Railway Procurement Policies
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Questions and Answers

Which of the following is NOT an exception to the purchase obligation through the Directorate General of Supplies and Disposals?

  • Direct purchases up to Rs. 25 lakhs in emergencies
  • Direct purchases for items not exceeding Rs. 1,00,000
  • Direct purchases of any amount for convenience (correct)
  • Direct purchases up to Rs. 10,000 for urgently required items

What is the maximum purchase amount the Controller of Stores can directly purchase without using the agency for other items?

  • Rs. 5 crores
  • Rs. 25 lakhs
  • Rs. 50,000
  • Rs. 1,00,000 (correct)

In an emergency situation, what is the maximum amount the Railway Administration can directly purchase?

  • Rs. 25 lakhs (correct)
  • Rs. 1 crore
  • Rs. 50 lakhs
  • Rs. 10 lakhs

What action should be taken if the rates for stores obtained through the agency are higher than those for similar stores purchased directly?

<p>Notify the concerned department promptly. (A)</p> Signup and view all the answers

What is the total maximum allowable direct purchase amount in each case before seeking General Manager's sanction?

<p>Rs. 5 crores (D)</p> Signup and view all the answers

Which type of contracts allows direct purchases by the Controller of Stores up to Rs. 10,000?

<p>Rate contracts (C)</p> Signup and view all the answers

How often can purchases exceeding Rs. 25 lakhs be made without General Manager’s approval?

<p>Never without approval (C)</p> Signup and view all the answers

Who is responsible for inspecting all articles purchased through the Directorate General of Supplies and Disposals?

<p>The Directorate General of Supplies and Disposals (A)</p> Signup and view all the answers

What should indents prepared for stores include to avoid delays?

<p>Sufficient details and specifications (B)</p> Signup and view all the answers

What is the primary goal of the co-ordination of indents by the Directorate General of Supplies and Disposals?

<p>To enable bulk purchases and save costs (D)</p> Signup and view all the answers

In the case of machine tools, under what condition can the inspection be exercised by Railway staff?

<p>When inspection is deemed unnecessary during manufacture (A)</p> Signup and view all the answers

What is required when specifications are not available for indents?

<p>To prepare specifications in collaboration with the Indentor's technical staff (A)</p> Signup and view all the answers

What kind of items can be included on an indent?

<p>Only items of one main category (D)</p> Signup and view all the answers

How should annual indents be submitted to maximize benefits?

<p>Consolidated showing total requirements (A)</p> Signup and view all the answers

What is a notable feature of the indents related to drawings?

<p>Detail drawings should be provided by Railway themselves (A)</p> Signup and view all the answers

What is the recommended process for preparing indents to avoid references back?

<p>Provide comprehensive details (C)</p> Signup and view all the answers

What is a defining characteristic of Running Contracts?

<p>They allow quantity variation by ± 25%. (B)</p> Signup and view all the answers

Who operates Rate Contracts?

<p>Direct Demanding Officers nominated in the contract. (C)</p> Signup and view all the answers

What distinguishes Fixed Contracts from other types?

<p>They have no variation clause for quantities. (A)</p> Signup and view all the answers

How are Causal Indents characterized?

<p>They are submitted as needed for items not covered by Programme Indents. (B)</p> Signup and view all the answers

What is the form used for preparing orders under Rate or Running Contracts?

<p>Form S 714. (D)</p> Signup and view all the answers

What is the maximum percentage ceiling limit for the specific allotment of General Purposes Stores?

<p>80% (B)</p> Signup and view all the answers

By which date must Railway administrations submit the required information for advance allotment each year?

<p>25th June (D)</p> Signup and view all the answers

Which of the following stores are excluded from the calculation of the specific allotment's ceiling limit?

<p>Grain shop stores (C)</p> Signup and view all the answers

Who is responsible for certifying the availability of funds on each advance indent after the allotment has been approved?

<p>FA &amp; CAO (A)</p> Signup and view all the answers

What must the Railway administration assess when fixing the advance allotment for each item of stores?

<p>Actual purchases from the last year (D)</p> Signup and view all the answers

What type of allotment is made to the Railway in March each year to avoid delays in sending forward indents?

<p>Adhoc allotment (C)</p> Signup and view all the answers

What should the Railway administrations check to ensure reasonable quantity ordering for stores?

<p>Stores in stock and on order (D)</p> Signup and view all the answers

What value needs to be checked and furnished by Railway administrations for advance allotments?

<p>Value of advance indents sent forward (B)</p> Signup and view all the answers

The specific requirement for advance allotment of coal, coke, and fuel oil should be determined by whom?

<p>Railway administrations (B)</p> Signup and view all the answers

What is the primary purpose of executive control on Stores Balances?

<p>To ensure legislative oversight on finances (C)</p> Signup and view all the answers

What is required for stores intended for general purposes of the railway?

<p>Funding must be guaranteed by the current year's grant. (C)</p> Signup and view all the answers

What must be included in an indent for general purposes?

<p>A certificate mentioning the funding sources. (B)</p> Signup and view all the answers

What happens if advance grants are not arranged for the next year?

<p>Stores may not be delivered in the succeeding year. (A)</p> Signup and view all the answers

What is the purpose of earmarking one sheet for each work?

<p>To ensure correct allocation of funds. (A)</p> Signup and view all the answers

What is the authority behind the requirements for indents for general purposes?

<p>Railway Board's letters issued in the 1970s. (C)</p> Signup and view all the answers

What information is crucial for any indent, according to the provisions mentioned?

<p>The anticipated date of delivery. (D)</p> Signup and view all the answers

What types of stores require advance allotments stated in the guidelines?

<p>Both imported and indigenous stores. (B)</p> Signup and view all the answers

When should funds for general purpose stores be arranged?

<p>By the end of the current financial year. (B)</p> Signup and view all the answers

What documentation may be required alongside the indent for general purpose stores?

<p>A certificate regarding funding sources. (D)</p> Signup and view all the answers

What is the nature of the funds needed for general purpose stores?

<p>They can be derived from various internal accounts. (B)</p> Signup and view all the answers

What is the primary characteristic of Running Contracts established by the Directorate General of Supplies and Disposals?

<p>They permit quantity variation of up to ± 25%. (A)</p> Signup and view all the answers

Which statement best describes the implementation of Rate Contracts in the purchasing process?

<p>Direct Demanding Officers are responsible for operating them. (D)</p> Signup and view all the answers

What distinguishes Fixed Contracts from other types of contracts in the procurement process?

<p>They are structured for individual indentor requirements without variations. (C)</p> Signup and view all the answers

What is the main purpose of Causal Indents in the procurement system?

<p>They cater to items not covered by Program Indents as the need arises. (D)</p> Signup and view all the answers

Which aspect of the purchase order process for items under rate or running contracts is specified?

<p>The use of form S 714 for documentation. (B)</p> Signup and view all the answers

Which statement accurately describes the role of the Directorate General of Supplies and Disposals concerning machine tools?

<p>Machine tools do not require inspection if the Directorate General considers it unnecessary. (C)</p> Signup and view all the answers

What is a critical component that must accompany an indent if specifications are available?

<p>Specification drawings. (A)</p> Signup and view all the answers

How many items can an indent include according to the guidelines?

<p>Any number of items, provided they follow the same main categories. (C)</p> Signup and view all the answers

What is the overall goal of consolidating annual indents?

<p>To enable purchases in bulk and save costs. (D)</p> Signup and view all the answers

What should be included in indents to prevent delays?

<p>All necessary details related to the requirements. (B)</p> Signup and view all the answers

Which of the following describes the function of the Directorate General of Supplies and Disposals in relation to various railways?

<p>It coordinates indents for stores to facilitate bulk purchasing. (B)</p> Signup and view all the answers

What additional materials should be submitted along with indents to aid in understanding requirements?

<p>Specifications and detailed drawings. (D)</p> Signup and view all the answers

What is the main purpose of submitting annual indents for the Railways' requirements by a specific date?

<p>To combine demands from all Railways and Departments (C)</p> Signup and view all the answers

Which condition must be fulfilled when the estimated cost of indents is likely to be exceeded?

<p>The concurrence of the indentor must be obtained (C)</p> Signup and view all the answers

What is the responsibility of indenting officers regarding funds when placing indents?

<p>To confirm that adequate funds are arranged for payment (B)</p> Signup and view all the answers

What is a specified threshold for scrutinizing indents for advance procurement of materials?

<p>Rs. 25,000/- (A)</p> Signup and view all the answers

What must be considered by the indenting officer prior to submitting the indent for procured materials?

<p>The available stocks and delivery schedules of outstanding orders (B)</p> Signup and view all the answers

When can periodical indents for stores be submitted?

<p>At any time when requirements are unforeseen (C)</p> Signup and view all the answers

What metric should be used to estimate the cost of stores indented?

<p>Last price paid for different items (C)</p> Signup and view all the answers

Under what condition can procurement for works be initiated?

<p>When works have been included in the approved program (B)</p> Signup and view all the answers

What is a requirement for the advance procurement of materials?

<p>Delivery must align with the year of requirement (C)</p> Signup and view all the answers

What must the Railway administration ensure regarding the quantity ordered for stores?

<p>It must consider past consumption, stock levels, and future requirements. (D)</p> Signup and view all the answers

What date is set for Railway administrations to submit their advance allotment information?

<p>25th June (B)</p> Signup and view all the answers

Which items are excluded from the calculation of the ceiling limit for General Purposes Stores?

<p>Coal, coke, and fuel oil (B)</p> Signup and view all the answers

What type of allotment is provisionally made to the Railway in March to avoid delays?

<p>Adhoc allotment (A)</p> Signup and view all the answers

Which authority certifies the availability of funds on each advance indent after the allotment is approved?

<p>The Financial Advisor &amp; Chief Accounts Officer (C)</p> Signup and view all the answers

What is required to fix the advance allotment of stores each year?

<p>Submission of detailed financial reports by 25th June (C)</p> Signup and view all the answers

What does the Railway administration need to assess when fixing advance allotments?

<p>Previous year's consumption and stock status (C)</p> Signup and view all the answers

What specific requirement must the Railway determine for coal, coke, and fuel oil allotment?

<p>A detailed assessment for advance allotment as per needs (A)</p> Signup and view all the answers

What cumulative value is assessed to prepare the advance allotments for the current financial year?

<p>Value of stores consumed and purchased in the preceding year (C)</p> Signup and view all the answers

What is the primary purpose of maintaining a funds register for store works?

<p>To align indenting and delivery of materials with budget provisions (A)</p> Signup and view all the answers

Which statement accurately reflects the process involved in the provisioning of funds?

<p>Materials should be procured after funds have been allocated (B)</p> Signup and view all the answers

What essential information must be included on all indents for the stores?

<p>Dates of required deliveries aligned with fund availability (B)</p> Signup and view all the answers

In the funding process, who is responsible for certifying the necessity of stores included in indents?

<p>FA&amp;CAO countersigning the indent (A)</p> Signup and view all the answers

Which element is NOT part of the information required in the funds register for store works?

<p>Supplier contact details (C)</p> Signup and view all the answers

What does the requisition certificate for stores signify regarding the procurement process?

<p>Provisions have been made within the sanctioned budget (B)</p> Signup and view all the answers

How should the delivery dates be aligned in relation to the indent?

<p>They should reflect the budget utilization schedule (C)</p> Signup and view all the answers

What is a recommended practice for managing store works in terms of budgeting?

<p>Planning funds based on realistic project timelines and ceilings (C)</p> Signup and view all the answers

Which aspect of the procurement planning is crucial according to the guidelines?

<p>The likely availability of funds for project continuity (B)</p> Signup and view all the answers

Flashcards

Mandatory Purchases Through DGS&D

Railway stores listed in Appendix VI of the Indian Railway Code, except in specific cases, must be purchased through the Directorate General of Supplies and Disposals (DGS&D).

Direct Purchase Exception (Limited)

For stores with existing rate/running contracts with DGS&D, the Controller of stores may make direct purchases up to Rs. 10,000 per item and Rs. 50,000 annually, if urgent or convenient.

Direct Purchase Limit (General)

Direct purchases by the Controller of Stores, not requiring DGS&D, are allowed up to Rs. 1,00,000 per item.

Emergency Direct Purchase

In emergencies where delayed acquisition may halt work, the Railway Administration can make direct purchases, up to Rs. 25 Lakhs in one case, without DGS&D, the Controller of Stores managing the decision.

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Large Emergency Purchase Threshold

Purchases exceeding Rs. 25 Lakhs but not exceeding Rs. 5 Crores, require General Manager approval regarding exemption from DGS&D.

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Rate Comparison Requirement

If stores purchased through DGS&D are more expensive than direct purchases, the higher costs, along with the supplier details, should be reported immediately.

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Railway Stores Appendix

A reference document (Appendix VI) specifies the list of railway stores which need to be purchased through the DGS&D. This list may be amended, modified or curtailed.

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Inspecting articles

All items, excluding machine tools, should be inspected and tested by the Directorate General of Supplies and Disposals.

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Machine tool inspection

The Controller of Stores specifies whether machine tools should be inspected by Railway staff or the Directorate General of Supplies and Disposals.

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Indent form

Indents for stores should use a form prescribed by the Directorate General of Supplies and Disposals.

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Multiple items in an indent

Indents can include multiple items, but all items must fall under the same main categories.

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Indent details

Indents must provide enough information for DGSD to understand the requirements and purpose.

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Specifications and drawings

Indents should include specifications and drawings whenever available.

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DGSD technical staff & indents

For indents lacking specifications, DGSD's technical staff collaborates with the indentor to address missing information, including technical drawings.

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Railway's role in supplying drawings

Detail drawings are usually supplied by the Railways themselves.

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Consolidated annual indents

Annual indents should be consolidated to combine requests for similar items and save costs via bulk purchasing.

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Running Contract

A contract allowing quantity variations of ±25%, finalized with multiple suppliers. DGS&D places supply orders, specifying consignee and quantity, based on indents submitted by various indentors.

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Rate Contract

A contract with one or more suppliers, where no consignee details are mentioned. Direct Demanding Officers (e.g., COS, depot officers) place orders directly based on their requirements.

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Fixed Contract

A contract for specific, fixed quantities, generally let for individual indentors' requirements. No quantity variation clause.

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Causal Indent (Adhoc Indent)

An indent for items not covered by Program Indents, submitted as needed to DGS&D, who then procures the stores and arranges delivery.

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Purchase Order

Orders for items covered by rate or running contracts with DGS&D, prepared on form S 714 and distributed as specified.

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General Purpose Stores

Stores for everyday railway use, not specific projects.

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Funding for General Purpose Stores

Funding for general purpose stores must come from the current year's budget or advanced funding for the next year.

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Indent for General Stores

A formal request to purchase general purpose stores.

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Advance Allotments

Ahead of time allocations towards the purchase of general purpose stores to be delivered the following year or later.

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Current Year's Grant

Money allocated for the ongoing fiscal year.

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Next Year's Grant

Money allocated in the following fiscal year.

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Funding Commitment

A promise to spend money on something.

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Stores for Sanctioned Works

Materials specifically needed for construction or maintenance projects.

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General Manager's Certification

Formal acknowledgement by the General Manager regarding general purpose store funding.

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FA & CAO

Financial and Accounting Officer, responsible for financial checks and procedures.

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What is the purpose of advance allotment?

Advance allotment is a pre-approved amount allocated to purchase general purpose stores, ensuring sufficient funds are available before the actual need arises. This helps avoid delays in procuring essential materials.

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How much is allotted for General Purposes Stores?

The specific allotment for General Purposes Stores is capped at 80% of the previous year's actual purchases, excluding coal, coke, fuel oil, and grain shop stores.

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What about Coal, Coke, and Fuel Oil?

The requirement for advance allotment for Coal, Coke, and Fuel Oil is determined by the Railway and submitted to the Government for approval.

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When is the information for advance allotment submitted?

Railway administrations must submit the required information for advance allotment by June 25th each year, ensuring proper planning and timely approval.

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What information is submitted for advance allotment?

The information includes the value of stores balances on 31st March, stores consumed, advance indents sent forward, actual purchases, and the required amount for the current year.

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What is the role of the FA & CAO after allotment?

The FA & CAO certifies the availability of funds for each advance indent and ensures the quantity ordered is reasonable based on past consumption, stock on hand, and future needs.

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What is the purpose of adhoc allotment?

An adhoc allotment is made in March each year to avoid delays in sending forward indents. It provides an initial allocation until the final advance allotment is finalized.

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What is the time frame for fixing the advance allotment?

The advance allotment is fixed and approved after the previous year's accounts are finalized. This is to ensure the most accurate data.

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How is the advance allotment system enforced?

The advance allotment system is enforced with effect from 1st April 1977, ensuring a consistent and transparent approach to managing store purchases.

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Inspection of Stores

All items bought through the Directorate General of Supplies and Disposals (DGS&D), except machine tools, must be inspected and tested by the DGS&D. Machine tools can be inspected by either the DGS&D or the Railway staff, as decided by the Controller of Stores.

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Indent for Stores

A formal request for stores, prepared on a specific form provided by the DGS&D, containing detailed information about the items required, their purpose, and specifications. Drawings are also included if available.

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Co-ordination of Indents

The DGS&D coordinates indents from different railways and government departments for similar items, leading to bulk purchases and cost savings.

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Annual Indents

For stores with constant demand and large quantities required, railways submit consolidated annual indents to the DGS&D, showing total requirements for the year.

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Railway's Role in Drawings

Railways themselves are typically responsible for providing detailed drawings for the stores they require.

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Funds Register

A record that tracks the allocation and expenditure of funds for materials needed for railway projects.

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Advance Procurement

Buying materials before they are needed, to ensure they are available when required.

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Current Procurement

Buying materials as they are needed, for immediate use.

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Pink Book

A document containing details of sanctioned projects and their estimated costs.

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Indent

A formal request for materials from the Directorate General of Supplies and Disposals (DGS&D).

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Works Programme

A plan outlining the construction and maintenance projects for the year, including their budgets.

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Sanctioned Budget Provision

The amount of money officially approved for a specific project or activity.

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Time Schedule

The planned timeline for completing each step of a project.

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Combined Indents

Submitting all annual indents on the same date to streamline the process and allow for combined purchasing.

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Periodical Indents

Indents for stores with unpredictable needs, like machinery for construction projects, can be submitted at any time.

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Estimated Indent Cost

Indents must include an estimated cost based on previous prices or recent market information.

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Indent Certification

Indenting officers ensure sufficient funds exist to pay for the stores before placing an indent.

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Stores for Works

Stores for construction projects require specific procurement processes to ensure timely supply.

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Advance Procurement Ceiling

A limit is set on the percentage of materials that can be procured in advance for construction projects.

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Scrutiny of Large Indents

Indents exceeding a certain value for advance procurement are reviewed by the Finance Department.

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Consider Existing Stocks

Indenting officers must factor in available stocks and outstanding orders before placing new indents.

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Timely Delivery Schedule

Materials should be ordered and delivered only when needed for a particular project.

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What is the allocation limit for General Purpose Stores?

The specific allotment for General Purpose Stores is capped at 80% of the previous year's actual purchases, excluding coal, coke, fuel oil, and grain shop stores.

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How is the advance allotment for Coal, Coke, and Fuel Oil determined?

The requirement for advance allotment for Coal, Coke, and Fuel Oil is determined by the Railway and submitted to the Government for approval.

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What is the role of the FA & CAO after the allotment?

The FA & CAO certifies the availability of funds for each advance indent and ensures the quantity ordered is reasonable based on past consumption, stock on hand, and future needs.

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When is the final advance allotment fixed?

The advance allotment is fixed and approved after the previous year's accounts are finalized. This ensures the most accurate data is available.

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Causal Indent

An indent for items not covered by Program Indents, submitted as needed to DGS&D, who then procures the stores and arranges delivery.

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Purchase Order (S 714)

Orders for items covered by rate or running contracts with DGS&D, prepared on form S 714 and distributed as specified.

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Study Notes

Purchase Through Directorate General of Supplies and Disposals

  • Mandatory Purchases: Certain railway stores (listed in Appendix VI) must be purchased through the Directorate General of Supplies and Disposals (DGS&D). Exceptions exist.
  • Exceptions to Paragraph 801:
    • Contracts: Direct purchases up to ₹10,000 (not exceeding ₹50,000 yearly) are allowed for stores with running contracts, if urgent or more convenient.
    • Small Purchases: Direct purchases below ₹1,00,000 per purchase are allowed.
    • Emergencies: Direct purchases up to ₹25 lakhs (with General Manager's sanction for ₹5 crores) are allowed in emergencies.
  • Rates: If DGS&D rates are higher than direct purchase rates, the Railway Department must be informed, outlining the supplier.
  • Inspection: DGS&D-purchased items (except machinery) require Railway Department inspection. For machinery, specify whether Railway staff or DGS&D staff is to perform the inspection. The inspection should be unnecessary only if the DGS&D considers it so.
  • Indents: Indents for stores should use DGS&D forms (available from DGS&D). Indents require specific details to facilitate efficient purchasing. Drawings/specifications must accompany indents.
  • Coordination: DGS&D coordinates indents from various railways to enable bulk purchasing.
  • Annual Indents: Consolidated annual indents should be submitted to DGS&D to maximize benefits/economies from bulk purchase. These should be prepared by a set date.
  • Periodical Indents: Indents for items with uncertain future demand can be submitted at any time.
  • Estimated Costs: Estimated costs of stores should be included in indents. DGS&D will not place an order if the estimated cost is significantly exceeded.
  • Certification of Indents: Indenting Officers must ensure funds are available to cover costs.
  • Stores for Works: Procurement can occur immediately after a work is included in railway/machine/stock programme.
    • Commitments: Advance procurement is limited by ceiling percentages.
    • Reasonableness: Advance procurements over ₹25,000 must be reasonable and reviewed by finance.
    • Stocks: Current stock and outstanding orders should be considered.
    • Delivery: Materials must be delivered in the year they are required.
    • Fund allocation: The provision of funds should be detailed and realistic, based on approved ceilings and priorities.
  • General Purposes Stores: Funds should already be allocated in the current year's budget.
  • Contracts: Contracts with DGS&D may be running (quantity variations allowed), rate (no consignee specification), or fixed (fixed quantities).
  • Indents (Adhoc): When items are not covered by Programme Indents (ad hoc or irregular) submit these to DGS&D.
  • Purchase Order: Use Form S 714 for items procured through running/rate contracts, not against a fixed contract.
  • Despatch & Acceptance: DGS&D issues Despatch Memoranda for inspection and shipment following the inspection.
  • Receipt Notes: Use specific forms (receipt notes Pt. I-IV) for DGS&D-procured or through a running/rate contract.
  • Payment: DGS&D manages 90%, 95%, or 98% payment after inspection and delivery, based on the inspection certificate for a specific issue.
    • 100%: Certain suppliers may obtain 100% payment upon receipt, inspection, and acceptance.
  • Complaints: Complaints about shortages or damages should be resolved initially with the supplying firm and carrier. DGS&D interventions are allowed only if the railway is unable to resolve the matter.

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Indian Railways Store Department Code Vol-1, Ch-8 PDF

Description

Explore the guidelines for mandatory purchases through the Directorate General of Supplies and Disposals (DGS&D) in the railway sector. Understand exceptions for small and emergency purchases, as well as inspection requirements for purchased items. This quiz covers crucial aspects for effective procurement management.

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