*In the case of works or repairs, not exceeding Rs. 500 in cost, undertaken for any other railway, the charges in columns 9 to 14 may be remitted in reciprocation of a similar waiving of such changes by such railway.

Note 1— The charge for profit on work done in State-worked railway shops is 10 %. In the case of work done for other railways it may be foregone by mutual agreement, or may be levied at such higher or lower rate that 10 percent at which other Railway Administrations may agree to reciprocate.

Note 2 — The percentage charges on account of Proforma Oncost will be levied in the case of works chargeable to Capital and Depreciation Reserve Fund of the Home line only when the cost of the work done in shops exceeds Rs. 1000.

Note 3 —Percentage on account of freight charges (column 8) will not be levied on the value of such stores the cost of which is inclusive of such charges.

Note 4— In the case of stores manufactured for stock purposes, the same charges should be levied as in the case of home line revenue works.

Note 5 — The charges in column (14) will not be levied in the case of —

(i) Vehicles built for the Postal Department whether at the cost of that Department or at the cost of the Railway Department; and

(ii) Conversion of existing carriages into mail vans and vice versa and alterations in the dimensions of and changes in internal arrangements or fittings of postal vans.

Note 6 — The charges in column (14) will not be levied in the case of work done in connection with -he reserved carriages provided for officers of the Railway Police whether at the cost of the Provincial Governments concerned or the Railway Department.

Note 7 — The interest charges referred to in col. 13 above will be excluded in the case of works done under item 1 (b) of column above.


1426. Waiving of Proforma oncost and profit.—The General Manager is empowered to waive the recovery of Proforma Oncost and profit charges in respect of work done for outsiders or in the tendering for supplies called for by the Stores or other Departments. But such remission may be allowed wholly or in part by the General Manager only after consultation with the Financial Adviser and Chief Accounts Officer and for reasons that should be recorded. It should be examined whether the railway gains any advantage, financial or otherwise, by the remission and the fact that the Railway did not actually incur any identifiable overhead charges should not by itself be treated as a necessary and sufficient reason for foregoing the recovery of such oncost.

1427. No charges in respect of expenditure on ecclesiastical works should, under any circumstances be waived.

1428. Departmental charges on a Reciprocal Basis.—Notwithstanding the percentages mentioned in paragraph 1426 on account of Proforma Oncost and profit such charges may also be levied on a reciprocal basis to cover "the cost of tools and plant and establishment supervision" in case of works undertaken in Railway workshops for other Government Departments or Ministries, private railway companies or other public bodies (e.g., municipalities, trusts).

1429. Work done outside the Workshops.—The above rules (Paragraphs 1425 and 1426) apply to works done within the workshops. When works are executed outside the workshops, an addition of 12.5% only should be made on the total estimated outlay on labour and stores, to cover the cost of supervision &c.

1430. When a work is done partly inside the workshops and partly outside, the costs of these portions should be separately worked out and Proforma Oncost and profit levied only on the cost of the work done inside the shops and percentage charges mentioned in paragraph 1429 charged on the cost of work done outside the shops. 

SANCTION AND FUNDS .

1431. Sanction for Works to be executed in Workshops.—No works other than those of ordinary repairs and maintenance chargeable to Abstracts B and C may be undertaken in Indian Railway Workshops without the previous sanction of the General Manager or of an officer of the Mechanical Department to whom the General Manager may have delegated his powers in this respect, provided the rules in force from time to time relating to estimates and the provision of funds are observed.

1432. Funds for Home Line Revenue Works.—The outlay on works debatable to Abstracts B and C is met from the provision made in the "Authorization Rolls". For works chargeable to other Home Line Departments, the requisitioning Department is responsible for seeing that adequate sanction and funds exist for the works for which it indents. Information as to the probable cost of works should, if desired by the indenting departments, be furnished by the workshops. 

VERIFICATION OF ESTIMATES 

1433. One phase of the control of expenditure on Railways is a regular check by the Accounts Officer of all estimates before they are sanctioned by the competent authority. The object of this preliminary check of estimates is to avoid irregular sanction to expenditure and the main points which require consideration are— 

(1) the propriety of expenditure;

(2) the incidence and classification of charges;

(3) the existence of budget provision to meet the proposed expenditure during the financial year;

(4) the freedom from errors and omissions; and

(5) the competence of sanction.

The checks relating to these points should be exercised with reference to the rules in this Code and in other Indian Railway Cedes bearing on this matter.

1434. Propriety of Expenditure.—It is the duty of the Accounts Officer in, his capacity as Financial Adviser to examine zealously all proposals for expenditure, with a view to see—

(1) that the expenditure proposed to be charged to Railway funds in the estimate is properly and legitimately so chargeable; and

(2) that proper financial justification is forthcoming in the case of all works requiring such financial justification.

1435. Incidence and Classification of Charges.— These should be verified in an estimate in accordance with the rules of incidence and the classification of expenditure prescribed in the Indian Railway Financial Code. In his verification certificate, the Accounts Officer should clearly state that incidence and allocation have been so verified.

1436. The submission of an estimate to the sanctioning authority should not be delayed when there arises any doubt as to the correct allocation of the estimated cost and the question at issue will take time to settle. In such cases, the approximate allocation between Capital, Depreciation Reserve Fund, Development Fund. Open Line Works- Revenue and Ordinary Revenue may be certified by the Accounts Officer, as far as it is possible for him to do so, and the sanctioning authority may sanction the estimate, if otherwise in order, leaving over the question of final allocation for subsequent consideration.

1437. The existence of Budget Provision.—For a proposed work should be verified from the sanctioned budget statements for the year.

1438. Errors and Omissions.—Noted in the course of Accounts verification of estimates, it any, should be got corrected by the Executive Authority responsible for the preparation of (or sanction to) the estimates. The Accounts Officer may, in cases where this becomes necessary, append to his verification certificate, a note specifying such items of errors or omissions as have been pointed out by him, but have not been accepted by the Executive Authority and any other matters of importance.

1439. Competency of Sanction.—This should be verified with reference to the limitations laid down in the schedule of powers of various authorities (Annexure II to Chapter V of Financial Code, Vol. I). The rule regarding grouping of works for the purpose of determining the authority competent to sanction an estimate is given in paragraph 750 of the Indian Railway Code for the Engineering Department.

1440. Subsidiary Points to be checked.—In the check of estimate the following subsidiary points require attention. It should be seen—

(1) that the particulars of work to be done are furnished in sufficient detail and that a proper distribution is made of the estimated outlay between cash and Stores-.

(2) that the allocation of each item is given and that;

(3) that all incidental expenditure that can be foreseen has been provided for in the estimate;

(4) that in the case of renewal, replacement and dismantlement works, credit for sale proceeds of released material has been provided for;

(5) that in the case of work to be done for other Government Departments or Ministries, Non-Government railway and private bodies, provision has been made for the necessary additional charges as laid down in paragraph 1426;

(6) that in the case of estimates for manufacturing operations the outlay and out-turn are distinctly shown;

(7) that estimates are prepared for material released from stock condemned or broken up without replacement; and

(8) that in the case of revised estimates, a statement comparing the figures with previous sanctioned estimates and containing explanations for variations accompanies the revised estimate.

1441. Certificate of Accounts Verification.—All estimates verified by the Accounts Officer should bear a certificate of such verification. The form of the certificate may be as under:—

"Incidence and allocation verified (subject to the check note attached). This requires the sanction of............"

1442. A copy of the estimate as verified by the Accounts Officer, together with a verbatim copy of his check note, if any, should be submitted to the authority competent to sanction the estimate. In forwarding an estimate for sanction, it should be clearly mentioned whether it has been accepted by the Accounts

Officer as unobjectionable. In cases where the Accounts Officer has recorded any objection, the attention of the sanctioning authority should be drawn to the Accounts Officer's check note stating the objection.

1443. Estimate Register.—Details of all estimates received in the Workshop Accounts Office for verification should be recorded in this Register (W. 1443) and all entries should be attested by Section Officer (Accounts). 

Form W. 1443 

ESTIMATE REGISTER

1444. Sanction to Estimates.—Advice of all sanctions to estimates by the competent authorities should be communicated to the Accounts Officer and to the Chief Auditor of the Railway in such form as may be prescribed by such authorities. A copy of the sanctioned estimate should also be furnished to the Accounts Officer.

1445. Currency of Sanction.—The sanction to an estimate will ordinarily remain current for five years from the date on which it has been accorded, unless it has been renewed for a further term by the acceptance of a revised estimate. Acceptance by competent authority however, of a budget estimate which includes specific provision for expenditure on a work which is in progress may be regarded as reviving for the year in which provision is made, the sanction to the estimate—regardless of the five years limit. But if no work has been commenced on a sanctioned estimate within two years of the date on which the sanction was accorded, such sanction should be held to have lapsed and fresh sanction should be obtained from the competent authority by the submission, of an up-to-date estimate, if necessary.

1446. The currency of sanction begins from the date of sanction to the estimate itself and not from the date on which the allocation of the estimate is finally accepted. Incidence of Cost of Works Done for other Departments/Ministries

Postal Vans

1447. The following rules govern the incidence of the cost of vehicles or parts of vehicles provided by the Railway for the Postal Department,

1448. The capital cost of newly built vehicles expressly constructed for the exclusive use of the Postal Department on their requisition for complete vehicles, shall be paid by that Department. Should the Railway find it necessary to construct new vehicles to meet the requisition of the Postal Department for parts of vehicles, no portion of the capital cost shall be charged to that detainment which shall only pay interest on the capital cast of such vehicles.

1449. When a postal vehicle built at the cost of the Railway Department is replaced entirely, the cost of the new vehicle should be treated as a recovery of interest charges.

1450. In the case of mail vans rebuilt with old reconditioned under-frames, etc., interest charges on the second-hand under frames and bogie- trucks should be calculated at the rate of interest which was in force at the time the under frames were constructed and the interest on the cost of new bodies should be charged at the current rate of interest.

1451 (1) The following should be the minimum standards for equipment in the Postal portion of the coaching stock.: - 

(i) The battery and dynamo should be designed for service in the vehicle only and not to augment the units in the Block Rake.

(ii) All Postal vehicles having a connected load greater that 10 amps should be fitted with dynamo and battery.

(2) The following standards for lights and fans should be adopted as minimum requirements: —

Letting; (1) 65/110 Lux (metric candle;.) over Sorting Ledge and Registration and Pared Ledges

(ii) 45/65 Lux (metric candles) over other places. Fans—

(iii) Fans 2—16" standard carriage fan per 100 square feet of floor area.

(3) The Capital cost of electric battery, dynamos, switchgear and wiring should be divided between the Postal and Railway Departments in the proportion that the connected load in the Postal portion bears to the total connected load of the vehicle.

(4) The above procedure should be given effect to subject to the following reservations: —

Paragraph (1) (i) and (ii) is obligatory when in future new vehicles with Postal accommodation are constructed or rebuilt. Paragraph (2) is accepted as desirable on all existing stock and obligatory on all future stock, the existing stock being brought at least up to this standard as and when Postal vehicles pass through shops for periodical overhaul.

Paragraph (3) should be accepted for future construction and adopted for existing stock which is equipped with generator and batteries and is not wired for use in block rakes. For vehicles which are wired for use in block rakes the ruling applies on the specific understanding that the charges to the Postal Department shall not be increased.

Note: In the case of partially fitted Postal vehicles where the dynamo and battery equipment ate specially provided for the exclusive use of the Postal portion of the vehicle, the remainder of vehicle being wired as part of the block rake and being entirely distinct from the Postal portion, the entire cost of the equipment shall be included in the capita! cost of the Postal portion for the purpose of recovery of interest charges for the Postal Department

1452. When existing vehicles which have, on the requisition of the Postal Department, to be converted as completed vehicles or parts of vehicles to meet the requirements of that department, they shall pay—

(i) the cost of alteration, together with the cost of transporting such vehicles to workshops for alterations and from workshops to the station at which requited after alteration, where the vehicles have to be transported on trucks due to gauge difference; and

(ii) interest on the capital cost of the complete vehicles or parts of vehicles, so long as they remain in the exclusive use of, and have not been formally surrendered by the Postal Department.

1453. The capital cost of postal vans referred to in the preceding paragraphs will, for the purpose of levying interest, be the all in cost as detailed in paragraph 1424. The capital cost of the postal portion of the non-postal vehicles will be worked out in proportion to the floor area of the postal portion, the 'all-in-cost' of any special fittings provided in the vehicle for the exclusive use of the postal Department being added to proportionate cost of the postal portion as thus worked out.

Note: The postal portion of a non-Postal vehicle is that portion of the accommodation in a railway coaching vehicle which is reserved for the conveyance of mails.

1454. When Postal Department formally surrenders vehicle or parts of vehicles, the capital cost of which has not been paid by that department, they shall pay to the Railway Administration the cost of converting such vehicles or parts of vehicles so as to render them serviceable for general traffic purposes, together with the cost of transporting such vehicles to workshops for conversion and from workshops to the station at which required after conversion, where the vehicles have to be transported on trucks due to gauge difference.

1455. When the Postal Department formally surrenders complete vehicles or parts of vehicles, of which it has paid the capital cost, the Railway Administration shall refund to the Postal Department this sum less the cost of any special fittings, that would be valueless and also less the cost of converting such vehicles for general traffic purposes.

Saloon Carriages and other vehicles reserved for the exclusive use of Departments/ Ministries of Government of India and State Governments.

1456. The following rules apply to vehicles reserved for the exclusive use of State Governments or of  Departments /Ministries of the Government of India excluding vehicles reserved for the Railways and the Railway Police.

1457. The vehicles, together with their electrical and movable equipment and furniture, will be provided at the cost of the Railways. The capital cost of a vehicle and its equipment will be known as "The capital cost of the vehicle on the books of the railway" and will be the all-in-cost as defined in paragraph 1424.

1458. The Department/Ministry of State Government will be responsible for obtaining the prior sanction of the competent authority to the provision of any reserved vehicle.

1459. Design of all stock should be to the standards laid down for rolling stock on Indian Railways and must receive the prior approval of the Railway Board.

1460. The Department/Ministry or State Government will pay the following charges for each vehicle annually to the Railways: —

(i) interest at 4.5 per cent per annum, on the capital cost of the vehicle on the books of the railway;

(ii) depreciation at the rate of one per cent per annum on the capital cost of the vehicle on the books of the Railway. Depreciation will not be charged on any vehicles after it has been m use for 40 years;

(iii) an all-round charge of 4% per annum on the capital cost of the vehicle on the books of the railway or the present day cost of construction of a new similar vehicle, whichever is greater, to cover charges for maintenance and repairs of the vehicle and its equipment; and

Note: This has effect from 1st November, 1952 in respect of all cases except Military Cars in regard to which it takes effect from the 1st April, 1953.

(iv) haulage at the prescribed scheduled rates, which will not include any recurring charge for interest depreciation or maintenance and repairs.

1461. When any alterations or additions to the body of a vehicle or any alterations or additions to the equipment, fittings, or furniture are carried out at-the request of the using Department/Ministry or State Government, the Department/Ministry or State Government will pay the actual cost of such alteration or addition. Such alteration or addition will only be carried out when previous sanction has been given to an estimate of the actual cost by the competent sanctioning authority, and when the authority at whose cost the alterations or additions are to be carried out, has undertaken to defray its actual cost.

1462. Where vehicles of special design or of special equipment are provided as a temporary measure for the exclusive use of a Department/Ministry or State Government, the Department/Ministry or State Government concerned will pay the actual cost of Converting the stock for ordinary railway purposes.

Note: This also covers the stock permanently built for Defence Ministry, which has still as portion of its normal life to run and is surrendered by the Ministry of Defence.

1463. When it becomes necessary to replace vehicles, or equipment, etc. new stock or equipment, etc. will be provided at the expense of the Railways. Should replacement of a vehicle be required by the using Department /Ministry or State Government while it is still in good condition and before the expiry of its assumed normal life, namely, 40 years, the using Department/Ministry or State Government will be required to pay the Railway the actual cost of converting the replaced vehicle for use as ordinary stock.

1464. The actual cost of work referred to in the preceding three paragraphs includes the charges detailed in paragraph 1424, less credit for the depreciated value of all material or equipment released.

1465. When a new vehicle has been built in replacement of an existing one, the interest, depreciation and maintenance and repairs charges to be paid annually on the new vehicle will be calculated in accordance with clauses (i) to (iii) of paragraph 1460 on the actual cost of replacement.

1466. A proforma Capital and Revenue Account should be kept for all such vehicles to see that the recoveries made from the various Departments/Ministries of the Government of India and State Governments on account of interest, maintenance and depreciation do not fall short of the actual expenditure incurred by the railway One account should be kept for all the vehicles, but a separate account for individual vehicles may be considered necessary where there is reasonable doubt that the financial interests of the railway are adversely affected.

The Capital Account should show the capital cost of the saloons, the accuracy of which should be checked by the Accounts Officers. The Revenue Account should indicate the expenditure incurred from year to year by the railway; whether in the workshops or on the line, on the maintenance and repairs of the vehicles. The expenditure on empty haulage in connection with periodical overhauled and trial runs incidental to the maintenance of these vehicles should also be included in the Revenue Account. 

Execution of Works 

1467. All works should be carried on as rapidly as is possible, due regard being had to the extent of funds allotted and to soundness of execution. The general rule in regard to the building of rolling stock is that all stock should be built to designs approved by the Board. In cases where it is proposed to build stock to new designs, no indents for the necessary materials should be allowed to go forward, nor should any work be taken in hand until the approval of the Railway Board has been obtained to the new designs. In the case of Coaching Stock, however, all designs, whether already sanctioned by the Railway Board or new ones, should be submitted for the prior approval of the Board and no indents for materials should be allowed to go forward, nor should any work be taken in hand, until such prior approval has been obtained. 

B. Completion Reports 

1468. All delays in the advice of date of completion by the Mechanical Department should be regularly taken up. The works on which no expenditure is incurred for three consecutive months should be specially brought to the notice of the Mechanical Department and that Department should be asked to intimate whether the work has been completed and when a completion advice may be expected.

1469. Completion Reports.—As soon as the advice of completion is received (Paragraph 835) the clerk who maintains the Works Register should prepare a Completion Report in Form No. W. 1469. The figures of actual expenditure as well as those of estimated amount should be shown in the same details in which the estimate has been prepared and sanctioned, but before preparing the Completion Report it should be seen that (I) all charges under different sub-heads of estimate have been booked, and (2) the credit for released material has been adjusted. 

Form W. 1469 

.....................................Workshops

No............................................................                                                                Date........................
Completion Report of..................................................................................

................................................................................................................

................................................................................................................

Authority.............................................Estimate No.. ...............................of......................................

Name of Office in charge of the work...................................................................................................

When commenced.............................................................................................................................

When completed...................................................................................................................................

Explanations for vitiations shown in columns in 6 and 7 above. 

Dy. Chief Mechanical Engineer 

1470. The Completion Report should be submitted to the authority competent to sanction the excess, after scrutinizing the explanation regarding excesses over estimates obtained from the Works Manager or the Deputy Chief Mechanical Engineer, as the case may be. Completion Reports which do not show any excess over the estimate should be filed after obtaining the explanation for the saving, if any, from the Works Manager or the Deputy Chief Mechanical 
Engineer and after endorsement of a certificate of verification thereon Saving of over 15 per cent should be reported to the Chief Mechanical Engineer.

1471. Completion Report Register.—The Accounts Office should watch through a register (W. 1473) that the completion reports involving excesses over sanctioned estimates are received back duly sanctioned from the authority competent to sanction the excess,

1472. A note should also be recorded in the Works Register under the work concerned in the following form—

"Work completed and completion report prepared and submitted to .................. on ............ for sanction.

1473. All completion reports should be entered in the Completion Report Register. This register shows the following details: —

(1) Serial Number.

(2) Date of submission.

(3) Particulars of work.

(4) Estimated cost.

(5) Booked expenditure.

(6) Reference to works register.

(7) Department.

(8) Work order number.

(9) Reference to sanction to the excess, where necessary.

(10) Remarks.

1474. Adjustment of charges and Credits reported on completed works.—The following procedure should be followed in cases of charges and credits reported on completed Works necessitating the revision of Completion Reports—

(1) If charges or credits are received for a work after the submission of a Completion Report not yet sanctioned, a revised Completion Report should be prepared and necessary postings should be made in the Works Register against the work concerned.

(2) If charges or credits are received after sanction to the completion report for the work, charges not exceeding Rs. 10,000 should be adjusted against the appropriate head of account under Ordinary Revenue Maintenance and credits not exceeding Rs. 10,000 against abstract Z. 650. When charges or credits exceed Rs. 10,000, the account of the work should be re-opened and necessary adjustment made thereunder. In the case of works done for private parties or other Government Departments or Ministries, the actual amount spent on the work should be recovered even though the completion report may not be revised.