No RITES/ACCTS/OVERHEAD RATES/2020-21

Dated 7-Sep-20

Sub: Revision of Overhead Rates based on financial year 2019-20

SBU AND DIVISIONAL OVERHEAD
Revised overhead rates approved by the
2019-20 are indicated below in
competent authority based on financial year
respect of SBU under your control
APPROVED RATES (%)
NAME OF DIVISION / SBU
SBU OVERHEAD DIVISIONAL OVERHEAD

RCED 13

2 CORPORATE OVERHEAD
1. Projects where RITES fee is more than 7 25 crores and there is no
normalization of
expenses, Corporate Overhead Office will be
2 In other cases
charged @10%.
Corporate overhead rate will be charged @12% for all SBUs operating
from ROC, Gurugram and
@11% for other offices viz. RPQs/RIOs.
. Approved rates are to be used for the
purpose ofpricing of offers, budgets and internal
working estimates in respect of SBU under your control with immediate effect.

SBU. Divisional and Corporate

overheads will be charged on actual for the purpose of MIS
and evaluation of performance of SBU/Division. All
SBU/Divisional heads are requested to
review SBU/Divisional overheads on
monthly basis as it has been noticed in the past that
there is a tendency of booking maximum of
expenses under SBU/Divisional Overheads
The above rates will remain in force till further
instructions are issued in this regard and
approved rates will be reviewed in the beginning of the next financial year
The Issue with the approval of competent authority

(Parmod Narang)
Chief Financial Officer
SBU Head: RCED