Indian Railways - Sale of Railway Materials PDF

11/21/24, 10:07 AM CHAPTER XXIII SALE OF RAILWAY MATERIALS 2301 CHAPTER XXIII SALE OF RAILWAY MATERIALS 2301. Railways purchase an...

11/21/24, 10:07 AM CHAPTER XXIII SALE OF RAILWAY MATERIALS 2301 CHAPTER XXIII SALE OF RAILWAY MATERIALS 2301. Railways purchase and stock stores only in such quantities as their requirements warrant and a need for the sale of such stores should not arise under normal circumstances. Sales of railway materials are therefore generally of obsolete and unserviceable stores and scrap the accumulation of which, it has not been possible to avoid. Occasionally, excess stocks of ordinary stores have to be disposed of. Railway stores should therefore bs sold only when it is found that for financial and administrative reasons, it is expedient to sell than keep them in stock. Exceptions to this rule are cases of materials urgently required by other railways or Government departments and of petty sales to quasi-railway institutions providing amenites for the railway staff. 2302. Sales may be affected In one of the following ways.— (i) by public auction; (ii) by inviting tenders for purchase (paragraph 2320 to 2324) ar submitting tenders offering to sell (paragraphs 2237 to 2239); and (iii) by direct sale. 2303. No materials which are not overstocks or surplus to requirements or obsolete, unserviceable or scrap should be sold by aucticn or tender. Subject to the above restriction, the actual method of sale adopted should be appropriate to the circumstances under which the sales are affected and to the nature of the articles sought to be sold. Except when the amount involved in a sale is less than Rs. 100 (or the sale is by direct negotiations), effective publicity should be given to the sale, by advertisement notices in the daily press and in commercial and technical journal and, wherever this is possible, by mailing special notices to likely buyers. 2304. Powers of General Managers.—The powers of the General Manager to sell railway material and stores is limited only by the canons of financial propriety. He has, however, to obtain the previous sanction of the Railway Board to the sale of the following classes of assets :— (i) a portion of the line; (ii) any item of authorized rolling stock or (iii) any other asset costing more than rupees one lac. 2305. Extent powers may be Deleted.—The General Manager may delegated to officers subordinate to him his powers to sell railway materials and stores to the extent indicated in paragraphs 2306 to 2312. 2306. Sale of Stores to other Railways.—Full powers to sell any stores to other Railways at full book rates or higher plus the usual percentage charges (paragraphs 2328 and 2329) (Supervision charges are not levied on stores sold to other Government Railways). 2307. Sale of "Over stocks" of "Ordinary Emergency or Special Stores" by Tender. Full powers to sell and adjust the difference between book rate and sale value. 2308. Sale by Direct Sale of Materials referred to in paragraph 2307.—Full powers to sell at book rate or purchase rate whichever is higher plus the usual percentage charges. 2309. Direct sale of books, forms, stationery, petty stores and clothing for menial staff.-Powers to sell at the book rate or purchase rate whichever is higher, plus freight incidental and supervision https://indianrailways.gov.in/railwayboard/uploads/codesmanual/StoreDept-II/StoreDeptII_Ch23_data.htm#2304 1/8 11/21/24, 10:07 AM CHAPTER XXIII SALE OF RAILWAY MATERIALS 2301 charges, to the following :— Railway Employees' Cooperative Credit Society, Railway Institutes., Government Railway Police Department, Indian Posts and Telegraph Department. Railway Battalions, Railway Regiments and other similar bodies. 2310. Sale by tender, of scrap and unserviceable, surplus and obsolete stores and adjustment of the difference between the book value and sale value Full powers to dispose such material by tender and to adjust the difference between the book value and sale value. 2311. Direct sale of maternal referred to in paragraph 2310 Powers to sell at book value or at a loss not exceeding Rs. 200, on each sale. If as a condition of sale, freight is to be borne by the administration, value of such freight should be taken into consideration in computing the loss. This rule applies to all cases of sales. 2312. Sale by public auction of material referred to in paragraph 2310 and adjustment of the differences between the book value and sale value.—Full powers. 2313. Centralized Control of Sales.—The Controller of Stores is responsible for the sale of railway stores irrespective of whether the stores are in his custody or not and no sale may ordinarily be affected without his knowledge and approval. Stores intended for sale should ordinarily be sent to the nearest stores depot or any particular depot the controller of Stores may assign to particular kinds of stores, and sales shall, as a rule, be affected from those stores depots only. 2314. If the freight and loading charges likely to be incurred on transporting unserviceable and scrap materials to the stores depots for disposal, are likely to be heavy an incommensurate with the value the articles may fetch by sale later on, District and Division officers may sell with the prior concurrence of the Controller of Stores, such stores at the spots at which they lie or at any other convenient centre. 2315. The Chief Engineer may arrange for the sale of unserviceable wooden sleepers and bridge timbers without prior reference to the Controller of Stores. 2316. The prior concurrence of the Controller of Stores is not necessary to the sale of such items as grass, trees, fish and fruit, which may be arranged by the Chief Engineer. 2317. Sale to Employees.—The Genera manager may, in consultation with his Financial Adviser, frame suitable rules for the sale of small quantities of material and stores for the bonafied use of railway employees. 2318. Responsibility for Execution of Sales.—When a definite sanction to a or a contract for a sale of certain items is communicated to an executive officer by the Controller of Store or the General Manager, the duty of taking all further action, such as intimation to tenderes the quantities available for delivery, the recovery of ground rent & c, will devolve on the executive officer in charge of the material to be sold, who will be responsible for seeing that the terms and conditions of sale are observed strictly and for advising the Accounts officer, Stores, and the Controller of Stores of the satisfactory completion of the transaction. 2319. Sale by Public Auction.—The procedure to be followed in the conduct of sales by public auction is detailed in Chapter XXIV. 2320. Sale by Invitation Tenders.—In inviting tenders for the sale of stores it should be seen that:— (a) The tender notice which is published gives clear particulars of the materials to be sold, approximate quantities thereof and the place and the probable date of sale; and (b) tender forms containing the conditions of agreement are available to intending tenderers at nominal prices fixed by the Controller of Stores. https://indianrailways.gov.in/railwayboard/uploads/codesmanual/StoreDept-II/StoreDeptII_Ch23_data.htm#2304 2/8 11/21/24, 10:07 AM CHAPTER XXIII SALE OF RAILWAY MATERIALS 2301 2321. Conditions of Sale Agreement—All agreements for sale should provide, inter-alia clauses stipulating the following conditions, viz., In case of sale tenders, the Tendering firms should deposit the earnest money equal to 5% of the amount offered subject to a maximum of Rs. 2,00,000/- without which the Tender will not be considered. The security deposit of 10% of the sale value will be deposited by successful Tenderer before ordering sale. (Authority Board's letter No. 98/RS (G)/779/10(CS) dated 31-10-2007).--acs no.5 (b) Failure to adhere to any of the conditions prescribed in the tender will disqualify the tenderer. (c) If the purchaser of any materials desires to send it by rail, it will be carried at public tariff rates only. Note.—When there is any intention to allow the materials offered for sale to be carried by the purchaser by rail at other than tariff rates applicable to the public, the freight concession, which should have been previously sanctioned by the General manager for the particulars sale and item of stores, should be expressed in unambiguous terms and included among the conditions of sale in the tender notices and advertisements. Such concessions when granted should apply only to :— (i) condemned railway materials which are in such a condition that they cannot be readily sold for the use for which they were originally made; and (ii) the carriage of such stores from place of sale to first destination. Such concession can be granted by a railway on its home line only; necessary certificate regarding the category of stores may, however, be granted by the officer issuing the stores to enable the purchaser to obtain similar concessions on foreign railways if the first destination happens to be on a foreign railway. (e) The purchaser should pay to the Treasurer of the Railway the agreed amount less the earnest money already deposited within fourteen days of the date of intimation of the acceptance of the tender by the railway. Note.—Where, for any reason, the exact amount payable cannot be ascertained or when a system of part deliveries has been agreed to on the basis of part payments, a suitable amount should be stipulated as payable by the purchaser as an advance of purchase price, to be adjusted after the exact amount is known. In such cases, the earnest money of the successful tenderer should not be refunded till the conclusion of the contract and deliveries of materials should be controlled so that the outstanding of the purchaser payable to the railway do not at any time exceed the advance. (e) The purchaser should take deliveries of materials purchased within a stipulated period of time. (f) The Railway should reserve to itself the right of withdrawing from sale any material at any stage without assigning reasons. (g) Mis-description or error in quantity should not invalidate a sale. No sale shall be invalidated by reasons of any defect or fault in any of the material. A refund will be made to the purchaser when the weight or number delivered is less than the quantity paid for. (h) Except in special circumstances the delivery of the material sold will only be permitted on production of receipt for the payment of the sale value to the Railway. All weighments, counting and loading of material will ordinarily be done by the Stores Department and charges for loading should be paid to ths Railway at ths rates prescribed for the purpose before the delivery of the materials. https://indianrailways.gov.in/railwayboard/uploads/codesmanual/StoreDept-II/StoreDeptII_Ch23_data.htm#2304 3/8 11/21/24, 10:07 AM CHAPTER XXIII SALE OF RAILWAY MATERIALS 2301 (i) The loading will be done in the presence of the purchaser or his representative but if he does not attend, such loading will be done in his absence and no claim on the ground that wagons were not loaded properly or that weights were subsequently found to be less, will be entertained in any circumstances. (j) Delivery will not be made on the stores premises nor any weighment or counting permitted for re-sale among the purchasers themselves or to others on such premises. (k) The stores will remain Railway Property until all the conditions of sale are fulfilled-The mere payment of the purchase money does not constitute the complete purchase and materials will become the property of the purchaser only after the sale has been completed and the stores have been removed from Railway premises or despatched according to the instructions of the purchaser. (l) In the event of its being found impossible to complete delivery after the payment has been made, a refund of the value of the undelivered goods will be made to the f purchaser, who will have no claim for further compensation from the railway. (m) Materials not removed within the stipulated time will be subject to storage charge at rates that will be fixed by the Railway. 2322. The Stores Tender Committee.—All tenders for stores amounting to Rs. 2 lakh or over should be submitted to a Stores Tender Committee before acceptance. Acceptances of tenders should be promptly intimated simultaneously to the tenderer, the Accounts Officer, Stores, and the Executive Officer for the delivery of stores. 2323. Weightment and delivery of Stores sold.—Weighments and deliveries of any stores sold by whatever manner of sale should ordinarily be made in the presence of an Accounts Stock Verifier who should attest the weighment registers and other initial records according to the procedure prescribed in paragraphs 2426 to 2433. 2324. Where the successful tenderer is another Railway or Government Department, the conditions indicated above in paragraph 2321 (a), (c), (d), (h), (i) and (m) may be suitably modified, as earnest money need not be taken from such bodies and payment will be usually made by book adjustment. 2325. Sales by Submission of Tenders.—Railways may also submit tenders in response to public invitations for tenders for supplying materials, whether such invitations are issued by railways, other Government Departments or by private bodies. This method of sale is particularly suitable where the railway is pressed to dispose of its 'overstocks' and surplus stores' in such cases, the procedure detailed in paragraphs 2237 to 2239 should be adopted. 2326. Direct Sales.—Direct sales may be either of :— (a) stores of which the railway has only normal stock; (b) items of ordinary, emergency or special stores in which the railway is over-stocked; or (c) surplus stores of any class including scrap, sale of which has been recommended by the Survey Committee and approved by the General Manager. Note—With efficient store-keeping, over-stocks of emergency or special stores should not ordinarily arise. 2327. Direct Sale of Stores with Normal Stocks.—The sale of stores which have not been overstocked, is prohibited. Such sales may, however, be made if they are required to meet the emergent needs of other Government Departments, railways or local authorities or by Railway's contractors for use on the railway's "works" provided that the selling railway's needs are not adversely affected thereby. The above restriction, however, does not apply to stores, of which the stocks are in excess of the railway's normal requirements. The rate at which the stores will be sold in https://indianrailways.gov.in/railwayboard/uploads/codesmanual/StoreDept-II/StoreDeptII_Ch23_data.htm#2304 4/8 11/21/24, 10:07 AM CHAPTER XXIII SALE OF RAILWAY MATERIALS 2301 the above cases will be either the book rate or the purchase rate, whichever is higher. 2328. Freight and Incidental Charges.—Freight at public rates should be added to the cost of stores fixed as indicated in paragraph 2327 in all cases of direct sales of stores mentioned in paragraph 2326(a). When such freight is not known or cannot be estimated with reasonable accuracy, the freight should be taken to be 5 percent or such other percentage as may be fixed for the Railway Board. An additional charge of 2 percent should be made for- 'incidental charges'. 2329. Departmental Charges.—The total cost i.e., prime cost, freight and incidental charges, of ordinary stores sold directly should then be increased by 12 1/2 per cent to cover the cost of supervision, storage, interest on outlay, & c. except when the sale is to other Government Railways. NOTE.—The levy of the departmental charges on the cost of stores issued to Neutral Control Staff may be foregone by railways by mutual consent. 2330. Direct sale of "Overstocks" and Surplus Stores.—The direct sale of such stores of all classes, including scrap, may be either :— (a) petty sales to employees and private parties for total value in each case of not more than Rs. 100; or (b) sales to other departments of the railways, other railway and other Government Departments. 2331. (a) The rates at which surplus stores may be sold should be the book rates (which would have been suitably modified by the Survey committee) or the rates at which similar articles have been sold in recent auction or tender sales, whichever may be higher. Where similar articles have not been sold at recent auctions but have withdrawn owing to the reserve prices that had been fixed not having been reached, such prices should be taken to be the prices applicable in the case of these sales. Additional charges for freight, incidental charges and supervision, vide paragraphs 2328 and 2329 may be added at full or reduced rates or altogether foregone by the authority empowered to sanction the sales. In the case of petty sales, the cost is payable strictly in advance to the railway. (b) The rate at which "Overstocks" may be sold should be the book rate or purchase rate whichever is higher. Fereight and incidental charges and departmental charges should be levied on all such sales as a general rule, departmental charges may however be waived in any particular case with the sanction of the General Manager. 2332. Sanction to Sales.—Whenever the Controller of Stores proposes to make a sale which is not within his powers, he should submit to the general Manager a Minute Sheet (in quadruplicate) containing particulars of the proposed sale, making special mention of the book value of the stores, the proposed rate of sale and the total loss (if any) involved in the transaction, with justification for incurring such losses. The General Manager will intimate -his approval by endorsing his sanction to the sale on all the four copies which will then be distributed as follows:— One copy each direct to the Accounts Officer Stores, and the Statutory Auditor. One copy to the Controller of Stores. One copy to be retained as office copy. One receipt of the sanction, the Controller of Stores should issue a Sale Order to the Depot Officer concerned. 2333. In cases falling within the powers of sale of the Controller of Stores, the Sale Order itself will constitute the sanction. 2334. Sale Orders.—Orders for sale of railway stores should be made out in quadruplicate on Form S. 2334 shown below. Form No. S. 2334 SALE ORDER https://indianrailways.gov.in/railwayboard/uploads/codesmanual/StoreDept-II/StoreDeptII_Ch23_data.htm#2304 5/8 11/21/24, 10:07 AM CHAPTER XXIII SALE OF RAILWAY MATERIALS 2301 Sale Order No................................................... Station.....................................Date..................................... Name of Purchaser............................................. Address................................................................ With reference to your Tender No *Purchaser's application No. Dated............................................The Depot Officer.....................................................................................Depot. has been instructed to despatch the following articles, as *will please deliver per instructions below to......................................................................................................Freight to pay Paid Payment of Rs. (.................................................)..................................................................................................(in words) has been made and Acknowledged in treasurer's Receipt no...........................dated................................................ is to be on presentation of bill Description, size Quantity Rate at which sold Unit for rate and quantity of with conditions articles with attaching to the reference to same Sanction for sale.................................. Controller of State These words should be printed on second, third and fourth foils in lieu of the words 'yours & c, and' has been instructed to & C Form No. S. 2334 SALE ORDER REVERSE OF SECOND FOIL The following particulars are to be carefully noted by the issuer, deliveries made ia respect of the items overleaf. https://indianrailways.gov.in/railwayboard/uploads/codesmanual/StoreDept-II/StoreDeptII_Ch23_data.htm#2304 6/8 11/21/24, 10:07 AM CHAPTER XXIII SALE OF RAILWAY MATERIALS 2301 Description Date and To be filled in by issuer of Quantity Signature Number Amount Initial's Signature Signature materials issued of issuing and of of clerk of Depot of Depot despatched clerk date of ground in- Officer Officer issue rent charge note occurred of Sales & Branch realized 1 2 3 4 5 6 7 8 9......... Certified that the above stores have been carefully verified Certified that delivery on this sale order has been made by me before being delivered through Issue Note No................................................................. date........................and despatched as under................................................................ Forwarded to the Controller of Stores for favour of disposal Accounts Stock Verfier Depot Officer......................... Depot.................................... Date....................................... 2335. The first foil of the Sale Order should be forwarded to the purchaser, and the second third and fourth foils to the Accounts Officer, Stores, who should countersign all the three copies of the Sale Order that are sent to him in token of his having audited them. The Acc-counts Officer should then return the second and third foils to the Controller of Stores and retain the fourth foil as his record (or send the same to the local Accounts Officer, if any, dealing directly with the depot concerned). In the case of a centralized Accounts Office the Sale Orders should be arranged in chronological order and filed for record and reference. Where the Sale Order is sent away to a Local Stores Accounts Officer, the Headquarters Office should maintain a Register of Sale Orders (S. 2335) (Manuscript) as shown below, in which should be noted each Sale order before despatch to the Local Store: Accounts Office. The Loacal Stores Accounts Officer should keep the sale Order filed in chronological order for reference and record. Form No. S 2335 1. Sale Order number. 2. Date. 3. Reference to sanction of higher authority. https://indianrailways.gov.in/railwayboard/uploads/codesmanual/StoreDept-II/StoreDeptII_Ch23_data.htm#2304 7/8 11/21/24, 10:07 AM CHAPTER XXIII SALE OF RAILWAY MATERIALS 2301 4. Class. 5. P.L. No. 6. Quantity. 7. Book Rate. 8. Sale rate and condition of sale. 9. Loss on sale. 10. Gain on sale. 11. Audit remarks. 12. Initials of Accountant. 13. Initials of Gazetted Officer. 14. Reference to Issue Note number and date. 15. Remarks. The Controller of Stores should retain the third foil as his office record and send the second foil to the Depot Officer concerned, who will have to issue the material. In case where the Sale Order itself constitutes the sanction, the copy to the purchaser should not be sent before the Sale order has been audited by the Accounts Office. 2336. The depot should enter the particulars of the Sale Order in a manuscript register (S. 2336) to be maintained for the purpose and sene the Older itself to the depot store keeper Grade III in charge of materials concerned for arranging the despatch of the materials. The depot store keeper grade III in charge of materials should note the Sale order and then send it to the Accounts Stock-Verifier as an intimation that he should attend the weighments and issue of the material. The Stock Verifier should than proceed to winess the weighment, when he will hand over the Sale order to the depot. After the despatch of the material, the reverse of the Sale order form (second foil) should be filled in and returned to the Controller of Stores. Weighments should also be witnessed by the authorised representative of RPF wherever the security of the Depot is under the RPF department. Deliveries in Instalments 2337. Delivery Orders.—The following procedure should be followed in all those cases in which the stores sold are either delivered in installments or when the deliveries are effected by an officer who is not an immediate charge of the stores depot. 2338. Delivery Orders (S. 2338) should be prepared in quadruplicate, in a form similar to the Sale Order (S. 2334) mutatis mutandis and distributed in the same manner except that the second foils will be detained by the issuer till the entire quantity sold has been delivered. The cash receipt for the full amount due on delivery should be attached to the office copy. 2339. On completion of the delivery, the officer issuing the stores will send to the Controller of Stores a completion report accompanied by the delivery orders (second foils) after filling therein the particulars of the issue notes and the railway receipts, if any, under which the several installments of deliveries have been made. https://indianrailways.gov.in/railwayboard/uploads/codesmanual/StoreDept-II/StoreDeptII_Ch23_data.htm#2304 8/8