THROUGH THE DIRECTORATE GENERAL OF SUPPLIES AND DISPOSALS
List of items that may be purchased only through the Agency of the
Directorate General of Supplies and Disposals.—Except in cases where
stores are arranged through the Agency of the contractors in accordance
with paragraph 1101 of the Indian Railway Code for the Engineering
Department, the purchase by Govt.
Railway's through the Agency of the Directorate General of Supplies
and Disposals of the items of railway stores enumerated in Appendix VI as
it may be amended, modified or curtailed from time to time, to this code
Paragraph 801 is subject to exceptions in the following cases .—
In respect of items of Stores for which the Directorate General of
Supplies and Disposals has entered into rate or running contracts, the
Controller of Stores may, at his discretion, make direct purchases up to a
limit of Rs. 10,000/- in each case and not exceeding Rs. 50,000/- in
aggregate (in each case) in any one year if the stores are urgently
required or can be more conveniently obtained locally or from the nearer
station. (Authority : Board's letter No. 81 F (S)/l/PW-7/l, dt. 28-4-81).
In respect of other items of Stores, the Controller of Stores may not use
the Agency of the Directorate General of Supplies & Disposals for any
purchase up to Rs. 1,00,000/- and under in each case. (Authority: Board's
letter No. 81 F (S)/l/PW-7/l, dt. 28-4-81).
In case of emergencies where non-acquisition of the Stores concerned is
likely to hold up work, direct purchases, limited to the quanitity
required to tide over the emergencies may be made up by the Railway
Administration, the Controller of Stores exercising these powers up to a
limit of Rs. 25 lakhs only in each case. In respect of purchases exceeding
Rs. 25 lakhs but not exceeding Rs. 5 crores, sanction of the General
Manager should be obtained.
Rates.—If the rates payable for stores obtained through the
agency of the Directorate General of Supplies and Disposals are higher
than the rates for similar classes of stores obtained by direct purchase,
the facts should be brought to the notice of that Department promptly
indicating the supplier and any other relevant details.
Inspection.—All articles except machine tools purchased through
the Directorate General of Supplies and Disposals should be inspected and
tested by that Department. With regard to machine tools, the Controller of
Stores should indicate, on all indents thereafter, whether he desired them
to be inspected by Railway staff or by the Directorate General of Supplies
option in respect of machine tools, should be exercised only when
inspection during manufacture is considered unnecessary by the Directorate
General of Supplies and Disposals.
Indents.—Indents for stores should be prepared on the form
prescribed by the Directorate General of Supplies and Disposals. Supplies
of these forms can be obtained as required from the Directorate General of
Supplies and Disposals.
Method of preparing indents.—Indents may contain any number of
items provided all items on any one indent follow the same main
categories. In preparing indents sufficient information should be given to
enable the Directorate General of Supplies and Disposals purchasing office
to understand exactly what is required and for what purpose.
Specifications and drawings when available should accompany all
indents. In the absence
of specifications, the technical staff of the Directorate General of
Supplies and Disposals will, in consultation with the Indentor, prepare
these and also specification drawings where necessary. Detail drawings should be ordinarily supplied by the
Railway themselves. In order to avoid references back to the indentors and
consequent delay in supply, all necessary details should be included in
Co-ordination of Indents.—One of the main functions of the
Directorate General of Supplies and Disposals is the co-ordination of
indents from various railways and Government Departments for Stores
obtainable in India, thereby enabling purchases to be made in bulk with
consequent saving in cost to the consuming Railway or department.
Annual Indents.—In order to secure these advantages, indents
should be combined as far as practicable and consolidated annual indents
should be submitted to the Directorate General of Supplies and Disposals
showing the total requirements of all classes of stores obtainable in
India for which there is constant demand and for which the quantities
required are sufficiently large that bulk purchase would lead to economy.
The maximum advantage in combining demands will be secured if it can be
arranged for all annual indents to be submitted on the same date. To enable the Directorate General of Supplies and
Disposals to combine the demand of all Railways and Departments as far as
possible, annual indents for the Railways' requirements should reach the
Directorate General of Supplies and Disposals not later than the dates
fixed by him. (Paragraph 601).
Periodical Indents.—Indents for Stores, of which it is not
possible for the department to foresee their requirements, e.g. machinery,
plant etc., for construction works or other special or urgent requirements
may be submitted at any time to the Directorate General of Supplies and
Estimated cost of Indents.—The estimated cost of the stores
indented for, based on the last price paid for similar stores or on any
more recent information as to prices should invariably be shown in the
indents. No order will
be placed by the Directorate General of Supplies and Disposals when the
indentor's estimated cost is likely to be appreciably exceeded without
first obtaining his concurrence.
Certification of Indents.—It is the duty of the indenting
officers to see that indents are not placed without provisions for funds
to meet the bills for payment as and when they are received.
Stores for works.—The procurement of stores for works may be
initiated immediately after the works have been included in the works,
machinery and rolling stock programme subject to:—
Commitments for advance procurement of materials restricted to
ceiling %ages fixed from time to time.
Indents for advance procurement of materials valued over Rs.
25,000/- scrutinised by Finance Department in respect of reasonableness of
the quantities indented.
Indenting officer certifying that the available stocks on hand and
the delivery schedule of the outstanding orders have been taken into
Deli very of materials required to be so ordered that they are
received only in the year in which they are required. -The provisioning of
funds for works should be made realistically based on prescribed ceilings
and agreed priorities for completion and with the "advance" and
"current" procurement of materials should be dpvotailed with the
sanctioned budget provision.
funds register in the form indicated below should be maintained so that
the indenting/ordering and delivery of materials are planned in accordance
with the time schedule and funds allocation for each project. The
following form of certificate should be given on all such indents.
stores included in this indent are required for the work for which
provision has been made in the Works, Machinery and Rolling stock
programme approved in the Railway Board's letter
No.........................dated...................and the dates of
deliveries required have been indicated in the indent strictly in
accordance with the likely availability of funds".
(Authority : A.C.S. No. 171-S.- Board's letter No. 70/RS (S) /751/9
(IC) dated 1-3-1979).
FUNDS REGISTER—STORE FOR WORKS
Provisioning of Funds (Rs. in Lakhs)
One sheet should be earmarked for each work.
: Board's letters No. 73-B-4057/60 Dt. 31-1-74 and 75/RS (S)/751/4 (IC) Dt.
Stores for General Purposes.-—In respect of indents for stores for the
general purposes of the railway as distinguished from stores required for
sanctioned works, the funds should have been provided in the current
year's grant or arranged for by obtaining advance grants for the next year
from the Railway Board. A certificate in the following form should be
given on such indents :—
stores included in this indent are for general purposes only. The value of
this indent will be met as follows :—
Rs............................provided from the current year's
Rs......................................will be provided in the grant for
Advance allotments are required for entering into commitments for
"general purposes" stores both imported and indigeneous whether
obtained directly or through the Director General of Supplied and
Disposals for delivery in the succeeding year or thereafter. With a view,
however, to ensure executive control on Stores Balances and legislative
control on the advance commitments, specific allotment for General
Purposes Stores subject to a ceiling limit of 80% of the actual Purchases
of general purposes stores (excluding coal, coke, fuel oil and grain shop
stores) of the preceding years, are required to be fixed and approved by
the Govt. In respect of coal. coke and fuel oil the specific requirement
for such advance allotment should be worked out by the Railway and
submitted for approval of ihe Govt. In order to fix the advance allotment
each year, the Railway administrations should furnish by 25 th June each
year, the following information duly checked by their
F.A. & C.A.Q.
thousands of Rs.)
The value of stores balances on 31st March of the preceding
The value of stores consumed in the preceding year.
The value of advance indents sent forward during the preceding
The value of actual purchases in the preceding year.
The amount of specific allotment required for the " current financial year.
the allotment has ! 'en fixed and approved by Govt. FA & CAO will not
only certify availity of fund on each advance dent, but it will also be
his duty to check in consultation with C.O.S. (CME in respect of fule)
that the quantity ordered for each item of stores is reasonable in view of
past consumption, stores in stock and on order and future requirements,
(fixation and communication of advance allotment of a year based on the
actual purchases of the previous year is possible only after close of
previous years accounts. With a view, however, to avoid delay in sending
forward indents in the next year, according to the time table laid down by
the Directorate General of supplies and disposals an adhoc allotment will
be made to the RI. . in the month of March each year). (To be enforced
with effect from 1-4-77)
Types of Directorate General of Supplies and Disposals
Contracts.—Of the items, that have to be purchased for railways through
the Directorate General of Supplies and Disposals, some are obtained
through contracts let by the Director General of Supplies and Disposals
against schedules of estimated annual requirements submitted by the
contracts may be either running contracts, Rate Contracts or Fixed
Running Contracts.— Running Contracts are those contracts where
quantity variation by_± 25% is permitted.
The DGS&D finalises these contracts on more than one suppliers
also. The running
contract does not give any details on consignee or their requirements.
Supply against the contract is ordered by placement of supply
orders by the DGS&D from time to time, where details of consignee and
quantity required by each is specified.
The details of the supply orders are based on the indents submitted
by the various indentors. However
the indentors are normally not allowed to operate the running contracts.
Rate Contracts.—Rate Contracts are another type of contracts
finalised by the DGS&D on one or more suppliers.
No consignee particulars are mentioned in this type of contract
also. Rate Contract however is operated by Direct Demanding Officers
nominated in the contract. Depending on the requirement the COS or even
the depot officers of the Zone/Railways & also Divisional Stores
Officers may be nominated as Direct Demanding Officers.
There is normally no quantity restriction for placement of order
against a Rate Contract.
Fixed Contracts.—"These are let for fixed quantities
included in the indents placed on the Director General of Supplies and
Disposals. These are generally let for individual indentors' requirements
and do not have any quantity variation clause."
Causal Indents (Adhoc Indents).—Adhoc indents for items that are
not covered by Programme Indents should be submitted to the Directorate
General of Supplies and Disposals as and when occasion demands and that
department will arrange to procure the stores and place order for delivery
to the party named in the indent
Purchase Order.— Orders for items for which the Director General
of supplies and Disposals have entered into rate or running contracts
should be prepared on form S 714 and distributed as shown in
Despatch and Acceptance of Stores.—When the stores have been
inspected and passed by the Inspecting Officer, he will furnish the
supplier with a Despatch Memorandum in duplicate as an authority to
despatch the stores detailed therein.
(This should not be confused with Inspection Certificate).
The supplier will then despatch the stores and will prepare his
bills as detailed below, unless he has received special instructions to
the contrary. Any
instructions for booking stores at specially reduced freight rates should
be issued by the indenting officers direct to the supplying firm.
Receipt Notes.—In the case of indents on Directorate General of
Supplies and Disposals or orders against rate or running contracts.
Receipt Notes Pt. I to IV in the names of the suppliers through DGS&D
should be prepared by the Railways Inspecting Officer or the Depot Officer
concerned, for acceptance, on due receipt of materials (In the case of
railways with centralised inspection and receipt arrangements, the Receipt
Notes should be prepared by the Railways Inspecting Officer after receipt
of the materials). Pt.
II after acceptance should be retained by the Controller of Stores and not
sent to the suppliers, while Pt. I & IV should be disposed of as in
the case of direct purchase by railways, (vide para 723).
Payment.—The pay and Accounts Officer (Ministry of Urban
Development) pays all bills for stores purchased by the Directorate
General of supplies and Disposals and raise debits against the departments
90%/95%/98% payment against despatch of stores.—As a general
practice, unless special orders have been issued regarding particular
suppliers or supplies, the Director General of Supplies and Disposals
makes payment of 95 per cent and in some cases of 98 per cent of the total
amount of the suppliers bills on the authority of the Inspection
Certificate which will quote the number and date of the Railway Receipt on
which the stores were despatched to the indentor and will also contain a
certificate by the Officer-in-charge or the Inspection organisation
concerned, to the effect that the stores billed for have been inspected
and passed and that they have been despatched under the railway receipt of
the number and date as shown therein. Copy No. 2,4, & 5 of the
Inspection Note are required to be sent to the consignee by the
consignee will record Receipt Certificate on these and return copies 2
& 5 to the contractor for claiming balance 5% or 2% payment from Pay
& Accounts Officer (Ministry of Urban Development) on the authority of
Receipt Certificate recorded thereon by the consignee. In case of
purchases by Controller of Stores, reference to Railway Receipt No. on the
Inspection certificate should be recorded by Stores Accounts Branch while
100 per cent Bills.—The supplier may, if he prefers to do so,
obtain 100% payment after the stores have been received, inspected and
accepted by the consignee. In that case the supplier will submit copy No.
1, 2, 4 & 5 of the Inspection Note issued by the Inspection
Organisation . The
consignee after examining and accepting the stores will record Receipt
Certificate on all the four copies and return copy Nos. 1,2 & 5 to the
supplier for obtaining 100% payment from Pay & Accounts Officer
(Ministry of Urban Development) on the authority of Receipt Certificate
recorded on these copies. In the case of Stores delivered to consignee
(not despatched by Rail or sea) the procedure will be similar to the one
as is prescribed in paragraphs 824 and 825, mutatis mutandis.
Shortages etc.—Any complaints regarding shortages of or damage to
stores should be taken up in the first instance by indentors with the
supplying firms & carrier direct.
The Directorate General of supplies and Disposals should be
addressed in regard to these matters only in the event of the indentor
being unable to obtain satisfaction from the firm or the carrying