CHAPTER XIX

ENGINEERING PLANT RESERVE
Custody, Receipt and Issue

1901. Object of a Reserve.-—In order to avoid losses from forced sales of serviceable and useful plant left over from special works which is likely to be required for future special works, an "Engineering Plant Reserve" may be created on each railway, with the previous sanction of the Railway Board, who will fix the maximum financial limit of such reserve.

1902. Nature of Plant in Reserve Stock.—The Engineering Reserve would include items of construction plant of the following description.—

1. Air Compressors

2. Air receivers

3. Boilers

4. Boring Plant, special, hand and power driven

5. Concrete mixing machine

6. Cranes (derrick scotch)

7. Dregers, crab

8. Drilling machine, hand or power drives

9. Drilling machines, pneumatic

10. Driving Gear

11. Engines, portable, steam

12. Engines, internal combustion

13. Engines, locomotive, 2 feet gauge

14. Gantries for girder erection

15. Hammers (pneumatic), rock drilling

16. Jacks, hydraulic

17. Jacks, screw

18. Jolly boats

19. Lathes (for construction)

20. Lorries (motor)

21. Mortar mills, steam power

22. Pumps and pumping plant of all description

23. Pile driving frames

24. Pile hammers, steam

25. Screwing machines 

26. Steam hoists

27. Stone crushers

28. Winches, Crab

29. Winches, Steam

The list may be added to or any item deleted there from under the orders of the Chief Engineer.

1903. The Stores Department should 'not hold separate stock of these items of the Engineering Plan Reserve for use in building new work (not in the ordinary operations of the railway).

1904. Transfer of Plant to Reserve.—On the completion of special works and constructions, all useful plant, for which there is no demand on the open line, should be returned by the Divisional or the executing Engineer-in-charge to the nearest stores depot accompanied by an Advice Note (S. 1539) which should give the following additional information :—

1. Type of plant and maker's name in addition to full description.

2. Date when the plant was received.

3. Cost of plant originally debited to work.

4. Allocation of work on which the plant was employed and that to which credit for its return value is to be afforded.

1905. The Advice Notes should be prominently marked "Engineering Plant Reserve".

Note —Where under existing arrangements the Engineering Plant Reserve is concentrated in the Plant Depot under the control of the Engineering Department, the existing arrangements may continue provided the rules in this chapter are followed mutatis mutandis. If the plant released from a work is in good condition and fit for further use without any overhaul or repairs, it may, with the permission of the Chief Engineer, be transferred direct from one work to another on which it may be required instead of being returned to the Reserve. The transfer value will be fixed by the Chief Engineer on the basis of the formula laid down in paragraph
1913 for ascertaining second-hand value of assets.

1906. The Engineering Department will, in all cases, be responsible for deciding what material is to be maintained in the "Engineering Plant Reserve".

1907. Custody of Reserve :—The Stores Department will be responsible for all material in the Engineering Plant Reserve and should maintain records of their receipts, issues and balances.

1908. Storage.—When any New material is sent to the Reserve or where an item is returned from works to the Reserve, the Controller of Stores should decide at which point it is tobe stocked It is desirable that the plant should be stocked at some place close to where it can be over hauled. It is not necessary that all the material should be held in one place, provided that separate records are kept for all such items and the materials themselves are clearly marked and stocked separate so that they do not get mixed up with ordinary stocks.

1909. For convenience, the material may be held in three localities :—

(i) Plant such as winches, dredgers and pumps, which required overhaul in the workshop may be kept in or close to the shop concerned.

(ii) Plant like portable engines, which have boilers, should be kept in or close to loco shops, where the boilers can be inspected and tested.

(iii) Plant like disintegrators, pulsometers, tip wagons which may require replacement of spare parts but not much shop work, may be kept in the stores depots.

1910. Reserve Plant Number.—Each machine or piece of plant should be given a separate number and marked in some conspicuous place with this number and the letters "E.R." (Engineering Reserve). This number corresponds to the price list number assigned to general stores items and is conveniently referred to as the Reserve Plant number. If there is more than one machine or piece of plant of the same category, a bye number should be given to each such machine as a denominator with the number allotted to the category of plant as numerator. If the machine or plant has beengiven by the makers an individual number, such a number should be adopted as bye number.

1911. Reserve Plant Register.—The Depot Officer should maintain a register form (S. 1911) for recording the receipts, issues and balances of all "Engineering Reserve" items. This register will show the following particulars :—

(a) Reserve Plant Number (vide paragraph 1910).

(b) Returning Officer.

(c) Name of work.

(d) Particulars of Advice Note under which returned. 

(e) Description of plant. 

(f) Cost of plant originally debited to works.

(g) Estimated scrap value of paint at end of life,

(h) Book value on receipt into Reserve.

(i) Total book value

(j) Particulars to issue notes under which issued from Reserve.

(k) Name of work to which issued.

(l) Amount debited on issue.

No other numerical ledgers need be maintained.

1912. On receipt of an item of Engineering Plant Reserve, the particulars of the plant should be entered in the register from the Advice Notes form (S. 1539).

1913. Valuation of Plant.—The value of the plant sent to the Reserve will be fixed by the Controller of Stores in consultation with the Chief Engineer, after a consideration of the original value of the plant, the time which it has been in use and its condition at the time of return, as also the current purchased price of new plant. In all cases 'special plant' purchased for work of a kind that is not frequently undertaken, it should be seen that the value at which such plant is taken into the Engineering Plant Reserve is as low as possible consistent with the possible price the plant may fetch in the market. .The following formula maybe used as a guide in all other cases. The value fixed should be entered in all the copies of the Advice Note (S. 1539) and the several foils disposed of as usual.

Formula :—

The second hand value of a Plant is equal to :—
          N

R-----------(R-S)

         L
where

R is the present day price of a new plant; if this is not readily available, R may be estimated taking the original price as a basis.

N is the age of the plant.

L is the average total life of the plant,

and

S is the scrap value (previously estimated).

1914. Inspection and Repairs of Reserve Plant.—On return of a plant to the stores depot it should be inspected, dismantled and all necessary repairs carried out so that it is in through working order and ready for the next issue.

1915. Responsibility for Inspection.—The Chief Engineer will be responsible for arranging inspections of all materials taken into the Reserve and for certifying that all such material is complete in all respects, serviceable and fit for immediate issue to another work.

1916. Requisition for Inspection.—On receipt of the material, the Depot Officer should issue a memo, requesting the Chief Engineer to arrange for its inspection and to fix its monthly higher rates in accordance with the rules laid down in paragraphs 1923 to 1939. If work, such as More inspection, is required, the Depot Officer should also requisition the services of the Mechanical Department for the work.

1917. Estimate of Cost of Inspection and Repairs.—Estimates of the cost of inspection and of any necessary repairs should be obtained and sent to the Chief Engineer for acceptance before any such work is put in hand.

1918. Allocation of Cost of Inspection and Repairs.—The cost of inspection and of repairs required before bringing an item of the Plant Reserve to a fully serviceable condition on return from a work should be changed to the work concerned, which should bear in addition the difference between the second-hand value of the article as it stood when the item was supplied and as it stands at the time of the return of the item determined on the lines indicated in paragraph 1913. In those cases where it is doubtful work there the plant will be used in the near future, and it is therefore;, considered desirable not to undertake the repair immediately, the cost of such repairs should be estimated and the value fixed for the plant after deducting such estimated cost of repairs, A note to this effect should be given on the Advice Note (S. 1539) for plant, and transcribed into the Plant Reserve Register (S. 1911) and Priced Ledgers for Reserve Plant (S. 1940). Where, however, the arrangement is or the work to be debited on the basis of hire for the plant to be inclusive of all charges, the expenditure on inspection and repairs and the deterioration in value should be charged to the head A-2210. No suspense head or account should be operated upon for the purpose of recording the expenditure op repairs to such plants.

1919. Certificate of Inspection.—The Depot Officer should obtain a certificate in the following form for all material brought on or returned to the Reserve :—

                                                                                                                                                                        Form No. S. 1919

ENGINEERING RESERVE PLANT INSPECTION CERTIFICATE

Reserve Plant No..................

Description of item................

Spares included....................

Remarks..........................

(,!) The material specified above is complete and ready for use.

(ii) The above material has been overhauled and inspected on............................................the plant is in good order and ready for re-issue to works.

The plant has been inspected and the following items of repair arc needed. The estimated cost of such repairs is Rs.........................

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

                                                                                                                                                          Chief Engineer

Dated....................

1920. On the certificate being furnished, the Depot Officer place the item in the Reserve and see that debits for hire charges and cost of inspection and repairs are against the work from which the material was received.

1921. Issue.—Issues will be made under instructions from the Chief Engineer who will countersign any requisitions placed on the Depot Officer by the officials in charge of works. Issue notes covering issues of plant from the reserve should be marked "Engineering Plant Reserve" in bold letters. The Reserve Plant Number of the plant issued should invariably be quoted on the issue notes which should also show the amount to be debited. This should be the same as the value at which the item was taken into the Reserve. The several foils of the issue note should be distributed as usual.

1922.. Freight and Handling Charges.—Freight and Handling Charges incurred in returning the plant from 'works' to the stores depot, or vice versa will be borne by the party returning the plant or indenting for it, as the case may be.

Hiring cut of Reserve Plant

1923. As many of the items of plant taken into the Engineering Plant Reserve are likely to be idle for considerable periods, such of those as are not likely to be required for current railway works may be hired out to other Government Departments, or private parties, with the approval of the Chief Engineer, if the plant is to be used in the interests of public service and is to be handled by Departmental labour only and not by contractors, and with the approval of the General Manager in all other cases. Applications for "hiring the plant should be in the form shown below.

                                                                                                                                                                         Form No. S. 1923

APPLICATION BY OTHER GOVERNMENT DEPARTMENTS
FOR ENGINEERING RESERVE PLANT ON HIRE

To be filled in by prospective loanee                                                                                                 To be filled in by the Railway.

Certified that the above plant will be used by departmental labour only and not by contractors.

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

   Signature of  Loanee, 

1924. Agreement Form for Hire of Plant.—A suitable agreement should be signed by the Department hiring the plant and the Chief Engineer, incorporating the points dealt with by the rules in paragraphs 1925 to 1939 of this Chapter. A copy of this agreement should be supplied to the Accounts Officer, Stores, who will watch the recovery of higher, and the return of the plant through the Register of Agreement (S. 503) into which the agreement will be posted by him 

1925. Terms of Delivery.—Delivery shall be in the railway stores yard and the hirer shall remove and return the plant from and to the same point at his own cost.

1926. Freight and incidental charges.—Where the plant material is carried by rail, the carriage charges shall be at public tariff rates.

1927. The hiring department shall pay, in addition to the hire charges agreed to actual costs plus 12| per cent supervision charges of all packing, handling, loading, unloading or other direct charges incurred by the railway in despatching or receiving back the plant.

1928. Hire charges.—Hire shall be charged from the date of delivery of the plant in the railway stores yard to the date of its return  to the same point (both dates to be included in the period of hire).

1929. Hire charges for each item of plant will be fixed by the Controller of Stores in consultation with the Chief Engineer.

1930. Liability for Wear and Tear.—The hiring department should satisfy itself when taking over the plant that it is in satisfactory working order. It shall be liable to replace at its own cost wearing parts, such as washers, packing, pump buckts, gauge-glasses & c. which may require replacement during the period of hire. A schedule giving a list of such parts to the particuar plant hired out should be attached to the Agreement of Hire of the plant. Spares for such replacements should be obtained only from the railway, which will supply them ex-stores depot, at book rates plus the ordinary supervision and freight charges. The materials will be sent from the stores depot to the railway station nearest the point where the plant is stationed, at Public tariff rates, to be paid by the hiring department. The Chief Engineer may at his discretion permit the purchase of the spare wearable parts from outside sources provided he is satisfiedth at parts correct to specifications only will be used.

1931. Breakage or Loss of Parts.—In the case of [breakage or loss of any part or accessory, other than the parts liable to wear out referred to in to schedule attached to the Agreement for Hire of a plant, the cost of replacement shall be shared between the railway and the hiring departments, the railway accepting a fraction of the cost represented by the actual life of the part

                                                             N
divided by the assumed life, i.e. L—N x —(vide paragraph 1913) and the hirer a fraction of the cost 
                                                             L
represented by the difference between actual and assumed life divided by the assumed life i.e-
                R
L—N x--------(vide paragraph 1913). Unless expressly stated before hand in writing, all part,
                 L
and accessories shall be taken as having the same life as shown for the plant on the railway books; the assumed life of all machines when not otherwise stated shall be taken as 15 years.

1932. Loss of the Entire Plant.—In the event of the loss of the entire plant, the cost shall be divided on the basis laid down in paragraph 1931.

1933. Statutory Certificates, & c, While the machine is in the possession of the hirer he shall be responsible for seeing that any inspection certificate or licence required under any Government Act is obtained in due time. The hirer is also responsible for seeing that all required precautions areobserved in using the plant, and is responsible for any accident which may occur from the use of the plant.

1934. Access to Plant at Hirer's Premises.—The railway shall be given reasonable acces to that plant and such facilities as may be necessary to satisfy itself that the plant is being so used as to avoid any unnecessary wear or loss or undue risk.

1935. Right of Recall.—The railway shall reserve to itself the right to recall any plan without assigning any reasons by giving one month's notice, or at any time without notice in the event of its being required by the railway for an unforseen emergency. The general nature of such emergencies should be specified in the Agreement for the hire of the plant. In either case, the railways shall not be liable to pay any compensation to the hirer for the loss that may be caused by the withdrawal of the plant.

1936. Inspection and Repairs on Return of Plant.—On return of the plant, it should be opened out and examined in the railway shops. A statement should be prepared of any repairs or replacements, other than those due to fair wear and tear, which are considered necessary, and the cost of such repairs or replacements should be estimated and shown thereon. A copy of this
statement should be sent to the hirer who should be given reasonable opportunity, during working hours of the stores depot, to check the correctness of this statement by the examination of the plant. Such repairs and replacements as are agreed to be necessary, over the above fair wear and tears shall be shared between the parties on the same basis as for breakage or loss of parts, vide paragraph 1931.

1937. If the Chief Engineer or other officer empowered by him in this behalf is that the breakage referred to in paragrah 1931 or excessive wear and tear referred to in paragraphs 1936 is not due to the conditions of service to which the plant has been subjected to by the hirer, but is due to previous wear, inherent defect not incidental to the service on which the plant has been used or the like, the Chief Engineer or other officer empowered by him may waive wholly or in part the recovery of cost.


1938. Accountal of Hire Charges.—The Controller of Stores will be responsible for the due recovery of the hire charges and the charges for inspection and repairs, where lived, and for the correct maintenance of the numerical accounts of the several items included in the Engineering Plant Reserve.

1939. (a) The account of the hire charges of the plant should be kept by the Controller of Stores and this should be inspected by the Accounts Department at the time of inspection of his office. The amount of hire should be credited to Earnings.

(b) The bills for hire charges should be prepared by the Controller of Stores and submitted through the Stores Accounts Officer to the hiring departments. The Stores Accounts Office will arrange for the check and recovery of the hire charges.

PROCEDURE IN THE ACCOUNTS OFFICE

1940. Priced Ledgers.—Separate Priced Ledgers should be maintained in the Stores Account Office for each plant or piece of plant represented by a Reserve Plant number. The priced ledger should be maintained in the following form.

Form No. S. 1940

ENGINEERING PLANT RESERVE PRICED LEDGER

Description of Plant..............................................................................................Serial No.......................................................

1941. The priced ledger should be posted in the same manner as other vouchers. The entire "Engineering Plant Reserve" being treated as one class for the purpose of Class Summaries and Class Ledgers. The receipt and issue vouchers affecting this Reserve should be dealt with on the same lines as the other vouchers for stores transactions. The balance at the end of each month in the Class Ledger should agree with the debit outstanding under the head "Engineering Plant Reserve" in the General Books of the railway and should not exceed the financial limit laid down by the Railway Board as mentioned in paragraph 1901.