AS-IS

ODISHA LIFT IRRIGATION

CRPORATION LTD.
END TO END IMPLEMENTATION

Submitted To:
Module:
Module: Material
Material :
Management
Management

Submitted to:
Odisha Lift Irrigation Corporation
ltd. Doordarshan Colony, Gajapati
Nagar, Bhubaneshwar, Odisha
751012

Submitted by:
OASYS Tech Solutions Pvt. Ltd.
Samanta Vihar, Bhubaneswar
Odisha – 751017
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1. DOCUMENT HISTORY
The document is prepared based on the discussion held with Finance and Accounts and Purchase department
during business process understanding phase. Study including AS-IS process study and TO-BE document of
the SAP MM Module for “Odisha Lift Irrigation Corporation Ltd”.

DOCUMENT VALIDATION /SIGN-OFF

NAME ROLE SIGNATURE DATE

Mr. Soumya Rout Delivery Head

Pratap Kumar Barik SAP MM Consultant

Swagat Raysamant SAP MM Consultant

Shuvendu Muduli SAP SD Consultant

Portal Lead
Ranjan Kumar Mohanty Consultant

Subhasish.P Fico Consultant

NAME AND
ORGANISATION SIGNATURE DATE
DESIGNATION

Odisha Lift Irrigation

Corporation Ltd(OLIC)
APPROVER’S

NAME ROLE SIGNATURE APPROVAL DATE

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Contents

1. DOCUMENT HISTORY………………………………………………………………………………………………………………………………………….2
2. COMPANY PROFILE:………………………………………………………………………………………………………………………………………….4
3. ORGANISATION STRUCTURE OF OLIC :………………………………………………………………………………………………………………5
4. DIVISIONS:………………………………………………………………………………………………………………………………………………………..6
5. MATERIAL CATGEGORY:…………………………………………………………………………………………………………………………………….7
6. TYPE OF PROJECTS:…………………………………………………………………………………………………………………………………………….7
7. DEEP BORE WELL PROCUREMENT PROCESS OF OLIC:…………………………………………………………………………………………10
8. DIVISION TO DIVISION STOCK TRANSFER PROCESS OF OLIC:……………………………………………………………………………..11
9. SERVICE PROCUREMENT PROCESS OF OLIC:………………………………………………………………………………………………………13
10. TENDERING PROCESS FOR MATERIAL:……………………………………………………………………………………………………………….13
11. STATIONARY PROCUREMENT PROCESS OF OLIC:……………………………………………………………………………………………….15
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2. COMPANY PROFILE:

OLIC is a Govt. owned Corporation, now functioning under the administrative control of the
Department. of Water Resources, Odisha. It is registered as Corporation under Companies Act in the
year 1973. It has 7 circles and 28 divisions.

The main objective of OLIC is to set up projects for creation of irrigation potential in different parts of
the State especially in the areas under different scheme which are devoid of flow irrigation facilities
and the land belonging to small and marginal farmers and weaker sections, so that they can grow two
or more crop in a year. They can diversify the crops through controlled irrigation, accordingly to soil &
climatic condition & market demand.

After implementation of Pani Panchayat Act and Rule, Community L.I. Projects are handed over to Pani
Panchayats and Bore Wells & Shallow Tube Wells to individual beneficiaries for operation and
maintenance. OLIC is no more collecting water rate from the cultivators. Accordingly, OLIC has lost its
commercial activities and functioning like Govt. Organization implementing various irrigation
programmes for the State Govt.

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3. ORGANISATION STRUCTURE OF OLIC:

Company

Central Purchasing
Company Code (OLIC) Organization (HO)
Circle

Division Division Division

Sub-division Sub-division Sub-division

Section Section Section

 OLIC has 7 circles.

 OLIC has 28 divisions under circle.

 OLIC has subdivisions under divisions.

 OLIC has sections under subdivisions.

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4. DIVISIONS:

The Divisions of OLIC at various strategic locations in the State of Odisha are used to temporary store
MOTOR/STATOR/ and issue them to the Section (J.E) of the Division. At present Divisions are located at the
following locations.
The Sections are the places where stocks are issued from a Division. Sections are always assigned to a specific
Division. The Following are the Sections of the Division. Example

Corporate
Circle Division Description Sub-Division Description Section.
Code

OLIC BHUBANESWAR
  NIMAPARA
BHUBANESWAR
  (MECH) CENTRAL STORE
  ELECT.BHUBANESWAR
  PIPILI
  PIPILI KANAS
  ELECT.PIPILI
  PURI
  BRAMHAGIRI
  PURI ELECT.PURI
CENTRAL
  BHUBANESWAR KHURDA
CIRCLE
  TANGI
  BALIPADA
  KHURDA ELECT.KHURDA
  NAYAGARH
  DASPALLA
  NAYAGARH BHAPUR
  KHANDAPADA
  ELECT.NAYAGARH
  (MECH), BHUBANESWAR
PTL , BHUBANESWAR
  (ELECT.) BHUBANESWAR

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 Material Valuation
Material Valuation determines or records the stock value of a material. The stock value is calculated
using the formula: Stock value / stock quantity = Weighted average price
In OLIC for all materials such as Motor/Stator, stationery and plan & Tool, are measured in weighted average Price.

 Division Level
Valuation must be at this level in the following cases:
IN OLIC, Material is valuated at Division level.

 Head Office Level

In OLIC, Material is not valuated at the Head Office Level.

5. MATERIAL CATGEGORY:
Material category is the grouping together of materials having similar attributes. Material categories used in
OLIC are

MATERIAL CATEGORY
A.C. Pipe  
Bearings Hand Pump
Building Materials HDPE Pipe
Cable and Wires M.S.Pipe
Casing Pipe Misc. Items
Cement Monoblock Pump
Consumable Materials Mud
Control pannel Pipes
Damage PVC Pipe
DI Pipes RCC Pipe
Disel Pump Slotted Pipe
Electrical Spares
Fittings Starter
G.I.Pipe Submersible Pump
Gravel Valves

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6. TYPE OF PROJECTS:
 Community Lift Irrigation Projects (CLIPs)
 Cluster Deep Bore Wells (DBW)
 Cluster Shallow Tube well (STW)
 Micro river lift(MRL)
 Solar Deep Bore wells.
 Revival of Defunct Community Lift Irrigation Projects(repair)

 Community Lift Irrigation Project (CLIPs)

Community lift projects are being built using groundwater in the low-lying river basin areas. Due to the
availability of water, the income tax area for each irrigation project is between 10 hectares and 28 hectares.
Community LIPs are being taken up in all 30 districts under BKVY-RIDF, HCAD, DMF, SETU & Other Dist.
schemes with an average command of 20 hectares and benefitting about 20 farmers in each project.
There are two types of Community Lift project -
1. River Lift Project
2. Tube-Well Project

 Swallow Tube-well (STW)

The Scheme was implemented till 2021-22 in 13 districts of Odisha (Balasore, Bhadrak, Cuttack, Jagatsinghpur,
Gajapati, Ganjam, Jajpur, Kendrapada, Keonjhar, Khordha, Mayurbhanj, Nayagarh & Rayagada) on individual
ownership basis through Budgetary Provision under Agriculture & F.E Dept.

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1. In the non-saline areas of the coastal districts of Odisha and inland river valley of the state “Cluster Shallow
Tube well Project” has been implemented under Jalanidhi-II scheme. Implemented in 13 coastal districts
under Jalanidhi-II-RIDF.
2. As per the decision taken by the HPC on RIDF, Cluster Shallow TW projects will be taken up by OAIC where
CLIPs & Deep BW projects will be taken up by OLIC from the FY 2022-23 .

 Deep Bore-well projects (DBW)

Deep Bore well was launched by Govt. of Odisha in the year 2010-11 for providing assured irrigation to the
districts of hard rock and water deficit areas of the state. Executed initially in hard rock areas of 31 blocks in 9
districts under BKVY-Deep Bore Well Secha Karyakrama.

 Solar Bore-well

Keeping in view the need of sustainable irrigation in the State, the EFC approved for a new scheme
“Exploitation of Ground Water through Deep Bore Wells with Solar Pumping System” for implementation of
12,500 solar based Deep Bore Wells for 5 years from 2021-22 to 2025-26, each year 2,500 Nos for IP creation
of 62,500 hectares with an outlay of Rs.493 Cr. Projects are taken up in remote hard rock areas of 256 blocks
in 26 districts where conventional Grid power supply is not available.
Tender process has been initiated to take up around 2780 feasible Solar Deep BWs on pilot basis against
applications received through online mode covering 31 blocks of 9 districts (i.e. Bolangir, Gajapati, Kalahandi,
Kandhamal, Koraput, Malkangiri, Nabarangpur, Rayagada & Sundargarh) in remote areas where conventional
grid power supply is not available or remotely available (beyond 0.30 Km) & 100 Km aerial distance from
seashore .

 Revival of Defunct Lips:

Due to damage of head works, distribution system by natural calamities, change in river course, conversion of
agricultural land in the ayacut to homestead land, theft of transformer, conductor & expiry of life span of
system components, etc., every year, some Lift Irrigation Projects (LIPs) gets defunct.

7. DEEP BORE WELL PROCUREMENT PROCESS OF OLIC:

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In OLIC PRs are created for the MOTOR & STATOR at SECTION level as per the project requirement. Then verify
by the asst. engineer in subdivision office and PR is consolidated by Division office (EE).Then PR is finally
approved by EE, SE, and ED at Head Office level. After the approval of the indent, based on tendering process L1
vendor is selected in Govt.portal. Finally, according to the actual specification of motor & stator, an indent
comes to HO after final of YDD test for creating purchase order. Then Purchase order is approved by EE
Electrical, SE, FA, and MD and sends to the selected vendor. Vendor delivers Material & Stock received at
division office and 5% of material is sent for quality checking to PTL .If material’s testing found OK as per the
specification requirement, then remaining material is received at division level. Division issues material to
section as per indent. Section receives the material as per the indent.

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8. DIVISION TO DIVISION STOCK TRANSFER PROCESS OF OLIC:

The receiving division raises an indent to the supply division as per the project requirement. Stock transfer
Indent is approved by E.E Electrical, SE, ED at HO. After approval of the indent, stock transfer order is created by
the supply division. Supply division sends material to the receiving division. Stock received at receiving division.
Division issues the material to the sections as per the Project requirement.

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9. SERVICE PROCUREMENT PROCESS OF OLIC:

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10.TENDERING PROCESS FOR MATERIAL:

 A tendering process is an invitation extended to vendor/s by a purchasing organization to submit a

quotation (bid) for following types: Stock Material / Service Purchases.
 A quotation is an offer by a vendor to a purchasing organization regarding the supply of material / types
of services w.r.t. specifications / characteristics.
 A quotation consists of items in which the total quantity and delivery date of an offered material or
service are specified.
 A quotation clearly defines the variations in the specifications or characteristics of material, if any, that
is mentioned in the invitation with justifications.
 A quotation is legally binding on the vendor for a validity period.
 A quotation may contain a delivery schedule made up of a number of schedule lines in which the total
quantity is broken down into smaller quantities to be delivered on the specified dates over a certain
period, at specified locations.

 Price Comparison

 The prices received from all the quotations as a result of a competitive bidding process are listed for
comparison process. The comparison list ranks the quotations by item from lowest to highest price on
following categories.
 Price Comparison for STOCK items etc.
 General items…etc.
 For Comparison Taxes and Conditions are to be Considered.
 The Quotations can be rejected in the system by the buyer and the finalized quotation can be converted
to a Purchase Order

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11. STATIONARY PROCUREMENT PROCESS OF OLIC:

 Purchase Requisition

 Purchase requisitions are “internal” documents, which are used to notify purchasing department to
procure a particular quantity of a material for a particular Purchase requisitions are to be created
manually by the individual department/person responsible based on requirement or automatically by
system.
 Purchasing department can convert the purchase requisition into a Purchase Order.
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 Purchase Order

 Purchase order is a formal request to the Supplier to supply material or perform services at defined
terms & conditions. Purchase order will be created with ref to approved PR.
 Release or Approval

 Release strategy or Approval Process is for OLIC procurement process for Stationery. As discussed,
each and every purchase order in OLIC will be released.
 Good Receipt

 A goods receipt (GR) is a goods movement with which the receipt of goods from a Supplier is posted.
 A goods receipt leads to an increase in the stock of the company. Goods Receipts with reference to a
Purchasing Document.
 Process of Store Issue

 A goods issue (GI) is a goods movement with which a material withdrawal or material issue, a material
consumption is posted. A goods issue leads to a reduction in stock.

12. Reports:
The following reports are being used by OLIC.

1. As on Date Stock report-rate wise

2. Opening & Closing stock Report
3. Purchase Register
4. Store Issue Details report-section Wise.

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