Stores Procedure

PARA NO. CLAUSE

1. Stores Procedure
The scope of this procedure is to define the functions of Stores Unit
under the Directorate of Purchase and Stores.

2. Functions
2.1 The functions of the Stores Units cover :
2.1.1 Provisioning and Indenting of material commonly used in the
respective Units and stocked in Stores.
2.1.2 Receipt and Documentation of material described above and
those received against direct indents by the Units
2.1.3 Storage and Preservation
2.1.4 Issue of material
2.1.5 Quantitative Accounting of material and maintenance of relevant
records.
2.1.6 Identification and Weeding out of Surplus, Obsolete and
Unserviceable stores and Condemnation of vehicles.
2.1.7 Disposal of surplus, obsolete, unserviceable stores, condemned
vehicles and scrap material.
2.1.8 Clearance of consignments against order placed by DPS.
2.1.9 Engagement of material handling equipments and facilities for
movement of material.
2.1.10 Transportation of material between different Divisions within the
Unit.
2.1.11 Despatch of material to outstations.
3. Indenting of Material
3.1 Stores Unit shall raise indents for all common user material
stocked in Stores.
3.2 Indents other than common user material shall be raised by the
users after ascertaining availability or otherwise from Stores.
3.3 Indents shall be raised in Form No.DPS/SP/01.

3.4 The following factors shall be taken into consideration while raising
an indent:

Proposed_1st_revision_ March_ 2016 Page 1 of 37

3.4.1 Funds are available for purchase.

3.4.2 Quantities indented will not result in over-stocking.

3.4.3 Storage facilities are available or whether phased deliveries are
required.
3.4.4 Wherever installation and commissioning are involved, the
infrastructure for the same is ready.
3.4.5 Type of packing.
3.4.6 Shelf life of material.
3.4.7 Whether the material is of capital nature.
3.5 Replenishment of Stocks
3.5.1 Fixation of levels

Stores unit shall fix maximum, minimum and re-order level for each
common stock material to maintain optimum stock.
3.5.2 Periodical Review :

Indents for replenishment shall be raised by conducting periodical

review or at Re-order level, to ensure that stock do not fall below
the minimum.

Form No.DPS/SP/02 shall be used for this purpose.

While conducting the review, non- recurring issues shall not be

taken into account for working out the consumption figures.
3.5.3 Review of levels

Maximum, Minimum, Re-order levels fixed for each material shall

also be reviewed when the periodical review is conducted.
3.6 Indent Register
3.6.1 Indent Register in Form No.DPS/SP/03 shall be maintained by the
Stores Unit.
3.7 Follow up of Indents
3.7.1 Follow up of indents shall be done by the respective Indentors.

Proposed_1st_revision_ March_ 2016 Page 2 of 37

4 Receipt of Material
4.1 Source of Supply :
4.1.1 The main sources of supply are :
Against Purchase Orders placed by the DPS on
(i) Indigenous Suppliers.
(ii) Foreign Suppliers.
4.1.2 Against Cash Purchase by DPS.
4.1.3 Material received against Work Order or fabricated departmentally.
4.1.4 Material received against MoU entered into by the Department.
4.1.5 Material transferred from other Units of DAE.
4.1.6 Stores Unit shall also receive material returned by Divisions under
the following categories :
4.1.6.a Safe custody
4.1.6.b Surplus / Unserviceable / Obsolete Material and Condemned
Vehicles.
4.1.6.c Scrap.
4.2 Receiving Documents
4.2.1 Supplies received by the Stores Unit shall be on the strength of a
challan or a similar document presented by the supplier.
4.2.2 The document shall indicate name of the supplier, their reference
no., Purchase Order number / Work Order number and date or any
other authority against which the delivery is made with description
of the material and delivered quantity.

Proposed_1st_revision_ March_ 2016 Page 3 of 37

4.3 Provisional Acceptance
4.3.1 Material brought to the Stores Unit shall be scrutinized with the
relevant receiving documents and after ensuring that the supply is
meant for the Stores Unit and as per order, shall accord a
provisional acceptance affixing a rubber stamp as per specimen
below, with uniform remarks on all copies of receiving documents
and return one copy to the supplier in token of having received the
material.
STAMP
STAMP

Received subject to check of quantity, quality, final acceptance and

also without prejudice to the Purchaser’s rights under the terms and
conditions of contract and subject to the remarks below:

Remarks :
Signature:_____________
Name :_____________
Desgn & Emp No. : ______
Date :______________

4.3.2 Direct Delivery

Delivery of material shall be made by the suppliers directly to the

user concerned, only in cases where there is no Stores attached to
the Unit and also Purchase Order stipulates such Direct Delivery. In
such cases the Official taking delivery shall accord provisional
acceptance of material after ascertaining the correctness of
quantity / quality and forward the original challan to the Stores Unit
concerned. On receipt of these documents, normal receipt and
accounting procedure shall be followed by Stores Unit.
4.3.3 Receipt of material through transport etc.

4.3.3.a Stores Unit on receipt of consignee copy of LR/RR/PWB/Dockets

etc. for material despatched to it against Purchase Order placed by
DPS shall enter the details of such instruments in Consignment
Inward Register maintained in Form no. DPS/SP/04. This register
shall be reviewed daily and formal claims shall be preferred
immediately if there is a delay in receipt of consignments, as per
para 4.4.2.a.

4.3.3.b Where consignee copy of LR/RR/PWB/Dockets, etc. is not received

in advance, the entry in Consignment Inward Register shall be
made on receipt of consignments.

Proposed_1st_revision_ March_ 2016 Page 4 of 37

4.3.3.c In case of consignment despatched through Post, the entry in the
Consignment Inward Register shall be made on the basis of
intimation received from the supplier, and review / claim shall be
done as per para 4.4.2.a
4.3.3.d Where the material is received through Transport, Clearing agent,
Courier etc. a stamp worded as follows shall be used:
STAMP

Vehicle No. Date Time in Time out

Consignment unloaded by Department / Transporter / Clearing

Agent.

Received the consignment subject to remarks below :-

Remarks : _________________________________

Signature:_____________
Name :_____________
Desgn & Emp No. : ______
Date :______________

4.3.3.e In case of consignment received in damaged condition or

suspected damage, pilferage, shortage etc., the signature of the
Driver shall be obtained just below the stamp, with his name and
license number and the case shall be further processed as per para
4.4.2.a.
4.4 Clearance of Damaged Consignment
4.4.1 Packages which are externally damaged or with suspected
damage or shortage shall be cleared after the following formalities
are completed :
4.4.1.a Rail / Road - Open Delivery basis.

4.4.1.b Sea consignments (Inland) – Ship Insurance Survey.

4.4.1.c Air freight consignments(Inland) – Open Delivery basis

4.4.1.d Air / Post Parcels (Inland) etc. – Open Delivery basis and on
obtaining necessary Inventory Certificate from the Postal
Authorities.
4.4.1.e All imported consignments – necessary formalities to be followed
by the Purchase Unit.

Proposed_1st_revision_ March_ 2016 Page 5 of 37

4.4.2 Lodging of Claims

4.4.2.a Stores Unit shall lodge formal claim with the carrier/ underwriter/
suppliers, immediately, for non delivery / short delivery of
consignment or material received in damaged condition.
4.4.2.b Claim Register

Stores Unit shall maintain a Claim Register in Form No. DPS/SP/05

and review periodically.
4.5 Registration of Receipt
All receipts including those covered under para 4.3.3.a shall be
entered in the Goods Receipt Register Form No. DPS/SP/06
immediately. Corresponding GRR number shall be entered on the
Challan.
4.6 Inspection
4.6.1 On receipt of material Stores Unit shall link the receiving
documents with the Purchase Order / Work Order and check
correctness of the quantities and record if there is any visual
damage.
4.6.2.a After the preliminary inspection as indicated in para 4.6.1, Request
for Inspection in Form No. DPS/SP/07 shall be forwarded to
Indenting Officer for further inspection, to ensure that the supplies
are in conformity with the purchase order specifications /
conditions.
4.6.2.b The Indenting officer/ Inspecting authority, shall return Request for
Inspection to Stores Unit, duly signed, indicating the quantity
accepted and quantity rejected with clear reason(s) for such
rejection(s).

4.7 Discrepancies
4.7.1 Discrepancies are likely to arise due to :
(a) Material not conforming to the Purchase
Order specifications.
(b) Shortage / Excess.
(c) Breakage / Damage.
(d) Defective material.
(e) Improper Packing.

4.7.2 In case the main unit/machinery etc. is rejected, its spares,

accessories or other items used with that unit against the same
Purchase Order can also be rejected.

Proposed_1st_revision_ March_ 2016 Page 6 of 37

4.7.3 Discrepancies shall be notified to Supplier, Purchase Unit,
Accounts Unit and Indentor in Discrepancy Report Form No.
DPS/SP/08
4.7.4 A record of discrepancies shall be maintained in Discrepancy
Report Register Form No. DPS/SP/09. The discrepancy report
shall bear the same number as allotted for each entry in the
Discrepancy Report Register.
4.7.5 Disposal of Discrepant Material

4.7.5.a Discrepant material shall normally be collected by the supplier.

Such material for which payment is made shall not be normally
returned to the supplier unless replacement / refund of advance
payment are received.

4.7.5.b In case the rejected material has not been collected despite
intimation as per para 4.7.2, two reminders shall be given to the
supplier allowing further periods of 15 days to collect the rejected
material. Form No. DPS/SP/10 and DPS/SP/11 for first and second
reminders respectively be used.

4.7.5.c If the supplier failed to collect the rejected material even after the
reminders, a final notice of 7 days in Form No. DPS/SP/12 shall be
served on the party.

4.7.5.d Where the discrepant material is of perishable or hazardous nature,

the notice period shall be reduced depending on the nature of
material / hazard.
4.7.5.e Rejected material may be returned to supplier through rail, road,
courier, post etc. on their request, at their own risk and cost.
4.7.5.f Material remaining uncollected even after the final notice and where
payment not released, shall be disposed off after obtaining
approval of Director / Ex – Officio Director, P & S.
4.8 Final Acceptance of Supply
Where erection, installation, commissioning, training etc. are
4.8.1 stipulated in the order, a certificate in Form No. DPS/SP/13
confirming the satisfactory completion of such activities shall be
obtained from the indenting officer.

4.8.2 Where Purchase Order / Work Order is for Intangible material like
digital goods / software, a certificate in Form No. DPS/SP/14
confirming receipt and acceptance of such goods shall be obtained
before preparing Receiving Voucher.

Proposed_1st_revision_ March_ 2016 Page 7 of 37

4.8.3 Receiving Voucher

Stores Unit shall prepare Receiving Voucher (RV) in Form No.

DPS/SP/15 for supplies accepted by Indenting Officer / Inspection
authority after confirming that the quality and quantity are in
accordance with the Purchase Order. Wherever erection,
installation etc. are involved certificate as indicated in para. No.
4.8.1 shall be obtained before preparation of RV.

4.8.3.a Where orders are for job work which includes supply of material,
Stores Unit shall prepare RVs for the material and job work will be
certified by the respective users. Where rate of material is not
separately indicated in the order, the contracting authority shall
provide the same in writing for preparation of RV.

4.8.3.b Where Purchase Order / Work Order does not involve supply of any
material, Receiving Voucher need not be prepared and payment
against such orders shall be effected on the basis of Bill
Certification by the users.

4.8.4 Receiving Voucher Control

Receiving Voucher shall be controlled in Receiving Voucher

Control Register maintained in Form No.DPS/SP/16

4.8.5 Receiving Voucher shall be send to Accounts Section for payment.

Copies shall be provided to Purchase Unit, Indenting Officer and
Costing Section. Accepted material shall be transferred to Stock
Section for taking on charge.

4.9 Excess / Short Supply

4.9.1 Supplies made by the suppliers against Purchase Orders shall be
exactly in accordance with the quantities stipulated in the order. In
exceptional cases, excess/short supply to the extent indicated in
para 4.9.2 and 4.9.3 may be accepted by Stores Unit.

4.9.2 Excess supply, if tendered by the supplier, may be accepted

without a formal amendment to purchase order up to a maximum of
10% of each item over the order quantity or Rs. 50,000/- over the
total Purchase Order value of the item, whichever is lower in terms
of cost subject to availability of fund and acceptable to user. Any
excess supply more than these limits may be accepted with
amendment to Purchase Order.

Proposed_1st_revision_ March_ 2016 Page 8 of 37

4.9.3 In case of short supply, order may be deemed completed provided
the supply made is deficient only by a margin up to 10% in quantity
for each item or Rs. 50,000/- of the total Purchase Order value of
the item, whichever is less in terms of cost.

4.9.4 Where the material supplied are not in conformity with the
Purchase Order specification but are acceptable, such supplies
may be accepted after a formal amendment to the Purchase Order.

4.10 Weight Tolerance in Material Receipt

4.10.1 Where Purchase Order / Work Order include provision for weight
tolerance, the receipt shall be regularized accordingly.

4.10.2 Where Purchase Order / Work Order does not include provision for
weight tolerance the receipt shall be regularized as follows:

4.10.2.a Weight difference up to + 0.5% in bulk chemicals / oils received in

tanker, may be considered as incidental to weighment in different
weigh bridge and may be allowed provided the tanker seals are not
broken and no tampering is suspected.

4.10.2.b Weight difference up to + 0.3% in steel consignment may be

considered as incidental to weighment in different weigh bridge and
may be allowed.

4.10.2.c Where the difference is within the permissible limit allowed,

Receiving Voucher shall be prepared for the challan / invoice
quantity. The quantity indicated in RV shall be taken on charge in
Stock Card. The difference between actual quantity and RV
quantity shall be brought on / struck off by raising Certified
Receiving Voucher / Certified Issue Voucher as the case may be,
quoting this para as authority.

4.10.3 Stores Unit shall submit a statement showing all surpluses and
shortages regularised in terms of para no. 4.10.2.c to Director,
Purchase and Stores / Ex-Officio Director, Purchase and Stores for
every financial year.

4.11 Returnable Empties

A record of all returnable empties such as gas cylinders, tonners
etc., shall be maintained item wise in a register in Form No.
DPS/SP/17. Stores Unit shall review this register periodically to
ensure prompt return to suppliers.

Proposed_1st_revision_ March_ 2016 Page 9 of 37

4.12 Cash Purchase
Cash Purchase through imprest account shall be received,
inspected, accepted and accounted by the indentor and cash
memo with endorsement to this effect by Indenting Officer and
approved by Competent Authority shall be submitted to Accounts
Unit for settlement directly.

4.13 Return of Surplus Material

4.13.1 Material found surplus, obsolete, unserviceable by Divisions / Unit
shall be returned to Stores Unit on a Credit Voucher in Form No.
DPS/SP/18 along with relevant certificate as per para 7.1.3.(d,e& f).

4.14 Register for Returned Material

4.14.1 Material received back by Stores Unit from Divisions / sections as
surplus, obsolete etc. shall be accounted separately in a register in
Form No. DPS/SP/19.

4.14.2 Return of steel items

4.14.2.a Steel items i.e. Reinforcement Steel, Structural Steel, Mild Steel
Plates etc. shall be received in Stores on Credit Voucher.

4.14.2.b Reinforcement steel material / structural steel material returned

against Credit Voucher in serviceable/usable condition in length of
2 mtrs and above shall be taken on charge in stock. The quantity
returned to Stores less than 2 mtrs in length shall be treated as
scrap.

4.14.2.c Plates of Mild Steel /Carbon steel if returned in off-cuts against

Credit Voucher in serviceable /usable condition with the area of
above one sq.mtr shall be taken on charge as stock item. The off-
cuts having less than one sq.mtr area shall be treated as scrap
irrespective of the condition.

4.14.2.d Separate record shall be maintained for steel items returned to

Stores as serviceable /usable and taken on charge so as to project
the quantity available in stock under this category.

4.14.3. Cable in serviceable condition, and sealed at both ends, shall be

received on Credit Voucher. Wherever quantity cannot be
ascertained, certification by the Head of Division shall be accepted
for the quantity returned.

Proposed_1st_revision_ March_ 2016 Page 10 of 37

4.15 Scrap
4.15.1 Stores Unit shall receive scrap having commercial value from
Divisions and keep an account in separate Stock Card maintained
for the purpose.

4.15.1.a Where Health Physicists are positioned in the unit, all scrap shall
be monitored for radioactive contamination by Health Physicist and
cleared with a certification to that effect.

4.15.2 Stores Unit shall not receive scrap of the following type:

a) Environmentally unfriendly materials like thermocole,

asbestos, fibre material, glasswool, automobile filter,
breakliner, gasket etc.
b) Expired medicine, Chemicals, etc.
c) Empty cylinders of compressed gas.
d) By product of production unit.
e) Cut out and dried trees etc. removed from departmental
premises.
f) Concrete debris / poles.

4.16. Safe Custody of Stores

4.16.1 Material handed over by the Division to Stores Unit for safe custody
shall be accompanied by a Material Despatch note in Form
No.DPS/SP/20. The Division concerned shall arrange proper
packing and numbering of packages before handing over for safe
custody unless such material cannot be packed or bundled due to
their nature. Stores Unit shall be responsible for the packages and
not the contents therein.

4.16.2 Stores Unit shall maintain Safe Custody Register in Form

No.DPS/SP/21.

4.16.3 The user shall indicate the probable period of safe custody at the
time of depositing in Stores.

4.16.4 The user shall arrange to either draw the safe custody item after
the period indicated or make necessary arrangement for their
disposal.

4.16.5 It shall be the responsibility of the Division concerned to :-

4.16.5.a Review Safe Custody material once in six months or more

frequently depending upon the nature of the material.

4.16.5.b Ensure that the packages / material handed over do not deteriorate
in storage.

Proposed_1st_revision_ March_ 2016 Page 11 of 37

5 Storage and Preservation
5.1 Type of Storage Area
5.1.1 Material shall be stored according to the nature, type, quantity and
volume in
a. Closed / Covered storage area
b. Open storage area

5.1.2 Closed / Covered Storage Area

5.1.2.a Closed / Covered Storage Area shall be systematically demarcated

as sheds, rows, racks, shelves, bins.
5.1.2.b The closed storage area shall have proper door with locking facility.
5.1.2.c Each storage shed or covered area shall be given unique number
and number should be prominently marked.
5.1.3 Open Storage Area

5.1.3.a Open Storage Area shall be systematically demarcated as zone,

sector, lane, rows, stacks, racks.
5.1.3.b Open storage area shall have secured fencing, gate, sufficient
illumination and approach road.
5.1.3.c Demarcated area shall be properly marked with signboards, paints
etc.
5.1.3.d Suitable Sign-Boards, marking may be provided for material kept in
the open yard for identification of each item.
5.1.3.e Stores Unit shall prepare a layout of entire storage area and display
the same at a prominent place.
5.2 Location System
5.2.1 There shall be specific locations earmarked for each item and
material shall be stored at their respective location.
5.2.2 Location of material shall be recorded on Bin Card, Stock Card and
Location Index Register.
5.3 Taking Material on Charge
5.3.1 Stock Section shall take material on charge on the basis of the
Receiving Voucher, credit voucher and transfer voucher. The
material shall be binned, enter the receipts in the bin card, record
the bin card balance and location in the voucher for posting the
receipts in stock card.

5.3.2 Material shall be stored safely in such a way to ensure

unobstructed removal at the time of issue, avoid deterioration and
facilitate physical verification.

Proposed_1st_revision_ March_ 2016 Page 12 of 37

5.3.3 Material shall be stored in healthy storage condition.

5.4 Statutory Licence

5.4.1 Wherever statutory licence / permits are required for storage /
handling of any material the same shall be obtained and ensure
their timely renewal.

5.4.2 Copies of licence, permit, certificate etc. shall be displayed in

stores.

5.5 Storage of Inflammable/Hazardous Material

5.5.1 Inflammable/hazardous / toxic / corrosive material like chemicals,
paints, oils etc. shall be kept separately and safely depending upon
the quantity and nature.

5.6 Temperature sensitive material shall be stored in controlled

environment.

5.7 Precious metals and metal ware shall be stored safely in safety
vault or strong room.

5.8 Material of Pilferable nature shall be kept under lock and key.

5.9 Storage,Handling and Condemnation of Gas cylinders

5.9.1 Provisions of Gas cylinder rule and other statutory requirements
shall be followed in storing, handling and condemnation of Gas
cylinders.

5.9.2 Cylinders containing flammable and toxic gases shall be kept

separated from each other and from cylinders containing other
types of gases by adequate distance or by suitable partition wall.

5.9.3 Cylinders shall not be stored under conditions which will cause
them to corrode.

5.9.4 Cylinders shall not be stored alongwith any combustible material.

5.9.5 Empty and full cylinders shall be stored separately with sign
boards.

5.9.6 Ramps for safe loading/unloading of gas cylinders may be provided

if possible.

Proposed_1st_revision_ March_ 2016 Page 13 of 37

5.9.7 Gas cylinder shall always be kept with safety guard / cap when not
in use.

5.9.8 The colour of Gas cylinders shall not be changed and no gas other
than permitted in the cylinder shall be filled.

5.9.9 Gas cylinders designed and approved for filling with a particular gas
shall not be used for filling with any other gases unless such fillings
are provided in Gas Cylinder Rule or specific approval is obtained
from the Chief Controller of Explosives.

5.9.10 Stores Unit shall maintain a record of following information

pertaining to cylinders procured by them :
a. Manufacturers name and rotation no.
b. Specification no. to which the cylinder is manufactured.
c. Date of original hydrostatic test or hydrostatic stretch test or
pneumatic test.
d. Manufacturer’s test and inspection certificates.
e. Letter of approval granted by Chief Controller of Explosives.
f. Records of cylinder shall be closed and kept for a period of
one year after the cylinder is condemned and destroyed.
5.9.11 Stores unit shall maintain a gas cylinder card for each cylinder
indicating the details of its usage in Form No. DPS/SP/21
5.9.12 Condemnation of cylinder
5.9.12.a Eligibility for condemnation
i. Any cylinder which fails to pass periodic examination/test
by authorized agency.
ii. Any defect which render the cylinder usage unsafe.
iii. Expiry of the service life of the cylinder.

5.9.12.b Method of destruction

i. Fully emptied gas cylinders shall only be destroyed.
ii. All markings on the cylinder shall be defaced before
destruction.
iii. Condemned cylinders shall be destroyed by flattening as
a whole or cut into pieces.
iv. Flattening or cutting of scrap cylinders shall be done in
presence of HPU/industrial safety Section, or other safety
officials.

5.9.13 Wherever Gas cylinders are not identifiable due to discolouration

the same shall be referred to unit’s safety division for identification
and destruction.

5.10 Maintenance of Equipments

5.10.1 The measuring instruments, weighing balances, weighing scales

shall have proper calibration and certificate from statutory
authorities shall be obtained wherever applicable.

Proposed_1st_revision_ March_ 2016 Page 14 of 37

5.10.2 Material handling equipments, tools etc. shall be periodically
maintained and tested for their load bearing / functioning capacity.

5.10.3 Safe Working Load shall be prominently indicated on Material

handling equipments, tools etc.

5.10.4 The date of last service done and date of next service due shall be
indicated on material handling equipment and weighing
equipments.

5.11 Preservation
5.11.1 Preservative measures shall be taken periodically to maintain
quality of stores and longevity of life.

5.11.2 Material in open storage shall be kept on proper dunnage and top
cover may be provided wherever necessary.

5.11.3 Original packing shall be maintained for electronic components,

optical items, chemicals, bearings etc. to avoid deterioration.

5.11.4 Original labels of chemicals, medicines and other packaged items

shall always be maintained to enable proper identification.

5.11.5 Colour code used for steel items, pipes etc. shall be maintained for
identification.

5.11.6 Shelf expired items shall be removed from stock and located
separately. These shall be struck off from stock card by way of
transfer voucher and accounted in register maintained as per Form
no. DPS/SP/22 .

6 Issue of Material
6.1 Authority for Drawal of Material
Heads of Units / Divisions concerned shall make available to the
Stores Unit the list of officials authorized for drawal of stores
together with their specimen signature. The list shall be updated
periodically.

6.2 Material Issuing Documents

6.2.1 Materials shall be issued against “Requisition-Cum-Issue Voucher”
in Form No.DPS/SP/23, presented to Stores Unit by the
Demanding Division, duly signed by the authorized official.

Proposed_1st_revision_ March_ 2016 Page 15 of 37

6.2.2 Where material requisitioned for internal use and no separate
costing is involved, the material can be drawn from Stores on
Stores Requisition (SR) in Form No. DPS/SP/24

6.2.3 Requisition-Cum-issue Voucher / Stores Requisition shall be filled

up carefully. Any correction in the requisition shall be attested by
the official authorizing the requisition.

6.2.4 On receipt of RCIV / SR Stores Unit shall scrutinize to ensure that

the voucher is complete in all respects.

6.2.5 RCIV / SR shall be controlled in Issue Voucher Control Register

maintained in Form No.DPS/SP/25.

6.3 Issue of Material

6.3.1.a Stores Unit shall issue material requisitioned, if available, and
return one copy of RCIV/SR to the demanding section/division
indicating the quantity issued with the signature of the Stock
Section in-charge.

6.3.1.b If the requisitioned material is not available in stock, quantity issued

column shall be recorded as ‘NIL’ with a remark ‘Not Available’
(NA) or ‘Non-Stock’ (NS) as the case may be.

6.3.1.c In case the requisitioned material is available in stock but cannot be

issued for any reason, issued column shall be recorded as NIL with
suitable remarks.

6.3.1.d Material shall normally be issued on First-In-First-Out (FIFO)

basis. In case of specific shelf life items, batch with earliest expiry
date will be issued out first.

6.3.2 While removing the material from bin / location, quantity issued will
be posted in Bin Card with relevant details and record post issue
balance on RCIV / SR.

6.3.3 Whenever material issued to agency / Unit other than the units
served by the Stores and the same is collected through
representative, a letter of authorization shall be obtained.

6.4 Free Issue Material

6.4.1 Free issue material mean any item of stores issued to contractors
for fabrication work against contract entered into by Directorate of
Purchase and Stores or the respective Units.

Proposed_1st_revision_ March_ 2016 Page 16 of 37

6.4.2 The Contract shall stipulate the description, quantity (Bill of
Material), terms and conditions etc. under which the Free Issue
Materials are to be issued to the Contractor.

6.4.3 Insurance Coverage

6.4.3.a The Contracting Authority shall obtain appropriate safeguard such

as insurance policy, indemnity bond etc. from the contractor
towards the value of the Free Issue Material covering the risks as
per contract.

6.4.3.b The Stores Unit shall issue Free Issue Material to the Contractor
only after getting a written intimation in Form No. DPS/SP/26 from
the Contracting Authority that necessary safeguard has been
received and accepted.

6.4.4 “Free Issue Material” will be issued by the Stores Unit to the
contractor on receipt of written authorization from the Indenting
Officer, following the normal issue procedure and as per the terms
and conditions stipulated in the contract.

6.4.5 The Indenting Officer while authorizing such issue, will take into
account the progress of work and all related factors to ensure that
only such quantities of Free Issue Material as are necessary for
uninterrupted progress of work are released to the contractor.
6.4.6 Free Issue Material shall be issued on RCIV indicating the following
additional details :
(i) the name of fabrication contractor
(ii) fabrication contract No.
(iii) delivery/dispatch details (LR,RR,MD Note No.,Gate Pass No. etc.)
6.4.7 A bold rubber stamp reading “FREE ISSUE MATERIAL” shall be
affixed on RCIV relating to FIM.

6.4.8 The total quantity of Free Issue Material to be issued to the

Contractor shall be restricted to the quantum of bill of material
mentioned in the contract and value of FIM shall not be more than
the insurance / safety coverage at any given time.

6.4.9 The Stores Unit shall obtain an acknowledgement with rubber

stamp from the contractor in token of having received the Free
Issue Material on a copy of RCIV.

6.4.10 Free Issue Material shall be taken out of departmental premises on

Non-Returnable Gate Pass.

6.5 Accounting of left over material and scrap

Proposed_1st_revision_ March_ 2016 Page 17 of 37

6.5.1 On completion of fabrication work, the finished goods will be
received by the Stores Unit as stipulated in the contract and the left
over material and scrap arising, if any, shall normally be received
by the parent Stores Unit. The finished goods and left over material
/ scrap shall be received from the contractor on separate challans.

6.5.2 The Indenting Officer will render assistance to the Stores Unit in
identifying and determining the serviceability or otherwise of the left
over material returned by the Contractor.

6.5.3 Serviceable items returned by fabricator shall be taken on charge

on a Credit Voucher after certification by Indenting Officer.

6.5.4 While filling up of the columns in the Credit Voucher, the following
additional details shall be indicated:
Name and address of the contractor,
Contract No. and date
Delivery note / challan No. and date

6.5.5 Unserviceable and scrap shall be disposed off following the normal
disposal procedure.

6.6 Maintenance of records of Free Issue Material :

6.6.1 A record of Free Issue Material shall be maintained by the Stores
Unit contract-wise and fabrication contractor-wise in Form
No.DPS/SP/ 27.

6.6.2 Stores Unit shall review FIM account on weekly basis and delay in
supply of finished product / leftover material by the contractor shall
be intimated to contracting authority well before expiry of the
instrument validity.

6.6.3 The Stores Units attached to Indenting Unit of DAE (Parent Stores)
shall be responsible for maintenance of complete records of FIM.
To enable this, if issues are made from Stores Units other than the
Parent Stores Unit, details of such issues shall be furnished to the
parent Stores Unit along with copies of vouchers.

6.6.4 Where finished goods are received by a Stores Unit other than
Parent Stores, a copy of Receiving Voucher shall be endorsed to
Parent Stores.

6.6.5 Finalization of Free Issue Material Account

6.6.5.a Before final payment in respect of a contract is released to the

contractor, a certificate in Form No. DPS/SP/28 shall be forwarded
by the Indentor to the Stores Unit.

Proposed_1st_revision_ March_ 2016 Page 18 of 37

6.6.5.b In respect of ‘works contract’ where accounting of materials issued
to the contractor is done as per CPWD procedure by the concerned
construction agencies in the unit, Stores Units concerned will make
issues of materials to the contractor, on receipt of authorization
following the normal stores issue procedure. Further accounting
and securing safeguards for the material will be the responsibility of
the respective contracting agencies who are required to follow
procedures prescribed for the purpose.

6.7 Issue of Material on Chargeable Basis

6.7.1 Issue of material on chargeable basis to Contractors or outside
organizations shall be made by the Stores Unit on RCIV against a
written authorization from the competent authority.
6.7.2 A bold rubber stamp ‘PAYMENT ISSUE’ shall be affixed on RCIV
relating to material issued on chargeable basis.
6.7.3 The cost at which issues are to be made will be determined by the
respective Accounts Unit and the details will be communicated to
the paying authority stipulated in the contract for effecting recovery.

7 Accounting of Material
7.1 Codification of Material

7.1.1 Each material received shall be allotted a Unique Code Number.

7.1.2 Same unique code number shall be used to the extent possible by
all the Stores Units in DPS.

7.2 Stock Cards

7.2.1 Stores Unit shall maintain quantitative account of material received
and issued on Stock Card in Form No.DPS/SP/29.

7.2.2 The Stock Card shall bear the same Unique Code allotted to the
respective material.

7.2.3 Stores Unit shall maintain Index Register in Form No. DPS/SP/30
for all stock cards. Any deletion of entries from the Index Register
shall be authorized by the officer concerned.

7.2.4 Stock cards including continuation cards shall be approved by the

officer concerned when the first entry is made in the stock card.

7.2.5 Only one stock card shall be maintained for an item. If more than
one stock card is detected, the subsequently opened card shall be
closed by transferring balance if any, to the original stock card on a
Transfer Voucher in Form No. DPS/SP/31.

Proposed_1st_revision_ March_ 2016 Page 19 of 37

7.2.6 In addition to the stock cards maintained for stock items, Stores
Unit shall maintain separate stock cards for scrap materials in
terms of Para 4.1.6.b.

7.2.7 In addition to the transactions of receipts and issues, stock cards

shall also provide records of :
(a) Details of dues-in,
(b) Details of reservations,
(c) Purchase order rate of the items,
(d) Monthly consumption figures, maximum, minimum and reorder
level.
(e) Substitute items that can be offered in lieu.

7.2.8 Closing Stock Cards with NIL balance

Stock Cards having no transactions and with ‘NIL’ balance during

the preceding five years shall be closed and necessary entries
made in the Index Register duly authorized by the Officer In-
charge.
7.3 Bin Card
7.3.1 Bin Card for material held in stock shall be maintained in Form No.
DPS/SP/32 and shall be placed along with the material. In respect
of yard material, these shall be kept by the Stock- holder in the
place of his work.

7.4 Accounting of Precious Metals and Metal Ware

Precious metals like gold, silver, platinum, etc. or items made
partially / fully of such material shall be accounted in a register in
Form No. DPS/SP/33 instead of stock card. This register shall be
under the custody of Officer – In charge of Stores.

7.5 Capital and Furniture & Fixture Items

7.5.1 On final acceptance, items of Capital nature and Furniture and
Fixture costing more than Rs. 2,00,000 , except those mentioned
at para 7.5.4 shall be allotted a serial number by Stores Unit from a
Register maintained for the purpose in Form No. DPS/SP/34. The
number shall be painted at two prominent places on the item.

7.5.2 The register / record of capital and F&F Items costing less than
Rs.2,00,000 shall be maintained by respective Units.

7.5.3 No separate Capital Equipment Number shall be allotted by Stores

Unit for motor vehicles registered with statutory authorities.

Proposed_1st_revision_ March_ 2016 Page 20 of 37

7.5.4 Stores Unit shall allot numbers to following Capital /FF items,
irrespective of the value
- Metal Tables
- Executive chairs
- Lap tops
- Cameras
- Personal Computers, Printers, Scanners
Photo copiers, etc.

7.5.5 Once the Capital and Furniture & Fixture items are issued, the
same shall remain under the custody of the respective Units.

7.6 Material Loan Account

7.6.1 Inward Loan Register

Material received on loan basis from other units of the DAE and
outside organizations shall be considered as a normal receipt and
all formalities of receipt shall be completed as per this procedure. In
addition, loan receipts shall be entered in Inward Loan Register in
Form No.DPS/SP/35. The Stores Unit shall review the inward loan
register at least once in six months and ensure that the items taken
on loan are returned before the expiry of loan period.

7.6.2 Outward Loan Register

Material issued on loan basis to other units of the DAE and outside
organizations shall be considered as a normal issue and all
formalities of issue shall be completed as per this procedure. In
addition, loan issues shall be entered in Outward Loan Register in
Form No.DPS/SP/36. The Stores Unit shall watch the return of the
material issued on loan by reviewing the outward loan register at
least once in six months.

8 Declaration of Stores, Equipment etc, as

Surplus / Obsolete, Unserviceable

8.1 Identifying Surplus Inventory

8.1.1 Slow moving items

Slow moving item shall be identified as follows:

8.1.1.a General stock material, having no demand for a period of two years
or the issues during the previous two years have been very less
as compared to the stock balance, such items may be considered
as ‘Slow Moving’.

Proposed_1st_revision_ March_ 2016 Page 21 of 37

8.1.1.b Spares held on charge by the Stores Unit for operation and
maintenance of plants / machinery / equipments, can be considered
as slow moving if there is no issue for the preceding five years.

8.1.1.c Spares made of rubber, neoprene, fibre, etc can be considered

as slow moving if they are not issued out within two years of
receipt.

8.1.1.d Material with fixed shelf life shall be considered as slow moving if
they are not likely to be issued out within the shelf life.

8.1.2 Review to determine surpluses

Stores Unit shall regularly carry out review of inventory and list out
slow moving items in Form No.DPS/SP/37 and submit to the Head
of the Division / Competent Authority for his recommendation.

On receiving the list back indicating quantity considered surplus to

the requirement in column No. 8, from Head of the Division /
Competent Authority, Stores Unit shall list out such items.

8.1.3 Items of capital nature and furniture & fixture considered Surplus,
Obsolete, and Unserviceable by Users shall be returned to Stores
on Credit Voucher approved by the Competent Authority.

8.1.3.a Description of item, unit, quantity, year of purchase, rate and

reasons for declaring surplus, obsolete or unserviceable shall be
indicated on the Credit Voucher.

8.1.3.b Where procurement details are not available, probable date of

procurement and approximate purchase cost may be indicated.

8.1.3.c Where the machinery/ equipment is unserviceable a certificate to

the effect from competent agency to be attached.

8.1.3.d Where the machinery / equipment was in use in a radioactive area,

a certificate from the Health Physicist that it is free from radioactive
contamination, to be attached.

8.1.3.e In respect of computers or any data storage device, the hard disks
and data storage parts to be removed and certificate to this effect to
be attached.

8.1.4 Condemnation of Vehicles :

8.1.4.a The condemnation of motor vehicles (all types) shall be considered

if they are meeting prescribed criteria laid down by Government of
India in respect of period of use and distance covered, on the date
of condemnation.

Proposed_1st_revision_ March_ 2016 Page 22 of 37

8.2 Circulation of Surplus
Material declared as surplus by the Divisions/Unit shall be
circulated to all the constituent Units of the Department of Atomic
Energy to ascertain requirement if any. Demands in response to the
circular shall be met by arranging issues directly.

8.2.1 Surplus stores which are not issued either to the Divisions of
particular Unit or Constituent Units of the Department of Atomic
Energy shall be treated as “Final Surplus” .A List of such items shall
be put up to Survey & Disposal Committee.

8.2.2 Stores Unit shall transfer all the material declared as final surplus
by the Head of the Department for disposal on a credit voucher.

8.2.3 Stores Unit shall strike off all the material declared as surplus /
obsolete / unserviceable by Head of Department from the stock by
raising Certified Issue Voucher. No separate sanction is necessary
for write-off etc. where stores are physically available.

8.3 Survey And Disposal Committee

8.3.1 Constituting Authority:

Head of Department
8.3.2 Members :

8.3.2.a Minimum two Senior Officers of the Unit viz. Head of the Group /
Division / Section
8.3.2.b Head of Stores Unit

8.3.2.c One Senior Officer of Finance & Accounts

8.3.2.d A representative of local RTO and Officer In-charge of Transport

Section of the Unit wherever existing, shall be invitee(s) when
matters regarding condemnation / disposal of vehicles are being
deliberated.
8.3.2.e The Committee may invite any officers for assisting in its
deliberation.

8.3.2.f One of the senior officers of the unit shall be Chairman of the
committee and Head of Stores Unit shall be the Convenor.

8.3.3 Meeting :

The Committee shall meet as and when necessary.

Proposed_1st_revision_ March_ 2016 Page 23 of 37

8.3.4 Functions of the Committee :

(a) The Survey Committee shall critically inspect the condition of

the stores placed before it and make appropriate
recommendation.

(b) The Committee shall also recommend the method of disposal

of such stores, by sale or issue to any institutions or by any
other means.

(c) Fix Reserve Price for capital equipment, furniture & fixtures,
surplus consumables, and condemned vehicle approved for
disposal.

(d) Evaluation of offer received against Sale Tender for surplus,

obsolete, unserviceable items and condemned vehicle and
make suitable recommendation.

(e) Survey Committee shall submit their recommendations to the

Head of Department for approval.

8.4 Power to declare stores, equipment, vehicle as

surplus, obsolete, unserviceable condemned, etc.
8.4.1 Head of Department shall declare stores as surplus / obsolete /
unserviceable or condemnation of vehicles, each item having value
not exceeding Rupees Fifteen Lakhs (Rs.15,00,000/-).

8.4.2 Where value of each item exceeds Rupees Fifteen Lakhs (Rs.
15,00,000/-) approval of Department of Atomic Energy shall be
obtained.

9 Procedure for Disposal of Final Surplus etc.

9.1 Material approved by Head of Department or DAE as final surplus,
obsolete, unserviceable and condemned vehicle shall be disposed
off by the Stores Unit in the following manner :

9.1.1 By issue of Public Tender if the estimated sale value of items

covered in one tender exceed Rupees Two lakhs
9.1.2 By inviting Limited Tender if the estimated sale value of items
covered in one tender does not exceed Rupees Two Lakhs.
9.1.3 Medicines, chemicals etc. which are unusable due to expired shelf
life or otherwise shall be disposed off or destroyed immediately by
adopting suitable mode so as to avoid possibility of misuse, health
hazard or environmental pollution. Disposal / destruction of such
items shall be arranged by the respective Division / Unit.

Proposed_1st_revision_ March_ 2016 Page 24 of 37

9.1.4 Environment unfriendly waste / scrap material such as used / waste
oil, lead / lead acid batteries, e-waste etc. shall be disposed off to a
Firm / Company having a valid license issued by a statutory
authority (Central / State Pollution Control Boards, Ministry of
Environment and Forest etc.).

9.2 Proposal for Disposal of Stores

9.2.1 Stores Unit shall submit a detailed proposal for disposal to Director,
Purchase and Stores / Ex-Officio Director, Purchase and Stores for
approval.

The tendering action shall be taken only after getting the approval.

9.3 Fixation of Reserve Price

9.3.1 Reserve Price shall be fixed by Survey Committee before inviting
the tenders in the case of surplus, obsolete, unserviceable stores,
equipment and furniture and condemned vehicles. While fixing the
reserve price, the committee shall take into consideration the
purchase price, market price at the time of disposal, the condition of
the material, cumulative cost of repairs etc.
9.3.2 The Reserve Price fixed shall be kept in a sealed envelope and will
be opened at the time of evaluation of offers received against the
tender.

9.3.3 As regards general scrap items, no Reserve Price shall be fixed.

Reasonableness of the rate may be ascertained by comparing with
earlier disposal rate, condition of the scrap, market trend etc.

9.4 Sale Tender Form

9.4.1 Standard tender forms may be introduced for inviting disposal
tender.

9.4.2 Standard format may be introduced for contracting disposal sale

orders.
9.5 Earnest Money Deposit / Security Deposit
9.5.1 Earnest Money Deposit of a minimum of 2.5 % of the estimated
cost, subject to a maximum of Rupees One Lakh, shall be fixed
against each item / group of items whenever tendered for disposal.

9.5.2 Offers received without EMD, insufficient EMD or not in the

prescribed format shall not be considered except in cases where
exemption is permitted from payment of EMD by Government
Policy.

Proposed_1st_revision_ March_ 2016 Page 25 of 37

9.5.3 Security Deposit of 10% of the sale value subject to a maximum of
Rupees Five Lakhs against Sale Order shall be fixed to ensure
satisfactory performance of the contract.

9.5.4 EMD of successful bidders shall be converted into Security Deposit

irrespective of the item / group for which EMD was submitted and
excess amount, if any shall be adjusted to sale value. Balance of
Security Deposit if necessary shall be obtained from the successful
bidders.

9.5.5 Stores Unit shall return the instruments received as Earnest Money
Deposit from unsuccessful bidders on approval of recommendation
for sale from the Competent Authority.

9.5.6 If the contractor on whom the sale order is placed fails to perform
the contract, the Security Deposit shall be forfeited after giving due
notice(s) and approval of Competent Authority.

Excess amount, if any, after adjustment of Security Deposit shall be

returned to the defaulters with the approval of Competent Authority.

9.5.7 Security Deposit shall be refunded on satisfactory execution of the

contract, after adjusting dues, if any.

9.6 Power to Approve Disposal

9.6.1 Director, Purchase and Stores or Ex-officio Director shall approve
disposal of surplus, obsolete, unserviceable items and condemned
vehicle, if the sale value of each item is up to Rupees Five Lakhs
(Rs. 5,00,000/-). Items having sale value exceeding Rupees Five
Lakhs (Rs. 5,00,000/-) shall be disposed off after obtaining
approval from DAE.

9.6.2 Director, Purchase and Stores or Ex-officio Director shall approve

disposal of scrap irrespective of value with the concurrence of unit
finance.
9.6.3 The accepted offer shall not normally be less than the Reserve
Price.

However, the highest valid offer which is less than 10% of the
Reserve Price can also be considered if otherwise acceptable.

9.6.4 If the highest valid offer is lesser by more than 10% of Reserve
Price and considered for acceptance, specific approval of the Head
of Department shall be obtained.

Proposed_1st_revision_ March_ 2016 Page 26 of 37

9.7 Physical Handing Over of Stores
9.7.1 Physical handing over of surplus / obsolete / unserviceable items,
condemned vehicle and scrap shall be witnessed by the Officer of
appropriate status from Stores Unit as below and representative of
Security Section not below the rank of Asstt. Security Officer.

9.7.1.a Asstt. Stores Officer- If the value of the material is up to Rs.Five

Lakhs for each load.

9.7.1.b Stores Officer- If the value of the material is above Rs. Five Lakhs
for each load.

9.7.1.c Wherever the Store Unit does not have Stores Officer, the Head of
Unit shall nominate an officer of appropriate rank to witness
handing over of material above the value of Rs. Five Lakhs for
each load.

9.8 Sale Account

Stores Unit shall maintain a Sale Account in Form No. DPS/SP/38.

9.9 Disposal of Contaminated Items

9.9.1 Material which is contaminated shall be referred to Health Physics

Authorities to determine the level of contamination and
recommendation for disposal.

9.9.2 Items which are declared as ‘active waste’ shall be disposed off in
the manner decided upon in each case by the concerned authority.

9.9.3 In respect of capital equipment / furniture & fixture and non-

consumable material disposed off as active waste, Waste Disposal
Squad shall forward a certificate to Stores in Form No. DPS/SP/39

9.9.4 On receipt of certificate, Stores Unit shall delete such material from
relevant Inventory Records.

10 Physical Verification
10.1 The following checks shall be exercised with a view to reconcile the
physical stock with the stock card / record balance on a continuous
basis :

10.2 Verification of Stock

10.2.1 Internal Verification :

The stock holder and authorized staff shall personally verify

minimum of 15 stock items every day in the following manner –

Proposed_1st_revision_ March_ 2016 Page 27 of 37

10.2.1.a i) Form No. DPS/SP/40 shall be used.

ii) Quantity shall be physically ascertained.

iii) Tally physical balance with stock card balance and

discrepancy if any, reconciled.

iv) Defaced / Mutilated Bin Cards shall be replaced.

v) Faded stores label / marking on the materials shall be re-

written.

vi) Repack or strengthen the packing(s) wherever

necessary.

vii) Take preservative measures wherever necessary.

viii) Verification shall cover all the inventory in a verification

cycle except those mentioned at Para No. 9.2.2 .c & d.

ix) The report shall be submitted to Officer-in-Charge.

10.2.1.b In respect of items such as steel, cable drums etc. where

verification is not feasible, the stock holder shall go round the
stacks to ensure that the stack has not been tampered with by
observing the markings on the stack etc. and sign the register in
Form No. DPS/SP/41. Cases of doubt and unusual occurrence
observed, if any, shall be recorded in the register and report to the
Officer In-charge of the Stores. This check shall be done on first
and last working day of the week and as frequently as situation
warrants.

10.2.1.c Officer in-charge of the Stores shall check at least ten items a week
and maintain a record of such verification.

10.2.1.d Damage / deterioration of material noticed during the physical

verification or otherwise shall be reported immediately to the
Officer-in-Charge.
10.2.2 Verification by Independent team-

Stock verification shall be conducted by an independent team

reporting directly to the Director, Purchase & Stores. The periodicity
of verification shall be as under :

10.2.2.a Consumable items except mild steel once in three years

10.2.2.b Capital and F&F items once in five years.

Proposed_1st_revision_ March_ 2016 Page 28 of 37

10.2.2.c Valuable and precious metals and metal wares viz. Platinum, Gold,
Silver etc once in six months.
10.2.2.d Mild steel items once in five years or on completion of Project in the
manner stipulated in Para 9.2.6.

10.2.3 The following procedure shall be adopted for verification :

10.2.3.a Officer-in-charge of the Stores shall be responsible for obtaining the

programme of verification and make available all facilities to
verification team for conducting verification.

10.2.3.b Stores Unit shall intimate the verification schedule to users

sufficiently in advance to enable them to draw the requirements
covering the period of verification during which normal issues may
not be possible.

10.2.3.c All postings shall be brought up to-date and a certificate furnished

to this effect to the verification team before actual commencement
of verification.

10.2.3.d Before actual commencement of verification, the stockholder shall

provide a list of storage areas to the verifier.

10.2.3.e Stock Verifier shall carry out verification starting from one end of
the storage area covering all material stored and tally the physical
stock with the stock card balance daily. If the physical stock is
correct as per stock card balance, the quantity shall be certified in
stock card in red. Whenever difference is noted a preliminary
discrepancy note will be given to stock holder.

10.2.3.f On receipt of preliminary discrepancy note, Stock-holder shall

confirm the discrepancies within two working days.
10.2.3.g Wherever stock accounting has been computerized, the
discrepancies shall be noted against the item in the computer print
out with present balance or any other manner approved by Director,
P & S.

10.2.3.h On completion of verification, Stock Holder shall certify that all

storage areas have been covered and all items have been verified.

10.2.4 Follow-up Action on Verification Report:

10.2.4.a On receipt of the Final Report from the verification team, the
following action shall be taken by the stock holder :

10.2.4.b Verification reports shall be scrutinized with reference to the

discrepancies and necessary action for reconciliation / write off
initiated.

Proposed_1st_revision_ March_ 2016 Page 29 of 37

10.2.4.c Surplus and deficiencies of items of similar nature under the same
general heading shall be set off against each other by raising
necessary Provisional Transfer Vouchers
10.2.4.d The final surpluses shall be taken on charge by raising Provisional
Certified Receiving Voucher.

10.2.4.e Final deficiencies shall be struck off charge by raising Provisional

Certified Issue Voucher.

10.2.4.f The above provisional adjustments shall be finalized on receipt of

necessary approval from the Competent Authority.
10.2.5 Verification of precious metals / metal wares :

10.2.5.a Verification of precious metals and metal wares viz. Platinum, gold
and silver shall be conducted twice in a year, once by the regular
stock verification officer and the other by an independent officer
nominated by Director, Purchase & Stores. The gap between two
verifications shall not exceed six months.

10.2.5.b In addition to the above, the verification of these items shall also be
carried out whenever the stock holding officer proceeds on Earned
Leave, transfer etc. or on retirement. A copy of the verification
report shall be forwarded to Director, P&S.
10.2.6 Capital / Furniture & Fixture Items :

10.2.6.a Stores Unit shall provide the lists of Capital Equipments and F&F
items held by each Division/Section to Officer-in-Charge, Stock
Verification Team and to the Division/Section concerned.

10.2.6.b The list shall be scrutinized by Divisions / Sections for correctness.

10.2.6.c The Stock Verification Team with representatives of concerned

Divisions and Stores Unit shall verify the items in each room / store-
house / building / area etc. and record the particulars of the items
with numbers. Items which are without numbers or whose numbers
are not legible shall be recorded with details.

10.2.6.d When the verification of the entire Division / Section is completed,

the items verified shall be tallied with the list provided and
discrepancies tabulated for reconciliation by the Division/Section
concerned under intimation to Stores Unit.

10.2.6.e Items of one Division/Section held by other Division/Section shall

properly be intimated to owner Division/Section concerned.

Proposed_1st_revision_ March_ 2016 Page 30 of 37

10.2.7 Verification of Steel Items:
The verification of steel items shall be conducted as follows :

10.2.7.a Steel items received on theoretical weight basis shall be verified by

theoretical weight.

10.2.7.b Steel items received on actual weight shall be verified by actual

weight basis.

10.2.7.c Steel items of Projects shall be verified on completion of projects.

10.3 Verification Report:

10.3.1 Stock Verification Team shall submit a detailed report to Director, P
& S, on completion of verification.

10.3.2 A copy of report shall be endorsed to Officer in-Charge of Stores

Unit.

10.3.3 Verification report pertaining to Capital and Furniture & Fixture

items shall be endorsed to Head of Unit also.

10.4 Discrepancy
10.4.1 Discrepancy of shortage in mild steel items stored in open yard can
be attributed to weight loss on account of open storage exposing
vagaries of nature, weight difference due to number of weighment
in different scales etc.

Shortages, if any, on stock verification of mild steel items upto 1%

10.4.2 on the total quantity issued shall be struck off charge by raising
Certified Issue Voucher quoting this para as authority and such
adjustments against each case shall be reported to Director
P&S./Ex. officio Director.
10.5 Physical Verification of Cables
Verification of cables, where actual measurement is not feasible,
may be carried out on the strength of quantity certification by the
user Division / Section. However, the verifier shall physically assess
the quantity with reference to the stock record and the certificate
issued by the user Division/Section.

10.6 A margin for evaporation / shrinkage shall be allowed for material

which is likely to evaporate or shrink etc in storage due to its
inherent nature, e.g. Petrol, diesel, volatile chemicals etc. The
percentage of margin allowed in each case shall be decided by the
Competent Authority considering the nature of each item, the
topography of the stores location, density etc. but shall not be more
than 1% of turnover.

Proposed_1st_revision_ March_ 2016 Page 31 of 37

10.6.1 The shortages within the permissible limit may be charged off by
raising Certified Issue Voucher (CIV) quoting this para as authority.

11 Introduction of Computerisation in Stores

Management
A detailed plan for computerization shall be made and got
11.1 approved.

11.1.2 The plan shall integrate all Stores functions from initiating indent to
final disposal of surplus / scrap in a seamless manner. It should
also aim at uniform adoption of the system in all units of DPS.

11.1.3 Computerized system shall be audited by an authorized agency.

11.1.4 Additions / Alterations

Director, P&S shall approve alterations/ addition in any of the para

and the forms wherever necessary to make it ICT compatible.

12 Transportation of Material

12.1 Stores unit shall undertake transportation of material in the

following cases :

12.1.1 Departmental material between DAE units on the request of

concerned units.

12.1.2 Departmental material to fabricators in terms of fabrication

contracts.

12.1.3 Strategic material.

12.1.4 Nuclear fuel.

12.1.5 Rejected supply.

12.2 Mode of Transport

12.2.1 Stores Unit shall transport material by adopting a suitable mode
taking into consideration the following factors :

12.2.1.a Nature, volume , size ,weight and cost of material.

12.2.1.b Urgency of requirement.

12.2.1.c Topography of route decided

12.2.1.d
Proposed_1st_revision_ March_ 2016 Page 32 of 37
 Risk factor.

12.3 Packing
12.3.1 Material for transportation shall be properly packed to withstand the
peril of transportation. Packing Note in Form No. DPS/SP/42 shall
be used.
12.4 Escort
12.4.1 Wherever necessary, escort shall be provided.
12.5 Risk Coverage
12.5.1 Wherever transportation is made through private party, material
shall be transported on carrier’s risk.

12.5.2 Wherever transportation of nuclear fuel, strategic material etc. are

involved, the procedure established for this purpose shall be
followed.

12.6 Stores Unit shall maintain a Consignment Dispatch Register in

Form No. DPS/SP/42 for outstation dispatch.

13 Shifting of Storage Area From One Location to Other

13.1 Whenever storage area to be vacated by shifting the material

stored, the following procedure shall be followed

13.2 Proper planning shall be made for shifting of material.

13.3 New location should be identified and necessary infrastructure
made available

13.4 Prepare a location system in new place and record in a register.

13.5 Stores Records of inventory shall be updated before initiating

physical shifting of material.

13.6 The inventory of all the material stored at the existing location to be
taken.

13.7 Material shall be shifted in the presence of stock holder or his

authorized representative.
13.8 After completion of shifting necessary location changes shall be
recorded in the stock card.
13.9 The inventory shall again be verified at the new location.

14. Handing over Charge of Stores

Proposed_1st_revision_ March_ 2016 Page 33 of 37

14.1 There shall be proper handing over and taking over of charge
whenever a stock holder proceeds on leave, transfer etc. Form No.
DPS/SP/43 shall be used for this purpose.

14.2 The official taking charge shall be responsible to ensure that at

least five percent of the items of Stores are verified. Record of such
verification shall be submitted to Officer-in-charge in Form No.
DPS/SP/37.
14.3 During verification, if major discrepancies are noticed, the
verification may be increased to ten percent, or if necessary
progressively to hundred percent.
14.4 In addition to the items of Stores being taken over, a check of all
office records and other articles/books on charge of the Stock-
holder shall also be made and recorded.

15 Safety and Security

15.1 Safety of Stores Premises
15.1.1 All Stores premises shall have secured door, fencing, perimeter
road, regulated entry and exit.
15.2 Safety of material moving.
15.2.1 Material moving out of the Unit premises shall be accompanied by
a Gate Pass along with copy of voucher / document.

15.2.2 Wherever materials are dispatched without covering voucher,

Material Despatch Note (Form No. DPS/SP/18) shall be used.
15.3 Security of Stores Key
15.3.1 Keys pertaining to stores unit i.e. store shed, open yard, cupboards
etc, shall be operated only by authorized personnel with proper
records. A detailed procedure to this effect shall be laid down by
Officer-In-charge of respective Stores Unit.

15.3.2 Furniture like cupboards, storewell, lockers, safety vault etc. shall
have proper locking arrangements and key number shall be painted
on them.
15.3.3 Safety vault/ strong room shall be operated with dual key system by
authorized officials and record maintained in form no. DPS/SP/44

15.4 Fire Safety

15.4.1 All storage area under DPS Stores is Non-Smoking Zone and
signboards may be displayed at prominent places.

Proposed_1st_revision_ March_ 2016 Page 34 of 37

15.4.2 Suitable fire fighting appliances and implements shall be placed /
installed in storage area.

15.4.3 The location of fire fighting appliances shall be marked in red and
location shall not be changed.
15.4.4 The fire fighting appliances / implements shall be maintained in
working condition at all times and their maintenance record
indicated on them.
15.4.5 Stores Personnel shall be trained to handle fire fighting equipments
located in Stores.

15.5 Emergency Exit

15.5.1 Provision shall be made for emergency exit in covered area with
prominent display.

15.5.2 Approach to the emergency exit shall always be free from

obstruction.
15.6 Loss of material due to Suspected theft, fraud, fire,
misappropriation, pilferage etc.
15.6.1 Cases of loss due to suspected theft, fraud, fire, misappropriation,
pilferage etc shall be reported immediately to the Officer-in-Charge
Stores Unit, Security In-charge, Head of the Unit and Director /
Regional Director, Purchase and Stores.
15.6.2 Wherever loss has been reported, Head of the Unit or the Officer
authorized in his absence shall in consultation with In-charge of
Unit Security etc. take appropriate action including reporting to
Police, if necessary.
15.6.3 On taking a decision to report the matter to Police, the custodian
shall lodge a formal complaint to the police with the
assistance of unit security, for further investigation.
15.6.4 Stores Unit with the assistance of Unit Security shall liaise with
police in their investigation.
15.6.5 A formal investigation report from the Police shall be obtained.
15.7 Opening and Closing of Stores
Opening / Closing of sheds / Stores-house and storage area shall
be done by authorized personnel following the laid down procedure.

Proposed_1st_revision_ March_ 2016 Page 35 of 37

16. Pricing of Issue Vouchers
In respect of issues where debit action is required, Stores Unit shall
endorse a copy of RCIV with columns duly filled in to Accounts.

17. Other Responsibilities of Stores Unit

17.1 Stores Unit shall carry out jobs specifically entrusted to it by
Director, Purchase & Stores. In addition, job specifically entrusted
by Ex-Officio Director, P & S related to temporary storage of
materials, shifting/ transportation of material / equipment etc. shall
be carried out.

18 Review and Weeding out of Old Records

Stores Unit shall review old records / files regularly and weed out
records which have completed the retention period.

18.1 Retention Period

18.1.1 Records / Files shall be retained for 5 years from the date on which
they are closed or action thereon completed.

18.1.2 In case of book copies, the retention period shall be One year from
the date of closure / completion.

18.1.3 Irrespective of the period mentioned at para no. 2 & 3 above the
records / files of the following categories shall be retained.
18.1.3.a Files containing Government sanctions, important policy decisions,
precedents and audit rulings shall be retained till they cease to
have any relevance.

18.1.3.b Files having historical value of information.

18.1.3.c Records pertaining to court cases and audit objections till their
finalization / settlement.

18.1.3.d Files, papers and documents relating to contracts/ agreements that

are otherwise required to be retained till they cease to have any
relevance.

18.1.3.e Cases where audit queries have been raised, the relevant files and
documents shall be retained till such time the audit paras have
been cleared.

Proposed_1st_revision_ March_ 2016 Page 36 of 37

18.1.3.f If a record is required in connection with the disposal of another
record, the former will not be weeded out until all the issues raised
in the latter have been settled, even though the retention period
marked on the former may have expired. The retention period
initially marked on such records should be consciously reviewed
and where necessary revised suitably.

18.2 Clearance from Audit

Files/records shall be destroyed only after clearance from Audit.
However, book copies of records can be destroyed after retention
period.

18.3 Approval for Destruction

Prior approval of Competent Authority shall be obtained for carrying
out weeding and destruction of files/records.

18.4 List of Destroyed Files/Records

A list of files/records destroyed shall be retained for a period of 5
years from the date of actual destruction.

18.5 Mode of Destruction

The files/records shall be shredded or destroyed in the presence of
responsible officer.

Proposed_1st_revision_ March_ 2016 Page 37 of 37