DFP Nov-2019 PDF

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 1
FOREWORD
The financial powers delegated to OFB and its units have originated from various Govt. letters/ OFB orders issued over the years. OFB is
bringing out a compilation of delegation of powers available to various authorities both in OFB Hqrs and in other units indicating the latest
position against any item of delegation. This version is updated on the basis of various resolutions passed by O.F. Board till November’2019
and is a compilation of Board Order No. 507/BS date 19.06.2019.
The powers of Board can be exercised by Member/Members of Board, so far as they are relevant to the functioning of the divisions under
their control as delegated vide OFB order No. 2/BS dated 19.05.1979 (copy enclosed at page No. 145)
As the delegation of powers is subject to certain conditions and guidelines, no power having financial implications can be exercised unless
there is supporting budgetary provision. Therefore 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 OFB manual should be complied
with.
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 terms GM, PD & DDG will also include Sr GM, Sr PD & Sr DDG, respectively.
(VIVEK C VERMA)
Secretary/OFB
10th December2019

ABBREVIATION
AGM - Additional General Manager

C of F - Controller of Finance
CFA - Competent Financial Authority
CF&A - Controller of Finance and Accounts
DDP - Department of Defence Production, Ministry of Defence
DGOF - Director General Ordnance Factories
DDG - Deputy Director General / Sr Deputy Director General
DGM – Deputy General Manager
Dir - Director
GM - The General Manager/ Sr General Manager of Ordnance Factory
Jt GM – Joint General Manager
Jt Dir - Joint Director
WM - Works Manager
JCF - Joint Controller of Finance
JCFA - Joint Controller of Finance and Accounts
LAO - Local Accounts Office
LTE/OTE - Limited Tender Enquiry / Open Tender Enquiry
LPC - Local Purchase Committee
MMTC - Metals & Minerals Trading Corporation
NADP - National Academy of Defence Production
NC - New Capital
OFB - Ordnance Factory Board
OFIL - Ordnance Factory Institute of Learning
ODC - Ordnance Development Centre
Optg Div - Operating Division
PD - The Principal Director/ Sr. Principal Director of NADP or OFIL
PFC - Plan finalisation Committee
PSU - Public Sector Unit
RCS - Regional Controllerate of Safety
RR - Renewal & Replacement,
STC - The State Trading Corporation of India
IPL - Itemized Price List

I N D E X
Sl No SUBJECT PAGE NO
1 PROCUREMENT OF STORES 5
2 PROCUREMENT OF PLANT & MACHINERY 14
3 DELIVERY PERIOD, LD, SD, ADVANCE PAYMENT & PAC 24
4 ISSUE OF ITEMS ON RETURNABLE & NON-RETURNABLE BASIS 31
5 DESPATCH OF STORES 34
6 DISPOSAL OF SURPLUS (SERVICEABLE & UNSERVICEABLE) ITEMS 38
7 CIVIL TRADE / EXPORTS 43
8 EXPENDITURE ON SCHEMES, PROJECTS & CIVIL WORKS 48
9 REGULARISATION OF LOSSES 64
10 CONSULTANCY 69
11 CONTINGENT, MISCELLANEOUS AND GENERAL MATTERS 82
12 MEDICAL 110
14 TPC/TEC STRUCTURE AT OFB 114
15 TPC/TEC STRUCTURE AT ORDNANCE FACTORIES FOR PROCUREMENT OF STORES 122
TPC/TEC STRUCTURE AT ORDNANCE FACTORIES FOR PROCUREMENT OF PLANT & MACHINERY 127
16 TPC/TEC STRUCTURE FOR PROCUREMENT IN ODCs 130
17 COMPOSITION OF CIVIL WORKS COMMITTEE (CWC) 133
18 TPC STRUCTURE FOR PROCUREMENT OF MEDICAL STORES AT FACTORY HOSPITAL 137
19 TDC STRUCTURE AT ORDNANCE FACTORIES 141
20 DECLARATION OF HEAD OF DEPARTMENT (HOD) & COMPETENT AUTHORITY 143
21 AUTHORISATION TO MEMBERS/O.F. BOARD TO EXERCISE POWERS OF ORDNANCE FACTORY 145
BOARD
22 LIST OF CLASSIFICATION CODES & UNIT CONTROL CODES 146

PROCUREMENT OF STORES

Delegation Consultation
Sl no Nature of Power / Remarks with Finance
Factory/Unit OFB
Reference
Authority Extent Authority Extent
1 Procurement of all Procurement will be subject to
Stores/Goods and (i) conformance to OFB Procurement Manual 2018 as amended/revised from time to
(*) Services which are time,
incidental or consequential (ii) availability of budgetary provisions
to the supply of such Goods (iii) Financial power is irrespective of currency of payment STORE/GOODS: (As per
such as, Transportation, OFBPM/OFBPM-P&M)
Insurance, Training and
Maintenance as defined in (i) Inputs and aids for production such as all articles, material, commodity, livestock,
OFBPM 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,
licences, patents or other intellectual properties purchased or otherwise acquired for the
use of Govt. etc. but excludes books, publications, periodicals, etc. for a library.
(ii) Maintenance aids, including spares, tools & tackles, etc.
(iii) (*) Services (production related) which are incidental or consequential to the supply of such
goods, i.e. conversion, job-work, packing, unpacking, preservation, transportation,
insurance, delivery, maintenance support, technical assessment, consultation, system study,
software development, maintenance conservancy, etc.
Note : Hiring of labours under category of services mentioned in definition of goods under this head are only applicable
for labours engaged in production.

Sl Nature of Power / Reference Delegation Remarks Consultation
no with Finance
Factory/Unit OFB
Authority Authority Authority Extent
1a Procurement of Stores/Goods
against LTE/OTE or Rate / WM ₹ 20 Lakh Addl. DGOF/ ₹ 200 Cr Fin power Yes
Running contract placed by MoD Member(Optg. irrespective of
or OFB or GeM or ** IPL Div.) currency of
approved by MoD or Jt.GM/DGM ₹ 2 Cr payment
procurement of stores from
Indigenous Sources/Foreign AGM ₹ 10 Cr
Sources or shipping Addl. DGOF/ ₹ 300 Cr Procurement from
transportation Member/looking PSUs to be
Sr. GM /GM ₹ 75 Cr after P&MM construed as per
Division OFBPM
[Minor Head 110] All HODs (other ₹ 5 Cr
than Sr GM
/GM) DGOF Full power
Only for non-
production
purpose
** IPL: Itemized Price List

Sl Delegation Consultati
no Nature of Power / Reference Remarks on
Factory/Unit OFB
with
Authority Extent Authority Extent Finance
1b Procurement of Stores/Goods from AGM ₹ 1 Cr Addl. DGOF/ ₹ 30 Cr Fin power Yes
Indigenous and Foreign Sources (i) Member irrespective of
on Proprietary Articles Certificate (Optg. Div.) currency of
(PAC), (ii) From Single Known payment
Source (SKS), (iii) Where resultant
single acceptable offer is received Sr. GM /GM ₹ 5 Cr Addl. DGOF/ ₹ 50 Cr
against LTE/OTE and identified Except HVF Member/lookin
vendors have confirmed receipt of g after P&MM
TE, (iv) Against single tender from Division
source nominated by Indentor
/Design Agency /Collaborator
satisfying the provisions of OFB Sr. GM /GM ₹ 10 Cr DGOF Full power
Procurement Manual HVF
[Minor Head 110] All HODs ₹ 1 Cr

(other than Sr
GM /GM) only
for non-
production
purpose
Note: Approval-in principle (AIP) shall be obtained from DDP, through OFB before Issuing TE in respect of procurement
from foreign sources valuing ₹ 50 Crs or more.

Sl Delegation Consulta-
No Nature of Power / Remarks tion
Reference Factory/Unit OFB with
1c Procurement of Sr. GM /GM ₹ 5 Lakh Addl. DGOF/ ₹ 5 Cr Only in case of urgent Yes
Stores/Goods against ab- Member requirement and urgency to
initio single tender (Optg. Div.) be recorded in VSL TPC
minutes in defined manner.
[Minor Head 110 Addl. DGOF/ ₹ 10 Cr
Member/looking
after P&MM
Division
DGOF Full Power

1d Placement of Development Sr. GM /GM ₹ 25 Lakh --- --- For new input item of Made Yes
Order for new item of input to Order (MTO) Category
required for IR&D Project for IR&D project.
This provision can be
Minor Head 004 invoked using LTE /ab-
initio STE without
resorting to OTE
1e Placement of Development Sr. GM /GM ₹ 25 Lakh --- --- For an item of Made to Yes
Order for item to be Order (MTO) Category to
indigenised be indigenised, this
provision can be invoked
Minor Head 004 using LTE/ab-initio STE;
without resorting to OTE
Note for Sl. No. 1e : After successful development of the item, the firm will be considered as Established vendor for the item.

Sl Delegation Consul-
No Nature of Power / Reference Remarks tation
Factory/Unit OFB with
2 Cash purchase of all Stores/Goods and --- --- i) This power No
Services which are incidental or WM/MM ₹ 2000/- may be invoked
consequential to the supply of such Goods in case of stock
such as, Transportation [Minor Head 105], out condition/
DGM/MM ₹ 5,000/- production or
Insurance [Minor Head 800], maintenance held
up (reasons to be
Training [Minor Head 800] and JGM/MM ₹ 10,000/- recorded).
Maintenance [Minor Head 053] ii) In

as defined in OFBPM/OFBPM-P&M. AGM/MM ₹ 15,000/- conformity with
Rule 154 of GFR
2017.
Head of ODC ₹ 15,000/-
Sr.GM/GM ₹ 25,000/-

Sl Delegation Consultation
no Nature of Power / Factory/Unit OFB Remarks with Finance
Reference
3 Spot Payment for purchase AGM ₹ 50 Lakh --- --- This should be accepted Yes
of Stores/Goods only after other modes of
payments are not
accepted by the firm.
Sr. GM /GM ₹ 1 Cr Payment to be made only
after full acceptance and
delivery of stores.
SHIS & Ledger for allied units needs to be discussed.

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 working under him/her
or AGM heading purchase function (Material Procurement section) as well as Jt.GM, DGM, WM 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.

no Nature of Power / Reference Remarks with Finance
Factory/Unit OFB
4 Purchase of all Stores/Goods and Services Sr.GM/GM ₹ 2.5 --- --- 1. In conformity with Yes,
which are incidental or consequential to Lakh Rule 155 of GFR 2017 Concurrence of
the supply of such Goods such as, Head of Office of
2. It shall be ensured associated
Transportation [Minor Head 105], Head of ₹ 2.5 that procurement qty Finance attached
Insurance [Minor Head 800], Training ODC Lakh shall not spilt for the to Sr.GM/GM
[Minor Head 800] and Maintenance [Minor purpose of avoiding or equivalent rank
Head 053] as per OFBPM through Local the tendering process. shall be
Purchase Committee (LPC) to meet All HODs ₹ 2.5 considered as
requirement irrespective of urgency. Lakh 3. Hiring of man power appropriate
services while Financial Advisor
Ref: OFB Order No. 507/BS-Corr-2 complying to all the for purpose of
dated 26.08.2019 rules/ stipulations for financial
such services. consultation for
LPC

Factory/Unit OFB
5 Direct Procurement of stores of These powers will be exercised subject to the condition that action to cancel/ reduce the
Ordnance Origin. requirements 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/
Minor Head 110 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
adequate time to project requirement
requirement on depot and obtain
the same.
5b When the supplies from the Sr. GM /GM Full Power --- --- Limited to supplies for Yes
depot are not forthcoming and three months
the stock level in the factory requirement
has fallen down and the
production activity is likely to be
affected.

PROCUREMENT
OF
PLANT & MACHINERY

Sl Nature of Power / Reference Delegation Consultation
no Remarks with Finance
Factory/Unit OFB
6. Procurement of Plant & Machinery under New (i) A careful appraisal of the proposed investment should be carried out from
Capital [Minor Head 052] and Renewal & various angles such as Prioritization of expenditure, scrutiny of demand from the
Replacement [Minor Head 106, including relevant out turn, assurance of reasonable IRR, cost benefit analysis etc. In case of
contract for Modification and /or any deviation/short coming found in such appraisals and if the investment is still
Reconditioning of P&M. considered necessary on any other ground, approval of Ministry will be obtained. The
additional guidelines given in APPENDIX-I (MOD letter No.17(13)/2002/D (Proj-I)
dated 22.10.2003) should also be adhered to.
(ii) Govt. sanctioned projects under ‘New Capital’ implies that OFB have already
identified various categories of P&M, while obtaining sanction. The procurement shall
be made in accordance with guidelines/ procedures laid down by OFB.
(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)/B dated 26.07.2010, 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 OFB required. Unless otherwise specified

Factory/Unit OFB
6a Procurement, Modification and AGM ₹ 1 Cr Addl. DGOF/ ₹ 35 Cr AIP shall be Yes
/or Re-conditioning of P&M Member obtained from DDP
through LTE/OTE/GTE under (Optg. Divn) by OFB before
RR [Minor Head 106] and issuing of T.E in
NC [Minor Head 052] Sr.GM/GM ₹ 25 Cr respect of
(PFC approval by OFB) Addl. DGOF/ ₹ 50 Cr procurement having
Full powers – Member value ₹10 Crs or
for purchase (looking after more.
from Engg. Divn)
GeM
DGOF Full Power-
[limited to the
powers of
MOD]
Sr .PD/ PD ₹ 25 Cr --- --- i) Applicable for

/NADP only training
Full powers – related P&M
for purchase
from GeM ii) Capital asset will
remain in the
charge of OFAJ/
respective Fy
capital accounts

Sl no Nature of Power / Delegation Consultation
Reference Remarks with Finance
Factory/Unit OFB
6b Procurement, Modification Sr.GM/GM ₹ 50 lakh --- --- i) Demands to be examined Yes
and /or Re-conditioning of and approved by Fy level PFC
P&M through LTE/OTE/GTE headed by Sr.GM/GM
under associating senior most officer
RR [Minor Head 106] and of Engg. & User and C of
NC [Minor Head 052] F&A (Fys).
(PFC approval by Factory)
ii) The power excludes
Passenger vehicles and air
conditioners
iii) Factories shall forward

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

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

be made in Non-Core area.

Nature of Power / Delegation Consultation
Sl Reference Remarks with Finance
no Factory/Unit OFB
6c Procurement, Modification Sr. GM/ GM ₹ 2 Cr Addl. DGOF/ ₹ 4 Cr i) PFC approval by OFB is Yes
and /or Re-conditioning of Member required
P&M on Single Tender/ (Optg. Divn)
Resultant Single Tender or ii) AIP shall be obtained
Proprietary Items under: Addl.DGOF/ ₹ 6 Cr by OFB before issuing of
Member T.E from DDP in respect
RR [Minor Head 106] and (looking after of procurement having
Engg. Divn) value ₹ 10 Crs or more.
NC [Minor Head 052].
DGOF Full Power
Sr. PD/ PD/ ₹ 1 Cr -do- -do- i) PFC approval by OFB

NADP is required
ii) AIP shall be obtained

by OFB before issuing of
T.E from DDP in respect
of procurement having
value ₹ 10 Crs or more
iii) Applicable for only

training related P&M
iv) Capital asset will

remain in the charge of
OFAJ capital accounts

Factory/Unit OFB
7 Erection & Commissioning of Addl.GM ₹ 25 Lakh --- --- To be exercised by Yes
P&M including installation of PD/NADP & for P&M
Services, e.g. distribution of belonging to capital
Steam, Compressed Air, Oil etc – Sr. GM /GM, Full power block register of NADP
Departmentally. Sr. PD/PD/ & subject to budget
NADP provision.
Minor Head 106(for RR), Fin Power is irrespective

052(for NC) of currency of payment
when Erection &
Commissioning is done
through Contract.
8 Erection & Commissioning of Addl.GM ₹ 10 Lakh Addl. DGOF/ ₹ 10 Cr Yes

P & M including installation of Member
Services, e.g. distribution of (Optg. Divn)
steam, compressed Air, Oil etc
– through Contract.
Sr. GM /GM, ₹ 25 Lakh Addl. DGOF/ ₹ 25 Cr
Sr. PD/PD/ Member
[Minor Head 106(for RR), NADP (looking
052(for NC)] after Engg.
Divn)

Sl Nature of Power/ Reference Delegation Consultation
Factory/Unit OFB
9 Repair of MT vehicles including Sr. GM /GM Full power HOD/HQrs Full power To be exercised by Yes
Motor Cycles, all Material HOD/HQrs, PD/NADP
Handling equipment – through Sr. PD/PD/ (within (within & PD/OFIL for MT [Financial
Contract. NADP & OFIL limits of limits of vehicles belonging to Concurrence not
economical economical capital block register required up to
repairs) repairs) of NADP/ OFIL. ₹2000/- for
Minor Head 053 Subject to cases at OFB]
competitive tendering,
provided that cost of
repair does not
exceed 20% of market
value of the item or
₹20,000/- for 2-
wheeler and ₹1
lakh for 4-wheeler
10 Repair of Departmental Medical Full power --- --- whichever is less. In Yes
Ambulance vehicles through Officer-in- all such cases an
contract Charge of (within estimate would be
Factory limits of prepared and vetted
Hospital economical by LAO before
Minor Head 053 repairs) issuance of Tender for
conclusion of contract.

Factory/Unit OFB
11 Purchase of Hospital specific Medical ₹5 Lakh Addl. DGOF/ ₹15 Cr i) Subject to Yes
equipments/ Instruments from Officer I/C in each case Member competitive
trade (looking Tendering
after Engg.
ii) PFC approval by
Divn)
Competent
Authority for
[Minor Head 800]
Procurement
Sr. GM/GM Beyond ₹5 DGOF Full Power
cases beyond
Lakh & upto
₹ 2 Lakh.
₹ 75 lakh in
each case
12 Maintenance Cover /Repair of Medical ₹5 Lakhs Addl. DGOF/ ₹25 Cr By competitive Yes
Hospital Equipments /Instruments Officer I/C in each case Member tendering where
through contract within budget (Optg. Divn) services not covered
provision through AMC and
not provided by
manufacturer or
[Minor Head 053] Sr. GM/GM ₹10 Lakhs Addl. DGOF/ Full Power their authorised
Member agent
(looking
after Engg.
Divn)

Factory/Unit OFB
13 Maintenance of Computers Head of Full power --- --- --- Yes
ODC
14 Scientific equipment/ laboratory equipment, Test Sr.GM/GM ₹ 25 Lakh --- Yes

and Measuring instruments /Systems for Quality in each
Control, Quality Assurance and data acquisition case Procurement
beyond ₹25
[Minor Head 800 (upto ₹10 Lakh), Lakh to be
Minor Head 052 (for more than ₹ 10 Lakh)] processed
through
Ref: OFB Order No. 507/BS-Corr-3 dated respective PFCs
26.11.2019 of P&M.
15 Scientific equipments/ laboratory equipments Head of ₹ 25 Lakh Subject to Yes

ODC in each Acceptance
[ Minor Head 800 (upto ₹ 10 Lakh), case of Procurement
Minor Head 052 (for more than ₹10 Lakh)] Necessity beyond ₹25
(AON) by Lakh to be
Ref: OFB Order No. 507/BS-Corr-3 dated Member/TS processed
26.11.2019 through
respective PFCs
of P&M.

Factory/Unit OFB
16 Sanction for expenditure under Sr. GM/GM * 15% of original Addl.DGOF/ Full Power * Provided Yes
RR [Minor Head 106] & sanctioned Member (i) Value of order
NC [Minor Head 052] amount (Optg. Div.) falls within Financial
in excess of amount sanctioned powers of
by PFC/OFB or Sr. GM/GM
₹ 1Cr (ii) Requisite

whichever is fund is available and
less Full power
for (iii) The Purchase is
procurement not a Resultant
through GeM Single Tender case.
17 Sanction of expenditure in --- --- DGOF 15% of the Yes
excess of original sanctioned sanctioned
amount by Govt. or OFB amount of
the Project
[Minor Head: of original
project] or
₹ 3 Crs
whichever is
less

DELIVERY PERIOD, LD, SD,
ADVANCE PAYMENT & PAC

Factory/Unit OFB
18 Extension of Delivery Period i) Extension shall not be given in cases where higher rate has been paid/ contracted for
earlier delivery.
ii) Sr. GM /GMs/All HODs & Head of ODCs may extend DP upto 2 years for cases where
OFB is CFA.
WM, Full power Addl. DGOF/ Full power As per Yes,
Member provisions of only in cases
(As per the (Optg. Divn) (Beyond two OFBPM/ where LD is
DGM, power of TPC years for cases OFBPM-P&M being waived
which falling in the off.
concluded the Financial powers
JGM, contract) of OFB)
AGM, DGOF Full power
(Beyond two
Sr. GM /GM/ years for cases
All HODs & where Chairman
Head of or MOD is the
ODCs CFA for the
procurement)

Nature of Power / Delegation Consultation
Sl no Reference Remarks with Finance
Factory/Unit OFB
19 Waiving off Liquidated WM, (As per the i) As per Yes
Damages. power of provisions of
DGM, TPC which OFBPM/OFBPM
concluded -P&M
Jt.GM, the ii) For cases of
contract) financial power
AGM, of OFB/MoD,
waival of LD if
Sr. GM any, may be
/GM/ processed by Fy
All HODs & TPC-I.
Head of
ODCs
20 Waiving off Performance WM, As per the Chairman/ As per the As per Yes
Security Deposit power of TPC TPC respective provisions of
DGM, which power of OFBPM/OFBPM
concluded TPC which -P&M,
Jt.GM, the contract concluded
the
AGM, contract
Sr. GM
/GM/
All HODs &
Head of
ODCs

Sl no Nature of Power / Delegation Consulta-
Reference Remarks tion
with
Finance
Factory/Unit OFB
21 Lodging of Security Deposits Sr. GM /GM/ Full power HOD/HQrs Full power Yes
with suppliers of Gas All HODs
Cylinders.
22 Issue of Proprietary Article Sr. GM /GM/ Full power HOD/HQrs Full power i) For PAC/SKS Yes
Certificate (PAC) /Single All HODs procurement cases
Known Source (SKS) exceeding Sr. GM/
Certificate for purchase GM₹s/HoD’s financial
powers, PAC/SKS
certificate will be issued by
the Sr. GM/GM/HoD’s in
consultation with the
Operating Member/OFB
ii) Provisions of
OFBPM/OFBPM-P&M to be
followed.

Sl Nature of Power / Reference Delegation Consulta-
no Remarks tion
23 Advance payment for Steel Items Sr. GM /GM 100% Payment - - Yes
to the Main producers in Govt within 14 days of
Establishments /Public Sector like presentation of
SAIL etc. Bill with Proof
[Minor Head 110] of Inspection &
Dispatch
24 Advance payment to suppliers. Sr. GM /GM Not exceeding Respective Not exceeding i) Subject to Yes
15% of Contract TPC 15% of provisions of
value Contract value OFBPM/OFBPM-
P&M
ii) Subject to
receipt of Bank
guarantee for 110
% of the advance
amount.

Factory/Unit OFB
Authori Extent Authority Extent
ty
25 Advance payment to Private as well as PSU Sr.GM/ Full power --- --- Advance to Private Yes
Oil Companies. GM Companies As per
(Upto 100% of OFBPM/OFBPM-
[Minor Head 110] their Financial P&M
powers for
local purchase
of Oils &
Lubricants)
Note for Sl no. 25 :- Advance payment is required to be made through any online mode of payment like,
RTGS/NEFT etc.
26 Contractual advance payment as per Sr.GM/ Full power HOD/HQrs Full power Yes
contracts entered into by OFB under its GM
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.

Factory/Unit OFB
27 Stage Payments. Authority – OFB(Ordnance Factory 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 Board.
iii) Cases where a difference of opinion between the Members of OFB

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

Factory/Unit OFB
28 Issue of capital items including Sr. GM /GM Full power HOD/HQrs Full power For such issues Yes
vehicles for repair and DGOF/GM will obtain
overhauling to Private Firms, Security Deposit
State Undertakings and Govt. equivalent to Book
Depts. Value or Market
value plus 5% on the
inclusive rate.
In the case of
Provision of OFBPM as amended from PSUs/Govt Depts/
time to time be followed Firms of repute,
Indemnity Bond may
be accepted on
consideration of
merit.
Sr. GM /GM Full power OFB Full power Yes
29 Issue of Stores and Materials
/AGM
from factory stock to Private
Firm. Govt. Dept. and State
Undertakings subject to
recovery or adjustment of cost
thereof as computed by finance
and Accounts Branch.
Minor Head 101

Sl Nature of Power / Reference Delegation Consulta-
no Remarks tion
Factory/Unit OFB with Finance
30 Air Lifting of Stores – Subject to the
provisions that
(i) Within India Sr. GM /GM ₹ 2 Lakhs Addl. DGOF ₹ 1 Cr. necessary control Yes
per /Member is exercised in
occasion (Optg Div.) case of Air-lifting
of stores and it
should be
resorted to only in
(ii) From abroad case of extreme
Sr. GM /GM ₹ 20 Lakh Addl. DGOF/ Full power urgency.
per Member/
occasion looking after
Minor Head 105 MM Division

DESPATCH OF STORES

Factory/Unit OFB
31 Collection/Despatch of items by Sr. GM /GM Full power HOD/HQrs Full power Subject to Yes
other than the shortest route or rendering a
cheapest mode of carriage. certificate
that such
AGM ₹ 3 Lakh dispatch is
[Minor Head 105] & in each case necessary to
Head of ODC maintain
continuity of
production.

Sl Nature of Power Delegation Consultation
no / Remarks with Finance
Reference Factory/Unit OFB
32 i) Issue of samples/components of items being imported to Indigenous vendors as loan for development :-
General Manager of 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 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 from time to time
ii) Sr. GM /GM /OFB 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.
In case of items of issues 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.
iii) The Sr. GM /GM /OFB 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 OFs as assistance programme, the price will be fixed by taking maximum

Sl no Delegation Consultation
Nature of Power / Remarks with Finance
iv) The Sr. GM /GM /OFB 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 /OFB may waive security deposit if they are satisfied that the Govt.
interests are adequately safeguarded.
In case of items of issue ex manufacture by OFs as assistance programme, the price will be fixed by taking maximum
v) Sr. GM /GM /OFB 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 /OFB.
vi) Sr. GM /GM /OFB can also issue instruments and machines other than capital items, to well established and reputed
firms, State undertaking and Govt. Departments for repair/ overhauling without any security deposit if they are
satisfied that Govt. interest is adequately safeguarded.

DISPOSAL
(SERVICEABLE & UNSERVICEABLE ITEMS)

Factory/Unit OFB
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
(ii) Other than Drums, Sr.GM/GM ₹ 1 Cr. Member/ Full power of the Stock
Containers & Packages per case Optg Div Review Committee.
2. For service-able
(iii) Medicines or healthcare Medical ₹ 1 Lakh Member Full power stores, a loss
related items Officer per case (Optg Div) statement
I/C required to be
generated as per
₹ 1 Cr. FR Pt-II
Sr.GM /GM per case

Sl Nature of Power / Reference Delegation Consultati
no Remarks on
Factory/Unit OFB
with
Finance
34 Declaration of Unserviceable Sr. GM / Full power HOD/HQrs Full power The power is for Yes
Stores, Scrap, Swarf, Obsolete and GM/HoDs declaration of
Waste Material surplus for further
disposal subject to
recommendation of
the Stock Review
[Minor Head 110] Committee
35 Declaration of Unserviceable Plant & Sr. GM /GM Full power --- --- Before declaring Yes
Machinery beyond economic repair. any item of P&M as
unserviceable and
surplus, all avenues
Minor Head [052] for its cost
effective
reconditioning have
to be explored.
36 Declaration & Disposal of Surplus, --- --- DGOF ₹ 20 lakhs Subject to the Yes
serviceable Plant & Machinery. in each case condition that
normal procedure of
disposal is resorted
to.
Minor Head [052]

Sl Delegation Consulta-
no Nature of Power / Reference Remarks tion
Factory/Unit OFB with Finance
37 Disposal of Serviceable/ Sr. GM Full power HOD/HQrs Full power Subject to Yes
Unserviceable Stores, Scrap, /GM (Unserviceable condition:
Swarf, Obsolete and Waste /HoDs Stores, Scrap, 1. Declaration of
Material. Swarf Obsolete serviceable/uns
AGM ₹ 50 lakh and Waste erviceable
per case Material) stores as per Sl.
No. 33 & 34
[Minor Head 110] JGM/DGM ₹ 20 lakh 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
[Minor Head 052] is
less than
5% of
original
book value
Note: -
(i) Disposal procedure as laid down in 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/MoD Nominated agency. Open Tender/ Limited Tender
may be resorted to with the proper justification and prior approval of concerned Operating Member of OFB.
(iii) Rate/Running Contract may also be concluded with the prior approval of concerned Operating Member of OFB.

no Nature of Power / Remarks with Finance
Reference
Factory/Unit OFB
39 Waiving of Ground rent Sr. GM ₹ 10,000 --- --- 1. The reason for waiver Yes
/GM per case of ground rent will be
recorded in clear terms
Minor Head 800 and approved by Sr. GM
/GM.
2. Also applicable for

rejected stores / P&M
supplied by vendors, lying
in factory premises as per
respective OFB
procurement manual.

CIVIL TRADE / EXPORTS

Factory/Unit OFB
40 Pricing of OFB products against Sr. GM /GM Full powers OF Board Power to quote minimum Yes
Civil Trade. price to include DM + 50%
for quoting of DL + Cost of Spl. Tools, if
Prime Cost any, + Cost of Spl. Packing, if
(DL + DM) plus any, + Cost of utilities e.g.
20 % of Total power, water, fuel, etc,
OH subject to wherever such cost exceeds
MOD letter 8% of Direct Material.
No.
1/4/1/55/D
(Prod) dtd
28. 10.1957 as
amended
41 Pricing of OFB products against --- --- OF Board Power to quote minimum Yes
Export. price to include DM+ 50% of
DL + 8% FOB charges +
agency commission.
LD shall not be treated as loss. Offer/BQ quoted by OFB

shall included 10% LD in cost. (For civil trade as well as
Export)

Factory/Unit OFB
42 Rectification/ Replacement Sr. GM /GM Full power Member looking Full power This excludes Yes
after issue to Civil Trade/ after CT & powers for
Export (As per Export foreign travel
contractual
obligation)
43 Issue of consumable free DGOF Full power Expenditure Yes

samples which are likely to be incurred for
expended in trials. various
products under
these powers
are to be kept
44 Issue of samples of non- DGOF Full power in view while Yes
consumable items for trials on pricing the
returnable basis. respective
products to be
exported.
45 Expenditure for transportation DGOF Full power

Yes
of samples such as shipping
costs, insurance, agency
charges etc.

Sl Nature of Power / Delegation Consultation
no Reference Remarks with Finance
Factory/Unit OFB
46 Supply of free samples to Sr. GM /GM ₹ 50,000 Addl. Full Power Subject to Yes
customers against an DGOF/ recording of
enquiry Member reasons
(looking
after
Export)
47 Incidental Expenditure :
Not
a) Customers hospitality Sr. GM /GM All Members (a) ₹ 1 Lakh Required up
(a) ₹ 40,000
for Sales promotion per case within to ₹ 40,000
per case
budget
within budget provision
provision
b) Expenditure on (b) Full power (b) Full power

Advertisement & Publicity within the within the
policy
policy
guidelines of
Minor Head 800 guidelines of DAVP in this
DAVP in this regard.
regard

Factory/Unit OFB
48 Advertisement and Sr. GM /GM Full power --- --- Expenditure Not necessary
Publicity. shall be kept upto
within funds ₹2,000/-in
Minor Head 800 specifically each case.
allotted to each
Factory on
annual basis
Provision of
OFBPM 2018 to
be followed
49 Acceptance of order for Sr. GM /GM Full power --- --- Price will be Yes
Civil Trade Items from fixed in
Govt Departments, State accordance with
Corpn, Municipalities & existing Govt
Civilian Customer. order in
consultation with
Fin Div subject
to the condition
and guidelines
for pricing
relating to
marginal cost
being observed.

EXPENDITURE
ON CIVIL WORKS,
SCHEMES &
PROJECTS

Factory/Unit OFB
50 Issue of Acceptance of AGM ₹ 1 Cr. Addl. DGOF/ ₹ 15 Crs For Fys Yes
Necessity & Administrative Member in each
Approval (MES and (concerned Divn) case i) Annual Civil Plan to be
Departmental works) and approved by concerned
placement of contract Member/OFB
(Departmental contracts only) Sr. GM /GM ₹ 5 Crs.
for capital civil works for Addl. DGOF/ ₹ 20 Crs ii) Capital Civil works
Ammunition magazines, Member (looking in each include new civil works &
Production buildings. after Engg. Divn) case special repairs.
Production Buildings include
buildings/ installations iii) Direct contract to
required for support services be finalised through
etc. which are directly related DGOF ₹ 25 Crs competitive tendering.
to production activities. in each
case iv) The power for
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.

Sl Nature of Power / Delegation Consulta-
no Reference Remarks tion
Factory/Unit OFB
with Finance
51 Issue of Acceptance of Sr. GM /GM ₹ 3 Crs HOD/OFBHQ ₹ 3 Crs i) Annual Civil Yes
Necessity & Administrative Plan to be
Approval (MES and approved by
Departmental works) and Sr.PD/PD/NADP ₹ 3 Crs Addl. DGOF/ ₹ 8 Crs concerned
placement of contract Member of in each Member/OFB
(Departmental contracts concerned Optg. case
only) for capital Civil Divn ii) Capital Civil
works for other than works include new
production buildings civil works &
including roads but Addl. DGOF/ ₹ 12 Crs special repairs.
excluding residential Member (looking in each
accommodation and amenity after Engg. Divn case iii) Direct
buildings. contract to be
finalised through
DGOF ₹ 15 Crs competitive
in each tendering.
case
iv) The power for
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.

Factory/Unit OFB
52 Issue of Acceptance of DGOF ₹ 15 Cr i) Annual Civil Plan to be Yes
Necessity & Administrative in each case approved by Member/OFB
Approval (MES and (looking after Engg. Divn)
Departmental works) and
placement of contract ii) Capital Civil works
(Departmental contracts include new civil works &
only) for capital Civil Addl. DGOF/ ₹ 12 Cr special repairs.
works for OFBHQ Building Member/ in each case
and Rajarhat Complex (looking after iii) Direct contract to be
Building Engg. Divn finalised through
competitive tendering.
iv) The power for 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.
Value to be noted in the

block capital register of
GSF

COMPOSITION OF CIVIL WORKS COMMITTEE (CWC) FOR Sl No. 52
OFB CWC Level –I

1. Chairman/OFB Chairman
2. Member/Finance * Finance Member
3. Member/ OFB (looking after Engg. Div.) Member
4. AGM/ GSF (looking after EO(Civil) Member
5. DDG/Engg(E/B) / Dir (E/B) ** Member Secretary
* C of F/ DDG (Fin) to represent only in absence of Member/Finance

** Senior most officer would officiate as secretary
OFB CWC Level –II

1. Member/OFB (looking after Engg. Div.) Chairman
2. C of F * Finance Member
3. AGM/ GSF (looking after EO(Civil) Member
4. DDG/Engg (E/B) Member
5. Dir (E/B)/ Jt.Dir (E/B) ** Member Secretary
* Addl. C of F/ DDG (Fin) to represent only in absence of C of F


Sl Nature of Power / Delegation Consul-
no Reference Remarks tation
Factory/Unit OFB
with
Finance
53 Issue of Acceptance of Sr. GM /GM ₹ 3 Crs HOD/OFBHQ ₹ 3 Crs i) Annual Civil Plan to Yes
Necessity & be approved by
Administrative Approval concerned
(MES and Departmental Member/OFB
works) and placement of Sr PD/ PD/NADP ₹ 3 Crs Addl. DGOF/ ₹ 8 Crs
contract (Departmental Member/ in each ii) Capital Civil works
contracts only) for capital of concerned case include new civil works
civil works for amenity Optg. Divn & special repairs.
buildings including
residential and hostel iii) Direct contract to
accommodation. be finalised through
Addl. DGOF/ ₹ 12 Crs competitive tendering.
Member/ in each
(looking after case iv) The power for
Engg. Divn revision of Admin
to an upward variation
of 10% of the financial
DGOF ₹ 15 Crs value of original Admin
in each approval, within the
case financial powers
delegated under this
item.
(v) Scale of
accommodation/ laid
down norms are to be
followed.

no Nature of Power / Remarks tation
54 Issue of Acceptance of Sr. GM /GM ₹ 50 Lakh HOD/OFBHQ ₹ 50 i) Direct contract to be Yes
Necessity & Admin Approval Lakh finalised through
(MES & Departmental competitive tendering.
works) and Direct contract All HODs ₹ 50 Lakh
(Departmental works) for ii) The power for revision of
Revenue Civil work Admin Approval will be
AGM ₹ 10 Lakh limited to an upward
under this item.
55 Issue of Acceptance of Sr. GM /GM Full power HOD/OFBHQ Full i) Direct contract to be Yes
Necessity & Admin Approval power finalised through
(MES & Departmental competitive tendering.
works) and Direct contract All HODs Full power
(Departmental works) for (ii) The power for revision of
Periodical Service of Admin Approval will be
buildings. AGM ₹ 1 Cr limited to an upward
under this item.
Note: For definition of ‘Capital Works’, please refer to Para 212 of Chapter –IV of MES Regulations,2007

56 Issue of Acceptance of HOD/ ₹ 10 lakhs (i) If OFBNDO desires Yes
Necessity & Admin Approval OFBNDO to carry out Civil Works
(CPWD/MES & of
Departmental works) and Revenue nature for
Direct Contract Sr.GM/GM Beyond OFBNDO bldg. then NOC is
(Departmental works) /OFM ₹ 10 lakhs to be
for Revenue Civil works of obtained from CPWD.
Munitions House & OFBNDO
buildings. (ii) Direct Contract to
be finalized through
competitive
tendering.
(iii) The power for

revision of Admin Approval
will be limited to an upward
Admin Approval, within
the financial powers
delegated under this item.

Factory/Unit OFB
Reference
57 Issue of HOD/OFBNDO Full power - - (i) If OFBNDO desires to Yes
Acceptance of carry out civil works
Necessity & Admin of revenue nature for
Approval (CPWD, OFBNDO bldg. then
MES & NOC is to be obtained
Departmental Works) from CPWD.
and Direct Contract
(Departmental Works) (ii) Periodical Services of
for Periodical Service OFBNDO bldg shall
of Munitions House be carried out as per
& OFBNDO buildings. CPWD scales of
authorizations
(iii) Direct Contract to be

finalized through
competitive tendering
(iv) The power for

revision of Admin
to an upward variation
of 10% of the financial
value of original
Admin Approval,
within the financial
powers delegated under
this item

Factory/Unit OFB
58 Sanction of expenditure Sr. GM/ GM ₹ 50 Lakh Addl. DGOF/ ₹ 5 Crs The power is for Yes
for applied Research & per project Member expenditure in
Development for within budget (Optg. Divn) the areas of
carrying out product & provision process and
process improvement product
and development of New (subject to improvement,
products. approval of Addl. DGOF/ ₹7 Crs cost reduction
R&D Member and product
finalization looking after development.
committee) R&D div.
Head of ODCs ₹ 25 Lakh DGOF Full power

per project
within budget
provision
(subject to
approval of
Annual Plan by
Member/
looking after
R&D div.

Factory/Unit OFB
with
Authority * Extent Authority Extent Finance
59 Sanction of additional Sr. GM /GM Limited to Addl. DGOF/ ₹ 5 Crs The power is for Yes
expenditure for the additional 100 Member expenditure in the
Sanctioned R&D Projects % of the (Optg. Divn) areas of process
original and product
sanction cost. improvement, cost
Total revised Addl. DGOF/ ₹ 7 Crs reduction and
value of Member product
project looking after development
(original value + R&D div.
additional
value) should
not exceed the
financial power DGOF Full 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.

Factory/Unit OFB
60 Sanction of Extension of Sr. GM /GM Upto 2 yrs Member/ 1. Full power No
PDC for Sanctioned R&D from the Optg Divn for project
Projects date of sanctioned by
sanction for Sr. GM/GM/
projects Head of ODCs
sanctioned 2. Upto 3 years
by Sr.GM/ for the projects
GM/Head of sanctioned by
ODCs Member/Optg
Divn
DGOF Full power

61 Approval of Closure/ ----- ----- Addl. DGOF/ ₹ 2 Crs Yes
Short Closure of IRD Member/
Projects (Optg.Divn)
Addl. DGOF/ ₹ 4 Crs

Member/
(Looking
after R&D)
DGOF Full power

Factory/Unit OFB

62 Demolition of Buildings Sr. GM /GM ₹ 10 Lakh in each OF Board Full power to Subject to the Yes
case within the sanction sale or conditions as
Factory/Estate dismantlement of per the
through contract Public buildings provisions of
Minor Head 111 by tendering. (other than a Rule 24 of
purely temporary DFPR-2005.
All Sr GM/GMs structure).
would have Full
powers for
demolition/
disposal of
condemned
buildings through
Public Auction.

no Nature of Power / Remarks tation
63 Issuance of Admin approval All HODs Full power --- --- (i) Completion cost of Yes
for execution of Civil Works including project shall be limited
against MOD/DDP/OFB issuance of to sanctioned cost or
sanctioned projects. admin approval re-appropriated cost
for Civil works for civil works.
sanctioned by
MOD/DDP/OFB, (ii) Admin Approval
provided the cost of projects can be
works are issued to MES/ DRDO/
proposed to be Public Works
executed Organisation (PWO)
through MES/ for engagement of
DRDO/Public consultant for design
Works activities, provided the
Organisation expenditure can be met
(PWO) from total sanctioned
including contingency.
64 Re-appropriation within a --- --- Addl. Full power Yes
"project sanction" of amount DGOF/ within the
debitable to the same Member sanctioned
"demand for grant" between (looking cost of the
plant & equipment and civil after Engg project,
works and vice versa. Div) enhanced
within the
original
limits

No with Finance
Factory/Unit OFB
65 Re-appropriation of buildings Sr. GM/ GM Full Power --- --- Yes
entailing no alteration and no
cost.
66 Expenditure from the Estate Sr. GM /GM Upto ₹ 1 Lakh in --- --- Yes
Fund for "Direct Development" each case
and upkeep of Estate. subject to the
ceiling of total
annual receipts
67 Testing of Building, Structures Sr. GM /GM Full power --- --- Yes
etc. in connection with issue of for testing by
annual stability certificate to the Govt. Depts/
State Authorities. PSUs and
Autonomous
Minor Head 800 Institutions

no with Finance
Factory/Unit OFB
68 Cutting of Grass Wild Growth in Sr. GM /GM Full power --- --- Subject to Yes
Factories/ Estate and inside Sr. PD/ contract
Institute & Hostel premises of PD/ NADP, action being
NADP/OFILS through Contract. Sr PD/ based on
PD/OFIL competitive
tendering
Minor Head 800
Note : The items of works which come within the scope of "Direct Development" and "Upkeep of the Estate" are as under :
a) Provision, Upkeep and Maintenance of Gardens, Parks in the Estate.

b) Provision, Upkeep and Maintenance of Children₹s Park and Play Ground.
c) Provision, Upkeep and Maintenance of Sports Grounds/Stadium.
d) Provision, Upkeep and Maintenance of Open Air Theatre in indoor halls.
e) Upkeep and Maintenance of Estate.
f) Development and Maintenance of Arboriculture.
g) Provision and Maintenance of Stalls, market etc.

REGULARISATION
OF LOSSES

Factory/Unit OFB

69 Loss of Stores not due to theft, Sr. GM /GM ₹ 10 Lakh DDG/Optg. ₹ 15 Lakh Sr. GM/GM to Yes
fraud or neglect. per case Divn per case forward half yearly
report to OFB,
AGM ₹ 1 Lakh convening BOE to
per case investigate the loss
OFB ₹ 50 lakh and compliance of
per case other provisions
Medical ₹ 5,000 laid down in
Officer I/C per case FR Pt I.
with annual
limit of
₹ 50,000
70 Loss of Public Money not due to Sr. GM /GM ₹ 2.5 lakh OFB ₹ 10 lakh Sr. GM /GM to Yes
theft, fraud or neglect. per case per case forward half yearly
report to OFB,
convening BOE to
investigate the loss
and compliance of
other provisions
laid down in
FR Pt I

Factory/Unit OFB
71 Loss of stores due to theft, Sr. GM /GM ₹ 5 Lakh OF Board ₹ 20 Lakh Subject to convening Yes
fraud or neglect. per case per case BOE to investigate
the loss and
compliance of other
provisions of FR Pt I
72 Loss of Public Money due to Sr. GM /GM ₹ 1 Lakh OF Board ₹ 5 Lakh Yes
theft, fraud or neglect. per case per case.
73 Waiving of irrecoverable --- --- OF Board ₹ 15 lakh (a) All cases in which Yes
compensation or loss arising in each case waiver is granted are
due to failure of contracts, to be reported
refund claims on Custom₹s, annually with brief
Railways, Port Trust, Shipping justification to
companies etc not due to Ministry with copy to
negligence of staff. the Integrated
Finance
(b) The waiver of

loss will,

Factory/Unit OFB
inter-alia, take Yes
into accounts the
specific terms &
conditions,
contained in the
contract.
74 i) Sanction for demurrage, Sr. GM /GM ₹ 1 Lakh OF Board Full power Yes
wharfage in each case
ii) Regularisation/Settlement of
demurrage (container detention ₹ 1 Lakh
charges) All HODs in each case.
(Monthly
report to be
submitted to
OFB)

no Nature of Power / Remarks with
Reference Factory/Unit OFB Finance
75 Loss due to rejection in Sr. GM /GM Upto an additional DDG/Optg Upto an additional 75% of Yes
manufacture. (Excluding 50% of Divn unavoidable Rejection
development stage). unavoidable percentage provided in the
Rejection standard estimates subject to
percentage :-
catered in the (a) ₹ 25 lakhs where there is no
standard negligence.
estimates subject (b) ₹ 10 lakhs where there is
to :- negligence.
(a) ₹ 10 Lakh
where there is no OFB Upto an additional 100% of
negligence. unavoidable Rejection
percentage provided in the
standard estimates subject to
(b) ₹ 2 Lakh
:-
where there is (a) ₹ 50 lakh where there is no
negligence. negligence.
(b) ₹ 20 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
recurrence and to reduce unavoidable rejection in manufacture in future should also be placed on record

CONSULTANCY

Factory/Unit OFB
76 Contracts for engagement of - - OF Board i) ₹ 2 Crs Yes
consultant /specialist (other per annum
than foreign consultancy). for
sanctioned
Projects
Minor Head 800
ii) ₹ 1 Cr per
annum in
other
cases
77 Engagement of Chartered Sr. GM /GM, Not HOD/OFBHQ Not As per Yes

Accountants/Tax consultants to HODs exceeding exceeding procedure laid
deal with the matters of ₹ 10 Lakh ₹ 10 Lakh per in Rule 177- Financial
Taxation. per annum annum 196 of GFR concurrence
2017 and not required
Manual of upto
Minor Head 800 Polices and ₹ 40,000 in
Procedure of one contract
Employment of
Consultants,
issued by MOF
time to time as
amended.

Factory/Unit OFB
78 Contract for Acquisition of Sr. GM/GM ₹ 1 Cr. Member/ ₹ 2 Crs. (I) Sr.GM/GM will Yes
Research Services (CARS) from looking after exercise the
Govt. Academic Institutions R&D power through
(IITs, NITs etc), Govt. owned TPC-I of the
Laboratories (CSIR, DIAT etc.) factory.
against the in-house R&D project
sanctioned for the factory or (II) All the
ODC. cases valuing more
than ₹ 1 Cr will be
forwarded to OFB
Minor Head 004 for approval.

Note for Sl no. 78:- TPC structure for deciding the cases at OFB will be as under:
(a) Cases requiring sanction of DDP will be discussed in OFB/TPC-I with following constitution:
Chairman/OFB - Chairman
Member/TS - Member
Member(s) from Operating Division(s)

or/and
Addl. DGOF/AV (for cases involving - Member
AV Group of Factories)
or/and
Addl. DGOF/OEF (for cases involving
OEF Group of Factories)
Member Finance/Controller - Member

of Finance/DDG(Finance)
DDG(s)/Dir(s) from Operating Division(s) – Member
DDG(R&D)/Dir(R&D) - Secretary
Note : (i) Controller of Finance/DDG(Finance) will represent the Finance Division in the committee only in the absence of Member/Finance.
(ii) Directors from Operating Divisions and Director/R&D will represent their divisions in the absence of concerned DDGs.
(iii) If the proposal from the ODC/Factory involves activities in more than one factory belonging to different divisions, the
Members/Addl DGOFs as well as concerned DDGs/Directors from all such divisions will attend the TPC as mentioned above.

(b) Cases within OFB powers as received from the ODC/Factory will be decided by OFB/TPC-II with following constitution:
Member/TS - Chairman
Member(s) from Operating Division(s)

or/and
Addl. DGOF/AV (for cases involving - Member
AV Group of Factories)
or/and
Addl. DGOF/OEF (for cases involving
OEF Group of Factories)
Controller of Finance/DDG(Finance)/ - Member

Addl. C of F/Dir(Fin)/Jt. C of F/
Jt. Dir(Fin)
DDG(s)/Dir(s) from Operating Division(s) – Member
DDG(R&D)/Dir(R&D) - Secretary
Note : (i) Addl. C of F/Dir(Fin)/Jt. C of F/Jt. Dir(Fin) will represent the finance division in the committee only in the absence of
Controller of Finance/DDG(Finance).
(ii) Directors from Operating Divisions and Director/R&D will represent their division in the absence of concerned DDGs.
(iii) If the proposal from the ODC/Factory involves activities in more than one factory belonging to different divisions, the
Members/Addl. DGOFs as well as concerned DDGs/Directors from all such divisions will attend the TPC as mentioned above.

(iv) The above delegation is applicable for placement of Contracts for Acquisition of Research Assistance from Government
Technical/Academic Institutions (Indian Institutes of Technology, National Institutes of Technology etc.) and Government
owned Laboratories (CSIR Labs, DIAT Pune etc) for assistance in the design and development of Defence Products.
(v) During the course of the execution of the contract by the Research Service Provider (RSP) i.e. Govt. Technical/ Academic
Institutions and Govt. owned Laboratories (as mentioned at (III) above), it should be ensured that RSP outsources only
those activities of the contract for which the requisite facilities do not exist with them. This has to be ensured by obtaining
a certificate to that effect from the RSP.
(vi) The above contract for acquisition of research assistance can be concluded only against an in-house R&D Project duly
sanctioned by the Competent Authority and having the provision of such research assistance in the project proposal.
(vii) Other provisions/terms and conditions will be applicable as given in DDP letter No. 5(1)/2010/D(Prod) dated 10.02.2011
(along with enclosures).

Appendix mentioned in Ministry₹s letter
F.No.5(10)/20107D(Prod) dated 10thFebruary, 2011
The design and development of Defence Products is a complex exercise and needs domain
knowledge of wide varieties of technologies. Stand alone products development exercise by any
establishment is a very tedious and time consuming affair. Further a number of tests and analysis
are carried out during the course of any developmental activities. This requires a number of
equipments as well as skills sets. At present many of these facilities/skills do not exist in any of
the factory/ODC of Ordnance Factory Board,
In order to obviate above problems, it was felt necessary to involve Government Technical
Institutions and Government owned laboratories in developmental exercise on the case to case
basis. Since there is no laid down procedure in either DPM or OFB’s procurement manual for seeking
such assistance on contractual terms, a detailed proposal for providing enabling mechanism to
Factories/ODC for seeking assistance from Technical Institutions (IITs and NIITs) and Research
Laboratories (CSIR Labs and DIAT Pune etc) was received from Ordnance Factory Board,
After detailed deliberations, the Ministry of Defence, Department of Defence Production

has approved the proposal. It has been decided to evolve a proposal for placement of contracts
for acquisition of Research Assistance from Government Institutions such as Technical
Institutions (IITs and NIITs) and Research Laboratories (CSIR Labs and DIAT Pune etc) Indian
Institute of Technology and Government Owned Laboratories for assistance in the design and
development of Defence Products.
Detailed Procedure for Acquisition of Contract Services for R&D, Summary Offer of
Provision of Research Services, and Contract for Acquisition of Research Services are enclosed as
Enclosures -II and Annexure-1 & 2 respectively.
DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019

75
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/ODC, 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/Director/ODC of the factory/ODC 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 the 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/ODC
.
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/ODC 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 ;

76
The Contract for Acquisition of Research Services as placed by the factory/ODC 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/ODC 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 amendments can 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 at Annex3.
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/ODC 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 monies 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/ODC. 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,

77
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 me final report is more than six (6) months, the research provider institution
stall 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 9.1₹ in the CARS, for the execution of the contract up to 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/ODC. The
factory/ODC, 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/ODC with such financial documents as are necessary for final settlement of
claims, without explicit request by the factory/ODC, 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/ODC promptly of any occurrence
that is likely to cause delay in delivery of contracted outcomes. The factory/ODC 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.

78
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/ODC 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 OFB
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 monies left unspent on the date of receipt
of short-closure order by the RSP shall be returned to factory/ODC. All equipment and
unused consumables acquired out of contract monies shall also be returnee to factory/ODC.
Note: The factory/ODC 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 OF
Board.
5. Reports:
5.1 Reports giving details of the progress of the work shall be sent to the factory/ODC at intervals
as specified in the conditions of the contract.
5.2 On completion of the contract, the RSP will submit a final report (Contractor Report).
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 OFB.
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, vedio tapes of experiments, electronic date acquisition records and
other similar shall be the property of OTB, whether or not in the physical possession of OFB.
7. Disclosure and use of information by the research provider institution:

79
The research provider institution will ensure that the documents supplied by the factory/ODC are
not disclosed to any person other than a person authorized by the factory/ODC. Any pattern, sample
or information supplied by factory/ODC to the RSP
in documentary or other physical form is the property of the factory/ODC and shall be returned
to the factory/ODC 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 OFB.
9. Communications:
All communications affecting the performance of the contract, or its terms and conditions, shall
be contractually, valid only when confirmed by formal amendments to Contract for Acquisition
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 DGOF and Chairman or his authorized 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/Director ODC where
the estimated expenditure in the office received from RSP is up to ₹5 Lakh
CA-II : The Controlling General Manager/DDG/R&D at OFB HQ where the estimated

expenditure in the Officer received from the RSP is up to ₹20 Lakh

80
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 Rcf. Nos. Date of Issue Issuing Factory ODC: Remarks of RSQR initiation
YY MM DD
3. Name of Research Service Provider (RSP) making 4 RSP’s Ref. No. Judgment of OEC;
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 performed 11. Offer as above valid till data:
by RSP for Armed Services/DRDO/other S&T
(including foreign) agencies:
12. Signature of competent authority of RSP:
Name:
Designation:

81
CONTINGENT MISC
&
GENERAL MATTERS

Factory/Unit OFB
79 Miscellaneous and --- --- HOD/OFBHQ Full power Subject to limits and Not
Contingent Expenditure for recurring as condition in Rule 13 of necessary
well as non- DFPR and schedules V upto
recurring items and VI there under ₹ 40,000/-
with in the applicable to the
budgetary powers delegated to
provision "other departments of
Central Govt." but
powers are limited to
those of "Heads of
Departments" in
relation to purchase of
Motor Vehicles and
Rent as given in
Annexure to Schedule V
to DFPR

Factory/Unit OFB
Authority Authority Authority Authority
80 Miscellaneous & Contingent Subject to limits and Not

expenditure (both recurring Sr. GM Full power HOD/HQrs Full Power condition in Rule 13 of necessary
and non-recurring) other /GM DFPR and schedules V and upto
than Purchase of stationary, All HODs VI there under applicable ₹ 40,000/-
printing of forms, Mementos to the powers delegated to
and small gifts. "other departments of
Central Govt." but powers
are limited to those of
Minor Head 800 "Heads of Departments" in
relation to purchase of
Motor Vehicles and Rent as
given in Annexure to
Schedule V to DFPR

Sl Delegation Consultati
no Nature of Power / Reference Remarks on
81 Miscellaneous & Contingent As per Not
expenditure on Purchase of provision of necessary
Stationary/Computer Stationary :- OFBPM up to
(a) From GeM Sr. GM /GM Full power HOD/HQrs Full power ₹ 40,000
All HODs & Full power

Head of ODC Subject to
annual ceiling of
₹ 2 lakh
(b) Non-standard Stationery items Sr. GM /GM Full power HOD/HQrs Full power
through tender.
All HODs & Subject to

Minor Head 800 Head of ODC annual ceiling
of ₹ 2 Lakh

Sl Nature of Power / Reference Delegation Consultatio
no Remarks n
Finance
82 Sanction of expenditure for purchase of Head of Full power --- --- Subject Yes
computers & software including ODC to
accessories. approval in
AAP/ARP
For procurement cases valuing more than ₹50,000/- per case against I&M grant (including computer stationary) TPC level- IV to be
constituted at OFB Headquarters with HOD/HQrs as Chairman, DDG/Director of indenting Sec. and Director/DFA(Fin) as members
to decide the case.
83 Powers for printing Forms etc. Sr. GM /GM ₹ 8,000 HOD/HQrs ₹ 8,000 Yes
per per
All HODs transaction transaction
& subject to an subject to
Minor Head 800 annual ceiling an annual
Head of ₹ 40,000 ceiling
ODC ₹ 40,000
Member/ Full Power

looking
after
Personnel
Division

No Factory/Unit OFB with Finance
84 Sanction and purchase of new, Sr. GM/ GM, Full power HOD/HQrs Full power Not required
Duplicators / Office equipment. All HODs upto
& ₹ 40,000/- in
Minor Head 800 Head of ODC each case.
85 Repair of the old Duplicators / Sr. GM/ GM, Full power HOD/HQrs Full power Not required
Office equipment. All HODs upto
& ₹5,000/- in
Minor Head 800 Head of ODC each case.
86 Telephone Sr. GM /GM Full power HOD/HQrs Full power Subject to Yes
All HODs to sanction to sanction general order but not
Minor Head 800 & residential residential and instruction required for
Head of ODC and office and office regarding payment of
Telephones Telephones economy and recurring
and and entitlement rentals, call
Telephone Telephone issued by Govt. and shifting
Circuits. Circuits. of India. charges.

Sl no Nature of Power / Reference Delegation Consultation
Remarks with Finance
Factory/Unit OFB
87 Cash Awards for effecting --- --- DGOF Full power Not required
economy in manufacture in within the upto
Ordnance & Ordnance Equipment provision in the ₹ 5,000
Fys. budget
(Authority: FR-
Minor Head 800 I. 272 Pt. I)
88 Cash Awards or Awards of Wrist Sr.GM/GM ₹ 5,000 HOD/HQrs ₹ 5,000 Note: Units need
Watch including Award of Wrist All HODs or or to identify the
Watches to the retiring Wrist Watch Wrist Watch expenditure on
employees valuing up to valuing up to awards vide unit
₹ 5,000 per ₹ 5,000 per control code
Minor Head 800 individual individual ₹085₹ in actual
booking in CCO2.
Note for sl no. 88 -

1. If the value of such cases exceeds ₹40,000 (Rupees Forty Thousand), cases will be placed for TPC/Financial
Concurrence as per laid down procedure.
2. If the case file contains a few recommendations each exceeding the upper limit of ₹ 5,000 but within the
financial power of Sr.GMs/GMs/HODs, those recommendations will only be sent to Finance for concurrence.

Sl Nature of Power / Delegation Consultati
no Reference Remarks on
89 Expenditure on Award of Sr. GM/GM ₹ 2 Crs Member/Per Full Power (i) Maximum price of Yes
Long Service Badges (Nodal Fy) 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) Provision of
retirement/ superannuation OFBPM/OFBPM-P&M
to be given to employees. (or revised time to time)
to be followed
Minor Head 800 (iii) Spouse of the
deceased employee who
die in harness will also be
posthumously awarded
with Gold plated Silver
Medal.
Note for Sl no. 89: Procurement of Silver Medals after completion of 25 years of Service and Gold plated Silver Medals at
the time of retirement/superannuation will be done by one factory (Nodal Factory) as brought out by
Per/Policy vide L. No. 771/LSB(LSM)/Per/Policy dtd. 09.01.2017 and any changes brought out by
Per/Policy from time to time.”

no Remarks on
Finance
90 Presentation of Memento and Sr. GM /GM ₹ 4000 HOD/HQrs ₹ 4000 Yes
small gifts to high dignitaries All HODs per case per case not
during their visit to factories & not exceeding
Training institutes. & exceeding ₹40,000 per
₹ 40,000 annum
Head of ODC per annum
Minor Head 800
Member/ Full Power
looking after
Personnel
Division
91 Sanctioning of Honorarium to --- --- HOD/HQrs Upto Yes

HQrs. as well as Fy. Personnel. ₹ 2000
in a Financial
year in each
case.
Minor Head 800

no Remarks n
Factory/Unit OFB
with
Finance
92 Sanctioning fee to HQrs. as well --- --- HOD/HQrs Upto ₹1,000 Yes
as Fy. Personnel. in a Financial
year in each
Minor Head 800 case.
93 Issue of Protective Clothings and Sr. GM /GM Full Power HOD/HQrs Full power Subject to Yes
other items of Physical scale as laid
Protection of Employees. down for Ord.
Fys. & against
Minor Head 110 & 800 item No. 23 of
Annex to
schedule V of
DFPR.
94 Compensation under the Sr. GM /GM Full power HOD/HQrs Full power Yes
Workmen’s Compensation Act. upto the upto the
ceiling Ceiling
Minor Head 800 prescribed in Prescribed in
WC Act for Workmen’s
all employees Compensation
defined as Act
"Worker" of
the Factory.

no Remarks on
Factory/Unit OFB
with
Finance
95 Grant of Ex-gratia financial
assistance to Ordnance Factories
Employees /their families in
accidents in Factory while on duty
i) In case of death - grant to No
family Sr. GM ₹ 25 Lakh Member/ ₹ 25 Lakh Will exercise
/GM in each case looking after in each his discretion
Personnel case. on the merit of
ii) In case of Serious injuries grant Division each case.
to the employees Sr. GM ₹ 1 Lakh
/GM in each case Member/ ₹ 1 Lakh
looking after in each
Minor Head 800 Personnel case.
Division
96 Grants and Loans --- --- Member/ Full Power Subject to Yes
looking after Budget
Personnel Provisions and
Division in accordance
with Rules
framed by
Ministry of
Finance.

Factory/Unit OFB
97 Authorisation of Provisional Sr. GM /GM Full power HOD/HQrs Full power See remarks
Payment wherever wherever
payments are payments
prima facie are prima
clearly due facie clearly
(In due
consultation
with Officer
I/C Accounts
Office of the
factory)
98 Admitting time-barred claims Sr. GM /GM Full power Govt. sanction Financial
upto 3 years is required concurrence
where claims is required
become time where Audit
barred under Authorities
any provisions are not in a
of Law position to
relating to investigate
Limitation the claims due
vide FR Pt-I to limited
Rule 189 period of
preservation
of record.

no Remarks with
Factory/Unit OFB Finance
99 Waiving of time-barred claims --- --- DGOF 6 Years Government Yes
including those which cannot be sanction will be
investigated by Audit Authorities required
due to non-availability of records. DHS Upto 5 years where a claim
on Medical claims becomes time
etc. barred under
the provisions
DDG of the Upto 5 years of any law of
Estt. Section on Administrative limitation.
matters.
DDG/MM Upto 5 years

on matters relating
to purchase of
Stores
DDG/Engg. Upto 5 years

on matters relating
to P&M
100 Waiving of Security clearance for --- --- Member/ Full power Not
Govt. Servants who officiate in leave looking after necessary
vacancy. Personnel
Division

No Remarks on
101 Powers to waive over-payment of --- --- DGOF Full power Subject to principles Yes
Pay & Allowances. laid down in GFRs
102 Powers of re-appropriation. --- --- OF Board Full powers Subject to general Yes
if Re- instructions permissible
appropriation re-appropriation
does not exceed between the Sub-Heads
10% of the with in Minor Heads
original budget controlled by OFB
provision. under the same demand
for Grant

Sl Nature of Power / Delegation Consultatio
no Reference Remarks n
103 Re-appropriation of Govt. --- --- OF Board Full power Subject to any general Yes
Accommodation for School, orders issued by the
W.W.A., Bank and other Ministry of
Welfare activities. Defence/Army HQrs.
104 Execution of Lease Sr. GM /GM ₹ 5,000 per --- --- Yes
year per in
each case
105 Leasing out of Land in --- --- OF Board Full power Subject to the conditions Yes
Ordnance Factory to that it will be regulated in
Kendriya Vidyalaya accordance with the
Sangathan. General Orders issued by
M of D, QMG in regard to
Lease of Land

Sl Nature of Power / Reference Delegation Consultat
no Remarks ion
106 Hiring of Office accommodation --- --- OF Board (i) Upto Yes
and accommodation for amenity ₹ 50,000
purpose (Mess, Guest House, per month in
Holiday Homes etc.) “A” class cities
(ii) Upto
Minor Head 800 ₹10,000
per month in
other cities
107 Cash purchase including Services to WM ₹ 2,000 HOD/HQrs ₹ 25,000 1. In No

be booked under I&M head (for conformity
purpose other than production & DGM ₹ 5,000 with Rule 154
maintenance) in each case.
of GFR 2017.
JT. GM ₹ 10,000
2. Also
Minor Head 800 applicable to
AGM ₹ 15,000 equivalent
ranks in
establishments
Sr.GM/GM/ ₹ 25,000 other than the
HODs
factories

108 Cash purchase to meet the Medical ₹ 15,000 --- --- In conformity with Rule No
requirement of the Hospital. Officer in- each item 154 of GFR 2017
charge in each
Minor Head 800 transaction
within budget
provision
109 Uniform for Canteen Sr. GM /GM Full power --- --- 1. Where authorised No
Employees. scales have been laid
down.
2. Any unauthorised item
or an item for which there
is no prescribed scale
shall be referred to the
Optg Member
for approval.
3. All purchase shall be
made either against Rate
Contract /GeM or on the
basis of competitive
tendering
4. Uniforms may be
procured from the sister
Factories.

Sl Nature of Power / Delegation Consultati
no Reference Remarks on
110 Provision of Utensils/ Sr. GM /GM Full power HOD/HQrs Full power 1.Where authorised Yes
Furniture/Equipment of scales have been laid
Canteens where proposals All HODs down.
involve expenditure beyond
₹ 5,000 2.Subject to the
conditions that this would
be regulated by general
orders issued by
Minor Head 110 & 800 Department of personnel
in regard to Canteens
3.All purchase shall be

made either against Rate
Contract /GeM or on the
basis of competitive
tendering.
4. Any unauthorised item

or an item for which there
is no prescribed scale
shall be referred to the
Optg. Member for
approval.

111 Purchase of Book: Sr. GM /GM Full power All Full power Not
Technical, Professional, Members necessary
Scientific & other categories upto
of Books, Periodicals, Journals All HODs Full power ₹ 5000
& e-books. &
Head of
Minor Head 800 ODCs
112 Purchase of Technical, Medical Full power --- --- Yes

Professional, Scientific and Officer-in- Subject to
other category of Books, Charge budget
Periodicals, Journals & e- allotment
books. from OFB
Minor Head : 800

Factory/Unit OFB Remarks with Finance
113 Whole job contract for upkeep/ Sr. GM /GM Full power --- --- Subject to Yes
Maintenance of Office and Govt. Medical competitive
property including conservancy but Officer-in- tendering &
excluding Civil Works. Charge of provision of
Ordnance Fy. contract
Hospital labour Act
Minor Head 800
All HODs &
Head of ODCs
114 Whole job contract for kitchen & Sr. GM /GM Full power --- --- Subject to Yes
Catering services. All HODs competitive
Medical tendering &
Officer-in- provision of
Minor Head 800 Charge of contract
Ordnance Fy. labour Act
Hospital

Remarks with
115 Energy Audit through accredited Sr. GM /GM Full power --- --- Subject to Yes
Energy Auditors. adherence to
SOP on the
Minor Head 800 subject
116 Purchase of Postage Stamps for

Franking Machine. Sr. GM /GM Full power HOD/HQrs Full power Subject to
Yes
provision of
Minor Head 800 Schedule V
Full power Rule 13 of
All HODs DFPR 2005
Head of ODCs
117 Institution of Legal Proceedings Sr. GM /GM Full power HOD/HQrs Full power Subject to Not
and Defending Legal Cases in Guide Lines of required
Courts and Arbitration AGM ₹ 40,000 Min. of Law upto
Engagement of Legal Practitioners per case being followed ₹20,000
Minor Head 800 JT.GM/ DGM ₹ 20,000

per case
WM ₹ 5,000
per case

no Remarks n
118 Manufacture of Components and Sr. GM /GM ₹50,000/- --- --- Not applicable Yes
Semi for stock towards 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 HOD/HQrs Full power Yes
AGM ₹ 20,000
each case
(ii) at NABL accredited labs AGM/QC Full Power
(iii) Testing of medicines in Govt Medical ₹ 20,000

Test House or in NABL Officer I/C each case
accredited lab.
(iii) Testing/inspection Head of ODC ₹ 20,000

assistance from Govt Test each case
House/ NABL accredited
labs/ institution.
Minor Head 110 & 800

Sl. Nature of Power/Reference Delegation Remarks
No.
Factory/ Unit OFB
120 All expenses related to Sr. PD/ PD/ Full power ---- ----
Recruitment Process including OFRC (Schedule
engagement of Recruitment V, Rule 13
Service Provider(RSP) of DFPR
2005)
Minor Head 800
TPC structure for OFRC is as under :
PD/OFRC - Chairman
Cont. of Finance & Accounts - Finance Member
Dir./Jt. Dir/Dy. Dir/Asstt. Dir - Member
Dy. Dir/Asstt. Dir/JWM - Member Secretary

SL Nature of Power/Reference Delegation Remarks Consultation
NO Factory/Unit OFB with
121 (a) Nomination of Employees to

training/ seminar:
(i) Govt./Semi Govt. Institutes Sr.GM/GM/ Full Power DDG/HQrs Full Power All Not
within India without course Sr.PD/PD/HOD categories necessary
fee of Officers
& Employees
(ii) Govt./Semi Govt. Institutes Sr.GM/GM/ ₹80,000 a) DDG/HQrs ₹80,000 All Not
within India with course fee Sr.PD/PD/HOD categories necessary
of Officers up to
b) Member/Per Full Power & Employees ₹40,000
(iii) Non Govt./External Sr.GM/GM/ Full Power DDG/HQrs Full Power All Not
Institutes within India Sr.PD/PD/HOD categories necessary
without course fee of Officers
& Employees
All Not
(iv) Non Govt./External Sr.GM/GM/ ₹80,000 a) DDG/HQrs ₹80,000 categories necessary
Institutes within India with Sr.PD/PD/HOD of Officers up to
course fee & Employees ₹40,000
b) Member/Per Full Power

NO Factory/Unit OFB with
Finance
(v) Nomination of Officers from -- -- Chairman/OFB Full Power Group- A Not

the Organisation to long term officers necessary
training in reputed national up to
Institute like, NDC, IIPA, ₹40,000
DIAT, DSSC, IIM, MDI etc. as
per the policy guidelines of OFB.
(vi) Any long term pre-approved Sr. PD/PD Full Power -- -- Every --
training programme for NADP proposal may
probationary Gr.A officers in be apprised
reputed Govt. Institutes. to
Member/Per
for
information
(vii) Any long-term/short-term -- -- Chairman/OFB Full Power All Yes

training in Foreign Country categories Necessary
of Officers
& Employees

NO Factory/Unit OFB with Finance
(b) Conduction of
training(Regular/Distance
mode with/without campus
exposure) for skill and
specialized knowledge
upgradation:
(i) Design/Conduction of Sr. GM/GM ₹50,00,000 Chairman/OFB Full Power All Not necessary
Product and process specific categories up to
training for skill upgradation, of Officers ₹40,000
relevant to the Factory in & Employees
Factory premises with reputed
Govt./National Institutes
under intimation to OFB/HRD
(ii) Conduction of training at Sr. PD/PD ₹2,00,000 Member/Per Full Power -- Not necessary
OFILs with faculty assistance up to
from/collaboration with ₹40,000
external Institutes.
(iii) Conduction of training at

NADP with faculty assistance Sr. PD/PD ₹5,00,000 Member/Per Full Power -- Not necessary
from/collaboration with up to
external Institutes. ₹40,000

NO Factory/Unit OFB with Finance
(iv) Conduction of any long- Sr. PD/PD ₹5,00,000 Member/Per Full Power All Yes
term/short-term training with categories Necessary
reputed Institutes in of Officers
regular/distance mode with/ &
without campus exposure by Employees
NADP.
(v) Conduction of any long

term/short term training with Sr.PD/PD ₹2,00,000 Member/Per Full Power All Not
the reputed Institutes in categories necessary
regular/distance mode of Officers up to
with/without campus exposure & ₹40,000
by OFILs after in-principle Employees
approval of Member/Per.
(c) Online mode of training:

-- -- Member/Per Full Power All Not
Nomination of Officials from categories necessary
the Organisation to online of Officers up to
training programmes as per & ₹40,000
SOP/Policy guidelines. Employees

NOTE for Sl No. 121:
 For b (i) - AoN will be obtained from operating divisions for cases beyond ₹5 lakhs. Completion report and
Impact Assessment report will be forwarded to OFB/HRD. Concurrence of Finance will be required for cases
having value more than ₹40,000/-.
 Approval of Member/Personnel is not required in case of pre-approved courses.
 The Financial Power is to be calculated for the entire training irrespective of no. of participants for that training
in that financial year.
 All nominations will be subject to OFB/Policy, all training conducted/nominated to be reported to OFB/HRD
periodically as per the policy/SOP.
 Sr.GM/GM/HoD may nominate Officers/Employees to external Institutes only when the same are not available
at OFILs/NADP.
 The expenditure towards the training fees granted for the courses as per 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

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

124 Consultation with Specialists Sr. GM /GM i) ₹ 135 to 270 --- i) 135 to 270
of all disciplines of Allopathic (Outdoor (Outdoor
Systems in Factory Hospitals Consultation fee) Consultation fee)
for outdoor/indoor treatment
of the entitled patients where ii) ₹200 (as ii) ₹200 (as
the Specialist centre is not conveyance charges) conveyance charges)
available or the centre is not
having the required iii) Actual rates of
iii) Actual rates of
Specialists in position. the prevailing CGHS
the prevailing CGHS
at the city/nearest
at the city/nearest
Minor Head 805/10 city (as
city (as
investigation
investigation
charges for each
charges for each
consultation)
consultation)
125 Purchase of all items such as Sr. GM/GM Full Power HOD/HQrs Full Power Subject to Yes
medicines or other items competitive
related to healthcare will be tender and
considered under “medical budget
store”. Medical ₹ 25 lakh provision
Officer-in- in each case.
Minor Head 800 charge

Remarks with Finance
Factory/Unit OFB
126 Purchase of medical stores viz. Sr. GM/GM ₹ 2.5 Lakh HOD/ ₹ 2.5 Lakh In conformity Yes
medicines and other healthcare Hqrs with Rule 155
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
Minor Head 800 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 competitive
supply or are required on urgent Charge case within tendering.
basis from trade. budget
provision.
Minor Head 800
Note: Wherever relevant, the provisions of OFMR -2009 (Ordnance Factory Medical Regulation) as amended from
time to time, be complied with.

TPC/TEC
STRUCTURE FOR
ORDNANCE FACTORY BOARD
BOARD LEVEL TPC & TEC FOR PROCUREMENT OF STORES

Constitution of Tender Purchase Committee (TPC) and Technical Evaluation Committee (TEC) for OFB for procurement
of Store
Authority : Order No.507/BS-Corr-1 dated 26.08.2019
(A-1) TPC & TEC LEVEL-I
(a) Financial Powers are irrespective of RE and FE.

(b) For procurement of stores, Approval-In-Principle (AIP) shall be obtained by OFB from DDP in respect of
procurement from foreign sources valuing ₹50 Crs or more.
(c) 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.
DGOF/OFB - Chairman
Member/P&MM - Member
Member/Finance/Controller of Finance/DDG(Fin) * - Member
Member/Operating Division - Member
DDG/Dir/Operating Divn. # - Member
DDG/Director/MM - Member Secretary
* C of F /DDG(Fin) will represent the Finance division in the committee only in the absence of Member/Fin.
# Directors of Operating divisions will participate in TPC Level –I, Level-II and Level-III of OFB in absence of DDGs
of concerned Operating divisions.

(A-2) TPC & TEC LEVEL-I (for IT) for OFBHQ

(c) The TPC will be the Competent Financial Authority for release and revalidation of Foreign Exchange (FE) for the
DGOF - Chairman
Member/Finance/Controller of Finance/DDG(Fin) * - Member
Member/IT - Member
DDG/Director/MM. # - Member
DDG/Director/IT [* Senior most officer available] - Member Secretary
(B) TPC & TEC LEVEL-II

(c) 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.
Member/P&MM - Chairman
C of F /DDG(Fin)/ Addl C of F/ Dir.(Fin)/ Jt C of F/ Jt Dir(Fin) * - Member
Member/ Operating Division - Member
DDG/Dir/Operating Division # - Member
DDG/ Director/MM - Member Secretary
* Addl Cof F/ Dir.(Fin)/ Jt C of F/ Jt Dir(Fin) will represent the Finance division in the committee only in the
absence of C of F /DDG(Fin).
# Directors of Operating divisions will participate in TPC Level –I, Level-II and Level-III of OFB in absence of
DDGs of concerned Operating divisions.

(C) TPC & TEC LEVEL – III
Member/ Operating Division - Chairman

Addl. C of F /Dir (Finance) /Jt. C of F / Jt. Dir (Finance) / - Member
Dy Controller of Finance**
DDG/Dir/Operating Division # - Member

DDG/Director/MM/AV/OEF - Member Secretary
# Directors of Operating divisions will participate in TPC Level –I, Level-II and Level-III of OFB in absence of
DDGs of concerned Operating divisions.
**Dy Controller of Finance will attend meeting in absence of Addl. C of F /Dir (Finance) /Jt. C of F /
Jt. Dir (Finance).”
(D) TPC & TEC LEVEL-II & III (for IT)*

Financial Powers are irrespective of RE and FE. TPC & TEC structure for level II & III will be common as below:
(a) For procurement of stores, Approval-In-Principle (AIP) shall be obtained by OFB from DDP in respect of
(b) The TPC will be the Competent Financial Authority for release and revalidation of Foreign Exchange (FE) for the
Member/ Looking after IT div. - Chairman

C of F /DDG(Fin)/ Addl C of F/ Dir.(Fin)/ Jt C of F/ Jt Dir(Fin) - Member
DDG/Director/MM - Member
DDG/Dir/IT - Member Secretary

(E) TPC & TEC LEVEL-IV
Deputy Director General/HQ - Chairman
Addl. C of F/Director(Finance)/JCFA/JD(Finance)/DFA(Finance) - Finance Member
DDG/Director/JD of indenting section - Member (User)
JD/DD/SO dealing with the procurement case - Member Secretary

BOARD LEVEL TPC & TEC FOR PROCUREMENT OF PLANT AND MACHINERY
Constitution of Tender Purchase Committee(TPC) and Technical Evaluation Committee (TEC)
Authority :
Order No.507/BS-Corr-1 dated 26.08.2019
A. TPC & TEC LEVEL-I

(b) For procurement of Plant & Machinery, Approval-in principle (AIP) shall be obtained by OFB 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 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.
DGOF - Chairman
Member/OFB (looking after Engg. Div.) - Member
Member (Finance)/ C of F/ DDG(Finance) * - Member
Member/Operating Division - Member
DDG/Operating Division - Member
DDG/Engg/OFB - Member
DDG/Proj/OFB (for project cases only) - Member
DDG/EP (for explosive project cases only) - Member
DDG/ Director (Processing the case) - Member Secretary
* C of F/ DDG (Finance) will represent the Finance Division in the Committee only in the absence of
Member(Finance).

B. TPC/ TEC LEVEL-II

(b) For procurement of Plant & Machinery, Approval-in principle (AIP) shall be obtained by OFB from DDP in
respect of procurement having value ₹10 Crs or more.
Member/OFB (looking after Engg. Div.) - Chairman

C of F/ DDG(Fin/ Addl C of F/ Director (Fin)/ Jt C of F/ JD(Fin) * - Member
Member/Addl DG/Operating Division - Member
DDG/Operating Division - Member
DDG/Engg (OFB) - Member
DDG/Proj (for Project cases only) - Member
Director/Jt. Director (Processing the case) - Member Secretary
* Addl C of F/Director (Fin)/ Jt C of F/ JD(Fin) will represent the Finance Division in the Committee only in the
absence of Controller of Finance/ Deputy Director General (Finance).
C. TPC/ TEC LEVEL-III

(b) For procurement of Plant & Machinery, Approval-in principle (AIP) shall be obtained by OFB from DDP in
respect of procurement having value ₹10 Crs or more.
(c) The respective 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.

Member/Operating Division - Chairman
Addl. C of F/Dir (Finance)/Jt. C of F /Jt. Dir (Finance) / - Member
Dy Controller of Finance**
DDG /Operating Division - Member
DDG/Engg (OFB) - Member
DDG/Proj (for Project cases only) - Member
Director/Jt. Director (Processing the case) - Member Secretary
**Dy Controller of Finance will attend meeting in absence of Addl. C of F /Dir (Finance) /Jt. C of F /
Jt. Dir (Finance).”
SPECIAL NOTES :
1) PFCs will be chaired and approved by the concerned Operating Member/Addl.DGs. Investment summary/technology up-
gradation/key modernisation areas will be brought before the Board in a consolidated manner for all operating divisions
by DDG/Engg for information.
PFCs for a particular year should be completed by 31st December of the preceding year to ensure proper investment
projection. PFCs pertaining to AV and OEF Group will be attended by DDG/Engg/OFB and rep of Member/Fin.
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 ORDNANCE FACTORIES
FOR PROCUREMENT OF STORES

Constitution of Tender Purchase Committee(TPC) and Technical Evaluation Committee (TEC) in Ordnance &
Ordnance Equipment Factories
Authority :
Order No. 507/BS-Corr-3 dated 26.11.2019
(i) The Financial powers are irrespective of RE & FE.
(ii) For procurement of stores, Approval-In-Principle (AIP) shall be obtained by OFB from DDP in respect of
(iii) All direct purchases above ₹10,00,000 will be made on the basis of recommendation of relevant Tender Purchase
Committee. Procurement of stores valuing upto ₹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 and the same would be submitted for pre-audit to
LAO before release of Purchase Order.
(iv) All cases required to be approved by TPC, should be sent to Finance division so as to reach the Finance representative
three days in advance so that, he/she can study the same before attending the meeting.
(v) In case of disagreement with the IFA, the CFA can overrule the IFA as per the procedure given in the relevant clause
of OFB Procurement Manual 2010/amended time to time.
(vi) All cases where “Make or Buy” decision is involved, especially all IFD cases will be carefully decided by Sr GM/GM in
consultation with Operating Member & Member/P&MM to optimize full utilization of available capacities with the
Ordnance Factories and reasons clearly recorded if it is decided to go to trade when capacities are available in the
Ordnance Factories based on the guidelines issued on the subject.
(vii) Nodal agencies and procedures for procurement of bulk common materials should be decided by Member/P&MM and
the performance of nodal agencies right from necessity/TE stage onwards should be carefully watched and monitored.

(viii) Wherever GM finds it appropriate to supplement the In-house capacity at OF with Trade action, he is authorized for
same after placing on record full justification for such on action. [ref: 3rd(2010) Board Meeting].
Sr. GM/GM/HOD 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 & TEC LEVEL-I
For procurement of stores/components etc under Financial Power of Sr. GM/GM
Sr. General Manager /General Manager - Chairman

Addl. GM/MM/JGM /MM # - Member/MM
Addl. GM /User Section # - Member/User Section
Addl. G.M /QC # - Member/QC
C of F & A (Fys.)/ Addl. CF &A/JCFA * - Finance Member
Jt 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.
* Addl. CF & A /JCFA will attend the Level-I TPC in the absence of C of F & A(Fys) with reasons to be
recorded by C of F & A (Fys).
$ In absence of Jt. General Manager/ MM, the next senior most officer of MM (Dy. General Manager) will
act as Member/Secretary.
B. TPC & TEC LEVEL-II
For purchase of stores/ components etc under Financial Power of Addl GM
Addl. GM / MM / JGM/MM - Chairman

Addl. GM /Jt.GM/User Section # - Member/User Section
Addl. GM /Jt. GM/QC # - Member/QC

Addl. CF & A/JCFA * - Finance Member
Jt. GM/Dy. GM/MM - Member/ Secretary
# DGM/WM/User Section, DGM/WM/QC will attend the Level-II TPC in the absence of respective AGM/Jt.GM
with the written approval of Sr.GM/GM recording reason for the absence of original incumbent.
* JCFA will attend the Level-II TPC in the absence of Addl. C of F & A (Fys).
C. TPC & TEC LEVEL-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
JCFA/DCFA/ACFA - Finance Member
DGM/WM/AWM/MM * - Member Secretary
$ If there is no Jt. GM/MM& DGM/MM in a factory, AGM/MM will chair TPC level III.
# WM/User Section, WM/QC will attend the Level-III TPC in the absence of respective Jt. GM/DGM with the
written approval of Sr.GM/GM recording reason for the absence of original incumbent.
* In absence/ non availability of DGM/WM/MM, AWM/MM will be the Secretary of TPC level III with the written
approval of Chairman/TPC Level III duly recording reason of nomination.
D. TPC & TEC LEVEL-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
DCFA/ACFA/Sr.AO/AO - 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 PROCUREMENT OF
PLANT & MACHINERY

Constitution of Tender Purchase Committee (TPC) and Technical Evaluation Committee (TEC) for procurement of Plant &
Machinery in Ordnance & Ordnance Equipment 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) For procurement of Plant & Machinery, Approval-in principle (AIP) shall be obtained by OFB from DDP in respect
of procurement having value ₹10 Crs or more.
(iv) Technical CST shall be authenticated by Jt. General Manager/ Dy. General Manager/ Works Manager of the Engg.
Office and the User section.
(v) Financial CST/ Ranking statement shall be authenticated by Jt. General Manager/Dy. General Manager/ Works Manager
of Engg. Office and Local Accounts Officer.
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/ JGM Engg Office # - Member
Addl. General Manager/ User Section # - Member
Controller/ Addl Controller of Fin & Accounts (Fys) * - Member
Jt. General Manager/ 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 Controller of Finance & Accounts (Fys), Addl Controller of Finance & Accounts will attend the
meeting.
$ In absence of Jt. General Manager/ Engg Office, the next senior most officer of Engg office (Dy. General
Manager/ Works Manager) 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
Addl. C of F&A(Fys)/ Jt. C of F&A(Fys)/ Dy. C of F&A(Fys)/ Asst. C of F&A(Fys) - Member
Jt. GM/ Engg Office $ - Member Secretary
# In absence of Addl. General Manager/ User section, the next senior most Officer of User section (Jt. General
Manager/ Dy. General Manager/ Works Manager) will attend the meeting.
$ In absence of Jt. General Manager/ Engg Office, the next senior most Officer of Engg office (Dy. General
Manager/ Works Manager) 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/Secretary of the TPC will also be responsible for decision taken collectively by the TPC.
***************

TPC/TEC STRUCTURE
FOR PROCUREMENT
IN ODCs

COMPOSITION OF TENDER PURCHASE COMMITTEES (TPCS) FOR PROCUREMENT IN ODCS
(These powers will be exercised as per the financial delegation made vide OFB resolution in 8th Board Meeting of 2008 and
circulated through TS division)
TPC Structure for cases to be decided beyond the powers of Chief of ODC
(i.e. within the powers of OFB)
Procurement of Stores & Services Procurement of Machines/ equipment etc.
Level –I Level –I
Chairman/OFB Chairman Chairman/OFB Chairman

Member/TS & R&D Member Member/TS & RD Member
Member/P&MM Member DDG/R&D Member
DDG/R&D Member DDG/Engg Member
DDG/MM Member Member/Finance/CofA(Fin)- in Member
Member/Finance/CofA(Fin)- in Member absence of Member/Fin
absence of Member/Fin
Level –II Level –II
Member/P&MM Chairman Member/P&MM Chairman

Member/TS & R&D Member Member/TS & RD Member
DDG/R&D Member DDG/R&D Member
DDG/MM Member DDG/Engg Member
Controller of Fin/JCF/Dir. Fin Member Controller of Fin/JCF/Dir. Fin Member
Level –III Level –III
Member/TS & R&D Chairman Member/TS & RD Chairman

DDG/R&D Member DDG/R&D Member
DDG/MM Member DDG/Engg Member
Controller of Fin/JCF/Dir. Fin Member Controller of Fin/JCF/Dir. Fin Member

TPC STRUCTURE FOR PROCUREMENT IN ODCs
TPC Structure for cases to be decided within powers of Chief of ODC
Procurement of Stores & Services Procurement of equipments
Chief of ODC Chairman Chief of ODC Chairman

Jt. GM/DGM/WM(QC) Member Jt. GM/DGM/WM(QC) Member
JCF&A(Fys)/AFA(Fys)/LAO Member JCF&A(Fys)/AFA(Fys)/LAO Member
WM/AWM/JWM(ODC) Member Secretary WM/AWM/JWM(ODC) Member Secretary
(These powers will be exercised as per the financial delegation made vide OFB resolution in 8th Board Meeting of 2008
and circulated through TS division)

COMPOSITION OF
CIVIL WORKS COMMITTEE (CWC)

COMPOSITION OF CIVIL WORKS COMMITTEE (CWC) FOR CIVIL WORKS FOR OFB
OFB CWC Level –I
1. Chairman/OFB Chairman
2. Member/Finance * Finance Member
3. Member/ Addl DG of the concerned Division Member
4. Member/ OFB (looking after Engg. Div.) Member
5. DDG/ Concerned Division Member
6. DDG/Engg (E/B)/ Dir (EB)/Jt Dir (EB) ** Secretary
* C of F/ DDG (Fin) to represent only in absence of Member/Fin

OFB CWC Level –II
1. Member/ OFB (looking after Engg. Div.) Chairman

2. Member/ Addl DG of the concerned Division Member
3. DDG/Engineering (E/B) Member
4. DDG/Concerned Division Member
5. CoF/ DDG(Fin)/ Addl. CoF/ Dir (Fin) * Finance Member
6. Dir (EB)/Jt Dir (EB) ** Secretary
* Addl C of F/ Dir(Fin) to represent only in absence of CoF /

DDG (Fin)
** Senior most officer would officiate as Secretary

OFB CWC Level –III
1. Member/Addl DG of the concerned Division Chairman

2. DDG/Engg (E/B) Member
3. DDG/Concerned Division Member
4. Addl. C of F/Dir (Finance)/Jt. C of F /Jt. Dir (Finance) Finance Member
5. Dir (EB)/Jt Dir (EB) (For works related to A&E, WV&E, M&C, Personnel Secretary
Div) or local Dir/Engg /Jt Dir (Engg) (for AV & OEF Div) **
OFB CWC Level –IV (Only for OFB Hq)
1. DDG/ENGG(I/C maintenance of OFBHQ Bldg) Chairman

2. Dir(EB)/Jt.Dir(EB) Member
3. Dir(HQ)/Jt. Dir(HQ)/Dy.Dir(HQ) Member(User)
4. Addl. C of F/Dir(Fin)/Jt. C of F/Jt. Dir(Fin) Member (Finance)
5. Dy. Dir(EB)/SO(EB)/AD(EB) Member (Secretary)
Note: If the Chairman of OFB CWC level –II & III happens to hold the charge of Member/Fin also, the cases
falling within the Financial powers of such CWC will be deliberated and decided by the next higher level
of CWC.
* * * *

COMPOSITION OF CIVIL WORKS COMMITTEE FOR CIVIL WORKS
Factory Level CWC-I
1. GM, Sr PD /NADP, PD/OFIL Chairman

2. AGM/ JGM [EO (Civil)] Member
3. AGM/ JGM of User Sec Member
4. Group CFA / Addl CFA/JCFA * Finance Member
5. JGM/DGM/WM of EO (Civil)** Secretary
* Addl CFA / JCFA to represent only in absence of Group CFA

Factory Level CWC-II
1. AGM [EO (Civil)] Chairman

2. AGM/ JGM of User Sec Member
3. Addl CFA/JCFA * Finance Member
4. JGM/DGM/WM/AWM of EO (Civil) ** Secretary
* JCFA to represent only in absence of Addl. CFA


TPC STRUCTURE
FOR
PROCUREMENT OF MEDICAL STORES
AT FACTORY HOSPITAL

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 upto ₹ 25 lakhs and beyond
(a) i) TPC Level –I (Above ₹ 25 lakhs against LTE/OTE)
Sr. GM/GM - Chairman

AGM/MM # - Member/MM
Addl GM/QC # - Member /QC
CMO I/C - Member/User
C of F & A (Fys) * - Finance Member
Jt. GM/MM - Member Secy.
# Jt GM/MM, Jt GM/QC will attend the level -1 TPC in the absence of respective AGM with the written
approval of Sr. GM/GM recording reason for the absence of original incumbent.
* Addl CF & A (Fys) /Jt CF & A (Fys) will attend the level -1 TPC in the absence of C of F & A (Fys) with
reasons to be recorded by C of F & A(Fys)
ii) TPC Level – II (upto ₹25 Lakhs against LTE/OTE)
CMO I/C - Chairman

MO I/C Med Stores - Member/User
Addl CF & A (Fys) * - Finance Member
Jt. GM/Dy.GM/MM - Member Secy.
* JCF & A (Fys), Dy CF & A (Fys) or ACF & A (Fys) will attend the level-2 TPC in the absence of Addl C of
F&A (Fys) with reasons to be recorded by C of F&A (Fys)
b) Board approved the purchase of medical stores viz. Medicines and other healthcare related items upto ₹ 2.5 lakh
through LPC in accordance with the provisions of Rule 155 of GFR-2017 and the provisions contained under 2.4.7 of
OFBPM-2010 or amended or revised time to time.”

NOMINATION OF FINANCE MEMBER IN TECHNICAL PURCHASE COMMITTEE (TPC), TECHNICAL EVALUATION
COMMITTEES (TECs) AND CIVIL WORKS COMMITTEE (CWCs) AT ORDNANCE FACTORIES FOR PROCUREMENT OF STORES
AND PLANT & MACHINERY.
Ordnance Factory Board in the 13th (2014) Board Meeting held on 30.10.2014 has resolved to nominate Finance Member in TPC/TEC
structure in respect of procurement of Stores and Plant & Machinery. Principal Controller of Accounts (Fys) and Group Controller of
Finance & Accounts may nominate officers with reasons to be recorded for various levels of TPCs/TECs/CWCs in the circumstances
viz. absence, leave, transfer, non-posting of appropriate level of officer in the Branch Accounts Office/Group of Factories as follows
:
Level of Finance Member Authority nominating alternate member

TPC/TEC/CWC
Level-I Controller of Finance & Accounts (Fys) Principal Controller of Accounts (Fys)
Level-II Addl. Controller of Finance & Accounts / Jt. Group Controllers.
Controller of Finance & Accounts Principal Controller of Accounts (Fys), if alternate officer
is not available in the concerned group
Level-III Jt. Controller of Finance & Accounts/ Dy. Group Controllers
Controller of Finance & Accounts/ Assistant
Controller of Finance & Accounts
Level-IV DCFA/ACFA/Sr.AO/AO Group Controller
Structure of TPCs/TECs/CWCs as modified by Board Secretariat from time to time will remain unchanged. The working arrangements
shall necessarily be at the level of the Finance Member notified in the TEC/TPC structure authorized by the board from time to time.
In rare situations when officers are of the said notified levels are not available, with a view to ensuring the work does not suffer,
necessary alternate arrangements of Finance Members at other levels may be made by the authorities concerned, on a case to case
basis or for a definite period, after taking prior approval of PCA(Fys) /Member (Finance), Ordnance Factory Board.

EXERCISE OF FINANCIAL POWERS OF HOD FOR PROCUREMENT THROUGH LTE/OTE/STE UNDER CONTINGENT,
MISCELLANEOUS AND OTHER HEADS (LABOUR CONTRACTS, MAINTENANCE –M&E, I&M, TRANSPORT ETC)
1. The finalisation of cases upto ₹3 lakhs of procurement under Contingent, Miscellaneous and other Heads (Maintenance –M&E,
I&M, Transport 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 etc.) where the HOD is the competent financial authority shall be done in TPC Level – I
of the Establishment, where the finance will be represented by Controller of Finance & Accounts. Addl. Controller of Finance &
Accounts/Jt. Controller of Finance & Accounts/ Branch In-charge of the Local Accounts Office attached to the Factory will attend
the Level – I TPC in the absence of Controller of Finance & Accounts (Fys), with reasons to be recorded by Controller of Finance &
Accounts (Fys) for authorizing them.
3. However, the CFA and Sanctioning authority will be Sr. GM/GM/HOD.
4. 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 Rule 146 of GFR 2005 shall apply to all cases of goods/Services procurement
irrespective of urgency.
5. The finalisation of cases of procurement through LTE/OTE/STE under other Heads (Labour Contracts) where the HOD is the
competent financial authority will be done in TPC Level – I of the Establishment, where the finance will be represented by Controller
of Finance & Accounts/ Addl. Controller of Finance & Accounts/ Jt. Controller of Finance & Accounts/ Branch In-charge of the Local
Accounts Office attached to the Factory.

TDC STRUCTURE

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
C of F & A (Fys.)/ Addl. CF &A(Fys) - 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
Addl. CF &A(Fys)/JCFA/DCFA - Finance Member
WM/AWM/ Stores - Member /Secretary
3. Tender Disposal Committee (TDC) – Level-III
Jt.GM/DGM/MM/Stores - Chairman
WM/AWM/QC - Member
ACDA/Sr.AO/AO - Finance Member
WM/AWM/Stores - Member /Secretary

Declaration of Head of Department (HOD) & Competent Authority
Sl.No. Establishments/Offices Specified Post

1 Ordnance Factories Sr GM/GM
2 NADP, Ambajari Sr. PD/PD
3 OFRC, Ambajari Sr. PD/PD
4 Ordnance Factory Institutes of Learning (OFILs) at Ambajhari, Ambernath, Sr. PD/PD

Avadi, Dehradun, Ishapore, Khamaria, Kanpur, Medak, Trichy, Muradnagar
& Pune
5 Ordnance Factory Recruitment Centre Sr. PD/PD
6 Regional Controllerates of Safety at : Sr. RD/RD

Western Region (Kirkee, Pune),
Central Region (Ambajhari),
Southern Region (Avadi),
North Region (Kanpur),
Eastern Region (Ishapore)
7 OFB New Delhi Office (OFBNDO), New Delhi, Sr. DDG/ DDG,
In-charge of OFBNDO
8 OFB Mumbai Office (OFBMO), Mumbai Sr. DDG/ DDG,
In-charge of OFBMO

Declaration of Head of Department (HOD) & Competent Authority
Sl.No. Establishments/Offices Specified Post
9 Regional Marketing Centres (RMCs) at Sr. RD/RD

Avadi, New Delhi, Pune
10 OFB Hqrs, Kolkata Sr. DDG/DDG,
In-charge of Administration of OFB HQrs Office
11 OEF Hqrs, Kanpur Sr. DDG/DDG,
In-charge of Administration of OEF HQrs Office
12 AV Hqrs, Avadi Sr. DDG/DDG,

In-charge of Administration of AV HQrs Office

AUTHORISATION TO MEMBERS/ORDNANCE FACTORY BOARD
TO EXERCISE POWERS O.F. BOARD
Authority : Order No.2/BS dated: 19-05-79
The undersigned has been directed to state that the Ordnance Factory Board in exercise of its delegated
powers, has ordered as follows :-
(a) The Powers of the Board can be exercised by the Member/Members concerned, so far as they are relevant
to the functioning of their Divisions subject to the condition that where financial implications are involved,
the concurrence of Member/Finance would be required.
(b) The above exercise of powers would however be subject to:

(i) The purchase of materials by the 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 Board.
(iii) All proposals for availing of consultancy or for sale of consultancy by the factories would be put up
to the Board for approval.
(iv) On all issues, considered major by the Members 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 of.
(v) Sanction of addition to the manpower would require the approval of the Board.
Major Head 2079
Revenue Expenditure
Minor Particulars Details of Various Heads

Head
001 Direction & Administration This head consists of the following expenses related to Hqrs.
a. Pay & Allowances of officers and staff, including LTC, Leave encashment on
availing of LTC, Medical re-imbursement, Overtime allowance, etc.
b. Movement of Personnel -
i) Travelling and daily Allowances for temporary/permanent move including
foreign travel.
ii) Hired Transport Charges
c. Energy, Communication, Training Course Fees etc. ,Building Maintenance etc.
d. Other Miscellaneous expenditure - which includes Advertisement, Trade
Fairs, Taxes & Duties, Consultancy, Furniture, Printing and Stationary,
Contract Labour, Exhibitions, Annual Maintenance Contract (AMC) of office
equipment and Other Miscellaneous expenditure, etc.
e. Information & Technology includes Hardware, Software, Maintenance and
Training.
004 Research & Development Under this head the following expenditure are incurred.
a) All expenditure of Ordnance Development Centers are as follows :-
i. Pay and Allowances
ii. Travelling Expenses
iii. IT Expenses
iv. Other Miscellaneous Expenses etc.
b) Manufacturing expense of In-house R&D Projects.
053 Maintenance & M&E – The expenses of preventive & breakdown maintenance including Annual Maintenance
Machinery & Equipment Contract through trade for Plant & Machineries categorized as Capital Assets.

Head
054 Manufacture This head comprises of Pay and Allowances of all Factories and allied Establishments etc. as
follows :-
a. Pay & Allowances of officers and staff including LTC, Leave encashment on availing
of LTC, Medical re-imbursement, Overtime allowance, etc.
b. Contract Labour for production job.
105 Transportation This Head includes the following expenditure :-

a) Movement of Personnel
i. Travelling and daily Allowances for temporary/permanent move including foreign travel.
ii. Hiring Transport Charges
b) Movement of Stores
i. by Rail
ii. by Road
iii. by Sea and Air.
106 Renewal & Replacement This Head is for procurement of P&M against replacement funded from Renewal & Reserve
Fund.
110 Stores This Head includes the procurement of direct and indirect materials required for
production,
etc. It also includes expenditure on Information & Technology.
111 Works It is revenue expenditure on account of maintenance / minor works related to Buildings,
Lands, Roads within the Factory premises, Estates, etc.
797 Transfer to Renewal Under this head, the approximate amount of Depreciation is transferred to RR Fund for
Reserve Fund, Ordnance Renewal & Replacement of Plant & Machinery.
Factories – Inter Account
Transfer.

Head
810 Other Expenditure The following expenditure are included in the Other Expenditure :-
81001 a. Electricity
81002 b. Water
81003 c. Communication
81004 d. Training (within India and abroad)- including Course Fees and related
81005 expenditure
81006 e. Office Equipments
81007 f. Hospital & Laboratory Equipment - Equipments required for hospitals and
factories Lab not of capital nature.
g. Consumables - This includes expenditure for medicines through trade,
AFMSD supplies, milk, lemon, etc. required for Industrial employees,
Hospital, Ration, Hygiene, Chemicals etc.
81008 h. Contract Labour –required for services of indirect nature
81009 i. Departmental Canteens :- pay and allowance of canteen employees
81011 j. Transfer of Technology – This is for expenditure of procurement of
documents for transfer of technology.
81012 k. Other miscellaneous expenditure, which includes :
i. Payment under Workmen Compensation Act.
ii. Expenditure on account of participation in International Trade
Fairs.
iii. Expenditure on account of participation in International Trade Fairs within
India.
iv. Expenditure in connection with publicity of articles manufactured in
Ordnance Factories for civilians.
v. Classification advertisements through DAVP & directly by units
vi. Excise Duty & Sales Tax – other than catered under Stores
vii. Consultancies – both Indian & Foreign
viii. Office Furniture
ix. Printing & Stationary
x. Govt. Official Vehicle (Staff Cars & Others)

xi. Hospitality
xii. Exhibition related Expenditure
xiii. ISO Certification etc
xiv. Expenditure on Foreign Specialists
xv. Expenses related translation of Documents
xvi. Payment to visiting Doctors
xvii. Rent & Rates
xviii. Royalty
xix. Insurance
xx. Trade Charges
xxi. Recruitment Related Expenditure
xxii. Seminar Conferences Rajbhasha etc
xxiii. Other Misc Expenditure
xxiv. Grant in AID to School – Salaries, Capital Assets, other Expenditure etc.
81014 l. Warranty Expenses
81015 m. Legal expenses.
Recoveries of supplies made
to
901 Army Refers to the supplies made to Army.
902 Navy Refers to the supplies made to Navy.
903 Air Force Refers to the supplies made to Air Force.
904 Other Departments Issues to Other Defence Departments (DGQA, DRDO, MES, NCC etc)

Major Head 0079
inor Particulars Details of Various Heads

Head
101 Sale of Surplus and (i) Proceeds from sale of surplus and obsolete
Obsolete (ii) Value of work done for Non-Military Departments,
Other Govt. and private bodies
800 Other Receipts A – Director General Ordnance Factories/ Ordnance Factories Board
i) Miscellaneous Receipts
ii) Receipts from disposal of surplus lands, Buildings etc.
B - Ordnance (including Ordnance Equipment) Factories,

Miscellaneous Receipts
These receipts includes :

Rent/Electricity Recovery, Liquidated damages, Lapsed/Forfeiture of Earnest
Money/Security Deposits, Input Tax Credits, Fees for Capacity Verification, Misc Hospital
Receipts, Other Misc Receipts
**************

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DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 1

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 2

AGM - Additional General Manager

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 3

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 4

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 5

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 6

Authority Authority Authority Extent

** IPL: Itemized Price List

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 7

[Minor Head 110] All HODs ₹ 1 Cr

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 8

DGOF Full Power

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 9

Maintenance [Minor Head 053] ii) In

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 10

SHIS & Ledger for allied units needs to be discussed.

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 11

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 12

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 13

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 14

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

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

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 15

Sr .PD/ PD ₹ 25 Cr --- --- i) Applicable for

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 16

iii) Factories shall forward

iv) Procurement shall adhere to

v) No capital investment should

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 17

Sr. PD/ PD/ ₹ 1 Cr -do- -do- i) PFC approval by OFB

ii) AIP shall be obtained

iii) Applicable for only

iv) Capital asset will

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 18

Minor Head 106(for RR), Fin Power is irrespective

8 Erection & Commissioning of Addl.GM ₹ 10 Lakh Addl. DGOF/ ₹ 10 Cr Yes

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 19

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 20

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 21

14 Scientific equipment/ laboratory equipment, Test Sr.GM/GM ₹ 25 Lakh --- Yes

15 Scientific equipments/ laboratory equipments Head of ₹ 25 Lakh Subject to Yes

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 22

₹ 1Cr (ii) Requisite

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 23

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 24

AGM, DGOF Full power

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 25

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 26

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 27

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 28

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 29

ii) This power cannot be sub-delegated by the Board.

iii) Cases where a difference of opinion between the Members of OFB

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

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

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 30

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 31

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 32

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 33

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 34

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 35

DELEGATION OF FINANCIAL POWERS : OFB AS ON 30th NOVEMBER, 2019 36