POWER POINT PRESERNTATION ON STORE

PURCHASE AND MANAGEMENT

RAMESH SINGH MITTAL

DEPUTYCONTROLLER (FINANCE AND
ACCOUNTS ) RETIRED
email.r.mittal 1953@gmail.com
 PURCHASE PROCEDURE
• Purchase must be made in the most
economical manner, in accordance with the
definite requirements of the public service.
Purchase orders should not be split up so as to
avoid the necessity for obtaining the sanction
of higher authority required with reference to
the total amount of the orders. 15.2 PFR
 PURCHASE WITHOUT TENDER
• The Value of Articles to be purchased without
inviting quotations shall not exceeds 500 and
total value of purchased without inviting
tenders during financial year shall not exceed
Rs. 5000.00
 PROCEDURE AND RULES FOR THE PURCHASE
OF STORES BY ALL DEPARTMENTS AND
OFFICERS OF THE GOVERNMENT OF PUNJAB
• The first preference shall be extended to the products of
Government owned industries carried on in Government
work centers, Industrial Co-operative Societies, Jails,
Reformatory Settlements and Industrial Institutions and
Schools in the Punjab.
 PURCHASE PREFERENCES
• i) Raw material produced in the Punjab shall
be purchased in preference to that produced
in other States of India;
• ii) Raw material produced in other States of
India shall be purchased in preference
imported material.
 IN CASE OF MANUFATURED GOODS
• The products of cottage and small-scale industries of Punjab shall be
purchased in preference to the products of cottage and small-scale
industries of other States and the products of large-scale industries.
• (ii) Articles manufactured in other States of India shall be purchased in
preference to imported goods.
• (iii) Articles of foreign manufacture held in stock in India shall be
purchased in preference to items to be imported.
• (iv) Articles of Foreign manufacture held in stock in India shall be
purchased in preference to items to be imported.
• (v) Articles manufactured abroad shall be imported in special cases
only, when suitable Indian products are not available.
• (vi) In the case of articles manufactured abroad which have to be
imported, preference will be given to the Commonwealth
PURCHSE THROUGH STORE DEPARTMENT
RULE 3
The indents on the Punjab Stores Department shall
be placed as soon as allotment of funds is received
and not held back till the close of financial year
when there is always a great rush of indents which
possibly cannot be coped with the Punjab stores
Organization. Indents received after 5th February
of each year shall not be entertained by the Stores
Organization for arranging supply within the
current financial year as it ordinarily takes 6/8
weeks to finalize a purchase case.
CONSOLIDATED DEMAND BY HOD RULE 5
• Rule 5.- (i) The Heads of Departments shall consolidate their
normal and recurring requirements of stores or materials
and place indents on the Controller of Stores in a
consolidated form, but categorized as ‘stores’, as in
Annexure I. In emergent cases direct indents from
subordinate officers as nominated by Heads of Departments
from time to time shall be entertained by the Controller of
Stores.
• (ii) While placing the indents, the Indenting Officers shall
certify that necessary funds exist to meet the liability and
that competent sanction to the purchase has been obtained
by them.
• Rules 7. –Tenders/quotations shall be invited
by the authority competent to do so.
Wherever it is not in the public interest to call
tenders or quotations the State Government
in the Industries Department may dispense
with procedures by an order in writing.
LIMITED TENDER SYSTEM RULE 18

• (a) By inviting quotations from a large number of registered

firms. –This system shall be adopted only for immediate
requirements of stores and the emergency shall be
established and certified by the Indenting Officer in writing
and unless competitive tenders from at least 6 firms are
received the quotations shall be rejected.
•
 PURCHASE OF PROPRIETARY NATURE
• b) By obtaining tenders from one firm in case of
articles of proprietary nature (single tender
system) available from one source. –Article of
proprietary nature shall be purchased according to
financial powers delegated to officers, after
obtaining a certificate from the manufacturers or
sole agents that the rates quoted by them are
identical to those approved by the Director General
of Supplies and Disposals or they would quote to
that Organization or to any other State in country.
 NEGOTIATION WITH GOVERNMENT
ISTITUTITIONS
• (c) By negotiation with Government
Institutions. –Purchases can be affected by
negotiations from Government Institutions by
the Punjab Stores Department to the extent of
powers that may be delegated to officers of
that Department by competent authority from
time to time.
 PURCHASE COMMITTEE
• (e) By purchase committee approved by
Government from time to time. – Where it is
not possible to obtain competitive tenders or
quotations or to lay down comprehensive and
complete specifications the purchase shall be
made by purchase committees as may be
appointed by the competent authority from
time to time.
 POWERS OF DEPARTMENT FOR LOCAL
PURCHSE
• Rule 19. –The officers of the Punjab
Government shall exercise such posers in the
matter of local purchase of stores as may be
delegated to them by the State Government
from time to time
 PRICE PREFERENCE
• Rule 21. –The existing policy to grant 15 per
cent price preference to small-scale and
cottage industries of the state over:-
• (i) Large-scale Industries of the Punjab and
other States.
• (ii) Small-scale and cottage industries of other
state shall continue till further orders of
Government
 INSPECTION NOTE
• Rule 22. –(i) All articles purchased through the
Punjab Stores Departments shall before
acceptance be subject to inspection of the
Stores Inspection Officer or such other officer
or Indenting Officers as may be authorized by
the Controller of Stores, Punjab, in this behalf.
No payment for goods supplied shall be made
unless the stores are inspected and passed for
acceptance as laid down in each contract.
 RATE CONTRACT ITEMS
• Where the Punjab Store Department arrange
a rate contract the Indenting Officers in the
State shall be under contractual obligations to
drawn their requirements of these articles in
terms of the rate or the running contract and
no indent shall be sent either to Controller of
Store or Supply arranged of such item, even of
slightly varying specifications, direct from the
market.
GOVERNMENT E MARKETPLACE (GEM)
• Punjab Government Department of Finance
Notification No. GSR .II/Const./
Art/283/Amd./2018 dated 08.03.2018 inserted
rule 7-A after rule 7 of Appendix 8 of PFR
Volume II . As per this notification the Central
Government e-Marketplace ( GeM) shall be
used by the State Government Department or
Government Agencies for direct on line
purchase of goods and services as under :
 PURCHASE PROCEDURE THROUGH GEM
UPTO 30 LAC
• Upto 50,000/- through any of the available suppliers
on the GeM meeting the requisite quality,
specification and delivery period.
• Above 50,000/- to 30.00 lac through the GeM Seller
having lowest price amongst the available seller, of
at least three difference manufacturer, on GeM
meeting the requisite quality, specification and
delivery period. The tools for online bidding and
online reverse auction available on GeM can be used
by the buyer if decided by the competent authority.
PURCHASE THROUGH GEM MORE THAN 30
LAC
• Above 30.00 lacs through the supplier having
lowest price meeting the requisite quality,
specification and delivery period after
mandatorily obtaining bids, using online bidding
or reverse auction tool provided on GeM
• State Government Department or Government
Agencies shall ensure that the price of selected
offer is reasonable before the placement of order
 PURCHASE THROUGH GEM CONTINUE
• Monitory ceiling specified in sub rule (1) shall
be applicable only on purchase made through
GeM which may be revised the State
Government from time to time. For purchase,
if any outside GeM other relevant provisions
of these rules shall apply.
 RECEIPT OF STORE
• All materials received should be examined, counted, measured or
weighed, as the case may be, when delivery is taken, and they
should be taken in charge by a responsible Government Employee
who should see that the quantities are correct and their quality
good and record a certificate to this effect. The Government
employee receiving the store should also be required to give a
certificate that he has actually received the materials and recorded
them in the appropriate stock registers.
• At the time of making payment, it should be seen that the rates
paid are not in excess of those entered in the contract or
agreement made for the supply of stores and that suitable notes of
payment are recorded against the indents and invoices concerned
to prvent double payments.
 TRANSFER OF CHARGE RULE
15.6 PFR VOLUME I
• When a Government Employee in direct charge of stores
makes over charge to another Government Employee, a
joint transfer report accompanied by the relieving
Government employee's receipt for the stores which
have been in the custody of the relieved Government
Employee should be submitted to the next higher
authority. If the relieving Government Employee fails to
bring to notice within a reasonable period any deficiency
or defect in store taken over from his predecessor, he
will be held responsible for the same both as to quantity
and quality so far as he was in a position to ascertain it,
 PHYSICAL VERIFICATION OF STORE
• A physical verification of all stores should be made at least
once in every year under rules prescribed by the Head of
Department. subject to the conditions that : verification is
not entrusted to a person :
– who is the custodian, the ledge-keeper, or the Accountant of the
stores to be verified.
– Who is not conversant with the classification, nomenclature and
technique of the particular stock of the store.
• The verification should not be left to low paid subordinates
and in case of large and important stores it should be as far
as possible be entrusted to responsible Government
Employee who is independent and superior executive.
 PHYSICAL VERITIFICATION
• A certificate of verification of store with its results
should be recorded on the list, inventory or account as
the case may be.
• Verification must always be made in the presence of
the Government Employee responsible for the custody
of the stores or a representative deputed by him.
• All discrepancies noticed should be properly
investigated and brought on account immediately.
• Shortage and damages as well as un-serviceable stores
should be reported immediately.
 CONDEMNATION OF STORE
• The Head of the office is authorized to condemn and
disposal of stores upto book value of Rs. 5000.00
• Head of the Department is authorized to condemn
and disposal of stores upto book value of Rs.
50,000.00
• The stores whose book value is more than 50,000.00
should not be condemned except by the committee
constituted by Controller of Store.
• Detailed instructions see annexure c chapter 15 PFR
 PURCHASE FROM GOVERNMENT
INSTITUTIONS
• It is obligatory on all officers to obtain the
articles, against Government requirements,
from the Jail, Factories/Institutions/Indian Red
Cross Society, and Punjab State Branch etc.,
run by various departments of State
Government, in which they are prepared.
LIST OF ITEMS SUPPLIED BY GOVERNMENT
INSTITUTIONS
Heads of Departments in respect of Jail,
Industrial, Industrial Institutions, Indian Red
Cross Society, Punjab State Branch, Punjab
Tanneries Ltd., Jullundur etc., will supply
annually, in the month of January, to all Heads
of Departments and Disbursing Officers under
advice to Government in the Industries
Department, a detailed up to date list of items
available from these sources.
 MORE THAN ONE SOURCE OF
GOVERNMENT DEPARTMENT
• In case there is more than one source
manufacturing a particular item of stores, the
Indenting Officer shall issue enquiries to all of
them simultaneously and place order on any
one of them.
• Electric Items should be purchased through
Electric wing of PWD department.
 ANTICIPATE REQUIREMENTS
• Every endeavour should be made by the
indenting Government employee to anticipate
his requirements and to place his orders with
the Jails Institutions, Indian Red Cross Society,
Punjab State Branch, etc. in sufficient time.
Small supplementary indents should as for as
possible be avoided. Care should be exercised
not to crowd in indents towards the end of the
financial year.
 DELEGATION OF POWERS BY
ADMINISTRATIVE DEPARTMENT
• [Note 5. (i) The administrative Departments may
re-delegate the powers delegated to them in this
chapter to the Heads of Departments on their own
responsibility and subject to such restrictions as
they may like to impose:-
• Provided that such re-delegated power shall be
exercised personally by the Heads of Departments
and shall, in no circumstances be further delegated
by the Heads of Departments to officers
subordinate to them.
 DELEGATION OF POWERS BY HOD
• (ii) The Heads of Departments may re-delegate the powers
delegated to them in this Chapter other than the power delegated
to them under clauses (i) to any officer subordinate to them at
their headquarters offices on their own responsibility and subject
to such restrictions as they may like to impose.
•
• Provided that such re-delegated powers shall be exercised
personally by such officer and shall in no circumstances be further
delegated.
• Copies of all such orders shall invariably be endorsed to the
Accountant General (Accounts and Entitlement), the Accountant
General (Audit) and the Department of Finance.]
• Substituted Vide F.D. No. 2(5)-2FCD-86/8308, Dated 17th July, 1987
 POWERS OF ADMINISTRATIVE
DEPARTMENTS
• 18.1. The powers of administrative departments for according financial sanctions
are regulated by the following provisions:
• (i) No Department shall, without previous consultation with the Department of
Finance authorise any orders (other than orders pursuant to any general delegations
made by the Department of Finance) which either immediately or by their
repercussions, will effect the finance of the States or which, in particular, either :-
• (a) relate to the number of grading or cadres or the emoluments of posts or to any
other conditions of service of posts which may have financial implications ; or
• (b) involve any grant of land or assignment of revenue or concession ; grant, lease or
license of mineral or forest rights or a right to water power or any easement or
privilege in respect of such concessions ; or
• (c) in any way involve any relinquishment of revenue.
• (ii) All financial sanctions and orders issued by a Department shall be
communicated by that Department to the Accountant General (Audit) and the
Accountant General (Accounts and Entitlement).
POWERS OF SUBORDINATE AUTHORITIES

• 18.2. The extent to which powers of

sanction expenditure have been delegated to
various Heads of Departments and other
subordinate authorities is given in Chapter
XIX.
 WRITE OFF OF LOSSES
• 18.4. (a) A Competent authority may write
off finally the irrecoverable value of stores or
public money lost by fraud or negligence of
individuals of other causes.
• (b) All sanctions to write off of losses
should be communicated to the Accountant
General for scrutiny and for bringing to notice
any defects of the system which appear to
require attention.
 REMISSION OF DISALLOWANCES WAIVING OF
RECOVERY OF AMOUNT DISALLOWED BY AUDIT

• 18.5. A competent authority may waive the

recovery of an amount disallowed in audit. On
receipt of the orders for waiving the recovery
the to the Legislature through the Audit
Report. Accountant-General will withdraw the
objection provided that where the provisions
of the rules permit he may report the
circumstances