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CHAPTER I

CHAPTER I

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CHAPTER-I

INTRODUCTORY - ORGANISATION
The Controller of Stores - 101 - 102 Functions of the Controller of Stores - 103-104 Nomenclature-cum-Price list-105-106 General Supervisory Control-107 Planning of Supplies of Stores -108 Purchase of Stores-109 Nature and distribution of stocks-110-111 Location of Stores Depot-112-113 Ordinary Stores - 114 Emergency Stores- 115 Non-stock items- 116 Special Stores- 117 Surplus Stores-118-120 Main Depots-121,122 &123 Minima and Maxima-124 Minimum stock-125,126 & 127 Maximum stock- 128 Minima and Maxima for Workshop Items- 129 Powers of Controller of Stores - 130 Canons of Financial Propriety -131-132.

(ii) Locomotive. in consideration of the special nature of the material stocked and of the transportation of such material. On him will devolve the duty of ascertaining the needs of a railway in the matter of materials and stores and of arranging for the supply of such materials and stores in the most efficient. Such stores are:(i) Permanent way or other engineering material in the custody of Permanent Way Inspectors and Inspectors of Works. (iv) but (a) left in the custody of the Stores Department (Custody Stores). and (iii) In some cases. Stores which have been purchased for special works. carriage and wagon parts and electrical stores in running sheds. The stocks of certain groups of the stores required by a railway have often to be held by the users at the place of work: (i) To avoid piecemeal requisitioning of stores from the Stores Department.The administration and control of the stores of a railway will be conducted by the Stores Department under the supervision of a Controller of Stores. inspection and distribution to the various stores depots. or (b) lying at site of work (materials-at site). He will be incharge of inventory control. so as to safeguard against delays or detentions in transportation. train examining stations and in-charge of out-door electrical chargeman and signal inspectors respectively. 102. economical and expeditious manner possible. The Controller of Stores: .CHAPTER I INTRODUCTORY ORGANISATION 101. . (ii) For use in emergencies. He will be responsible for their receipt. (iii) Stores in workshops waiting to be used in repairs or manufacture of locomotive and carriage and wagon duplicates. signal stores. and charged to such works. for their custody while in-charge of the stores department and finally for their issue on requisitions received from authorised officials of the railway.

103. Stationery. and Custody and issue of railway stores. Nomenclature-cum-Price List:. Each separate item of stores in this list should be assigned a number and this number as well as the description should be quoted on all requisitions. nor he is required to keep any general accounts of the stores transactions of the railway. and losses due to obsolescence or deterioration should be the minimum practicable. He has also to deal with all the surplus and unserviceable material of the railway. General Supervisory Control:. he will be guided by the Purchase Policy Rules.The Controller of Stores should arrange for submission to him of such statements and returns as may be necessary to keep him informed of the stocks available in his depots. issue and other documents relating to that item. 105.All Stocks of stores on hand. receipt. 107. the inflow of materials not required by departments and the steps taken to dispose of surplus and unserviceable stores. Planning of Supplies of Stores:. Functions of the Controller of Stores:. the Contract Rules and the rules prescribing the purchase of certain articles through specified agencies. printing stores and office machinery and appliances for all government departments and for railways are similarly . The Directorate General of Supplies and Disposals is the biggest agency and it has been set up with the object of collecting together the requirements of the various government departments and making bulk purchases at the most economic rates. The centralized control that is required for this purpose will vest in the Controller of Stores who will be head of Stores Department and will be responsible for the(a) (b) Purchase and inspection.e. i. Board specified exclusive railway items and. the Controller of Stores should work in closed co-ordination with that department. The purchase through the agency of the Directorate General of Supplies and Disposals is normally obligatory subject to some monetary limits in the case of a large number of articles for items other than Rly. 108. 106. whether with the Stores Department or other departments of the Railway. While stocks should be such that stores required by the railway are readily available. In this. the Controller of Stores being responsible for their survey and valuation. and for disposal by sale or otherwise. His duties in this respect will be limited to the maintenance of numerical records of stores in stock and to the preparation of the initial documents of receipt and issue. while watching the interests of the railway administration. The Controller of Stores is not a Disbursing Officer.He should issue and maintain upto-date a Nomenclaturecum-Price List including all items of stores in stock in the Stores Depots. 104. represent funds that are not productive.The Controller of Stores is responsible for preparing a correct estimate of the quantities of stores to be purchased or manufactured in the railway workshops each year and for making the most advantageous arrangements possible for the economic purchase of stores. in respect of such purchases. All materials and stores for which the consuming departments have no immediate use should be returned to the Stores Depots. they should be as small as possible. the manner in which the requisitions of the departments are being complied with. the Railway Board and the DGS &D.

Location of Stores Depots:. Purchase of Stores:. constitutes a self-contained branch of the Stores Department. Other General Stores Depots as found necessary. In addition. Calcutta 109. It will be the duty of the Track Supply Officer to maintain close co-operation between the Controller of Stores and the Chief Engineer 111. Such depots should be situated in or near the best market for the disposals of such articles. if any. STORES DEPOTS 110. the Controller of Stores will ensure timely submission of indents as in the case of DGS&D items.purchased through the Controller of Printing and Stationery. Permanent Way Inspectors. under the orders of the General Manager. Stationery Depots. Nature & Distribution of Stocks:. In respect of items earmarked for procurement by the Railway Board. subject to certain reservations which the Railway Board have made regarding the call of tenders and for the letting out of contracts for certain items of stores.. she organisation for the control of stocks of permanent way materials is generally under the direction of an officer designated the Track Supply Officer who. (ii) A Carriage and Wagon Stores Depot similarly attached to the main carriage and wagon shops. with his staff of any separate permanentway depot that may exist. such as Running Shed Foreman. imprest stocks of stores are also sanctioned to categories of subordinates. rails. Supplies of wooden sleepers are arranged for through an organisation known as the Sleepers Pool. Electrical Chargeman. &c.The purchase of all other stores should be arranged for by the Controller of Stores.For the purposes of maintenance and distribution. diesel and electric. Materials are stocked at suitable points on the line in stores depots under Depot Officers subordinate to the Controller of Stores.For facility of work. the stores are divided into General Stores & Engineering Stores including permanent way stores. and rolling stock. Train Examiners. No new Stores Depot should be formed (vii) . (iii) (iv) (v) (vi) A Signal Stores Depot serving the Signal shops. 112. Mathematical Instruments are to be obtained through the National Instruments (Private) Ltd. One or more Permanent-way Material Depots for storing permanent way and bridge materials. One or more Stores Depots or yards for collecting all scrap and unserviceable material. steam. such as coal. cast-iron sleepers. there should ordinarily be: (i) A Locomotive Stores Depot attached to and serving the main locomotive workshops of the railway.

These items may. No purchase of such items will be made for stock purposes.These are stores required for works and other special purposes i.without the sanction of the General Manager such sanction being recorded in the minutes of Official Meetings. Special Stores: . Ordinary Stores: . The stock cards relating to such stores should be marked with the letter ‘E’. Surplus stores should be distinguished from “over stocks” or ordinary stores (see paragraph 2230-2) 121. Surplus Stores: . which may stock the . The depot so nominated will be the Main depot for the item. it is considered. such as that due to breakage or unanticipated deterioration. 119.Ordinary Stores are generally such items of Stores for which there is a regular turnover caused by a constant demand and which are stocked by the Stores Department in its Depot. These are ‘Emergency Stores’ and comprise items of stores which do not ordinarily wear out or require renewal.All items other than ‘Stock’ items will be called ‘Non-stock’ items. Stock Items:. 117.The stock of each depot should comprise only those materials or stores as are required in the shop or Divisions which the depot serves. be described in the Standard Nomenclature List. 115. Emergency Stores: .e. but which. Non-stock Items: . are not likely to be utilised on any railway within next two years.The depots have also to stock certain items of stores though they do not have a regular turnover caused by a constant demand.Such Items will be kept in the custody of the Stores Department which are frequently and regularly required and whose unit cost justifies incurring inventory carrying cost associated with these items. of the ‘stock items. Subject to the above rule. Dead Surplus Stores comprise items of stores which have not been issued for 24 months and which. to be kept in stock to meet emergencies. which have. 120. 122. the factor governing the selection of the depot being generally the proximity to the base of supply. Such Surplus stock may be the result either of changes in design. 114. Moveable Surplus Stores comprise items of stores which have not been issued for a period of 24 months. however.These are of two kinds. Such items will be known as ‘Stock’ items. of stores or of the consuming departments returning to the depots special items or stocks items of stores no longer required by them such stores have to be held in custody in stores depots and steps taken for their prompt disposals. other than for ‘operation’ or ordinary maintenance and repairs ‘ and which are ordinarily dispatched directly to the requistionist without being stocked in a stores depot. &c. in specification. will be used in the near future. 116. ‘Moveable’ and ‘Dead’. 118. Main Depots: . and which are not readily obtainable. it is anticipated. all other depots. however. each stock item should be allocated to one depot. 113.

The minimum limit is therefore the lowest permissible level to which the stock of an item may fall without a stock recoupment having been sent forward for replenishment. including heavy clerical and accounting work. As orders for small quantities at a time at frequent intervals would result in increased cost of packing and other charges. cost of stationery and inconvenience to the suppliers.The minimum limit should be a quantity of stock representing an average weekly issue multiplied by the number of weeks. it is possible to keep the “minimum" very low. obviates loss of valuable time involved in reference to each other depot to see whether surplus stocks are available before a purchase order can be placed. It is the "Stock Order Point" signifying the point at which the recoupment demand should be sent forward. The minimum stock limit should be fixed as low as possible depending upon the prevailing market conditions and the proximity of the depot to the normal source of supply. ordered for at any time after providing that stores are never less than the prescribed minimum.A minimum and maximum limit should be laid down for the quantity of each 'stock item' of stores in a depot at any time below or above which the balances should not ordinarily be allowed to go. before purchases are resorted to. Minimum Stock: . the "maximum" should be carefully fixed with due consideration for this factor. 124. and for the contractor to obtain his supplies after receipt of the orders. . As such. concentrates the surplus stores of an item in one depot viz. The assignment of one depot as a Main Depot for an item of stores prevents the slow accumulation of surplus stocks in each depot by individual direct purchases of stores. In the case of items arranged for on an annual contract basis. results in the items frequently running out of stock. Supplies of items. Every endeavour should therefore be made to place as many stock items as possible on annual contracts. the ‘Subsidiary Depots’ merely placing requisitions on the Main Depot. because the time required to get fresh stocks is merely the period required for placing a purchase order on the firm against the annual contract. in addition to involving higher Minima stocks being kept. Minima and Maxima: . 128. placing of order. 125. Maximum Stock: -The fixing of the maximum limit is governed by the following factors (i) Economic Size of Each Order. which from past experience.. the Main Depot and therefore enables the systematic working off of such surplus. which are merely purchased as and when required. 123. 127. All orders for purchase or manufacture by Workshops of an item of stores will be placed by the ‘Main Depot’ for the item. it is known will elapse from the date of placing an order before fresh stocks can arrive at the depot. and as will be seen from the detailed procedure in para 1414 to para 1439.same item for issue in their respective territories being ‘Subsidiary Depots’ as far as that item is concerned. a system of as and when required purchases. take a considerably longer time than supplies of items ordered up against annual contract as the time factor must be adequate for the calling of tenders. 126.The "Maximum" is the lowest quantity that may be.

within the provisions of the In Railway Codes and the rules and orders issued by Railway Board from time to time. which will be directly or indirectly to its own advantage. unless (a) (b) (c) (iv) the amount or expenditure involved is insignificant or a claim for the amount could be enforced in a court of law or the expenditure is in pursuance of a recognised policy or custom.Maximum and minimum stock limits for items manufactured in railway workshops should be fixed in consultation with the Works Manager of the shops concerned. 130.On the other hand.(ii) Increased Lock up of Capital: . No authority should exercise its powers of sanctioning expenditure to pass an order. and accumulation of surplus by unnecessary advance purchase of stores. which by the light of information available at a later date could otherwise have been cancelled from the contract obligations under the clauses empowering increase or decrease of the contracted quantity. the fixation of high limit would involve apart from inventory carrying costs unnecessary locking up of capital.The financial and other powers of the Controller of Stores are such as are delegated to him by the General Manager. and that government servant should exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of expenditure of his own money. (A working rule is that the maximum should not ordinarily exceed twice the minimum limit prescribed for an item). extra storage and protection arrangement. risk of deterioration of stores. Powers of the Controller of Stores: . increased labour charges.In exercising these powers. Minima and Maxima for Workshop Items: . Public money should not be utilized for the benefit of a particular person or section of community. taking in to consideration the time taken by the workshops to complete any recoupment orders placed on them. 129. Standards of Financial Propriety: . (ii) (iii) The amount of allowances. such as travelling allowances granted to meet expenditure a particular type should be so regulated that the allowances are not on the whole source of profit to the recipients. Note: All proposals-involving financial implications except those which have been specifically exempt for this purpose should be referred to finance branch for advice before . the Controller of Stores should pay strict regard to the standards of financial propriety among which are the following:(i) The expenditure should not prima facie be more than the occasion demands. 131.

the Controller of Stores may delegate powers of purchase to his subordinate officers attached to his office.. Sales &c. (1) the adoption of the single tender system to orders. 132. Nature of Power 2 Purchase of stores other than stationery and printing. Note.85/F(S)-I/PW-7/1 dt. POWERS Item No 1 1. These limits should not ordinarily be exceeded. the estimated value of which exceeds Rs.It has been found in practice that the powers of the General Manager in the matter of the purchase.000 in the case of non-proprietary articles and Subject to the constitution of tender committees to deal with tenders of the value of Rs. Extent of power 3 Up to Rs.. sales &c. ACS No.these are sanctioned. of the Controller of Stores/Chief Materials Manager.5 crores to COS. Subject to such safeguards as may be laid down in consultation with the Financial Adviser and Chief Accounts Officer and within the limits laid down by the General Manager.-The expression subordinate officers attached to his office occurring at the end of the above sub-paragraph includes all Gazetted Officers under the Stores Department of the Railways whether at the Headquarters. 2-5-94). note I . Depots or Divisions. Schedule of Powers of Purchase.. 1 crore for COS to Rs 1. 2 lakhs or above in each case. of railway stores need not be delegated to Controller of Stores/Chief Materials Manager beyond the limits shown in the schedule below. Same as stipulated in para 331 (c) the previous sanction of the General Manager is necessary toADVANCE CORRECTION SLIP TO THE INDIAN RAILWAY STORES CODE VOLUME-I (Revised Edition 1990) . vide paragraph 351. 50 lakhs for CMM and 1 Crore for COS for each individual item.10. (Authority: Board's letter No. 8 Substitute the value appearing in Para 132 Item 1 from Rs. excepting where levels of delegations have been fixed by the Board.

(a).Rs. and subject to the limit of Rs. (b). (2) the adoption of the open tender system to orders.000 in each case. 3. 2. All powers under paragraph 1109 of this code.000 in each case. 25 lakhs in the case of proprietary articles and articles in the process of indigenous development subject to the rates quoted being reasonable. 25 lakhs. Power to sign on behalf of the General Manager all indents placed in India on the Directorate General of Supplies and Disposals against "General Purposes" grant and to certify minor casual indents not involving expenditure against the advance grant upto a limit of Rs. Purchase of stores through the Directorate General of Supplies and Disposals. the estimated value of which exceeds Rs. 10. (3) the direct purchase of stores. 2 lakhs. for which indents have to be placed with the DGS&D value exceeding Rs. 30. Purchase of Printing & Stationery .In the case of running contract the Controller of Stores/Chief Materials Manager may exceed the contract quantity plus tolerance laid down by the Directorate General of Supplies and Disposals with the prior sanction of the Director General of Supplies and Disposals. Also power to incur liability in respect of "other than imported stores for general purposes" in anticipation of funds being provided in the sanctioned budget for the following financial year and to certify indents for such stores placed on the Directorate General of Supplies and Disposals accordingly.

Cancellation of orders placed by the Controller of Stores under his own power of purchase or against annual contract sanction by the General Manager. In respect of purchases made under the General Manager's sanction. Obtaining excess quantities against items on rate contracts. . Full Powers Full Powers subject to the contract Conditions. Note: Where no loss can be proved to have occurred. or b) Purchase elsewhere at the contractor’s risk or c) Recovery from the contractor of a sum of 2 per cent of the contract price of the consignment per month or part during which the supply may be in arrears upto the amount of the actual loss sustained by the railway. no penalty is leviable.4. 6. When waiving a penalty. the Controller of Stores/Chief Materials Manager may be given powers of granting extensions of delivery periods. with the concurrence of the Financial Adviser and Chief Accounts Officer. Penalties for failure to deliver stores within the stipulated time. The Controller of Stores/Chief Materials Manager may be given full powers to impose or waive these penalties in respect of all contracts entered into by the Railway. He has also powers to impose or waive penalties in such cases. 5. 1. The penalties laid down in the contract Document are a) Cancellation of the contract and recovery of any loss or damage which the railway may sustain by reason of such failure on the part of the contract. the reason for doing so must be fully recorded on the relevant files and the stores bill forwarded to the Chief Accounts Officer suitably endorsed. 2.

stationery.. Railway Battalions... Full powers to sell any stores to other railway at full book rate or higher plus such additional charges as prescribed. unserviceable........ surplus and obsolete stores and adjustment of the difference between the book value and sale value.. Indian Posts and Telegraphs Department.. Full powers to sell at the book rate or purchase rate whichever is higher plus the prescribed departmental charges.. public undertakings of Govt. 200 in each case... at a loss not exceeding Rs.. of auction rate whichever is higher or India or State Govt.-If as a condition of sale.............. By direct sale to other Govt...... Sale of Stores to other railways Power to exceed the original contract quantity beyond the percentage tolerance agreed..... Full powers to dispose of such material and to adjust the difference between the book value and sale value. By direct sale . Dept.. Note............ Direct sale of books... (a) (b) Disposals by sale or transfer of scrap....... 10... bodies..... Full powers and power to adjust the difference between book value and sale value........ Government Railway Police Department... petty stores and clothing for menial staff.. By tender.. Railway Regiments and other similar bodies. Railway Institutes....... forms.... Power to sell at the book rate or purchase rate whichever is higher plus freight incidental supervision charges to the following Railway Employees' Co-operative Credit Society........ 9.. Sale of over-stocks of ordinary emergency or special stores :By tenders......... and quasi Power to sell at book value or last Govt... Obtaining excess quantity against items on running contracts entered into by the Railways 8.. subject to a limit of 10% of the value of the contract subject to conditions of para 441-S... 11.... freight is to be borne by the administration cost of such freight should be taken into consideration in computing the ..7....

(ii) Forfeiture of earnest money deposited Full powers in accordance with the along with tenders and of security deposits provision of the tender or contract provided that when the General Manager approves such tenders or contracts. Full powers provided the contracts are satisfactorily completed. (c) not due to different methods of measurement adopted by the .. 14. Writing down value of surplus or obsolete Power to write down the value of stores on the books. Contracts Full powers....loss. adjustments are:(a) restricted to a limit of Rs.. (This rule applies to all cases of sales).... Full powers subject to paragraph 2224...... Adjustments against the Stock Adjustment Full Powers Provided the Account..... such items of stores as become surplus to requirements or absolute subject to a limit of Rs..... (c) 12..... Note: . For loading and unloading goods. 25000 for each item on the recommendation of Survey Committees. he should decide the question of forfeiture... 17... Supplies and Disposals against the works grant. Certification of indents for the purchase of Full power to sign and certify such stores through the Directorate General of indents.... (b) not due to the negligence... 16.... 5. By auction.. Extension of time and enforcing or waiving of Power to grant extension of time ground rent in connection with the sale of either for payment or removal of scrap to contractors and cases of stores await material specified in contracts -ing removal from Railway premises entered into by him and to enforce or to waive ground rent provided the railway has suffered no loss by such extension or waiving which facts must be recorded in writing in each case.. 15. carelessness or dishonesty of any railway employee. Tender Deposits(i) Refund of Security deposit...000 for each individual case..... 13..Contracts should be given after public call for tenders.

careless-ness or dishonest of any railway Employees. 2..Accounts Department Stock Verifiers and the departments.in each individual case provided that the adjustments :- 18.40.(2) The restriction in clause (a) does not apply to adjustments of the difference between book rates and sale values for which vide items 9 and 11. TO write off shortages of articles of dead stock. (a) are not due to the negligence.. (i) Full powers upto Rs. (d) Such that the Chief Accounts Officer agrees need not be referred to the General Manager.000 may be extended to Rs. Note. . (ii) And up to Rs.(1) The limit of Rs.1. (b) arising out of Accounts Department Verifications are such that Chief Accounts Officer agrees need not be referred to the General Manager.000 in each case where the loss is due to the negligence carelessness or dishonesty of any railway employee where it is not possible to effect the recovery of the cost the stores from the employee concerned.5.000 with respect of adjustments due to fluctuations in market rates. Note. losses of stores and tools and plant in stock and in transit on Revenue Account and to sanction adjustments effected in the numerical accounts for verifications undertaken departmentally or by the Accounts Deptt.000/.

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