801.    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 is obligatory. 

802.    Paragraph 801 is subject to exceptions in the following cases .— 

(i) 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). 

(ii) 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). 

(iii) 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. 

803.    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. 

804.    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 and Disposals. 

Note.—The 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. 

805.    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. 

806.    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 the indents. 

807.    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. 

808.    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). 

809.    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 Disposals. 

810.    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. 

811.    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. 

812.    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:— 

(a)  Commitments for advance procurement of materials restricted to ceiling %ages fixed from time to time. 

(b)  Indents for advance procurement of materials valued over Rs. 25,000/- scrutinised by Finance Department in respect of reasonableness of the quantities indented. 

(c)  Indenting officer certifying that the available stocks on hand and the delivery schedule of the outstanding orders have been taken into account. 

(d)  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. 

A 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. 

"The 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". 

                                         General Manager.....................Railway 





                                        (Authority : A.C.S. No. 171-S.- Board's letter No. 70/RS (S) /751/9 (IC) dated 1-3-1979). 




1 2 3 4
Name of the work Item No. of the Pink Book for the year............or sanction issued vide Board's /G.M.'s letter No Estimated sanctioned cost (Rs. in lakhs) Expected date of completion



(5)            Provisioning of Funds (Rs. in Lakhs)


1st year 2nd year Balance to complete


Materials Others Materials Others Materials Others
Materials Others




S.No. Indent/Purchase Order No. and date Amount Expected date of delivery/payment Progressive total of payments made/due
1st year 2nd Year

*   One sheet should be earmarked for each work. 

(Authority : Board's letters No. 73-B-4057/60 Dt. 31-1-74 and 75/RS (S)/751/4 (IC) Dt. 30-12-77). 

813. 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 :— 

The stores included in this indent are for general purposes only. The value of this indent will be met as follows :— 

(i)   Rs............................provided from the current year's grant. 

(ii) Rs......................................will be provided in the grant for next year. 

Date........................General Manager..............................Railway. 


 Date........................FA & CAO. 

Note.- 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.      

      (Value in thousands of Rs.)


S.No. Description General Purposes Stores Other than Coke, Coal Fuel Oil. Coal, coke & fuel oil only
1 2 3 4

1.   The value of stores balances on 31st March of the preceding year. 

2.   The value of stores consumed in the preceding year. 

3.   The value of advance indents sent forward during the preceding year. 

4.   The value of actual purchases in the preceding year. 

5.   The amount of specific allotment required for the " current financial year. 

After 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)

814.    Deleted.

815.    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 Railways.   These contracts may be either running contracts, Rate Contracts or Fixed contracts.  

816.    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. 

817.    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. 

818.    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." 

819.    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 

820.    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 paragraph-716. 

821.    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. 

822.    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). 

823.    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 concerned. 

824.    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 contractor.   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 passing payments. 

825.    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. 

826.    Deleted. 

827.    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 railways.