. dated DRAFT PURCHASE ORDER
(NON-STOCK)

7. Statutory Variation Clause Statutory Variation in taxes and duties, or fresh imposition of taxes and duties

by State/ Central Governments in respect of the items stipulated in the contract (and not the raw materials

thereof), within the original delivery period stipulated in the contract, or last unconditionally extended

delivery period shall be to Railways' account. Only such variation shall be admissible which takes place

after the submission of bid. No claim on account of statutory variation in respect of existing tax/duty

will be accepted unless the tenderer has clearly indicated in his offer the rate of tax/duty considered

in his quoted rate. No claim on account of statutory variation shall be admissible on account of

misclassification by the supplier/ contractor.

8. AIR : All Inclusive Rate excluding CAMC Charges - Rs. 55,82,041.92 per Set.

9. Standard Governing Conditions : IRS Conditions of Contract: The contract shall be governed by latest version

(along with all correction slips) of IRS conditions of contract, and all other terms and conditions incorporated in

the tender documents.

10. Warranty : (1) For Prototype Quantity it will be 5 years from the date of completion of field trials (2) For regular

supplies after clearance of prototype it will be 6 Years from date of supply or 5 years from the date of

commissioning, whichever is earlier

11. Option Clause : For the tenders valuing Rs 75 Lakhs and above, the purchaser shall be entitled to vary the total

order quantity upto +/- 30% anytime within the delivery period (including extended delivery period and

even at the time of ordering) by giving suitable notice on the same price and terms and conditions, even if

the supply of original ordered quantity is completed before the last date of scheduled delivery. The +/- 30%

option clause can be operated in one or more than one instalment as long as the total variation in quantity

does not exceed the limit of 30% of ordered quantity. For operation of (+) 30% option clause, the increase

in quantity with respect to the order quantity can be done by giving suitable delivery schedule for the

enhanced quantity and thetenderer shall be bound to accept the quantity so ordered on the basis of his

original offer. For operation of option clause, consequent to decrease in prices, subsequent to the

placement of contract, a 'suitable notice' for exercise of (-) 30% option clause will be served to give a

reasonable opportunity to the contractor to unconditionally agree to accept such lower rates for the

quantity unsupplied on the date of reduction/ decrease of prices or the (-) 30% quantity, whichever is

less. Where the contractor does not unconditionally agree to accept lower rate, no further consent from

the contractor is necessary for exercise of (-) 30% quantity option clause.

12. CAMC : CAMC as per tender condition. AMC for 5 years will be applicable after expiry of warranty period.

AMC agreement shall be entered into by Sr.DEE of the respective sheds (Ultimate Contractual Consignee)

as per the finalised rate, as per terms and conditions of CAMC. The ultimate contractual consignee will

07/07/2022, 11:31 define the CAMC locations. 13

13. CAMC Charges : AMC Rate Year 1 - Rs.271526.00, Year 2 - Rs.298679.00, Year 3 - Rs.328547.00, Year 4 - of 3
Rs.361402.00, Year
5 - Rs.397542.00, GST : GST Extra 18.00%
 Firefox https://www.ireps.gov.in/fcgi/runfrm
1882
1545693/2022/O/o CH.OS/PA/PCMM/SCR
SOUTH CENTRAL RAILWAY
P.O.No.: 25215003.1. dated DRAFT PURCHASE ORDER (NON-STOCK)

21 Instructions to suppliers: Payment will be made against e-Bills. Digitally signed e-Bills should be submitted

through IREPS for claiming payment against supplies.

Documents Attached
S. File Name Document Description
No
.
1 3483376.pdf CAMC Annexure
Please acknowledge receipt of this purchase order.
DEMAND DETAILS
Consignee PO P
PL No. Bill Passing Officer Demand No. & Date Allocation Value
Sr. a
y
Y
e
a
r
BILL PAYING OFFICER : SR DFM/DIV/SC (A2502) - IPAS AU Code: 0905-SCR

SR.DEE/ELS/KZJ , 1619621467
1621N467 001 dt. 30/11/21 20211404 - 42,42,35,185.
SCR
92
Sr.DEE/ELS/KZJ
Consignee Postal Address Contact Nos.
07 016196 SR.DEE/
Value Break-up (for office useELS/KZJ
SR.DEE/ELS/KZJ only):
2022-23 2023-24 2024-25
SR.DEE/ELS/
Value 42423518 -- --
KAZIPET ,
s 6 KAZIPET

Digitally Signed by R.K.MEENA,

[PO.Key: 5303489; DY.CMM/T/HQ for PRINCIPAL

;]
CHIEF MATERIAL MANAGER
for and on behalf of the President
of India
Copy to: 1. 2. Inspecting
Consignees. Authority
3. Bill 4. Bill Paying Officer
Passing
Officer

07/07/2022, 11:31 14
of 3
 PLAN HEADS

• Relevant PHs for creation, acquisition &

replacement of Assets /Infrastructure
• PH 21- For Rolling Stock (RSP)
• PH 41- For Machinery And Plants (M&P)
• PH 42- For Workshop & Production Units(PUs).
 RSP

• Acquiring new rolling stock such as locos,

coaches, wagons, cranes tower wagons, track
machines, Break Down Cranes etc., and to
midlife rehabilitation/modernization of rolling
stock.
 M&P AND T&P

• A machine that remains stationary and immovable (Job comes to

machine and not vice versa) is a Machinery and Plant (M & P) item.
• In addition, vehicles such as Staff cars, Lorries, Diesel Utility Vehicles,
Road Mobile Cranes, Front End Loader/JCB Cranes and fork lift trucks
are also termed as M&P items.
• As against this, the following are termed as T&P items:
• All movable machines (except those mentioned above) like pneumatic drills, power saws,
tools and plants(such as jigs and fixtures)
• Small tools and equipments required for the maintenance of machines
• All measuring instruments / Gauges (irrespective of their unit cost) and
• For the upkeep of the office such as furniture, computers, printers etc.
 MSOP’S DEFINITION

• The limit for tools and plants enhanced from

Rs.1 lakh to Rs.10 lakh
• The machinery/tools costing more than Rs.10
lakhs will be covered under category of M&P and
such items costing upto Rs.10 lakhs will be
treated as T&P chargeable to Revenue
• Authority: RBLtr.No.2017/Trans/01/Policy
dt.18.10.2017
 STOCK VERIFICATION

• This branch is primarily concerned with the physical

verification of stores, Dead Stock and T&P and Machinery
held in stock in the stores Depots, in workshops, in
subordinate stock holding units on the Open Line and
Construction Units and Tools and Plants including Dead Stock
items in different offices of the Railway.
• Instrumental in Scrap Sale
• ISAs and ASVs
• Stock sheets: The items identified under major irregularities in
terms of money. Items are under GM’s Review.
• Narrative Reports: Irregularities on account of in-adequate
system and accountal of items
 RULE 153 OF GFR, 2017

• Of all items of textiles required by Central Govt Depts,

mandatory to procure atleast 20% from
• KVIC
• Handloom clusters such as coops, SHGs, JLGs.
producer companies/corporations
• Weavers having pehchan cards etc.
 MSE POLICY

• For procurement of goods and services

• Exempt from paying Tender Document Cost, EMD
• Under amended Public Procurement Policy for MSEs, Order 2012 a minimum 25
percent share out of the total annual procurement by Central Government
Ministries / Departments / Public Sector Undertakings are to be made from MSEs
• L1+15% price band with counter-offer of L1, 25% of the quantity
• If there are more than one MSE, lowest MSE is considered eligible for 25% order
(or 100% if the order is not divisible)
• Champion Portal/Samadhaan under Ministry of MSME for grievance redressal
 MAKE IN INDIA POLICY

• Local content: Amount of value added in India. The total value of the item
procured (excluding net domestic indirect taxes) minus the value of
imported content in the item (including all custom duties) as a proportion of
the total value, in percent
• Class I supplier: >= 50%
• Class II supplier >20% but <50%
• Non-local supplier <20%
• Where sufficient local capacity and competition : Only Class I
• GTE: Even non-local can bid
 MAKE IN INDIA POLICY

• GTE is restricted till 200 crores

• Few exceptions like medical items and those items
where vendors quote less than 20% local content
• GTE SHALL NOT be issued except with the approval of
competent authority as designated by DoE
 PURCHASE PREFERENCE TO CLASS-I

• If L-1 is Class-I local supplier, then 100%

• If L-1 is not Class-I, 50% is given and in the price band
of L1+20%, counter-offer to lowest Class- I for the
remaining 50%
• If none agrees, L-1 gets the bid
• No preference for Class-II
 RULE 144(XI) OF GFR 2017

• O.M dated 23-07-2020

• DoE may by order in writing, impose restrictions including prior registration,
and/or screening on procurement from bidders from a country/countries, or a
class of countries on grounds of defence of India, or matters directly or
indirectly related thereto including national security
• Any bidder from a country which shares a land border with India will be
eligible to bid only if the bidder is registered with the competent authority
• Competent authority is Registration Committee by DPIIT
 NPQ

• Requirement of IP
• + Requirement of CP
• - Stock of depot
• - Dues
• -Excess of one month consumption quantity at consignee (i.e Stock in
UDM – AAC/12)
• + Buffer Period Requirements
 VENDOR APPROVING AGENCIES

• RDSO: All S&T, TRD, wagon, Track/Engg Department items, other items
identified and allotted by Railway Board
• RCF & MCF: All LHB coach items(Except items identified for RDSO)
• ICF: All EMU, non-LHB coach items (Except items identified for RDSO)
• CLW: All Electric Loco items (Except items identified for RDSO)
• BLW: All diesel and Electric Loco items(Except items identified for RDSO)
• CORE: All RE related items(Except items identified for RDSO).
 UVAM

• Unified Vendor Approval Module

• The whole approval process in online
• Made live in January, 2022
 GEM

• The GeM (Government e-Marketing) aspires to

revolutionizes the public procurement landscape in the
country by building a truly open and transparent
platform, which will be available and accessible by a
much larger base of buyers, sellers and service
providers
• As per rule 149 of General Financial Rules - 2017
procurement of common use Goods and Services by
Ministries/Departments is mandatory through GeM
• Included in our APARs
 IREPS

• Indian Railway Electronic Procurement System

• Procurement of Goods, Services, Earning Contracts
and Works on IR
• Also Scrap Sale through auction
• https://www.ireps.gov.in/
 IMMIS

• Integrated Material Management System

• Earlier MMIS were maintained at zonal level
• Universal PL nos.
• Receipt and Issue of materials at Stocking
Depots
• Earlier only stores dept, now all departments
more so with the new iMMIS’s UDM
 UDM

• Unified Depot Module

• Intended benefits of UDM:
• Computerization of the entire Supply Chain i.e. Consignee End /
User Depots will get included in Digital Supply Chain (Stores
Depots are already there)
• Optimization of material procurement
• Improved Level of Service to internal as well as external
customers
• Traceability of material usage leading to improved Asset
Maintenance
• Real time information exchange (including Stock Position) among
various stake-holders on pan-India basis
• Enhanced efficiency, economy & transparency
 ONLINE BILLS PASSING

• All Bills of Stores are passed online

• Including fuel bills from this month

IREPS/
iMMIS UDM IPAS
GEM
THANK YOU