The Controller of Stores.—The administration and control of the
stores of a railway will be conducted by the Stores Department, under the
supervision of a Controller of Stores.
On him will devolve the duty of ascertaining the needs of a railway
in the matter of materials and stores and of arranging for the supply of
such materials and stores in the most efficient, economical and
expeditious manner possible. He
will be responsible for their receipt, inspection and distribution to the
various stores depots, for their custody while in-charge of the stores
department and finally for their issue on requisitions received from
authorised officials of the railway. He will be in-charge of inventory
The stocks of certain groups of the stores required by
a railway have often to be held by the users at the place of work:—
To avoid piecemeal requisitioning of stores from the Stores Department,
For use in emergencies, so as to safeguard against delays or detentions in
In some cases, in consideration of the special nature of the material
stocked and of the transportation of such material.
stores are :-
Permanent way or other engineering material in the custody of Permanent
Way Inspectors and Inspectors of Works.
Locomotive, carriage and wagon parts and electrical stores in running
sheds, signal stores, train examining stations and in-charge of out-door
electrical chargeman and signal inspectors respectively.
Stores in workshops waiting to be used in repairs or manufacture of
locomotive and carriage and wagon duplicates.
Stores which have been purchased for special works, and charged to such
left in the custody of the Stores Department (Custody Stores),
lying at site of work (materials-at site).
Functions of the Controller of Stores.—All Stocks of stores on
hand, whether with the Stores Department or other departments of the
Railway, represent funds that are not productive.
While stocks should be such that stores required by the railway are
readily available, they should be as small as possible, and losses due to
obsolescence or deterioration should be the minimum practicable.
The centralized control that is required for this purpose will vest
in the Controller of Stores who will be the head of Stores Department and
will be responsible for the—
purchase and inspection, and
custody and issue of railway stores.
104. All materials and stores for which the consuming departments have no immediate use should be returned to the Stores Depots, the Controller of Stores being responsible for their survey and valuation, and for disposal by sale or otherwise. He has also to deal with all the surplus, and unserviceable material of the railway.
Nomenclature-cum-Price List.—He should issue and maintain upto-date
a Nomenclature-cum-Price List including all items of stores in stock in
the Stores Depots. Each separate item of stores in this list should be
assigned a number and this number as well as the description should be
quoted on all requisitions, receipt, issue and other documents relating to
The Controller of Stores is not a Disbursing Officer, nor he is
required to keep any general accounts of the stores transactions of the
railway. His duties in this respect will be limited to the maintenance of
numerical records of stores in stock and to the preparation of the initial
documents of receipt and issue.
General Supervisory Control.—The Controller of Stores should
arrange for submission to him of such statements and returns as may be
necessary to keep him informed of the stocks available in his depots, the
manner in which the requisitions of the departments are being complied
with, the inflow of materials not required by departments and the steps
taken to dispose of surplus and unserviceable stores.
Planning of Supplies of Stores.—The Controller of Stores is
responsible for preparing a correct estimate of the quantities of stores
to be purchased or manufactured in the railway workshops each year and for
making the most advantageous arrangements possible for the economic
purchase of stores. In this, he will be guided by the Purchase Policy
Rules, the Contract Rules and the rules prescribing the purchase of
certain articles through specified agencies, i.e. the Railway Board and
the DGS&D. The Directorate General of Supplies and Disposals is the
biggest agency and it has been set up with the object of collecting
together the requirements of the various government departments and making
bulk purchases at the most economic rates. The purchase through the agency
of the Directorate General of Supplies and Disposals is normally
obligatory subject to some monetary limits in the case of a large number
of articles for items other than Rly. Board specified exclusive railway
items and, in respect of such purchases, the Controller of Stores should
work in closed co-ordination with that department, while watching the
interests of the railway administration. Stationery, printing stores and
office machinery and appliances for all government departments and for
railways are similarly purchased through the Controller of Printing and
Stationery. Supplies of wooden sleepers are arranged for through an
organisation known as the Sleepers Pool. Mathematical Instruments are to
be obtained through the National Instruments (Private) Ltd., Calcutta.
Purchase of Stores.—The purchase of all other stores should be
arranged for by the Controller of Stores, under the orders of the General
Manager, subject to certain reservations which the Railway Board have made
regarding the call of tenders and for the letting out of contracts for
certain items of stores, such as coal, rails, cast-iron sleepers, and
rolling stock. In respect of items earmarked for procurement by the
Railway Board, the Controller of Stores will ensure timely submission of
indents as in the case of DGS&D items.
Nature & Distribution of Stocks.—For the purposes of
maintenance and distribution, the stores are divided into General Stores
& Engineering Stores including permanent way stores. The organisation
for the control of stocks of permanent way materials is generally under
the direction of an officer designated the Track Supply Officer who, with
his staff of any separate permanent-way depot that may exist, constitutes
a self-contained branch of the Stores Department. It will be the duty of
the Track Supply Officer to maintain close co-operation between the
Controller of Stores and the Chief Engineer.
Materials are stocked at suitable points on the line in stores
depots under Depot Officers subordinate to the Controller of Stores. In
addition, imprest stocks of stores are also sanctioned to categories of
subordinates, such as Running Shed Foreman, Train Examiners, Electrical
Chargeman, Permanent Way Inspectors, &c.
Location of Stores Depots.— For facility of work, there should
A Locomotive Stores Depot attached to and serving the main locomotive
workshops of the railway, steam, diesel and electric.
A Carriage and Wagon Stores Depot similarly attached to the main carriage
and wagon shops.
A Signal Stores Depot serving the Signal shops, if any.
One or more Permanent-way Material Depots for storing permanent way and
One or more stores depots or yards for collecting all scrap and
unserviceable material. Such depots should be situated in or near the best
market for the disposal of such articles,
Other General Stores Depots as found necessary. No new Stores Depot should
be formed without the sanction of the General Manager such sanction being
recorded in the minutes of Official Meetings.
Stock Items.—Such Items will be kept in the custody of the Stores
Department which are frequently and regularly required and whose unit cost
justifies incurring inventory carrying cost associated with these items.
Such items will be known as 'Stock' items.
Ordinary Stores.—Ordinary Stores are generally such items of
Stores for which there is a regular turnover caused by a constant demand
and which are stocked by the Stores Department in its Depot.
Emergency Stores.—The depots have also to stock certain items of
stores though they do not have a regular turnover caused by a constant
demand. These are 'Emergency Stores' and comprise items of stores which do
not ordinarily wear out or require renewal, which have, however, to be
kept in stock to meet emergencies, such as that due to breakage or
unanticipated deterioration, and which are not readily obtainable. The
stock cards relating to such stores should be marked with the letter 'E'.
Non-stock Items.—All items other than 'stock' items will be
called "Non-stock1 items. These items may, however, be described in
the Standard Nomenclature List No purchase of such items will be made for
Special Stores.—These are stores required for works and other
special purposes i.e. other than for 'operation' or ' ordinary maintenance
and repairs' and which are ordinarily dispatched directly to the
requisitionist without being stocked in a stores depot.
Surplus Stores.—These are of two kinds, 'Moveable' and
'Dead'. Moveable Surplus
Stores comprise items of stores which have not been issued for a period of
24 months, but which, it is anticipated, will be used in the near future.
Dead Surplus Stores comprise items of stores which have not been issued
for 24 months and which, it is considered, are not likely to be utilised
on any railway within next two years.
Such surplus stocks may be the result either of changes in design,
in specification, &c. of the 'stock items' of stores or of consuming
departments returning to the depots special items or stocks items of
stores no longer required by them such stores have to be held in custody
in stores depots and steps taken for their prompt disposal.
Surplus stores should be distinguished from "over stocks"
or ordinary stores (see paragraph 2230-2).
Main Depots.—The stock of each depot should comprise only those
materials or stores as are required in the shop or Divisions which the
122. Subject to the above rule, each stock item should be allocated to one depot, the factor governing the selection of the depot being generally the proximity to the base of supply. The depot so nominated will be the Main Depot for the item, all other depots which may stock the same item for issue in their respective territories being 'Subsidiary Depots' as far as that item is concerned. All orders for purchase or manufacture by Workshops of an item of stores will be placed by the 'Main Depot' for the item, the 'Subsidiary Depots' merely placing requisitions on the Main Depot.
123. The assignment of one depot as a Main Depot for an item of stores prevents the slow accumulation of surplus stocks in each depot by individual direct purchases of stores, obviates loss of valuable time involved in reference to each other depot to see whether surplus stocks are available before a purchase order can be placed, and as will be seen from the detailed procedure in paras 1414 to 1439, concentrates the surplus stores of an item in one depot, viz., the Main Depot and therefore enables the systematic working off of such surplus before purchases are resorted to.
Minima and Maxima.—A minimum and maximum limit should be laid
down for the quantity of each 'stock item' of stores in a depot at any
time below or above which the balances should not ordinarily be allowed to
Minimum Stock.—The minimum limit should be a quantity of stock
representing an average weekly issue multiplied by the number of weeks,
which from past experience, it is known will elapse from the date of
placing an order before fresh stocks can arrive at the depot. The minimum
limit is therefore the lowest permissible level to which the stock of an
item may fall without a stock recoupment having been sent forward for
replenishment. It is the "Stock Order Point" signifying the
point at which the recoupment demand should be sent forward.
In the case of items arranged for on an annual contract basis, it
is possible to keep the "minimum" very low, because the time
required to get fresh stocks is merely the period required for placing a
purchase order on the firm against the annual contract. Supplies of items,
which are merely purchased as and when required, take a considerably
longer time than supplies of items ordered up against annual contract as
the time factor must be adequate for the calling of tenders, placing of
order, and for the contractor to obtain his supplies after receipt of the
orders. As such, a system of as-and-when-required-purchases, in addition
to involving higher minima stocks being kept, results in the items
frequently running out of stock. Every endeavor should therefore be made
to place as many stock items as possible on annual contracts.
The minimum stock limit should be fixed as low as possible
depending upon the prevailing market conditions and the proximity of the
depot to the normal source of supply.
Maximum Stock.—The fixing of the maximum limit is governed by the
following factors :—
Economic Size of Each Order.—The "Maximum" is the lowest
quantity that may be ordered for at any time after providing that stores
are never less than the prescribed minimum. As orders for small-quantities
at a time at frequent intervals would result in increased cost of packing
and other charges, including heavy clerical and accounting work, cost of
stationery and inconvenience to the suppliers, the "maximum"
should be carefully fixed with due consideration for this factor.
(ii) Increased Lock up of Capital.— On the other hand, the fixation of high limit would involve apart from inventory carrying costs unnecessary locking up of capital, risk of deterioration of stores, extra storage and protection arrangement, increased labour charges, and accumulation of surplus by unnecessary advance purchase of stores, which by the light of information available at a later date could otherwise have been cancelled from the contract obligations under the clauses empowering increase or decrease of the contracted quantity. (A working rule is that the maximum should not ordinarily exceed twice the minimum limit prescribed for an item).
129. Minima and Maxima for Workshop Items.— Maximum and minimum stock limits for items manufactured in railway workshops should be fixed in consultation with the Works Manager of the shops concerned, taking into consideration the time taken by the workshops to complete any recoupment orders placed on them.
Powers of the Controller of Stores.—The financial and other powers of
the Controller of Stores are such as are delegated to him by the General
Manager, within the" provisions of the Indian Railway Codes and the
rules and orders issued by Railway Board from time to time.
Standards of Financial Propriety.— In exercising these powers,
the Controller of Stores should pay strict regard to the standards of
financial propriety among which are the following:—
The expenditure should not prima facie be more than the occasion demands,
and that every government servant should exercise the same vigilance in
respect of expenditure incurred from public moneys as a person of ordinary
prudence would exercise in respect of the expenditure of his own money.
No authority should exercise its powers of sanctioning expenditure to pass
an order which will be directly or indirectly to its own advantage.
Public money should not be utilized for the benefit of a particular person
or section of the community, unless:—
the amount or expenditure involved is insignificant
a claim for the amount could be enforced in a court of law
the expenditure is in pursuance of a recognised policy or custom.
The amount of allowances, such as travelling allowances, granted to meet
expenditure of a particular type, should be so regulated that the
allowances are not on the whole sources of profit to the recipients.
proposals involving financial implications except those which have been
specifically exempted for this purpose should be referred to finance
branch for advice before these are sanctioned.
Schedule of Powers of Purchase, Sales &c, of the Controller of
Stores/Chief Materials Manager.— It has been found in practice that the
powers of the General Manager in the matter of the purchase, sales &c,
of railway stores need not be delegated to Controller of Stores/Chief
Materials Manager beyond the limits shown in the schedule below. These
limits should not ordinarily be exceeded.
to such safeguards as may be laid down in consultation with the Financial
Adviser and Chief Accounts Officer and within the limits laid down by the
General Manager, the Controller of Stores may delegate powers of purchase
to his subordinate officers attached to his office, excepting where levels
of delegations have been fixed by the Board.
Note.—The expression subordinate officers attached to his office occurring at the end of the above sub-paragraph includes all Gazetted Officers under the Stores Department of the Railways whether at the Headquarters, Depots or Divisions.
the adoption of the open tender system to orders, the
estimated value of which exceeds Rs. 3 lakhs; (b)
In the case of running contract the Controller of Stores/Chief
Materials Manager may exceed the contract quantity plus tolerance
laid down by the Directorate General of Supplies and Disposals
with the prior sanction of the Director General of Supplies and
Disposals, and subject to the limit of Rs. 10,000 in each case. Note.—Where
no loss can be proved to have occurred, no penalty is leviable. (a)
Cancellation of the contract and recovery of any loss or damage
which the railway may sustain by reason of such failure on the
part of the contractor, or (c)
Recovery from the contractor of a sum of 2 per cent of the
contract price of the consignment per month or part during which
the supply may be in arrear upto the amount of the actual loss
sustained by the railway. 2.
In respect of purchases made under the General Manager's sanction,
the Controller of Stores/Chief Materials Manager may be given
powers of granting extensions of delivery periods. He has also
powers to impose or waive penalties in such cases, with the
concurrence of the Financial Adviser and Chief Accounts Officer. Note.—If
as a condition of sale, freight is to be borne by the
administration cost of such freight should be taken into
consideration in computing the loss. (This rule applies to all
cases of sales). For loading and unloading goods. (a)
Restricted to a limit of Rs. 5,000 for each individual case. (c) not due to different methods of measurement adopted
by the Accounts Department Stock Verifiers and the
departments. Note.—(1) The limit of Rs. 1,000 may be extended to
Rs.10,000 with respect of adjustments due to fluctuations in
market rates. (a)
are not due to the negligence, carelessness or dishonesty of any
railway employees; (ii)
And up to Rs. 2,000 in each case where the loss is due to the
negligence, carelessness or dishonesty of any railway employee
where it is not possible to affect the recovery of the cost of the
stores from the employee concerned.
(2) the adoption of the open tender system to orders, the estimated value of which exceeds Rs. 3 lakhs;(3) the direct purchase of stores, for which indents have to be placed with the DGS &D value exceeding Rs. 25 lakhs.
(b) In the case of running contract the Controller of Stores/Chief Materials Manager may exceed the contract quantity plus tolerance laid down by the Directorate General of Supplies and Disposals with the prior sanction of the Director General of Supplies and Disposals, and subject to the limit of Rs. 10,000 in each case.
Note.—Where no loss can be proved to have occurred, no penalty is leviable.
(a) Cancellation of the contract and recovery of any loss or damage which the railway may sustain by reason of such failure on the part of the contractor, or(b) Purchase elsewhere at the contractor's risk or
(c) Recovery from the contractor of a sum of 2 per cent of the contract price of the consignment per month or part during which the supply may be in arrear upto the amount of the actual loss sustained by the railway.The Controller of Stores/Chief Materials Manager may be given full powers to impose or waive these penalties in respect of all contracts entered into by the Railway. When waiving a penalty, the reason for doing so must be fully recorded on the relevant files and the stores bill forwarded to the Chief Accounts Officer suitably endorsed.
2. In respect of purchases made under the General Manager's sanction, the Controller of Stores/Chief Materials Manager may be given powers of granting extensions of delivery periods. He has also powers to impose or waive penalties in such cases, with the concurrence of the Financial Adviser and Chief Accounts Officer.
Note.—If as a condition of sale, freight is to be borne by the administration cost of such freight should be taken into consideration in computing the loss. (This rule applies to all cases of sales).
For loading and unloading goods.
(a) Restricted to a limit of Rs. 5,000 for each individual case.(b) Not due to the negligence, carelessness or dishonesty of any railway employee;
(c) not due to different methods of measurement adopted by the Accounts Department Stock Verifiers and the departments.(d) Such that the Chief Accounts Officer agrees need not be referred to the General Manager.
Note.—(1) The limit of Rs. 1,000 may be extended to Rs.10,000 with respect of adjustments due to fluctuations in market rates.Note.—(2) The restriction in clause (a) does not apply to adjustments of the difference between book rates and sale values for which vide items 9 and 11.
(a) are not due to the negligence, carelessness or dishonesty of any railway employees;(b) Arising out of Accounts Department Verifications are such that the Chief Accounts Officer agrees need not be referred to the General Manager.
(ii) And up to Rs. 2,000 in each case where the loss is due to the negligence, carelessness or dishonesty of any railway employee where it is not possible to affect the recovery of the cost of the stores from the employee concerned.