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ADMINISTRATIVE

RESTRUCTURING
COMMITTEE
REPORT
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INDEX
S. No.
1. Introduction
Page No.
I
9
il
2. Earth Commission & Earth Systems orsanization 2
3. Administrative Restructurins
4. Financial Restructurins
5. Purchase & Stores Procedure
6. Manpower Restructuring 12
7. Annexure I
-Order
dtd. 14th Aus-formation of Administrative
Committee
8. Annexure II- Analysis of Rules and Bye laws of all autonomous
institution
9. Annexure III- Draft of proposed Delegation of Financial Powers
10. Annexure IV
-Draft
of proposed Purchase Procedures
Administrative Committee Report
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Report
I. INTRODUCTION
l.l The 21" century is likely to be dominated by concerns of water, global climatic
change, environment, land use and ocean resources. The need for taking up an integrated
view of earth system science, i.e. land-ocean-atmosphere problems, is being increasingly
recognized across the world, as they interact and influence each other such that any
independent model will not be able to sustain variabilities of the complex system. A strong
interdisciplinary effort in global climate change is necessary to address associated problems.
1.2. Ministry of Earth Sciences (MoES) seeks to create a framework for understanding the
complex interactions among the key elements of the earth system, namely the ocean,
atmosphere and the solid earth, by encompassing the functioning of national programmes in
meteorology, climate and ocean science and technology and seismology. It aims to provide
the nation with the best possible services in:
o
Forecasting the monsoons (on various relevant time and space scales) and other
weather/climate parameters, ocean state, earthquakes, tsunamis and other phenomena
relating to the earth system, through well integrated programmes utilizing the best that
science and technology can offer today at the highest international standards,
o
Offering extensive data resources and setting up appropriate decision support systems
to serve the interests of the common man whose primary resources are land and ocean,
.
Supporting agriculture-related and all other industrial and scientific activities
(including aviation, engineering industry, water resources, aquaculture etc.) through
authentic, adequately processed earth system data of various kinds,
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Working closely with other agencies, both public and private, to provide them with
S&T support and to assist in ensuring adequate preparedness for handling natural
disasters and in managing their consequences, and
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Supporting research and development in Earth System Science.
L3 The Ministry of Earth Sciences (MoES) is thus in-charge of matters relating to the
ocean science and technology, meteorology, seismology, climate and environmental science
and related earth scielces and deals with policy, planning, coordination and schemes relating
to these areas. The main constituents that are under the purview of the Ministry of Earth
Sciences include the restructured Ministry of Ocean Development and the India
Meteorological Department (lMD), Earthquake Risk Evaluation Centre, Indian Institute of
Tropical Meteorology and National Centre for Medium Range Weather Forecasting.
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1.4 The Secretary, Ministry of Earth Sciences vide order dated l4th August, 2006, has
formed a committee under the Chairmanship of Shri S K Das, Advisor, DOS for the
Administrative Restructuring of the newly created Ministry and its constituent units (Annexure
I). This report seeks to examine the existing administrative structure and operations in each of
the constituent units under the Ministry of Earth Sciences in order to redefine and recommend
an administrative structure so as to provide uniformity of operations in each of the constituent
units of the Ministry. The Committee has examined the administrative structure of the
Ministry and its organizations in order to suggest appropriate remedial measures to achieve the
stated goals in a mission mode. The Committee has also gone into the issue of delegation of
financial powers to the Ministry and the re-delegation of financial powers to the centers, units
and autonomous organisations within the Ministry. The Committee has also examined the
purchase procedures with a view to standardize and streamline these procedures. In view of
the enhanced mandate of the reorganized ministry, there has been substantial enlargement in
scope and content of work entrusted to the Ministry. The Committee has studied this aspect
and has recommended certain essential personnel restructuring.
2. EARTH COMMISSION & EARTH SYSTEMS ORGANISATION
2.1 The newly formed Ministry of Earth Sciences (MoES) is headed by the Secretary,
reporting to Hon' ble Minister of Earth Sciences. The Earth Commission, which has been
approved by thc Cabinet and is in the process of being set up, is an empowered body with
financial, administrative and policy making powers. The Organizational chart envisaged for
the MoES is as under.
ORGANISATION STRUCTURE OF MINISTRY OF EARTH SCIENCES
2
Admi ni strati ve Commt,,.. O.Ooh\
K
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2.2 The Earth Commission has been set up to deal with the complexities involved in earth
system science that require continuous up gradation of the methodology, technology and
need for periodic restructuring in the context of the interdisciplinary nature of science and
technology related to Earth Systems. The Commission shall formulate policies, oversee
implementation of these policies in a mission mode and ensure the necessary
interdisciplinary integration. The mandate for the Earth Commission is:
(a)
(b)
(c)
Formulation of the policies of the Ministry of Earth Sciences
Preparation of the budget for the Ministry
Implementation of rules and policies in all matters concerning earth sciences coming
under the purview of MoES
Assessment of the manpower requirement for each of its centres/institutes with a view
to sanctioning/ pruning/ redeploying manpower in and across organizations under its
control
Establishing its own mechanisms for selection and recruitment of the high level
manpower required for MoES programmes
Promoting a strong initiative in human resource development so that appropriate
trained manpower is available for national programmes in earth sciences.
Establishing funding mechanisms for promoting research in different branches of
earth sciences among universities and other centres of research
Acting as nodal authority on all activities relating to earth sciences being carried out
by various agencies of the Government and integrating such activities with the
programmes of the Earth Commission
Creating suitable executive mechanisms, including the establishment of such
additional centres and units as may be necessary and appropriate, for carrying out
the tasks of MoES from time to time
Creating a suitable networking mechanism through appropriate programme offices to
meet programme/project objectives, within the Centres and units of MoES and other
organizations engaged in complementary functions. (As an example, for acquiring
observations from space, specific spacecraft may be developed and launched by ISRO
and data provided to MoES Centres/units).
Taking steps for enactment of suitable national legislation by Parliament on matters
pertaining to earth sciences.
(d)
(e)
(0
(s)
(h)
( i )
c)
(k)
2.3 The Earth Systems Organization (ESO) is responsible for overall technical/scientific
activities. The Secretary of MoES is the Chairman of ESO. ESO will have two major
departments viz., Ocean Development Department (ODD) and India Meteorological
Department (lMD). Erstwhile units of DOD would be the constituents of Ocean Devpt Dept
viz., NCAOR INCOIS NIOT CMLRE ICMAM. Indian Institute of Tronical Meteorolosv
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(llTM), National Centre for Medium Range Weather Forecasting (I{CMRWF), Earthquake
Risk Evaluation Center, dealing with atmospheric sciences, shall be part of the new Ministry
3. ADMINISTRATIVE RESTRUCTURING:
3.1 In view of the Earth Commission undertaking the above tasks, it becomes imperative
that the administrative / technical / scientific mechanisms in the new ministry be
restructured to meet the new tasks and needs.
3.2 The Committee recommends constituting an ESO Council as an apex body to
formulate policies and plans, provide programme directions for the Centres / Units and
review the implementation of the programmes. The ESO Council shall be Chaired by
Secretary, MoES. Director-General, IMD, Scientific Secretary, Directors of IITM, INCOIS,
NIOT, NCAOR, NCMRWF, Joint Secretary (Administration) and Internal Financial Advisor
of the Ministry shall be the members of the ESO council. The member-secretary of the ESO
Council shall be the Scientific Secretary of MoES. The Ministry in future may consider
appointing a chief of Ocean Development Department (ODD) who shall also be a member of
ESO Council. The ESO Council, amongst other things, shall, review the budget proposals,
consider proposals and policies for manpower, recruitment and review, advise on programme
directions in respect of scientific and technical matters and matters related to staff welfare.
3.3 It may be necessary to strengthen programme offices in ESO Fleadqurters with
programme directors / co-ordinators for each programme. Programme Offices will be
manned by Senior scientists who are experts in their fields. The programme directors will
assist Chairman, ESO in providing overall programme directions for the ESO, evolving long
term plans including five year plans, technical interactions with centers/units, international
co-ordination / co-operation, linkages between research and operational services and inter-
agency co-ordination.
3.4 The administrative structure of the existing organizational entities has evolved o.ver a
period of time depending on the historical background, legal status and organizational
requirements of the entities. The ministry has under it a Department and attached/subordinate
offices. These are IMD, NCMRWI.-, EREC, CMLRE, and ICMAM. In this report
recommendations have been made for the Department and attached/subordinate offices, by
referring to them as Centers and Units of the Ministry, in the paras 3.5 to 3.12. The Ministry
of Earth Sciences also has under it four Autonomous organisations, they are NIOT, INCOIS,
NCAOR and IITM, recommendations have been made for these autonomous organizations.
by referring to them as Institutions, in the paras 3.13 to 3.23
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3.5 All the centers and units of the Ministry of Earth Sciences are recommended to set up
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a four tier manasement structure
.
MANAGEMENT COTJNCIL Chaired by Director of the Centre
.
SCIENTIFIC ADVISORY COMMITTEE consisting of senior scientists
o
PROJECT MANAGEMENT COLINCILS / BOARDS for Projects
o
SUPPORT SERVICES Committees in the areas of Canteen, Library,
Sports, Maintenance, Cultural and Welfare activities
3.6 The Management Councils shall be chaired by the Director and may consist of senior
functionaries of the center representing scientific, teclmical and administrative areas. The
MC shall aid and advice the Director on all-important matters including policy formulation,
budget, manpower, HRD, deputation abroad and welfare measures. The MC shall meet every
month.
3.7 The Scientific Advisory Council shall be the main advisory body of the scientific work
to be taken up by the center / unit. The Council shall tender advice on the scientific and
technical activities / projects that should be taken up and the current thinking of various
scientific and technical frontiers of relevance. The Advisory Council shall also look into
rvhether the mandate given to the Centre / Unit is being realized.lt will also do outcome audit
of the projects. Their inputs shall be vital for the gromh of the unit. The scientific advisory
council shall be the de-facto think tank of the centre/ unit. It shall be headed by a Senior
Scientist of National / International repute (outside MoES) and shall have representation from
the different scientific and technical activities of the organization. The council should also
have as its members scientists and technologists who have distinguished themselves in their
area of specialisation. One of the Senior Scientists of the organization shall be the Member
Secretary of the Council. It shall have not more than l0 Members. The Scientific Advisory
Council shall have no executive role and no executive powers. The advisory committee shall
meet at least twice in a year and shall tender advice to Director of the Centre. The tenure of
the Scientific Advisory Committee shall be fixed and shall be for a period of not more that 3
years
3.8 The Committee is of the view that in order to deliver on the mandate, the MoES
should ensure that nicst of the activities of the Ministry are organized in a project mode.
This will ensure that the activities are completed on time and within the sanctioned project
cost and also that the outcome of the activities do correspond to the intended targets. In that
case, it will be necessary to have an appropriate structure for managing the projects. The
Committee will recommend that in case of projects with substantial financial implications,
mission criticality and of urgent national importance, the Project Management Councils
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(PMC) and Project Management Board (PMB) be created. The PMC and PMB shall be
constituted by Secretary, MoES.
3.9 The Project Management Council (PMC) will be responsible for managing the project
and ensure that the project is completed on time, within the approved cost meeting all the
technical objectives. It shall be headed by the Director of the Center implementing the
project and in case of projects involving more than one centre, by the Director of the lead
center. The Project Director will be the member-secretary. The Prograrnme Officers
concerned in ESO Hq, the internal financial advisor in the Ministry and Joint Secretary
(Finance)/Director (finance) will be members of the PMC. In addition, experts on the subject
of the project working in MoES should also be co-opted as members with the approval of the
Secretary, MoES / Chairman, ESO. PMC shall also have financial powers for sanctioning re-
appropriation within the budgeted amount and scrutinizing the budget proposals. PMC shall
meet as often as required, but not less than twice ayear.
3.10 Every project shall also have a Project Management Board, headed by the Project
Director who shall monitor the progress and performance of the project and decide on issues
concerning day-to-day implementation. It shall meet bi-monthly or more often if required.
PMB should be given appropriate financial powers to ensure smooth running of the project.
Where necessary, Secretary MoES may appoint certain external experts to assist the project
management board / counci l .
3.11 ln addition to the above mentioned bodies, it is recommended that each center / unit
may set up individual committees for support and services functions such as Canteen,
Library, Sports, Maintenance, Cultural and Welfare activities. The committee should have
representatives from cross section of the unit / center (including unions where applicable) in
order to elicit their inputs and views for providing effective services in the respective areas.
3.12 The structure of existing Committees like the CMAS (of IMD) and PIC (of
NCMRWF) may need to be reviewed and restructured in line with the above
recommendations.
3.13 The MoES has four autonomous bodies now. These bodies came in to existence as
follows: NCAOR was set up in May 1998, NIOT was set up in Nov 1993, and INCOIS was
set up in February 1999, II' |M was set up 1972. Each of the autonomous body is registered
under the Societies Act of the State and is governed by its Memorandum of association, Bye-
laws etc. The affairs of each of the Society are governed, managed, administered, directed
and controlled, subject to the Byelaws of the Society, by the Governing Council.
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3.14 With the formation of Earth Commission and ESO as the executive arrn, in order ,o-
ensure that all the organizations in the MoES work in synergy to achieve the unified mandate
of the MoES, it would be appropriate for the four Autonomous Bodies to explicitly state in
the Memorandum of Association that "The organization shall work as the technical arm of
the Ministry of Earth Sciences".
3.15 It is recommended that the autonomous bodies have a four-tier structure
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Governing
Council, Management Council, Scientific Advisory Council and Finance Committees to
manage its affairs. Governing Council will remain the highest executive body to carryout the
objectives of the organisation as per the Memorandum of Association and also as per the
directions of the Earth Commission
3.16 The Autonomous bodies work under the guidance of their Governing Councils to
fulfill the stated Objectives. There is a legal requirement of each Society to have a Governing
Council; in the new framework Governing Council may be re-cast along the proposed lines:-
(a) The Goveming council should be a body of not more than l0 members.
(b) The Governing Council should be headed by the Secretary of MoES or a Senior
Scientist of National / International repute (Outside MoES) in which case Secretary,
MoES should be a Member.
(c) The tenure of the Governing council should be for a period of 5 years.
(d) The composition of the governing council should be
o
Chairman
o
At least 3 scientists/ other Centre directors as nominated by the MoES as
members
o
IFA of the Ministry ( Shall be permanent Invitee if below the rank of JS)
o
Joint Secretary of MoES
o
Chairman of Scientific Advisory Council of the organisation
o
An officer of the Ministry as nominated by the Secretary, MoES
o
Director of the autonomous body as Member Secretary
(e)
Quorum
should be fixed at 4 members, including Chairman.
(0 The existing powers and functions of the GC shall continue to be the same.
3.17 The Governing Council is empowered to undertake without reference to MoES, irter
alia, decisions on
Undertaking scientific research projects approved in and within the annual
budget.
Undertaking joint
projects with other national institutions/ laboratories in the
countrv.
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Conducting workshops and seminars in India.
Participation in international workshops / seminars abroad.
(Chairman' s
approval alone will suffice)
3.18 Considering the sensitive nature of work and its national importance, it is
recommended that GC may seek specific approval of the MoES for the following:
Acceptance of work from Defence or Intelligence agencies.
Disposing off immovable property.
Undertaking projects and consultancy with foreign countries/ international
agencies.
Short
-term
research / consultancy assignments abroad.
Conducting international workshops / seminars in India beyond the monetary
limit of Rs 20 lakhs.
3.19 The Bye-laws and Rules of all the autonomous bodies were examined. It is seen that
there are note worthy variations in the Byelaws of the dillbrent institutions. These variations
in the byelaws are shown in a tabular format at Annexure II. As all Institutions are working
under the umbrella of one Ministry/Commission there should exist some uniformity in their
byelaws. To achieve a commonality in the functioning of all the Institutions, it is
recommended that the Ministry should after examining the rules of all the autonomous bodies
bring them to a uniform standard.
3.20 Also, after a detailed perusal of the powers and functions of all the Societies it is
proposed that all Societies for the purpose of uniformity, in the Functions and Powers of the
GC should, inter alia, explicitly state that the
"
The Governing Council shall be the highest
executive body of the organization. It shall be the
.function
of the Council generally to carry
out the obiects of the organization as set.forth in the Memorandum of Association and also as
per the directions of the Earth CommissioniGovernntent given in consonance wi'th the
Memorandum of Assuciation.
"
3.21 The role of the Finance Committees shall remain the same as it is at present. They
shall examine and scrutinize the annual budget of the Society and shall aid and assist and
give recommendations to the Governing Council on any financial matter. The
recommendations of the Finance Committee shall be placed before the Governing Council.
After the approval of the Governing Council the budget shall be placed and examined by the
E,SO. There is however a need to set in place certain guidelines regarding the financial
delegation within the organizations. This issue will be discussed at alater point.
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3.22 The Finance Committee shall be headed by the JS of the Ministry and shall have as
members the Director of the Institution, IFA of the Institution, IFA of the Ministry,
Programme officer of the ESO; it shall meet minimum 3 times a year. Its role shall be
primarily (a) to watch and review progress of expenditure against Grants and Appropriation,
(b) to watch the receipt of book debits, (c) to prepare realistic revised estimates (d) to ensure
timely surrender of anticipated savings. (e) Scrutiny of the Budget in accordance with the
instructions issued by Finance Ministry from time to time and with the time schedule
prescribed by it. (f) Examination of proposals for supplementary demands.(g) Identification
of spccific savings available for creation of posts.(h) Fixing the sitting fees to nt-rn-official
members of the various committees.
3.23 The Management Council structure and functioning shall be the same as that of
Centresfunits described above in para 3.6. The Project Management Board and Project
Management Council shall also work on the same lines as described for Centres/Units in
par as 3. 8- 3. 10.
4. FINANCIAL RESTRUCUTRING
4.1 With the commission structure in place, it is envisaged that Earth Commission will
have full power of the Government, both administrative and financial for carrying out the
work of MoES, inline with Space Commission / Atomic Energy Commission. The
Commission has a Member for Finance (MF) of the rank of Secretary to the Government of
India, who will exercise the porvers of the Government of India in flnancial matters. It is
recommended that MF be assisted by an Officer of the rank of Joint Secretary or Director and
other essential staff for scrutinizing the proposals which require the approval of MF.
4.2 MoES is recommended to establish an Internal Finance System with the built in
machinery for expenditure control to facilitate maximum down delegation of power. Under
this system, the MoES will have Internal Financial Advisors (IFA) and all the Financial
powers delegated to MoES will be exercised upon the advise of IFA subject to the limits
prescribed in the Book of Delegation of Financial Powers. IFA of the MoES shall be not
below the rank of Director to GOI. For eflective internal financial control, large centres /
units and large projects are also recommended to have an Internal Financial Advisor and
Heads of the Centres / Units and Project Directors shall exercise the financial powers
delegated to them rvith the advise of IFA.
4.3 MoES is recommended to establish an accounting system under the supervision of
Chief Controller of Accounts (CCA).
,
who will also assist the Secretary, Ministry of Earth
Sciences as the Chief Accounting authority of MoES. The major accounting function would
include monthly compilation expenditure, consolidation of accounts, providing management
information of accounts related functions and such other mandatory requirements specified by
Government of India. The Ministry shall also have appropriate Pay & Accounts Officer and
Administrative Committee Report
Cheque drawing and disbursing officers who are familiar with Government accounting
system. Necessary training shall also be imparted for the accounts officers on various
Government accounts officers. MoES is also recommended to establish an Internal Audit
System under the guidance of CCA.
4.4 In respect of powers to sanction expenditure on Projects/Schemes, the Committee
recommends t he f ol l owi ng:
(a) MoES to have powers to sanction expenditure on Projects/Schemes with
estimated cost below Rs.10 crores.
(b) Where the estimated cost exceeds Rs.l0 crores and upto Rs.25 crores, the
power shall be exercised in consultation rvith MF.
(c) More than Rs.25 crores and upto Rs.l00 crores, Earth Commission approval
will be required.
(d) More than Rs.l00 crores, approval by the Cabinet with the recommendation of
the Earth Commission.
4.5 The Committee also recommends the following powers for entering into contract for
purchase of stores and equipment:
(a) Centres/Units/Autonomous institutions will have powers to enter into contract
upto contracl value of Rs.l crores without reference to MoES and with the
concurrence of IFA of the institution. Recommended to suitably redelegate this
power down the line to ensure speedy procurement.
(b) Beyond Rs.1 crores and upto Rs.3 crores, MoES shall exercise the powers in
consultation with IFA of the Ministry.
(c) Beyond Rs.3 crores and upto Rs.5 crores, MoES shall exercise the powers in
consultation with the representative of the MF.
(d) Beyond Rs.5 crores, the powers shall be exercised by MF.
It may be noted that
' exercising
power' means approval on file. the actual contract will
be signed by the head of the unit /Center ilnstitution and shall subsequently be
managed by hi m.
4.6 Few other imporlant delegation recommended by the Committee are as below:
(a) Reappropriation powers with MoES upto Rs.5 crores in a subhead. Beyond this
limit, MF shall exercise the reappropriation powers.
(b) Reappropriation powers within a subhead
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Full powers to Directors of Centres
/ Unit to be exercised with the advise of IFA of the CentreiUnit.
(c) Creation of posts under FCS
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Full powers to MoES. Recommended delegation
to Centre Directors upto SD level. Creation of other posts as per GOI
guidelines.
(d) Unbudgeted items upto Rs.50 lakhs with the MoES. Recommended delegation
to Centre directors upto Rs.5 lakhs.
l 0
Deputation abroad
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MoES.
Powers to Write-off
Rs.10 lakhs and upto
representation of MF.
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recommended to keep this power only with Secretaff
losses
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Powers to MoES upto Rs.l0 lakhs. More that
Rs.20 lakhs powers to be exercised in consultation with
Delegation to CentresAJnits upto Rs.0.50 lakhs.
4.7 An overall frame work for the Delegation of Financial Powers for MoES is provided
in Draft at Annexure
-lII,
which also details the Financial Powers in other areas such as
contingent expenditure, power to write off losses, sanction of grants and loans, etc., for
consideration of MoES
5. PURCHASE & STORES PROCEDURE:
5.1 MoES is recommended to evolve its own Purchase Procedure and Store Procedure to
be adopted uniformly by all the CentresAJnits including Autonomous institutions, with due
regards for the special nature of the MoES activities.
5.2 All indents beyond Rs.5 lakhs value (total value) to be scrutinized by Need Aspect
Review Committee to critically look at the need aspect, technical specifications, proprietary /
specific brand nature and other important aspects of procurement.
5.3 A Purchase structure consisting of Junior Purchase Committee (JPC), Senior Purchase
Committee (SPC) and Contract Finalisation Committee is recommended. A proposal may be
referred to any one of these committees depending on the value. It is recommended that all
purchase files of more than Rs. I crores value shall be invariably referred to Contract
Finalisation Committee. MoES shall appropriately define the limits for JPC and SPC.
5.4 Purchase procedure should have provisions for special procurement requirements of
MoES such as Emergency procurement, development contracts, single-tender contracts, cash
purchase and e-procurement with well defined approving authorities for each. Purchase
procedure should also clearly spell out do' s and don' ts also.
5.5 Each CentreAJnit is recommended to constitute a Committee for vendor directory
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addition, deletion and evaluation of vendors and the vendor list shall be the basis for all the
tender floating.
5.6 Any deviatiol from Purchase procedure should be an exception, to be approved only
by the Director of the Centre/Unit.
5.7 Each Centre / Unit is recommended to have a separate Purchase division and all the
purchases and correspondences related to purchase are handled only through purchase
division.
(e)
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5.8 It is recommended to appropriately redelegate the purchase approval powers down the
line within the centre/unit to ensure speedy procurement.
5.9 In respect of smaller units where it is not feasible to have separate purchase manned
by senior officers. It is recommended that purchase processing is handled by a designated
functionary. MoES can also consider the option of processing the files upto recommendation
stage by the units and then send to the designated unit for purchase approvals.
5.10 A Draft purchase procedure is at Annexure
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IV is suggested, which details the
suggested procedure for procurement to be uniformly adopted in all the Centres / Units of
MoES i ncl udi ng aut onomous uni t s.
6. MANPOWER RESTRUCTURING
6.1 The personnel of the Ministry and all its Centersfunits/Institutions shall be classified
into two cadres:-
(a)
Scientific / Technical Cadre
(b)
Administrative Cadre
There shall be no other grouping of posts.
Sci enti fi c & Techni cal cadre
6.2 All the Scientific & Technical personnel are recommended to be rationalized under
three categories viz.
(a) Scientists / Engineers,
(b) Junior Scientists (Alternatively may be referred to as Scientific Assistants / Technical
Assistants)
(c) Technical Assistant (Alternatively may be referred to as Technicians / Tradesman)
Recruitment
6.3 At present, the different organizations and units of the MoES are recruiting scientists
and technicians following different procedures. IMD recruits through UPSC while the other
institutions do direct recruitment. As the Ministry and its units are doing scientific work,
which is quite unique, complex and inter-disciplinary in nature, it is recommended that
MoES should formulate its own recruitment and review rules (subject to approval of
competent authority) and should have full powers for recruitmerrt of its staff without
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necessarily going through UPSC. These will also apply to the autonomous institutions.
*Rs
ISRO and DRDO have approved procedure of recruitment of scientists and technical
assistants, MoES may also tie up with them for selecting the candidates empanelled by them
that meet the
job
requirements and qualifications of this Ministry and its organizations.
Modes of Recruitment
6.4 All the Group-A & B posts are recommended to be filled up through All India level
advert i sement . For recrui t ment t o grades Sci / Engr-B (Rs. 8000-13500) and above,
advertisement should be made at the national level, except for posts filled through campus
recruitment. Campus Recruitment may also be made for ME/M.Tech in SciiEng-B grade from
prominent institutions like IITs, RECs through an all-ESO Selection Committee.
6.5 Considering the Scientific and Technical nature of the work and the need to undertake
development work in new frontier areas, provision of lateral entry for senior scientists at the
level of Sci/Eng D, E & F is recommended. A special committee for selection may be
constituted by Secretary, MoES or Chairman, Governing Council. Special Recruitment may
also be made in exceptional circumstances particularly when NRIs with specialised
qualifications and expertise become available, with the specific approval of Chairman, ESO,
on a case t o case basi s.
6.6 As per the prevailing instructions of the Government, Group-C & D posts shall be
filled up by contacting local employment exchange in addition to advertisement in
employment news. Local Employment Exchange should be approached for recruitment of
personnel in the scale of pay of Rs. 4000-6000 and below. In addition, advertisement should
simultaneously be released in the Employment News. too. Recruitment should be made by
advertisement in local or regional newspapers for grades above Rs. 4000-6000 but below
Sci/Engr-B.
Appointment of Directors / Director-Generals:
6.7 The Appointment to the post of Head of the Institution/Director/ Director General
should be made on the basis of the recommendations of a Search-Cum-Selection Committee,
with the approval of the Hon. Minister (MoES). For this appropriate rules and procedure for
selection of suitable candidate including qualifications, be prescribed by the Ministry. The
Search-Cum-selection Committee shall be constituted by the Chairman, Earth Commission.
The Secretary, MoES shall be the Chairman of the Search-Cum-Selection Committee.
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Appointments for Autonomous Institutions:
6.8 The Appointment to the post of Director in respect of autonomous bodies should be
made by the Council, with the prior approval of the Hon. Minister (MoES), on the basis of the
recommendations of a Search-Cum-Selection Committee. For this appropriate rules and
procedure for selection of suitable candidate, including qualifications, be prescribed by the
Governing Council from time to time. The Search-Cum-selection Committee shall be
constituted by the Council, with the prior approval of the MoES. The Secretary, MoES shall
be the Chairman of the Search-Cum-Selection Committee.
6.9 In the event of the post of director remaining vacant for any reason, the Secretary,
MoES shall authorize any officer or officers of the Institute or Director of any other Institute
under the administrativc control of MoES to exercise such powers, functions and duties of the
director till a regular Director is appointed.
6.10 Appointments to the posts with pay scales above the scale of Rs.10,000-13,500 shall
be made by the Chairman, Governing Council and ex post facto approval of the Governing
Council shall be taken.(This shall include all cases of lateral entries and the appointment of
Sctt / Engg C having Ph.D degrees). Appointments to the posts with pay scale of and upto the
scale of Rs.8000-13500 shall be made by the Director. Rules and procedures for selection of
candidates, including the qualifications prescribed for each post will be the same for the
Ministry and its units.
Reservation for SC/ST/ OBC/PH candidates
6.ll The MoES. being a scientific/technical organisation, requires pcrsonnel with high /
specialized skill levels and technical excellence. It is recommended that MoES should be
exempted from reservation for SC/ST/OBC/PH candidates for Grades above Rs.5000-8000
scale
-
for scientific / technical cadre.
6.12 Reservation orders of the Govt. of India for such SC/ST/ OBC/PH recruitments in
these cadres shall be applicable only to the Ministry and its organizations (including
Autonomous bodies) for grade upto and including Rs 5000-8000. Selection Committees are
competent to examine and decide the extent of relaxation in respect of standards of evaluation
to be made in respect of candidates. Such relaxation is allowed only for filling up of posts
reserved for candidates
t 4
Promotions
Administrative Committee Report
i tnt
\_
6'13 By the Mandate given to each organization under the Earth Commission the Ministry
and its units are Scientific Organizations. Prof. Narsimha Committee has also reiterated this
view. It is therefore recommended that all the Scientific and Technical staff of MoES be
brought under the merit-oriented FLEXIBLE COMPLEMENTING SCHEME The
promotion of Scientific and Technical staff by purely merit oriented flexible complementary
scheme implies upgrading the post held by the incumbent to the next higher post if he satisfies
the basic promotion benchmark in terms of number of years
spent in the grade and the
performance
appraisal. The various recommended norms for promotion from one grade to
next higher grade under Scientific & Technical cadre can be on the lines of DAE and DOS.
6' 14 A two-step process for promotion review is recommended- screening followed by
interviews. The screening parameters, amongst other things should give rveightage to the
contribution of the Scientists in his area of work and the training aspect. For review of
technical Stafl MoES may prescribe Trade Test and/or Written Test for lower level posts
depending on the functional requirement.
6.15 For enabling a common review system of all scientists and of all technical staff of
MoES and all its Centers, Units and Autonomous institutions, it is recommended that the
Ministry should evolve a common objective annual performance appraisal system which may
form the basis for all the reviews. The performance appraisal form should also address the
work of scientific administrators and managers, who would be primarily working in ESO Hq.
6' 16 The following review mechanism is recommended for Departmental Promotions.
The promotion reviews for the post of Sci/Eng D (Rs. 12,000
-
16,500) and
above it is recommended it be centralised at the Ministry level to ensure
uniformity in standards. First promotion review ie. from Scientist B to
Scientist C level can be done in a decentralized fashion. at the Center.
Institution level.
For Sci/Eng-D & E, MoES should constitute committees chaired by Senior
Scientists preferably of the level of Director of organizations and at least two
external experts should co-opted in the Committee.
The committee for Sci/Eng-F (Rs. 16,4000-20,000) should be chaired by
Secretary, MoES, one member of the Earth commission. two external experts,
representative of DoPT and all the Directors of autonomous institutes, DG-
IMD and Director of the respective project.
(a)
(b)
(c)
l 5
Administrative Committee Report
For Sci/Eng-G (Rs. 18,4000-22,400) and above, no interview is recommended.
The Committee should be chaired by Secretary, MoES, two Secretaries from
other Scientific Departments, one member Earth Commission and
representative of DoPT.
The review process for Sci/Eng B / Junior Scientists and Technical Assistants
shall be done by the respective committees constituted within the Autonomous
organization/IMD/Centers and the Ministry shall conduct it for its employees.
6.17 MoES should workout a process of rationalization and normalization for
implementing the revised promotion norms. vrz the effective date of promotion as it involves
a detailed study of the existing personnel in the various pay-scales, their residency periods.
6.18 The Review for Promotion shall be done twice ayear on rationalized dates. Those
who complete the prescribed residency period in a particular grade (with three months before
or three months after the rationalized date of review) will be considered for review as on that
date. For instance, for review as on 1' t April. those who would complete the prescribed
residency period between 1" January and 3Oth June wilI be considered. Residency period for
various posts is indicated. For exceptional cases, there should be a provision to consider for
merit promotion after completion of two years service in a grade. The effective date of
promotion will be from the above-mentioned rationalized date(s), as recommended by the
DPC
Transfers
6.19 The Ministry and Society shall have the right to transfer an employee anywhere in
India and abroad. It shall also have the right to transfer its employees to any organization
under the administrative control of the Ministrv of Earth Sciences.
6.20 The scientists working at the ESO headquarters as Programme officers should not be
limited to being only science administrators. They should be encouraged to take up field
assignments with the various projects and programmes of the Ministry. This Movement of
scientists from the headquarters to the field shall help the scientists stay abreast with the
scientific work and not be limited to only managerial work. The ministry may like to consider
giving a stipulated tenure for (scientists at level E and below) after which it shall be
mandatory for these scientists to do field postings.
Structure of the Scientific and Technical Cadre
6.21 The Committee recommends the following Norms for recruitment and promotion for
MoES, (based on a study of DOS norms)
(d)
(e)
t 6
Administrative Committee Report
\\.,u
Table l: New Scales of pay, Induction method and the basic requirements (Norms) proposed
for the restructured Scientific and Technical Cadre into three catesories.
l.
*ME
to move to next grade faster, lower minimum residency period.
2. #Only Ph.D direct recruitment.
The technical assistants shall be the following, including, carpenters, mechanics, electricians,
draughtsman, radio mechanics, sheet metal workers etc.
Scientist
/Engineer
New
Desisnation
Pay scale I nduct i on
met hod
Norms
Sci/Eng B 8000- I 3 s00 Direct
recruitment
Msc/BE/ME
Sci/Eng C l 0.000-l 5200 Direct
recruitment and
promotion
Ph. d#;
ME+2 yrs as Sci
B* ;
BE +4 yrs as Sci
B;
Sci/Ene D 2. 000- 16500 Promotion Sc C +4 yrs
Sc/Ene E 4, 300- 18300 Promoton Sc D+4yrs
Sc/Ene F 6.400-20.000 Promoton Sc E+5yrs
Sci/Ene G 8.400-22400 Promoton Sc F+5vrs
Sci/Eng H Sci G +2000
spl
allowance
Promotion Sci G+ 3 yrs
OS 24,0s0-26000 Promo on H+5yr s
DS 26,000 Promo on OS+3yr s
Juni or Sci ent i st New
desienation
New Pay
Scales
I nduct i on
met hod
Norm
Junior
Scientist A
5500-9000 Direct
Recruitment
B. Sc/ Di pl oma
Junior
Scientist B
6500- 10, 500 Promotion J. Sc A+5 years
Junior
Scientist C
8000- 13, 500 Promoti on J. Sc B+7 years
Junior
Scientist D
10, 000- 15, 200Promotion J. Sc C+7 years
t 7
Admi ni st rat i ve Commi t t ee Report
Techni cal
Assistants
New
Desisnation
Pay scale I nduct i on
met hod
Norm
T. A- A 3, 050- 4, 590 Direct
recruitment
l0+2, with trade
certificate in the
relevant line of
expertise required
from ITI
T. A- B 4.000-6,000 Prornotion TA A+5 yrs
T. A. C 4,500-7,000 Promotion TA B+5 yrs
T. A- D 5,000-8,000 Promotion TA C+5yrs
T, A- E 5.500-9,000 Promotion TA D+5
yrs
T. A- F 6, 500- 10. 500 Promotion TA E+5
yrs
6.22 The prescribed experience should have been obtained after acquiring the prescribed
educational qualifications. Relaxation, if any, in the educational qualifications and/or
experience is not normally permissible. The degree/diploma qualification referred to in the
norms must have been obtained in FIRST CLASS onlv or its certified equivalent.
6.23 At recruitment time, if the candidate called for interview possesses higher
qualifications/experience than that prescribed for the post, such higher
qualification/experience shall not bestow any advantage what so ever, including
consideration for any higher grade by virtue of such qualifications/experience.
6.24 A Category Change Merit Selection is recommended to be introduced; If a person
(with B.Sc or Diploma)
joins
MoES and acquires BE or M.Sc or Equivalent, the scheme
should provide avenue for the person to switch over from Junior Scientist Cadre to Scientist /
Engineer cadre through a special interview. Similar provision should be available for a
Technical Assistant to switch over to Junior Scientist cadre upon acquiring B.Sc or Diploma.
The Category Change Merit Selection Scheme should be a formal system with a process of
examination, interview and screening on All-MoES basis and strict quality / performance
standards should be followed. It is recommended that the Ministry formalizes this scheme
for all its units. However, only the M.Sc/BE degree acquired during the working in
MoES/lnstitution shall quality for, (shall not recognize previous degree, ie the degree
acquired before
joining
in this Cadre) category change after Special Review from Junior
Scientist to Scientist Cadre
l 8
Administrative Committee Report
l,W
\_
Admi ni strati ve Cadre
Administrative staff shall look after three
Establishment and General Administration
Purchase and stores
Finance and Accounts
6.25 The
Ministry
(a)
(b)
(c)
functions of the Institution I Centre I
Recruitment
6.26 Recruitment of all Administrative staff and staff of support functions, of the Ministry
and its units shall be done directly by the Ministry and / or the Autonomous organizations.
For recruitment of personnel in the scale of pay of Rs. 4000-6000 and below, the local
Employment Exchange should be approached to sponsor the candidates. In addition,
advertisement should simultaneously be released in the Employment News, too. For
recruitment of personnel to the grade of Rs. 5500-9000 and above, advertisement should be
made at national level. The staff of support functions shall be inducted at entry level with
qualification of l0+l12+, with necessary skills required for the
job
Promotion
6.27 Promotion of Administrative staff is proposed to be vacancy based with limited FCS.
Even though certain posts may be earmarked for promotion, the Ministry /Institution shall
reserve the right to recruit personnel to any grade. when no one is found suitable for
promotion or with a view to induct fresh blood in the organisation. The Staff of the support
functions of the organization shall after entry level be given at least three promotions
during their career span.
Reservation for SC/STl OBC,P-H candidates
6.28 Reservation orders of the Govt. of India for such SC/S' |/OBC/PH recruitments in
these cadres shall apply. Selection Committees are competent to examine and decide the
extent of relaxation in respect of standards of evaluation to be made in respect of candidates.
Such relaxation is allowed only for filling up of posts reserved for candidates.
6.29 The proposed structure for recruitment and promotion for Administration, Stenos,
Translators shall be as below. 1' he proposed structure for the other support staff of Gp C and
Gp D is not exhaustively defined here but shall followthe similarpattern of induction and 3,4
promotion during the entire career span. Illustrative cadre structure for helper staft-, drivers
and cooks is given below.
t 9
Administrative Committee Report
Administration New
designation
T,DC
UDC
Admn asst
A
Admn asst
B
AO
AO t l
AO i l l
Di rector
DDG I or
any other
desi gnat i on
Pay Scale Induction
method
3050- 4590
4000-6000
5000-8000
5500-9000
Direct
recruitment
Promoti on
Promoti on
Promoti on
Promoti on
Promoti on
Promoti on
Deputati on
Norm
No new
recruitment
at this level
Graduate with
computer
ski l l s
Limited
FCS
Limited
FCS
Agai nst
vacancy
Agai nst
vacancy
Agai nst
vacancy
Agai nst
vacancy
6500-
10, 500
8000-
13, 500
10, 000-
15,200
12, 000-
16, 500
14, 300-
18, 300
ItsP
\:-
Administrative Committee Report
Translator NAME OF
THE POST
Junior
Translator
Senior
Translator
Hindi Officer
Senior Hindi
Officer
PAY SCALE INDUCTION
METHOD
Direct
Recruitment
Promotion
NORMS
MA in
English/Hindi
Jr. Translator
+5yr s
Sr. Translator
+5yr s
H.O + 7 yrs
l
I
5000-8000
5500-9000
6500- l 0500 Promotion
Promotion
Stenos NAME OF
THE POST
Stenographer
Grade
Steno Gr. II
Steno Gr. I
Private
Secretary
Sr. Private
Secretary
PAY
SCALE
4000-
600
TNDUCTION
METHOD
Direct Recruitment
Promotion
Promotion
Promotion
Promotion
NORMS
12+, ski l l of 80
w.p.m in
shorthand and
30 w. p. m i n
typing
Stenographer
Grade + 8yrs
Stenographer
Grade II +3yrs
Stenographer
Grade I +3yrs
PS + 3yrs
s000-
800
5500-
9000
6500-
I 0500
7500-
12000
21
Administrative Committee Report
Helper
staff
New
Desisnation
Pay scale Induction
method
Norms
Helper gr I 2550-3200 Recruitment +8 with
necessary
Helper gr 2 2650-4000 Promotion Gr l +5
Hrlp,elglL
Helper sr 4
3050-4590Promoton G12+7
3200-4900 Promoton Gr3+7
Helper sr 5 4000-6000 Promoton Gr4+7
Drivers New
Desienation
Pay scale Induction
method
Norms
Driver grl 3050-4590Recruitment 10+2 with
necessary
driving
license
Driver
gr2
4000-6000 Promotion Grl+7
Driver
gr3
4500-7000Promotion Gr2+7
Driver
gr4
5000-8000Promotion G13+7
Cook New
Designation
Pay scale Induction
method
Norms
Cook gr 1 2610-3540 Recruitment +10 wi th
necessary
cooking skills
Cook er 2 3050-4590Promotion Gr l +7
Cook sr 3 3200-4900 Promotion G12+7
Cook er 4 4000-6000 Promotion Gr3+7
22
Admini strative Commir,". n"por,S{
Executive Summary
The new Ministry of Earth Sciences has been formed for taking an integrated view of Earth System
Science and to study the interdisciplinary links to understand phenomena like global climate
changes, in addition to address all Science and Technology issues related to ocean and atmosphere.
The organizations working under it are IMD, NCMRWF, IITM and erstwhile institutions of DoD
(NIOT, NCAOR, INCOIS, CMLRE and ICMAM)
To achieve this objective, the Earth Commission, a high level empowered body with full
administrative and frnancial powers, on the lines of Atomic Energy and Space, shall guide the
MoES.
As the different units under the Ministry have quite a different administrative setups and most
of them have no formal cadre structure, the Secretary MoES constituted a committee chaired
by Mr. S.K.Das, Former Member Finance, Space Commission to address the issues of
administrative restructuring to bring uniformity of operations and to ensure a smooth, efficient
and transparent administrative system within each Centre / Unit.
Administrative Structure
The Earth System Organisation (ESO) shall provide overall programme directions in the area
of Earth Science, Atmospheric Science, Oceans Science and Technology. The ESO Council
shall be constituted as an apex body to formulate policies & plans, provide programme
directions for the Centres / Units and review the implementation of the programmes including
budget, manpower etc. Directors of all units shall be its members, Secretary, MoES, shall
chair it and Scientific Secretary of the Ministry shall be the Member-Secretary, ESO Council.
A four tier management structure has been proposed for MoES Centres / Units
1. Management Council- will aid and advice the Director on all important matters including
policy formulation, inter-se programme priorities, budget, manpower, HRD, deputation
abroad and welfare measures. Members of MC shall include senior functionaries
representatives in scientific, technical and administrative areas of the Centre / Unit, it shall be
chaired by the Director of the Centre / Unit.
2. Scientific Advisory Committee shall be the defacto think tank of the Centre / Unit. It
shall consist of senior scientists and external experts in the field. It will tender advice on the
scientific and technical activities and projects being / to be taken up in the Centre / Unit and
current thinking in various scientific/technical frontiers of relevance. Importantly it shall
review whether the mandate given to the Unit / Centre is being realised effectively.
3. Project Management Councils / Boards
-Project
/ Mission mode of working is
recommended for critical scientific and technical activities to ensure that the activity is
completed within the time frame, within the sanctioned cost and adhering to the technical
specifications. For monitoring and effective implementation, two tiers Project Management
Structure has been suggested
-
the PMC and PMB shall be formed by Secretary (MoES).
ZJ
Administrative Committee Report
4. Support Services Committees (with representatives from the Unions) in the areas of
Canteen, Library, Sports, Maintenance, Cultural and Welfare activities.
In the case of autonomous bodies, in addition to the above the
-
Governing Council and
Finance Committees shall also exist. The Governing Council will remain the highest
executive body to carryout the objectives of the organisation as per the Memorandum of
Association and also as per the directions of the Earth Commission. To achieve the
commonality in the functioning of all Institutions, it is recommended that the Ministry should
examine the rules of all the autonomous bodies to brins them uniform standard.
Financial Structure
Earth Commission to have full powers of the Government including appropriations, re-
appropriations, sanction of expenditure on projects / schemes (up to Rs. 100 crores),
redelegation, contracts for purchase of stores and equipment, defining its own purchase and
stores procedure, creation of posts under FCS and cadre restructuring.
Commission will have a Member for Finance (MF) who shall be assisted by JS(F)/
Director(F). MoES is recommended to establish an Internal Finance System with a built in
machinery for expenditure control to facilitate maximum down delegation of power. Under
this system, the MoES will have Internal Financial Advisors (IFA) and all the Financial
powers delegated to Centres / Units will be exercised upon the advise of IFA.
IFA of the MoES shall be not below the rank of a Director to GOI.
Powers to sanction expenditure on projects / schemes- MoES will have powers to sanction
expenditure on projects/schemes with estimated cost below Rs. l0 crores. Where the
estimated cost exceeds Rs. l0 crores and upto Rs. 25 crores, the power shall be exercised in
consultation with MF. More than Rs. 25 crores and up to RS. 100 crores, Earth Commission
approval will be required. And more than Rs. 100 crores, approval of the Cabinet with the
recommendation of the Earth Commission will be required.
Contracts for purchase of stores and equipment- Centres / Units / Autonomous Institutions
will have powers to enter into contract up to contract value of Rs. I crores without reference
to MoES, with the concurrence of IFA of the institution. Beyond Rs. 1 crores and up to Rs. 3
crores, MoES shall exercise the powers in consultation with IFA of the Ministry. Beyond Rs.
3 crores and up to Rs. 5 crores, MoES shall exercise the powers in consultation with the
representative of the MF. Beyond Rs. 5 crores, the powers shall be exercised by MF.
MoES may evolve its own Purchase Procedure to be adopted uniformly by all the Centres
AJnits including Autonomous institutions. A draft purchase procedure has been proposed.
Manpower Structure
The personnel of the Ministry and its units including autonomous institutions shall be
classified into TWO Cadres viz. Scientific/Technical Cadre and Administrative Cadre.
All the Scientific & Technical personnel are recommended to be rationalized under three
categories viz. Scientists / Engineers, Junior Scientists and Technical Assistant.
24
%
eport Administrative Committee R
MoES is recommended to formulate its own recruitment and review rules and should have
full powers for recruitment of its staff without going through UPSC. All the Group-A & B
posts are recommended be filled up through All India level advertisement. Campus
recruitment is also recommended for ME/M.Tech from prominent institutions like IITs,
RECs. Group-C & D posts be filled up by contacting local employment exchange in addition
to advertisement in employment news. Being a scientific organisation, MoES should be
exempted from reservation (for Scientist cadre alone) for SC/ST/OBC/PH candidates for
Grades above Rs.5000-8000 scale.
The Scientific & Technical Cadre promotions are recommended to be under merit oriented
flexible complementary scheme (FCS), while the promotions under Administrative cadre is
recommended to be vacancy based with limited FCS for lower cadres. MoES should workout
a process of rationalization and normalization for implementing the revised promotion norms.
viz the effective date of promotion as it involves a detailed study of the existing personnel in
the various pay-scales and their residency period.
A system of category change is recommended in order to ensure that the staff is motivated to
upgrade their skills and knowledge.
The report gives details of recommendation on grades, administrative and purchase
procedures and overall governance. Existing grades of 5'h Pay Commission Report have been
adopted and these can be easily mapped to 6th Pay Commission recommendations, as and
when available.
25
Aq
Annexure I
14' nAugust
, 2006
MoES/IMD
/
28
/
4
/
2006-Estt.
Sr-rb;ect
ORDER
Admi ni strati ve
restructuri ng
of MoES
In the context of the formati on
of the Ahni strl , of Fl arth Sci ences and currcnt efforrs rvrth
resPect to i ntegradon
of the actl vi ues of the Nfi ni stq- of O..on Devel opment and atmospheri c sci ences,
namel l ' , IIUD, IITN{, NCN' IRWF ancl the sersmol ogl , acti vrq' of the IIri D, a Commrttee rs berng ser up
to undertake the sci enti fi c restructurl ng
of the
"tmosph.ri c
sci ences, de{rni ng the mandate of each of
these uni ts rvhuch i s expectecl to gi ve i ts recommencl ati ons
i n nvo months ti me. As a paral l el acti r.i fl ,, rt
ls llxportant to admrnistratively
restlucrure the total s\rstem under N{oES providrng uruformrq: of
<-rperati on
of each of these Uni ts, and al so defi ne the admrni suati ve structure wi thi n these Uruts so that
the adrunistratl\'e
funcuorung
of these Unrts
',i,ith
the Nlinism,- rvould be smooth, enabhng and
performance
ori ented rvi th necessaq,mechamsm
for checks ancl bal ances.
2' The Unl ts under the ersnvhi ' l e N{ooD have been funcuoni ng as autonomous ursutuuons r,"' i tl r a
van''mg degree of autonomv and flextbrlitl- rvith all the rules i.irrg ^pproyed b), the respecur.e
cl o' ermng
Counci l s' It woul d- b. ^ppropri ate to ha' e common basrc rul es l i ke recrui tmenr rul cs,
financtal delegations, routing of prt.hore Fr-les and departmental
promotion rules for screntists an<l
adnlnistrati'e
people under its control. Jhe Go'ern-j C.r.r'r.il has a role to play in terms of acri.r,rn
and programmes to be pursued bv each Centre, and the"Ch aiman, Governing io.r.r.il should continue
to act as E'xecutive authoriry over and ab.ve the porvers of the Centre Director. Srrnrlarly, the
-\ttached offi ces at ICN{ANI and CNILRE, neecl tc-, h".1. a ser of mrrumum operarl ng powers dependurg
upon the l evel (grade) of the Di rector.
-l ' on si mi l ar h""t:
-,!:1"
i s a proposi uon to con' err al l the three atmospheri c sci ence u' i rs,
namell' Ii\ID, IiTl\{ and NCI\'fR\7F
to reorganize
as rndependent scienrific rnstitutions rvrth sunilar
ler-el <-if autonoml/ and flexibrliry as been envisaged for the Llnits merrtroned in the paragraph abor.e.
1' In ' i erv of the above, a Commrttee i s herebl consdnrtecl to l ook i nto the aspects abo' e ancl
arri vc at sui tabl e recorntnendati ons
keepi ng rn ' re\\- thc fr-rnctronrng of the vari ous Uni ts/Centres i '
I sl {() r.i s-a-r-i s thei r rel atronshi p r.vi th ISRo Fl eacl cl uarters
/
D,S.
N{r. S.K- Das, Ex-Nfember Frnance, Space Commi ssi on
Chal rman
l rl r. Prakash I(umar,JS, I\IoES
i \Iember
Dr. H.N. Nfadhusudhan,
DoS
Nl ember
Representatir-e
of Irinance N{rnistry
Nlcmber
Itepresentati ve
of DopT
N,Iember
Rcpresentati .r-e
of Pl annrng Comrrussron
l rl ernber
Represenrauve
of I NI D
Nl ember
Representati ve
of IITNI
Nl ember
Represent at i ve
of NI OT
Nl ember
Represent at i r-e nf I NC()I S
Xl et nbr, r
Smt.. Ruchi ka C Govrl , Di rector, X{oES
Nl ember Secrerary
) /_
- : 2: -
5. The Iir{D is a large organizetron rvith its headcluarters at Delh,r, a rnajor office in Pune and sl-r
Regi onal Offi ces across the countrl ' . It al so has manv other offi ces s' i th strength vani ng from bel orv
10 to 40 or 50, s' hi ch are presendv rvorki ng l argel y under the control of Headquarters. Wi ri l e the
Narasunha Cotrrrrri ttce i s addressrng the i ssue of assi gni ng thci r techrrrcal arrd professi onal rol es, thts
Commrttee rvill also look into the admirustratjse orgarizauon sftuctlue at Headquarters of Il\lD and
the desrred level of autonornv and the functronal relatronslup rvrth the Headquarters s'ith respect to all
asPects of admrnrstrati on, be tt personnel , fi nance & accounts, purchase and stores.
6. The Commi ttee ma)' i nvrte esperts from anl ' of the NIoES unrts for cl ari hcati ons/rnformati on.
JS,
IVoES rvoul d seek the necessarl i nfol rrati on frorn the respecl i ve Urti ts antl ptovi cl e al l the uccessarv
inputs and logisuc support to the Committee. The Comrmttee rvill gir.e its recommendations b)'the end
of September 2006.
0.s.
GOEL)
Secretary to the Go' r' ernment of Indi a
To
1. Shri S.K. Das, Ex-l Vl ember Fi nance, Space Commrssi on.
2. Shri Prakash I{umar,
JS,
l r{oES
3. Dr. H.N. I\{adhusudan, ISRO, Bangal ore
4. Representative of Finance N{rnistn', Neu' Delhi
5. Representauve of DoPT, Nerv Del hi
6. Representative of Planmng Commission, New Dellu
7. Representati ve of IIVD, Nerv Del hi
8. Representati ve of IIT\4, Pune
9. Representauve of NIOT, Chennar
10. Represenmt i ve of I NCOI S, Fl vderabad
1i . Smt. Ruchrka C Gor.i l . Di rector. N{oES
Copy to:
'1,.
Secretary, Department of Space
2. Frnance Secretarl', u'ith a request to nomrnate a representatlve
3. Secretarl ' , Deparrment of Personnel & Trai mng rvrth a request to norni nate a representauvc
4. Secretarl , Pl annrng Commrssi on, l ,l th a request to nomi natc x represent2ti v('
5. DG, IN,{D rvrth a requesr ro nomi nare a representari ve
6. Di rect or, I l ' l ' l \ l t ' i rh a requesr ro norni nat e a represent au\ , e
7. Drrect or, N] ( )T rvi t h a requesr t o norunat e a reprcsent auve
B. Di rector, INC()IS rvi th a request to nomrnate a representatrve
Copv al so to:
1. Sr. PPS t o Secret arl ' , NI oES
2. PS t o AS&[ j A, NI oES
3. PS t oJS(A), Ni oL, S
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Annexure I I I
BOOK OF FI NANCI AL POWERS
Introduction
While under the Allocation of Business Rules. 1961, the powers to issue financial sanctions
relating to Ministries of the Government of India beyond their delegated powers are generally
vested in the Department of Expenditure (Ministry of Finance), the Ministry of Earth Sciences
(MoES) is empowered under the same rules to issue its orvn financial sanctions. Such sanctions
are issued with the concurrence of the Member for Finance, Earth Commission, who is ex-officio
Secretary for Finance in the Ministry of Earth Sciences. In other r.vords, the Ministry of Earth
Sciences. like the Department of Space (DOS) and the Department of Atomic Energy (DAE), is
provided with an in-built machinery for expenditure control. The position of MoES, rvhich the
cabinet has approve to have similar powers to DOS and DAE, shall inherit the powers of DOS
and DAE, DOFPRs as such are inapplicable to it.
f' he "Book of Financial Powers" of the Ministry of Earth Sciences is an attempt to codifo the
powers and practices it has inherited form DOS and DAE. It lays down rules with in-built
machinery for expenditure control, MoES. may exercise full financial powers, which most other
Ministries may do only with the concurrence of the Department of Expenditure. It w' ould be
necessary to promulgate rules specifying the levels up to which MOES may exercise powers
without reference to MF and those beyond which MF' s concurrence would be necessary. This is
broadll,the philosophy underlying the "Book of Financial Powers".
The principles to be followed and procedural requirements to be fulfilled by MoES, in
the exercise of its powers are outlined belor.r':
Pre-Budget and Post-Budget Sanctions
The time schedule for formulation of tsudget proposals should be closely adhered in
order to allow sufficient time for examination by Mernber for Finance and for any subsequent
discussions with the Department of Expenditure from the ways and means angle. Every effort
should also be made by the Ministry to refer proposals to MF in such detail as determined
jointly
by Secretary, MoES and MF, for examination before inclusion in the Budget well ahead of the
submission of the Budget.
Where this is not practicable, lumpsum provisions may be made in the Budget. Such
provisions should as far as possible be hased on a realistic assessment of the expenditure likely to
be incurred during the year. They should not ordinarily be merely token provisions. In cases in
rvhich lumpsum provisions are made. the amounts r.vill not be available to the Ministry for the
issue of expenditure sanctions until the schemes have been accepted by the Member for Finance.
Arrangements for Internal Finance
Arrangements should be made by Secretary. MoES for competent internal financial control.
Heads of large constituent units and heads of large projects of the Department should also, where
necessary, be assisted in the exercise of their financial po\vers by competent Internal Financial
Advisers. The posts of such Internal Financial Advisers shall be at the discretion of Secretary,
MoES.
Internal finance functions are described in the Appendix to this book.
Work-Study Units
For control over the growth
of establishments, it is essential that the MoES should set up
competent work-studv units. The power to create posts laid dow-n in this Book shall be exercised
by the competent authorities on the basis of the recommendations of adhoc or standing
committees set up by the MoES or by heads of constituent units. These committees lvill be
assisted by work-study units appointed with the approval of the MoES. The category of posts if
any that may be exempted from this requirement will be notified by Secretary from time io time.
The manner in
"vhich
work-studies should be conducted in relation to various categories of posts
will be regulated by orders issued from time to time by the Ir4oES.
Creation of Posts
Secretary, MoES, may issue orders from time to time indicating the categories of posts for the
creation of which his personal orders should be obtained.
Re-delegation
of powers
It is Government' s policy that administrative ministries should delegate to the maximum extent
administrative
and financial powers to their subordinate authorities with due regard to their
respective levels of responsibilities.
The MoES may. therefore, re-delegate its powers to its
constituent units even in full where justified,
provided that in no case the powers so delegated
exceed its own powers- The Department should constantly review the adequacy of financial
powers delegated to constituent units.
Miscellaneous expenditure
In exercising the power to sanction unusual contingent and miscellaneous expenditure, due care
should be taken to restrict the grou.th
of expenditure on nerv lines or on nerv tlpes of
expenditure.
Reports and Returns
To enable the Member for Finance to exercise a broad control over expenditure sanctioned and
incurred under this scheme, the MoES should furnish to N{F such reports and returns in such
detail and periodicity as MF. in consultation rvith Secretarl,. MoES, may prescribe.
BOOK OF FINANCIAL POWER
L General
l ' l ) These Rul es are i ssued on behal f of t he Presi dent by t he MoES wi t h t he concurrence of t he
Member for Finance. Earth Commission.
l -2) The MoES. rvi t h t he concurrence of t he Member f or Fi nance, Eart h Commi ssi on, ma), , at
any time, by amendment of these rules. revise any provision under these rules. Notu,ithstanding
an1' thing contained in these rules, thc MoES may, with the concurrcncc of lr4enber for- Financc,
by general
or special order, relax any provision ofthese Rules.
1.3) The exercise of the po\\' ers delegated under these rules shall be subject to the principles and
procedures in the General Financial Rules except to the extent these principles or procedures
Itave beert rnodificd urrdcr thcsc Rules.
L4) These Rules shall come into effect form. .2007.
2. Definitions
In these Rules. unless the context otherwise requires:
(a) "Appropriation" means the assignment of funds to meet specified expenditure, provision
for which has been made in a primary unit of appropriation:
(b) "Commission" means the Earth Commission;
(c) "Constituent Unit" means a Centre or Unit or Project under the direct administrative
control of the MoES;
(d) "Finance Ministry" means the Finance Ministry of the Central Government;
(e) "Head of Department" means an authority declared as such by Secretary, MoES subject
to the observance of the following guidelines :
i) The Officer should be Head of an identifiable Organisation/Unit;
ii)
' fhe
maximum of the pay scale of the officer should not be less than of Deputy
Secretary to the Government of India.
(f) "Head of Office" means a Gazerted Officer declared as such under Rule3.2.5 of these
rules;
(g) "Member for Finance" means Member for Finance, Earth Commission, w' ho is Ex-
Officio Secretary in the MoES for Finance;
(h) "Non-recurring Expenditure" means expenditure other than recurring expenditure;
(i) "Primary unit of appropriation" means a primary unit of approoriation as deflned in Rule
4. 1. 2.
(i) "Recurring expenditure" means the expenditure which is incurred at periodical intervals;
(k) "Re-appropriation" means the transfer of funds from one primary unit of appropriation to
another such unit;
(l) "Schedules" means the Schedules appended to these rules, as amended fiom time to time;
(m)"Works" means civil works including internal and external services ancillary to civil
works and embankment and drainase works.
3. Principles relating to:
3.1) Exercise of delegated and non-delegated powers:
The por.vers. which under these rules are vested in the MoES, may be exercised by it
without reference to the Member for Finance, subject to the observance of Principles and
procedures laid dor,r'n in these rules. The powers of Government r.vhich are not hereby vested
in the Ministry of Earth Sciences may be exercised by it with the concumence of the Member
for Finance. provided also that approval of the Earth Commission is obtained lbr proposals or
policies which under its Rules of Business require its approval.
,
3. 2) Re-del egat i on of powers:
3. 2. 1) Thepor ver svcst cdundcr t heser ul esi nt hcMoESmaybyol der bcr cdcl cgat cdby
it to the maximum extent. in full if
justified,
but not exceeding its own porvers. to Fleads of
Department and other senior officers in charge of constituent units or major projects. with
due regard to their levels of responsibilities.
3-2-2) The officers to whom powers have been so redelegated may by order authorise
gazelted
officers serving under them to exercise their porvers on their behalf to the extent
specified in the order. The officers redelegating their powers shall however be generally
responsible to ensure that the officers to rvhom thev have reclelegated their porvers exercise
them u' ith due regard to correctness. regularity and propriety.
3.2-3) The exercise of powers redelegated uncler 3.2 shall be subject ro the
observance of such procedures and principles as may be laid down by the
re-delegating authority.
3-2-4) Secretary. MoES, may declare any officer in charge of a large establishment or
project as Head of Department.
3'2.5) Secretary, MoES or a Head of Department may declare any gazettecl officer
subordinate to him as Head of Office for the purpose of these rules. It is generally not
permissible
to declare more than one gazetted officer as Head of Office, unless there are
two or more distinctly separate establishrnents under a Head of Department, in which
event he may declare one gazetted
officer in each such establishment as Head of Office.
4. Appropriations.
Re-appropriations
and Allotment of Fund
4.1) General principles
relating ro allorment of funds
4' l -1) After the "Demands for Grants" and "Appropriations
for Charged Expenditure"
relating to the MoES rvhich rvill be presented to Parliament by the iinance Ministry
have been Voted Appropriation
Act has passecl b1, Parlianient. the arrruunts so
authorised become available to the MoES for appropriation to meet sanctioned
expenditure.
4.1.2) "Grants"
and "Appropriations
for Charged Expenditure" are distributed by sub-
heads under which they shall be accounted for. Each such sub-heacl is broken up into a
number of detailed heads, which constitute primary units of appropriation. The
aforementioned
sub-heads and primary units are prescribed by Finance Minisrry.
4.1.3) On the "Grant"
being voted ancl "Appropriations
for Charged Expenditure"
being authorized by Parliament, the MoES shall distribute the sanctioned funds where
necessary among the controlling and disbursing officers. Subject to any special rules or
orders issued by the President, the whole or any part of the provision-under
a primary
unit may be placed at the disposal of a controlling or a disbursing officer; or the
primary
unit may be broken into a number of seconclarl, units and the provision under
any of these, wholly or in part, may be placed at his disposal.
4. 1. 4\ Subj ect t o t he exi st ence of speci f i c budget provi si on f br t he purpose, t he MoES
may release funds for investment
as equity capital of statutory corporations or
companies under its administrative
control with due regard to their actual iequirements
as they arise during the
vear, thc funds for the last quartcr bcing rclcascd ip
consultation with Internal Finance.
4.2) General principles relating to appropriations and re-appropriations
4.2.1) The exercise of porvers of appropriation and re-appropriation by thc MoES shall
be subject to the following principles and to any other principles that may be laid
down by the Ministry of Finance which are of general applicability, i.e.. such as r.vould
be applicable to all Departments including one engaged in schemes and projects of
scientific interest.
4.2.2) No re-appropriation shall be made from one "Grant" or "Appropriation for
Charged Expenditure" to another "Grant"
or "Appropriation for Charged Expenditure".
4.2.3) Funds shall not be appropriated or re-appropriated to meet expenditure,
which has not been sanctioned b,v an authority competent to sanction it.
4.2.4) Funds provided for charged expenditure shall not be appropriated or re-
appropriated to meet votable expenditure; funds provided for voted expenditure shall
not be appropriate or re-appropriate to meet charged expenditure.
4.2.5) Funds shall not be appropriated or re-appropriated to meet expenditure on a new
service not contemplated in the Budget as approved by parliament, nor may funds be re
appropriated from any specified ne',v item in the Budget for any other purpose rvithout
the concurrence of the Member for Finance.
4.2.6) Expenditure on rvorks shall be subject to the following further conditions,
namely:-
a) Funds shall not be appropriated or re-appropriated to any work, which has not
received administrative approval.
b) The amount appropriated or re-appropriated to any work shall not, save with the
previous consent of Member for Finance, exceeci the amount approved or sanctioned
for that work by a sum greater than I 5oh of sanctioned amount provided savings are
available elsewhere under appropriate work heads. Where the excess over the
permissible limits is authorized by Member for Finance, the MoES shall be competent
to incur such expenditure if savings are available under appropriate Work Heads.
c) Without the previous consent of the Member for Finance, no re-appropriation
shall be made from the primary unit "Major Works" under Capital Fleads to any other
unit. Where such a provision has been made under the Revenue Major Heads. MoES
may re-appropriate funds between the allied Primary Units, viz., Major Works,
'Minor
Works, Repairs and Maintenance. and Tools and Plant included within the same
Grant. No such re-appropriation can, however, be made form or to the Suspense Head
relating to a work.
d) Re-appropriation for a work not provided fbr in the Budged costing Rupees fort.v
lakhs or above but less than Rupees fifty lakhs rvould require the previous consent of
Member for Finance. If such work is estimated to cost Rupees fifty lakhs or more, it
shall not be undertaken without obtaining the specific approval of Parliament or an
advance from the Contingcncy Fund of India.
4.3) Porvers of appropriation and re-appropriarion
e
4.3.1) Subject to the provisions and restrictions under this Rule. the MoES may
exercise full powers in relation to appropriations and re-appropriations uuithin a
Grant. These powers of re-appropriation rvould apply also to ttre piovisions for loans
in respect of Central Schemes placed at the disposal of the MoES and ro re-
appropriations
among provisions
made for administrative costs. viz., under the
primary units Salaries, Wages. Travel Expenses, Office Expenses, etc.. under a Grant
subject to the total provision made under a Grant for administrative expenses not
being augmented.
4. 3. 2) There shal l be no di versi on
activities under Revenue Heads or
the Member for Finance.
5) General Limitations
of funds intended for Plan Schemes to Non-Plan
under Capital Heads without the concurrence of
by or rvith the
Preside nt or other
5.1) On power to sanction expenditure
5. 1. 1) I t i s a pri mary condi t i on of t he exerci se of al l f i nanci al powers t hat publ i c
revenues may be spent only on legitimate objects of public expenditure.
5.1-2) The exercise of powers under these Rules is subject to the instructjon issued
from time to time by the Finance Ministry regarding expenditure on Nerv Seryice,Alerv
Instruments
of Service.
5' 1. 3) Expendi t ure
or advances of publ i c money ma1' be sanct i oned onl y i n t hose
cases in which it is authorized bv:
a)
b)
the provisions
of any larv for the time being in force;
these or any other rules applicable to the MoES issued
approval of the President;
or
c) any general or special order or direction of the
competent authority applicable to the MoES.
5. 1. 4) No expendi t ure
may be sanct i oned under t hese rul es whi ch i nvol ves t he
introduction
of a new principles
or practice likely to lead to increased expenditure in
future.
5' 1. 5) No expendi t ure may be sanct i oned under t hese rul es i n di sregard of any ban
imposed by the Central Go' u' ernment if applicable to the MoES having regard to the
nature of its activities as decided by Secretary. MoES, lvith the concurrence of the
Member for Finance or the Earth Commission.
5.2) On porver to incur sanctioned expenditure
5' 2' l) No expenditure shall be incurred against a sanction unless funds are made
available to meet the expenditure
by varid appropriation or re-appropriation.
5' 2.2) A sanction rclating to recurring cxpenditure bccorncs opcraLive u,hcl fulcls to
meet the expenditure of the first vear are made available by valid appropriation or re-
appropriation and remains eff-ective for each subsequent year subject to appropriation in
such years and subject to the terms of the sanction.
6) Sanction of Expenditure
6.1) Projects. Stores and Land
6. 1. 1) The MoES shal l have t he power subj ect t o f unds bei ng avai l abl e by val i d
appropriation or re-appropriation. to sanction expenditure on any project. scheme or
work or a scheme or rvork constituting part of a project. irrespective of the rnagnitude of
the expenditure involved, provided the acceptance of the Member for Finance. or the
Earth Commission has been obtained on the basis of a specific proposal. Provided
however that in the case of a project. scheme or work the estimated cost of which does
not exceed Rs.5 crores, the Ministry of Earth Sciences shall have the power to sanction
expenditure on such a project
' uvithout
reference to Member for Finance on the basis of a
mention thereof in the budget proposals submitted to the Earth Commission: provided
however, if the estimated cost exceeds Rs. I crore, the Ministry' s porvers shall be
exercised in consultation rvith the lnternal Financial Adviser, MoES and if the
estimated cost exceeds Rs 3 crores, the Ministrv' s powers shall be exercised in
consultation r.vith the representative of the Member for Finance, Earth Commission.
6.1.2) No expenditure shall be sanctioned without the previous consent of Member
for Finance if it has the effect of substantially altering the scope of the Project or Scheme
as accept ed by' hi m.
6.1.3) In relation to w' orks. the power conferred by this rule shall be subject
to rules applicable to the Central Public Works Department Code or any corresponding
rules issued by' the MoES in consultation with Member for Finance.
6.1.4) The follorving procedure shall be followed fbr approval of revised cost
estimates .
i) Approval by MoES in consultation with the Planning Commission
a) where increases are due to increase in statutorv levies, exchange rate
variation and price escalation, within the approved project time cycle. and
b) the Revised Cost Estimate (RCE) after excluding the escalation due to the
reasons mentioned at (a) above, upto 20o/oin respect of RCE cases less than
Rs.l00 crores and upto l0o/o in respect of first RCE cases of Rs.l00 crores
and above and less than 5o/o in respect of second and subsequent RCE cases
of Rs. l 00 crores and more.
ii) Approval by the approving authority of original cost estimates
Revised Cost Estimate (after excluding the escalation due to increase in
statutorl' levies. exchange rate variation and price escalation rvithin the
approvcd project time c1' cle) of more than 20Yo in respect of RCE cases of
l ess t han Rs. l 00 crores.
iii) Approval b1' the Earth Commission
I n respect of Revi sed Cost Est i mat e of Rs. l 00 crores and above. f i rst
RCE cases exceeding l0% but uplo 20Yn of the original approved cost
estimates (after excluding the escalation due to increase in statutorv levies,
exchangc rate variation and price escalation rvithin thc approved plt-rjcct
t i me cycl e).
it' ) Approval by the Cabinet
In respect of Re' r,ised Cost Estimate of Rs.l00 crores and above (after
exc)uding the escalation within the approved project time cycle due to
ittcrcase in statutory levies, exchange rate variation ancl price escalation),
first RCE cases exceeding20%" of the originally approved cost estimates and
second or subsequent RCE cases involving increase of 5oh or more of the
latest approved cost.
6.1 .5) The act of appropriation or re-appropriation of funds shall operate as
sanction to incur expenditure on minor works and it shall not be necessary to issue
any formal order conveying sanction to incur expenditure in such cases.
6.1 .6) The sanction of competent authority for executing a work, project or scheme
or u' orks carries with it the sanction to incur necessary expenditure on the
purchase of stores or equipment required therefore, provided that the outla), can be
met from the provision made therefore in the approved cost estimated: rvhere
enhanced provision
therefore is found to be inevitable. the approval of the
competent authority shall be obtained for revision of the cost estimates.
6.1.7) The MoES shall have full powers in respect of sanctioning stores and
equipment such as workshop equipment, apparatus, tools, etc.. required by
Research and Development
Centres, their supporling facilities and ancillary
establishments
subject to the availability of funds and provided specific provision
has been made for the purchase of the item in the detailed
-budget
proposal
submitted to the Earth Commission. In the absence of such a specific provision.
the por' l' ers of the MoES in respect of sanctioning such stores and eqr,riprnent shall
be Rs. 40 l akhs.
6-1-8) Powers in respect of sanctioning petty works debitable to contingencies and
storcs debitable to such petty works may be exercised by the NIoES and other
competent authorities under their powers in respect of sanctioning contingent
expenditure.
6.1 ' 9) The MoES is competent to sanction the purchase of lancl lbr w,hich
provision
has been made in the cost estimates of a rvork, project or scheme for
which the land is required, provided the outlay' on the land can be met fiom the
approved cost est i mat es.
6. 1 . 10) The MoES i s al so compet ent t o purchase l and not requi red f or any speci f i c
u' ork or project, provided
a specific provision has been made for the purchase of
such land in the approved budget and provided the ourlay on the land dbes not
exceed the budget provision
by more than 10%.
6.2) On Contingent and Miscellaneous
Expencliture
6. 2. 1\ Def i ni t i ons
a) Contingent expenditure means all expendilure including Office Expenses,
Rents, Rates and Taxes, Publications,
pubricity
Expenses, Storcs and
Equi pment and ot hcr si mi l ar expendi t urc i nci dcnt al t o t he ul al l agcrrrcl t o[
an office or for the working of a technical establishment. such as a
laboratorv. rvorkshop. industrial installation. stores d.pot but does not
include any expenditure which has been specifically classified as falling
under some other head of expenditure, such as Works. Suspense,
Machinery artd [quiprrrcnt, Tools arrd Plant and
b) Miscellaneous expenditure means all expenditure not specifically classif-red
in the Budget i.e., expenditure other than expenditure falling under the
caregory of Salaries, Wages, Travel Expensed, Office Expenses. Rents,
Rates and Taxes, Publications, Publicit,' - Expenses and the like.
6.2.2) Principles governing the exercise of porvers
An authority empou,ered by or under these Rules to incur contingent or
miscellaneous expenditure shall exercise such porvers subject to the observance of
the following conditions:
a) He shall observe such procedures as ma1' be laid down by the MoES with
reference to GFRs 9l to 94.
b) He shall also observe the principles laid down in the Annexure to
Schedule-l
c) The MoES and its constituent units should place their indents for
stationery stores. office appliances. drawing materials, miscellaneous
of f i ce requi rement s, et c. , on t hei r Purchase Di vi si on except i n respect of
articles which can rlore conveniently' and at a more favourable price be
obtained from the Central Stationerl, Offrce. Printing and binding r,vork
may be entrusted to private presses if in the
judgement of the head of the
unit concerned such a course is necessarl,in the interest of efficiency or to
meet any special aesthetic requirement.
d) In regard to the provision for legal and llnancial assistance to Government
servants involved in legal proceedings. Government of India decisions
issued from time to time under GFR 95 and the relevant rules in Conduct
Rules shall be observed.
e) In regard to miscellaneous expenditure. any special orders, restrictions or
scales as may be prescribed by the President from time to time shall be
observed.
6.2.3\ Powers
Subject to the provisions of Rule 6.2.2 and the observance of principles set
forth in Annexure to Schedule I, the MoES shall exercise full powers in respect of
contingent and miscellaneous expenditure.
7) Creation of posts
7.1) Principles governing the creation of posts
Notwithstanding anl.thing contained in these Rules, no post shall be
created-
a) By the MoES in its Secretariat unless there already exists
in it or in any Ministry or Departnreut of thc Ccrrtral Govenunent a post
of a similar character on a rate or scale of pav approved by the President.
The creation of any post nol falling rvithin this category would require
the concurrence of Member for Finance.
b) By a head of Departrnent in any unit under his control unless there exists in that
unit a post of similar character on a rale or scale of pay approved by the
President. The creation of a post which does not fall in this category would
require the approval of the MoES; if the scale of pay fixed for the post does not
exist in the MoES or in any of its constituent units, the concurrence of Member
for Finance shall also be obtained.
c) Unless funds to meet the cost of post can be found by valid appropriation or re-
appropriation from within the provision places at the disposal of the authority
concerned,
d) Permanently. unless in accordance
.,vith
the approved policy of the MoES.
Note:
i) Creation of the post of an Officer on Special Duty:
The MoES ma)' create a post of Officer on Special Duty if the post can be
equated to any existing sanctioned post having regard to the nature of duties and
degree of responsibility. If. horvever. a post of Officer on Special Dut1, is to be
created on a special scale. the approval of the Member for Finance rvould be
necessary for every such post.
ii) The powers to create posts under this rule shall not be utilized for the creation of
posts in units or organizations located abroad rvithout the concurrence of the
Member for Finance.
iii) The authorities competcnt to create posts shall:
a) ordinarily not resort to the creation of posts retrospectively;
b) avoid making appointments against posts in anticipation of their creation. In
exceptional circumstances,
horvever, (which shall be recorded in writing by the
competent authority), the posts may be created with retrospective effect or
appointment made against such posts in anticipation of their creation. Where in
special cases retrospective effect for a period exceeding three months is to be given
to the creation of a post, the proposal shall be referred, with full
justification
therefore, to the Member for Finance for prior concurrence. This restriction does
not, however, apply to orders of extension/continuance of existing posts created by
the competent authority. They also do not apply to the creation of scientific and
technical posts to cover promotions
made in accordance with approved policies of
the Department where administrative delays take place in obtaining the approval of
the competent authority for such promotions.
7.2) Powers relating to the creation of posts
7. 2. 1) Subj ect t o t he provi si on
of Rul e 5, t he MoES shal l , i n rel at i on t o t he creat i on
of permanent
and temporary posts. exercise the powers specified in
Schedule III withour reference to the Member for Finance.
Note: The powers exercisable by the Iv{oES under Rule 7 above in regard to
creation of posts are subject to economy instructions of the Government of Lidia
i ssued f rom t i me t o t i me.
8) Sanction of Grants and Loans
The MoES shall have full powcrs to sanction grants-in aid
(inciuding scholarships). advances and loans, provided that-
a) such grants-in-aid, advances, scholarships or loans are in accordance rvith
anv rules or principles prescribed by the MoES with the
approval of the Earth Commission or in consultation with Member for
Finance in the case of grants-in-aid, advances and scholarships and by the
Ministry of Finance in the case of loans,
b) the rate of interest on loans and the period of repayment thereof are fixed
with the previous consent of the Finance N{inistry, unless already
prescribed in any general or special orders of that Ministry.
9) Conclusion of contracts for the purchase of stores and for services and
agreements relating to consultancy services.
9.1) Subject to the provisions of these rules and the provisions of the General
Financial Rules governing the purchase olstores for the public service.
the MoDS has full po\vers to effect purchases arrd to execute contracts. The
agency of DGS&D shall be used where expedient.
9.2) The previous consent of Member for Finance shall be obtained in the
follorving cases. namelv:
(ai
any contract for purchase ofstores
[and
for services] other than the
1-ypes covered under b,c & d given below. the value of which exceeds
Rs.5 crores; provided however that, if the value of the contract exceeds
Rs.3 crores. the Ministry' s powers shall be exercised in consultation
with the representative of the Member for Finance, Earth Commission:
if a contract extends over a period of time. the total value over the entire
period of its currency shall be taken as the value over
the entire period of its currency shall be taken as the value for the
purpose of applying the limit.
(b) i) any negotiated or single tender contract for purchase of stores
[and
for services] Rs.3 crores in value (A limited or open tender rvhich
results in only one effective offer shall be treated as a single tender
contract for this purpose); provided horvever that if the value exceeds
Rs. 2 crores, the Ministry' s powers shall be exercised in consultation
with the representative of the Member for Finance, Earth Commission.
ii) any open or public tender contract for civil works exceeding Rs.3
crores, any lirnited tender contract for civil rvorks negotiated Rs-2
crores and any single tender or ab initio negotiatcd contract fbr civil
works if the value of the contract exceeds Rs. I crore.
\^r
Note: (a) any tender. rvhether public or limited, in rvhich. after the opening of the price
bids (whether
along rvith commercial or technical bids o. ,"pu.ui.ly). the renderes
(either otle, solllc or all) are required or requested either as a result of the er,,aluation of
the technical or commercial stipulations of one or more tenderes or for securing better
terms, to furnish revised offers. technical, commercial or financial. w,hich could have
financial implications. should be considered as a negotiated tender. I{orvever. cases
where. after opening of the price bids, all the tenderers are given an equal opportunity
to bring their offers in line with the Ministry' s stipulations (commercial/technical),and
also indicate the corresponding or consequential financial implications in a sealed
cover by a stipulated date to be opened in the same manner as the original tenders.
would not be treated as a negotiated tender.
(b) any tender. in the invitation of which all the eligible renderers are nor given an
opportunity to bid because of the imposition of pre-bid qualilications
or requirenrents
(other than that of execution of rvorks of a specified value), should be treated as a
limited tender and not as an open tender.
(c)
any indent of a proprietary nature, the value of
' "vhich
exceecls Rs.3 cores,
provided
however that if the value exceeds Rs I crore. the Ministr),' s power shall be
exercised in consultation with the Internal Financial Adviser and if the value exceeds
Rs.2 crores, Ministry' s powers shall be exercised in consultation ri,ith the
representative
of the Member for Finance, Earth commission.
(d) any agreement or contract for technical collaboration or consultancv sen,ices rvith
foreign firms or Governments the value of which exceeds Rs.2 crores.
l0) Write-off of over-pavments
and losses
10.1) Principles relation the exercise of porvers of rvrite-off
l 0. l -l ) i ) The powers i n rcl at i on t o wri t e-of f l osses rnay be exerci sed provi ded
that the loss does not disclose a defect in rules or procedure or where there has not
been any serious negligence on the part of any, Government servant. In cases which
disclose defect of rules, orofprocedures, action should in the first instance be taken
with the approval of the competent authority to rectify the rules or procedures and
to report such action to the Ministry of Earth Scienccs if the competent authoritv is
lorver than the Ministry. Thereafter, the loss may be rvritten off b-v the competent
aut hori t i es speci f i ed i n Schedul e I V.
i i ) I n cases i n rvhi ch t here has been seri ous negl i gence. di sci pl i narl ' act i on
should in lhe first instance be taken against the individuals at f-ault and the nature of
the action taken be reported to the MoES. Thereafter the loss ma' ' be rvritten ofF bv
the competent authorities specified in Schedule IV.
Note: The losses dealt rvith in this paragraph are either physical or represent losses
through depreciation where valued accounts are maintai' ed.
In respect of surplus, obsolete or unserviceable stores declared as such by the
competent authority (Please
scc Rulc I I below) no formal rvrite off is rcuuircd.
Attention is drawn ro GFRs 16-21 and 122-125.
10. 1. 2) Remi ssi on of di sal l owances by Audi t and w. ri t i ng of f over
payments made to Government servants.
Subj ect t o t he rest ri ct i ons ment i oned i n sub rul e 10. 1. 3, t he MoES and any
other subordinate authority'' to whom powers may' be delegated by or under special
orders of the President, may r.vaive the recoverl' of an amount disallowed by an
Audit Officer or the Accounts Officer or otherwise found to have been over paid to
a Government servant subject to the following conditions:
a) The amount disallowed has been drarvr-r by the Government sen'ant
concerned under the reasonable belief that he rvas entitled to it and in the
opinion of the aforesaid authority. recoverv rvill cause undue hardship or
distress.
b) If, in the opinion of the authority, recoverJ- is clearly impossible.
10.1.3) The aforesaid authorities shall not have the pou' ers to waive
recovery.
a) of emoluments of the nature of pay as defined in F.R.9(21)
(or
any
corresponding rule made byMoES) where the overdrarval has been
occasioned by delay in noti$ing promotion or reversion or where such
overdrawal has been disallowed by the Audit Oft'icer or Accounts Officer
within one year of the date of payment:
b) Where the recoven' relates Io a gazetted Government servant;
c) Where the amount involved exceeds tr.,"' o months pay of the Goverrutrettt
servant concerned.
10.1.4) The powers of Accounts Officers to r,r,aive objections to or to forgo
recovery of irregular expenditure in individual cascs strall be such as may be laid
dorvn separately under general or special orders of the MoES issued from time to
time.
10.1.5) In cases where an amount due from a person has to be written off on the
ground that he/she is no longer in Government service and no recovery is, therefore,
possible, the orders sanctioning write-off should invariably contain a clause that any
sums subsequently found due to the person concerned r.vill be adjusted against the
amounts written-off-.
If such a person is re-employed, the amount of over payment of rvritten off
merely because the person
.uvas
not in Government service at the time of rvrite-off
and not on any other gror:nd. as for example that its recovery would cause hardship
to the individual concerned, the dues which may accrlle to him during the period of
his re-employment under Go' ,,ernment ma1,' be ad-iusted against the arnount written
off.
' Io
facilitate such recovery. it should be ensured that in the terms of re-
employment of a retired Government servant, a condition is inserted to the effect
that any amount of overpaymcnt pcrtaining to the pre-r' etirertrertt pcrit-rd, including
any amount of written olT on the ground that he was no longer in Government
service, would be recoverable by adjustment of the pa1' and allowances admissible
\ .&i,
to liim during the period of re-employment. The office employing a retired
Government servant should immediately after the re-employment of the person
make an enquiry from the office rvhere he was fbrmerly employed whether any
amount is recoverable in terms of this sub-para. The final payment to the re-
employed person on the termination of his re-employment should not be made
unless the re-employing office has ensured that no amounts are adiustable in terms
of this sub-para.
l 0. l . 6) To mi ni mi ze possi bl e
over-payment . i t shoul d be ensured. once a part i cul ar
payment which is of a recurring nature is considered inadmissible by audit that such
objection is provisionally
accepted by' the administrative authority and further
paymcnts on that account should not be rnade till a final decision is obtained from
the competent authority. However, in exceptional cases, where the administrative
authority considers that in the public interest, the continuance of such payments.
pending a frnal decision b1, the competent authority, is absolutely necessary,
payments should be made provisionally and subject to recovery, the payee receiving
the payments
being so informed specificatly The fact that payments are being
continued in spite of the audit objections should also be reported to the authority to
whom the case is referred for a tlnal clecision.
10.2) Powers of write-olf
Subject to observance of the above principles, the MoES and Heads of
Departments shall exercise powers of rvrite-off of losses as specified in Schedule-
ry.
I l) Declaration of stores as surplus. obsorete or unserviceable
l l . l ) Wi t h ref erence t o Rul es GFR 124 (and
Government deci si ons t here
under) and 125, the MoES is competenr to cleclare stores and vehicles as surplus.
obsolete or unserviceable
regardless of l' alue. Uf the circumstances in
,"vhich
the
stores have become surplus, obsolete or unsen,iceable disclose a serious error of
judgement
in the procurement
of stores. it n' ill be necessary to fix the responsibility
for the loss and to devise rernedial measllres to prevent the recurrence of such cases.
ll.2) The MoES may specify the porvers of' Heacls of Departments, to cleclare
stores and vehicles as sttrplus. obsolete or unserviceable, laying dow,n rvhalever
condi t i ons or rest ri ct i ons i t may' deem appropri at e.
12) Miscellaneous Provisions
12. 1) Appl i cabi l i t y of enhanced del cgat i ons ro past cases:
Whenever powers are delegated to an1,' authority under these Rules. that
authority should be deerned to be competent to exercise those por.vers in respect
of past cases also. The term past case means a case not finalizetj until the clate of
the said delegation. although it occurrecl prior to that date. On the other hand.
expenditure already incurred by an authority in excess of its polvers, should be
treated as irregular expenditure and regularizcd by thc issue of an ex-post facto
sanction by the authority which was competent to incur the expencliture at the
time when it rvas actually incurred.
12.2\ Applicabilit,v of delegated por,vers to Capital Expenditure
In so far as uratters covered by thc Schcdulus arc currccrncd, the satne
financial powers may be exercised in respect of revenue expenditure, except in
the case of those items rvhere the powers may be specifically restricted to
revenue expenditure.
12.3) Powers of an officer appointed to perform current duties of
another post in addition to his ow' n duties:
An officer appointed to perform the current duties of a post in addition
to his own may exercise administrative or financial powers vested in the regular
incumbent of the post, but he cannot exercise statutory powers derived direct
liom an Act of Parliament (e.g., Income-Tax Act) or Rules, Regulations and
Bye-larvs made under various Articles of the Constitution (e.g., Fundamental
Rules; Classification. Control and Appeal Rules; Civil service Regulations;
Book of Financial Por.vers (MOES), etc.)
12.4) Trading operations
Notwithstanding an1' thing contained in these Rules, all
proposals:-
a) for the purchase of commodities not intended for Govemment
consumption but for sale or issue to the public, State Government
or any other authority;
b) for the fixation of prices in respect of direct trading operations of
Government, and
c) from Government companies and undertakings which may be
referred to the Government for fixation of prices for their products
or stocks. shall be referred to N4ember for Finance for concurrence
before approval.
Provided, however, that a proposal under clause (a) or (b) need not be referred
to the Member for Finance for concurrence if the value of the transaction is
below Rs.l crore: hou' ever, if the value exceeds Rs.50 lakhs, Ministry' s
powers shall be exercised in consultation with the reprensentative of the
Member for F-inance. Earth Commission.
Explanation : In this rule Government Company has the same nreaning as in
t he Compani es Act . 1956 (l of 1956).
12. 5) Payment of conr nr ut at i on mone) '
In respect of a pension divisible betr.veen the Central Government and a
State Government or State Governments, it shall be competent for the MoES to
authorise the debit to the Consolidated Fund of lndia of the comnruted although
the State Governments concerned or any of thern have not provided any funds
to mcct thc payments of thcir rcspcctivc shares of the cornruutcd value.
e
12.6) Insurance of Government property
No Goverrunent property, whether movable or immovable shall be
i nsured. No l i abi l i t l ' shal l bc i ncuned i rr currrrect i on
' , vi t h
t hc i nsurance of such
propeny r,vithout the prior approval of the MoES in consultation
' "r,ith
the
Member for Finance.
The MoES shall. however, be competent to incur expenditure on the
insurance of materials and equipment received on loan or as aid fiom
international or other organizations, if according to the terms of the contracts or
agreements entered into with the organizations concerned, insurance of such
materials or equipment is necessary or insurance is in accordance rvith any'
approved policy or practice. The MoES shall also be competenl to incur
expenditure on insurance, not exceeding Rs.5.00 lakhs in each case. of all
costly. extremely delicate, highly sensitive sophisticated equipment of fragile
nature purchased
from abroad which are not easily replaceable and for which
insurance is considered absolutely necessary, subject to the condition that the
premium is paid to the Nationalised Insuiance Companies. If the estimatecl
expendi t ure exceeds (Rs. 50, 000/ ),
t he Mi ni st ry' s powers shal l be exerci sed i n
consultation with the Internal Financial Adviser, MoES. and if the estimated
expenditure exceeds Rs.l.00lakh, the Ministry' s powers shall be exercised in
consultation rvith the representative of the Member lbr Finance. Earth
Commission. The term each case means purchase made from one or ore than
one supplier abroad on a particular occasion.
Where for hooking
of goods by railrvay an alternative railrvav risk rate is
provicled, the additional charges above those prescribed for booking of goods at
owner' s risk being in the nature of insurance charges, the approval of the N{oES
should be obtained to incur such additional expenditure rvhere it exceeds the
powers. if any, delegated to constituent units.
12. 7) Acqui si t i on of l and
The MoES is competent to acquire land required for any specific rvork
or project of the Department to the extent it is competent to sanction
expendi t ure on t hi s i t em under Rul e 6. 1. 10 subj ect t o obt ai ni ng a cert i f i cat e
from the Central Public Works Department that no Central Gor,ernment land is
available for the purpose. Any proposal for the purchase of land cclsting more
tlian Rs5 crores will hor,vever be continued to be submitted to Mernber for
Finance for his prior approval in terms of para 6.1 .1, provided howe,,,er, if the
estimated cost exceeds Rs.l crore, the Ministry' s powers shall be exercised in
consultation rvith the Internal Financial Adviser. MoES and if the estimated
cost exceeds Rs.3 crores, the Ministry' s po\\.ers shall be exerciseci in
consultation rvith the representative of the Member for Finance. Earth
Commi ssi on.
12. 8) Sal e or di snrant l emenr of pr-rbl i c bui l di ngs
The Depart ment i s compet enl t o sanct i on t he sal e or di smant l ement of
ptrblic building. othcr than a purely temporary strucrurc. proviclcd tliat the book
"' al ue
of t hc bui l di ng i s not more t han Rs. l l akh. When t he book v2l ue i s more
than Rs.l lakh, the previous consent of Member for Finance should be
obtained.
l3) Communication of Sanctions
Copies of formal orders sanctioning expenditurc or advances of public
money issued by the MoES shall be sent to the audit officer concerned. All
sanctions issued with the concurrence of MF should incorporate the following:
The sanction issues with the concurrence of Member for Finance. Earth
Commi ssi on.
l4) Redelegation of powers
Ihe powers redelegated to various Heads of Department and senior
officers in charge of constituent units and major projects as per rule 3.2.1 are
specified in Schedule V.
SCHEDULES TO BOOK OF FTNANCIAL POWERS
SCHEDI.]LE I
POWERS RELATING TO INCURRING CONTINGENT EXPENDITURE
(See
Rule 6.2)
Note: Subject to the provisions of Rule 6.2 and subject also to availability' of funds, the
MoES and Heads of Departments shall, in the matter of incurring contingent expenditure,
have the powers specified in the corresponding entry in column 2&3 of the table below,
subiect to the observance of principles and procedures set forth in the Annexure to this
Schedule
TABLE
Authority Extent of power
Recurring Non-recurri ng
( l ) (2)
( l )
(i) MoES Full Porvers Full Porvers
(ii) Heads of Department To the extent delegated by
MOES unless otherwise
indicated in the Annexure
To the extent delegated by
MOES unless othenvise
indicated in the Annexure
(iii)
Heads of Office Rs. l 500/ - per mont h i n each
case,
Rs. 15000/ - i n each case
e
Expl anat i on:
(l) The powers delegated to the MoES are to be exercised bi' the issue of formal sanctions in
the name of the President, such sanctions being authenticated by the officers authorized to do
so under Article 77 of the Constitution.
The Under Secret ary' i n t he MoES as Head of Of f i ce ma1' sanct i on cont i ngent expendi t ure up t o
the extent indicated in the table above rvithout issuins formal sanctions in the name of the
President.
(2) Per annum in each case in respect of recurring contingent expenditure means on each type
of expenditure e.g.. if an authoritl, is emporvered to incur expenditure on repairs up to
Rs.l000/- per annum in each case, it,' vould be competc-nt for it to incur expenditure on repairs
on any numberof occasi ons duri ng t he year. but subj ect t o a l i mi t of Rs. 1000/ - f ort hat
)' ear.
Each case in respect of non-recurring contingent expenditure means on each o..or,on. If on a
particular occasion, a number of articles of furniture are to be purchased, the powers of the
sanctioning authority should purchased, the powers of the sanctioning authority shoukJ be
reckoned with reference to the total value of articles of furniture to be purchased on that
occasion, and not with reference to individual articles like tables, chairs racks, etc., constituting
the furniture. Thus an authority empowered to incur expenditure on the purchase of furniture to
the extent of Rs.l000/- in each case, would be competent to purchase various articles of
f urni t ure not exceedi ng Rsl 000/ - i n val ue on each occasi on.
An illustrative list of items of expenditure debitable to Contingencies is given belor.v:
Purchase of Bicycles; Conveyance hire; Electric. Gas and Water charges; Purchase and repair
of fixtures and furniture; Freight, demurrage and Wharfage charges; Hire of Office Furniture
and Appliances; Legal charges; Purchase and Maintenance of N4otor Vehicles; Municipal rates
and taxes: Petty woks and repairs: Postal and Telegraph charges; Printing and Bindingl
Publications; Rent of Office accommodation as *ell as that of accommodation used partly as
office and partll' a residence; Repairs and removal of machinery (where the expenditure is not
of a Capital nature); Staff paid from contingencies: Purchase of stationery stores. Stores:
Telephone charges; Tents and Camp Furniture; 1-ypervriters, Calculating Machines, etc.
ANNEXURE TO SCT{EDULE-I
I
"
Conveyance hire
(i) For Gazetred Officers : The conveyance hire charges actualll, paid may be reimbursed to a
gazetted Government servant rvho performs a
journef
in the public interest r,vithin the
municipal limits of the city in rvhich his headquarters is situated in a taxi or other conveyance
rvhen a Staff car is not available. To the extent practicable. a taxi should be shared by more
than one officer.
Provided that w.here traveling allowance is also admissible for such a
journey,
it will be open
to the officer either to claim reimbursement of the conveyance hire uncler these rules or
traveling allorvance under the Travelling Allowance Rules.
Heads of Departments/Offices may sanction to themseh,' es the reimbursement of taxi or other
conveyance charges subject to the conditions mentioned above.
(ii) For Non-Gazetted Officers: Conveyance hire may be reimbursed to a non-gazeIIed
Government sen' ant rvho (ii) is dispatched on dutl' to a place at some distance from his clffice,
or (ii) is summoned to office outside the ordinar-v hours of duty' by special order of a gazetred
officer. Provided that where traveling allowance is admissible for such a
journey. it u' ill be
open to the Government servant concerned either to claim reimbursement of the conveyance
hire under these rules, or traveling allowance under the Travelling Allor,vance Rules.
The total amount of taxi hire reimbursed to gazetted and non-gazetted olficers taken together
shall not exceed Rs.5,000/- per month for each Centre.
Gazetted Officers are expected to observe scrupulous econonly in hiring taxis for themselves or
in permittingnon-gazetted officers to resort to such hiring.
(iii) For casual departmental use: Convey' ance ma)' be hired in urgent cases when departmental
vehicles are not available.
(iv)For providing transport facilities to State Guests: Taxis may be hired for the use of a State
Guest when staff cars are not available.
(v) For Inter-state/lnternational Conferences: Taxis may be hired for use in connection rvith
Inter-State/lnternational Conference rvhen staff cars are not adequate to meet the requirements.
The power to sanction reimbursement of taxi or other conveyance charges Lo a gazelled
Government servant shall vest only in officers to whom such powers are specifically delegated.
The conveyance hire reimbursable shall be the fare by' the most inexpensive modes of
transport practicable. consistent with the urgency and requirements of the case and rvith due
regard to economy in terms of time as wellas money.
If a Government servant is called to duty after the close of office hours or more than trvo
hours earlier than the commencement of office hours or is detained in office more than tu' o
hours beyond normal working hours, outside normal working hours, actual taxi or other
conveyance hi re may be rei mbursed t o hi m provi ded he i s not i n recei pt ol ' anv remul t erat i on
for prolonged detention in office and is not in possession of' his own conveyance or is not able
to use his conveyance.
2. Mot or Vehi cl es:
(i) Purchase: In the case of purchase of vehicles (including staff cars. motor cycles, motor boats
and launches), if a specific provision has been made in the br-rdget and has been approved by
the Member for Finance at the pre-budget stage, the MoES, and to the extent of the delegation.
the authority to whon-r this porver is delegated may sanction such purchases. However. these
powers are to be exercised in consultation i.vith the representatii' e of the Member for F inance,
Earth Commission in case re-appropriation of funds frorn otlier heads is necessary. For
purchase of vehicles for use as staff cars both for addition and replacement, Secretary, MoES
has been delegated full porvers, subject to certificate of condemnation being given by the
competent authority for purchase of staff cars for rcplaccmcnt. These powers are tt-r bc
exercised in consultation ll' ith the Internal financial Adviser of MoES.
(ii) Maintenance,
upkeep and repairs: Full pow.ers.
3. Municipal rates and taxes: Full porvers
The expenditure
shall be incurred in accordance with the rules issued by Government of
India, Ministry of Finance and Ministry of Works and Housing from time to time.
4. PetW works and repairs
Expenditure
may be incurred on petty rvorks and repairs of hired buildings only if the
landlord refuses to meet the charges himself and when the building is released. Govt. should
have the right to remove any installation
or material added to the buildins.
5. Postal and Telegraph charges
(i) No charges shall be drawn in any contingent bill for any non-service stamps other than
those required for letters and other articles sen-t to foreign countries.
Note: (a) Communication
from Government servants regarding their leave, pay, transfbr,
leave salary, income tax, fund subscriptions
and other analogous matters are private and not
official and shall not, therefore,
be sent at the pubric expense.
(b) where the cost of an establishment
is divided between trvo heads. the charge fbr service
stamps shall be divided in the same proportion.
(ii) when service stamps are not accepted in payment
of telegrams dispatched on public
service, cash payment
shoulcl be made bt' availing trtn. credit Account System according to
which the telegrams
may be booked without
"p..puy-.nt
of telegraph charges and the
account settled as and when the bills are presented
by the Posts and Telegraptr offices and
drawn through contingent
bills. If for any reason. ihe credit account syrr.n1 cannot be
availed of, the expenditure
should be incurred out of permanent
advance, which rvill be
recouped
according to the normal procedure.
Note: Foreign State telegrams
and inland telegrams bearing priority indications
may be
issued only by an authority empowered
to do so under the rules iisued by the Director
General, Posts and Telegraphs.
6. Rent
ordinary office accommodation:
Subject to conditions laicl dorvn by M9ES from time to
t i me' Resi dent i al
accommodat i on:
Subj ect t o t he condi t i on t hat where pri vat e accommodat i on
is hired rvholly
for residential
or for tffice-cum-residence
pllrposes,
the rent pal,able
to the
land lord by the Gol' crnment lor the residence or for resiclential portion as the case may be,
shall not exceed the licence fee recoverable
under F.R.45-A-IC(B)
from an officer of the
class for whom it is intende<i and the house rent allorvance saved by Government if any,
rvhich that officer rvould normally be entitled to. In a case r.r,here the rent pay,able
fbr any
such accommodation
exceeds that amount, prior approval of MF shall be obtained.
7 . Stores
Stores reqttired for rvork
dcbitablc to contingcncics:
J' he sanction of a cr' r.r:tert autlority
for executing
the rvork carries u' ith it the sanction for incurring necessary expenditure on the
purchase
of stores required fbr the r.vork.
8. Supply of uniforrns. badges and other articles. clothing etc., and washing allor.vance
(i) Unless otherrvise authorized b1' general or special order, uniforms and other articles of
clothing shall not be supplied to any category of Government servants other than Group D
staff, car drivers and dispatch riders.
(ii) For Group D staff employed in constituent units. the scales and conditions shall be
regulated by rules or orders made by the Heads of such units who shall. in such rules or
orders;
(a) specifu the categories of staff who may be supplied with these articles.
(b) state the frequency with w.hich uniforms and other articles may be supplied: and
(c) lay down maximum limits for the cost of each article.
9.Telephone charges
Heads of Departments may exercise this power forthe provision of telephones in oflices as
also of residential telephones in accordance w' ith the policy laid dou' n by MOES frorn time to
time.
Heads of Department may also exercise this power in respect of installation of connections
under Auto Inter-Communication Telephone System or any other similar system.
SCHEDUI-E II
POWERS RELATING TO MISCELLANEOUS EXPENDITURE
(sEE RULE 6. 2)
NOTE: Incurring of expenditure in entertainment and on any official ceremonies shall be subject
to any general instructions issued by Government from time to time.
Aut hori t y Maximum limit upto which the expenditure may be sanctioned
on each i ndi vi dual i t em
Recurri ng Non-recurri
( 1) (2) ( 3)
MoES
i
Ful l Porvers Full Powers
I
Heads of Department
I
Rs.ZOOOI- a year
IRs.25,000/-]
w
SCHEDULE I I I
SCHEDULE IV
Irrecoverable losses of stores
or of publ i c money
a) For loss of stores not
due to theft. fraud or
negligence
POWERS RELNTING TO CREA I' ION OII POSTS
(SEE
RULE 7)
POWERS RELATING TO WRIT| OFF OF LOSSES
(SEE
RTJLE I O)
Authority
MoES
In consultation rvith
representative of MF
MoES
In consultation rvith
representative
of Ir4F
Monetary limit up to w,hich
the loss may be r.vritten off in
each case
( 3)
Rs. 20 l akhs
More than Rs.20 lakhs and
t o Rs. 25 l akhs
Rs. 2 l akhs
More than Rs.2 lakhs and
t o Rs. 4 l akhs
t he
Authority
Class of posts rvhich may be created
2
MoES
(i) Group A posts on pa\/ upto and inclusive
of Rs. 22. 4001- per mensem.
Note: Where a post is sanctioned on a time-
scal e. t he maxi mum of t he t i me-scal e shal l
be take as pa)' for the purpose of this entrv.
(i i )
Group B. C &D
Heads of Departments
As del egat ed by MoES under Rul e3. 2. l
Nature of loss
( l )
(2)
b)For other cases
t he
Loss of revenue
irrecoverable loans
advances
Deficiencies and depreciation
in the value of stores included
in the stock and other
accounts
Irrecoverable losses of stores
or of public money
l i
l l
r l
MoES
Heads of Department
Rs. 50. 000/ -(To be exerci sed
in consultation rvith Internal
Fi nance Advi ser of MoES)
Rs.50,000/-
or
and
Rs.50"000/-(To be exercised
in consultation with Internal
Fiuatrce Adviser of MoES)
v
SCHEDULE-V
REDELEGATION
OF FINANCIAL POWERS TO HEADS OF DEPARTMENT. ETC.
( sEE
RULEl 4)
Item of Expenditure
I
Co.i.rponOing *tes in
MOES Book of
Financial Powers
Por,r'ers delegated to the
Heads of Department
Remarks
a
L .
Re-appropriation
Contingent Expenditure
(i) Recurring
(ii) Non-recurring
Creation of posts for up
gradation
of posts to
accommodate
promotions,
under the
Fl exi bl e Compl ement i ng
Scheme, to the next
higher grade. keeping in
abeyance the lower post
as shadow post
6. 2. 3 and Schedul e I t o
MOES Book of
Financial Powers
6. 2. 3 and Schedul e
MOES Book
Financial Powers
7. 2. 1 and Schedul e
to MoES Book
Financial Por,vers
Full powers (as available
to the MoES as per
MOES Book of Fi nanci al
Powers)
Full powers (as available
10 the MoES as per
MOES Book of Fi nanci al
Porvers)
Full powers (as available
to the MoES as per
MOES Book of Fi nanci al
Porvers)
T' emporary posts upto SI:
grade
[posts
upto
Rs. 16, 500/ - maxi mum]
I t o
of
5.
Porver to write off losses
(i) Irrecoverable losses of
stores or of public money
and Schedule IV
10. 2 and Schedul e I V
and Schedule IV
Rs. 50, 000/ - not due t o
theft. fraud or negligence
Rs. 10. 000/ - i n ot her
CASCS
Rs.20,000/-
Rs.20,000/-
Full por.vers (as available
to the MoES as per
MOES Book of Fi nanci al
Powers) in respect of
expenditure debitable to
Revenue
Upto Rs.2.00 lakhs fbr
each bui l di ng i n respect
of expendi t ure debi t abl e
to Revenue
(iii) Deficiency and
depreciation in the value
of stores included in the
stock and other accounts
Expenditure on works
(a) Maintenance and
Repairs
(i i ) Loss of
irrecoverable
advances
revenue or
Ioans and
and
to
6. 1
(b) Additions
alterations
hired/requisitioned
bui l di ngs
6. 1
Upt o Rs. 5. 00 l akhs
each case in respecl
expcnditure debitable
Revenue.
I N
of
TU
the
the work is
approved
provided
i ncl uded i n
budget
I
)
The sancti on of
the Dcpar [nrctrt
for a Proj ect
carri es wi t h i t t he
(c) Minor works
Strores & Equipment
a) In respect
for rvhich
sanction has
t he MoES
of projects
f i nanci al
been i ssued
powers
V:
sanction for the
purchase of stores
and equipment
required in the
execut i on of t he
Project where
specific provision
has been included
in the approved
Budget Estimate
2) Where no
specific provision
for purchase of
equipment has
been made in the
approved estimate
of the Project or
enhanced
provi si on
required, sanction
of the appropriate
aut hori t y shoul d
be obt ai ned.
b) R & D Centres,
supporting facilities and
ancil lary establi shments
i) Where
provision
is
the Budget
spccific
i ncl uded i n
F ull porvers
Rs. 5. 00 l akhs
ii) Where no specific
provision
is included in
the appror,'ed budget
Concl usi on of
agreements relating to
consultancy services
(Any agreements or
contract for technical
collaboration or
consultancy services with
consultants in India or
foreign firms or
Gor,ernments)
Declaration of stores and
vehicles as surplus,
obsolete or unserviceable
a) In respect ofstores
9. 2 Upt o Rs. 50 l akhs
case
Lj pt o Rs. 5, 00, 000/ -
each
l ) The st ores
which are surplus.
obsolete or
unserviceable rvill
be di sposed of
only after a report
lo that effect is
obtained from the
committee
constituted for
this purpose.
2) I t i s al so
necessarv t o
ci rcul at e t o ot her
Centres/Units the
l i st o1- such
surplus items of
stores to meet
t hei r possi bl e
requirements. if
any.
I f t he
cl rcumst ances l n
which the storcs
have become
surpl us, obsol et e
or unservi ceabl e.
di scl ose anv
serious error or
I
judgenrent
in th,:
I
procurement ol
i
srores, i1 yll
!g_l
b) In respect
condemnation
vehicles
of
of
n. 2
Upto Rs.5.00,000/
necessary to fix
t he responsi bi l i t y
fur the lt-rss of
stores and devise
remedi al
measures
prevent
recurrence
such cases.
4) Declaration of
stores as surplus,
obsol et e and
unse rvi ceabl e rvi l l
also be subject to
such condi t i ons as
laid dorvn in
GFRs and b1,'
Government fron-r
t i me t o t i me.
I
)
I t shoul d be
ensured that the
vehicle cannot be
repaired and put
to use after
incurring
reasonable
expenditurc
repairs
replacement
worn out parls.
on
and
ol
2) I t shoul d be
ensured t hat i t i s
not worthr.vhi l e to
mai nt ai n such a
vehi cl e as t he
runni ng expenses
are \/ery high and
l t l s
comparat i vel y'
unremunerati ve to
operate such a
vehi cl e an\ r more.
3) I t shoul d
be certificd
t he vehi cl e
al so
t hat
hzrs
l eted
r l
ure I
I
t o
t he
of
normal span of
utility under
opt i mum
maintenance
conditions &rt
cost .
4) The report of a
Commi t t ee
constituted for
this purpose rvi
have to b'
obtained before it
i s decl ared as
unserviceable.
The declaration
wi l l al so b
subject to an)
other conditions
laid down by
Government from
t i me t o t i me.
Insurance of Governmenl
property
12. 6 Rs.20.000/-
I I
' l
NOTE: The above powers shall be exercised by the l-leads of Departrnent subject to the
conditions laid down in the MOES Book of Financial Powers or
prescribed
by the MoES from
time to time.
TNTERNAL FINANCE FUNCTIONS
Internal Finance Functions will include the followinc:
l . Pri mary f unct i ons
(i) Preparation of the Budget in accordance with the instmctions issr,red by Finance Ministry
from time to time and with the tirne schedule prescribed by it.
(ii) Scrutiny of budget proposals before they are presented by MOES to the Earlh Commission.
(iii) The transmission of the Budget to Finance Ministry as approved by the Earth Clommission.
(iv)
General supervision over the maintenance of Departmental accounts/registers rvith a vierv
to ensuring that they are maintained by the Department and its constituent units in accordance
r,vith the requirements under GFRs and in such form as r,vill enable MOES to obtain figures
whic:h will enablc it (a) to rvatch and review progless of expcnditure against Grants and
Appropriation, (b) to u' atch the receipt of book debits, (c) to prepare realistic rer,' ised estimates,
and (d) to ensure timely surrender of anticipated savings.
taa
(v) Examination
of proposals
for supplementary
demands.
(vi) Formulation
of the foreign .i"hung"
buiget of the Department and the processing
of
individual
cases for release of forcign exchangc.
(r' ii) Identification
of specific savings availabL for creation of posts.
2. Advi sory f unct i ons
Advice to MoES on matters failing within its deregated po' vers.
3. Areas of assistance
Internal Finance will render
(i)
assistance
where required
by MOES in the scrutiny of expenditure proposals
referred to
MF for concurrence.
(ii) assistance
to MoES rvhere
required (a) in the settlement
of audit objections, inspection
reports, draft audit paras
and (b) accounts, reports of
pAC,
Estimates Committee and
Committee
on Public Undertakings.
The Primary responsibility
in regard to these matters is, horvever
an administrative
function.
It is desirable
that Internal Finance
should be associatecl rvith the fbrmulation
of
schemes
and important
expenditure
proposals
from their initial stage and wirh the evaluation of
progrcss
and perfbrrllallce
in the
"ut.
ol projects
and schemes to enable him to ensure that the
results of such studies are taken into account in budget fbrmulation.
Annexure IV
PURCHASE PROCEDURE
All units under the MoES and MoES Purchase l)ivision shall follorv the follorving
purchase procedure.
I. INDENT ORIGINATION
l.l All indents shall be prepared in the prescribed from to suit the requirements of the
respective Centers/Project/unit. Indent should be initiated by an officer not below the
rank of Scientist/Engineer SB or equivalent.
1.2 Separate indents shall be raised for different t)' pes/categories of materials/ equipment
to suit the working arrangement of the Centers/Projects/units. Items falling under
different categories shall not be mixed up in the same indent.
1.3 Provisioning of stores needs to be done lvith utmost care taking into account
available stock, outstanding dues /supplies, the past consumption pattern average life
of the equipment /spares. The requirements also need to be properly clubbed and
consolidated so as to get the most competitive and best price. The requirement
should not be intentionally bifurcated/split so as to avoid approval fiom higher
authorities.
1.4 One time purchase for projects or capital equipment/spares should be properly
justified
depending on the actual requirenrent usagc. rate o1' return etc. Further the
obsolescence factor should also be taken in to account i.e. the equipment to be
purchased should conform to the latest speciflcations and technology available in the
market.
1.5 Incase of proprietary purchase, the detailed
justification
for purchase fiom a single
vender is to be placed on record. In respect of indents for proprietary/specific brand
goods the indent should include the proprietary article certificale/specific brand
goods certificate signed by the indentor and approved by Group/Director/Project
Director/Controller/Director of CentreiUnit. Chief Engineer, CED/Chief
Construction Engineer/ HQ/CCA/Director MoES rvith technical reasons for the
choice of such goods. All indents for Proprietary/specific brand goods
' ,vith
estimated
value excedents Rs.2 lakhs shall be scrutinised and cleared by the Indent Revie,uv
Committee of the Centre. After clearance by lndent Review Committee. the
proprietary/specific brand goods certificate shall be issued by the competent
authority.
1.6 Estimated cast and desired delivery dates mentioned in indent should be realistic. As
the estimated rate is a vital element in establishing the reasonableness of prices, it is
important that the same is vvorked out in a realistic and objective manner on the basis
of prevailing market rates. last purchase prices, economic indices for the rarv
material /labour, other input costs. IEEMA formula, wherever applicable and
assessment based on intrinsic value etc. If the value of the acceptable offer against an
indent exceeds 5%o of the estimated cost or Rs. 50,000 rvhichever is lesser the indent
should be referred by the Purchase division to the indentor for acceptance and for
budget reappropriation if necessary. Cases lvith variation from the estimated cost less
than the limits mentioned above, need not be referred to the indentor. However. it is
very important to establish the reasonableness of prices on the basis of estimated
rates, prevailing market rates. last purchase prices. economic indices of the raw
material/labour, other input cost and intrinsic value etc., before award of the contract.
1.7 Available of funds to cover the items to be purchased should be certified by the
indentor clearly indicating the budget code numbers as well as thd serial number in
the budget document to which the particular item relates.
1.8 Urgent Indents: Where stores are required to be procured urgently, the indent should
be prominently
market "Urgent".
Unless absolutely necessary, indents should not be
marked in this fashion. The quantities indented should be kept to the minimum
consistent with urgent requirements. The indent should also speci$, the need for
procurement
on urgent basis.
1.9 In case of change of specification of an indented item, requiring revised or fresh
quotation, a fresh indent shall be raised by the indentor with revisecl specifications
canceling the items in the original indent.
INDENT APPROVAL
In case where the estimated total value of an indent is up to Rs. 50,000, it shall be
approved by an authorised office not below the rank ofSE or in exceptional cases
by officer not sD grade rvho is duly authorised by the Aead of the
Projectfunit/Division/Chief
Construction Engineer or this purpose; and up to Rs.
1,00,000 by the authorised Section Head or Engineer SF. In cases where the toral
val ue of an i ndenr exceeds Rs. 1. 00. 000 t he Head of t he
project/Unit/Division/Chief
Construction Engineer shall approve the indent.
The names of Officers authorised to approve the indents shall be communicated
to the Purchase Division and Account Division, The number of officers
authorised in respect of a Project /Unit/Division
should preferably be limited to
three commensurate rvith the man po\\'er strength.
2.
2. 1
) )
2.3 In cases where the total value of an indent exceeds Rs. -5 lakhs. (excluding
indents from CED), they shall be approved by the Director of the
Center/Chairman of thc conccrncd Project Board. At the discretion of the Center
Directors the po"ver for approval of indents may be delegated to functionaries
like Associate Director /Deputy Directors/General Managers /Group Directors,
fixing monetary limits. Indents pertaining to CED exceeding Rs. 5 lakh shall be
approved by Chief Engineer, CED.
Need Aspect Approval (NAC)
Where the estimated unit value of single item exceeds Rs.3.00.000/- the indent
for the same shall be sent to the Purchase Division only after obtaining the need
aspect approval of the Committee formed for this purpose at the
Centre,/Unit/Project/Division. If the estimated unit value of a single item at the
time of tendering r,vas less than Rs.3,00,000/- but as per the quotations received,
the value exceeds Rs.3,00,000/- approval of need aspect committee shall be
obtained before placement of the Order. Fresh approval of NAC is to be obtained
if recommended order value exceeds 25oh of the original value cleared by NAC
or Rs.5 lakhs rvhichever is less. Approval of NAC is needed for all items
including items like diesel, petrol. However. approval of NAC is not required in
respect of requirements of basic construction materials of Civil Engineering
Division like bricks. sand. doors. rvindows. hardware. sanitarv and electrical
fittings.
in case of urgent indents where the total estimated value of an indent does not
exceed Rs.25,000 the same shall be approved by the Head of the Unit/Division. If
the total estimated value of an indent exceeds Rs.25,000 but belou, Rs.50.000/-
the indent shall be approved by the Head of the Project/Group. In cases where the
estimated value of an indent exceeds Rs.50,000/- approval of the Director of the
Centre/Chairman of the concerned Project Board will be required.
I ndent s wi t hout budgct sanct i on
Processing of indents for purchase of items can bc done by the
Centres/Projects/Units even without specific budget allocation for the current
year or the folloning
1' ear,
provided such cases are clcared lbr administrative
processing by the Directors of the Centres/Project Management Boards.
However, Purchase Order can be placed only after specilic budget releases
therefore are authorised.
2.4
2. 5
2. 6
(e6
3. TENDERING PROCEDURES
Tender Documents
3.1.1 The terms and conditions
stipulated in the bid documents should be quite
sufficient and clear and should not contain any obsolete, unwantecl matter or
conflicting and vague pro' isions
which may result in wrong interpretation.
disputes and time & cost over runs.
3 ' l ' 2 The following important clauses may be incorporated in the bid document in
applicable cases to safeguard the interest of the Goveinment as they have
indirect financial implications
in the evaluation of offers and execution of
t he cont ract s:
a) The time/date of receipt and opening of tenders.
b) Clauses relatiirg to Earnest money: The primary objective of submission of
Earnest Money Deposit is to establish the .urn.rtn.r, of the bidder so that he
does not withdrarv,
impair or modifu the offer within the validity, of the bid. It
al so hel ps i n rest ri ct i ng
i f not el i mi nat i ng
' specul at i ve' , ' f i i vol our'
o,
. wai t
and
see bids' ' Since any relaxation regarding submission
of Earnest Money Deposit
has financial implications
besides givingencouragement
to the bidders to submit
frivolous bids as indicated
above, the terms and conditions should clearly
stipulate that the offers without Earnest Money Deposit rvould be considered as
unresponsive
and rejected. The Earnest Money Deposit in case of Two-part
system needs to be incorporated
as a fixed and reasonable amount on the basis of
estimated value
of the purchase
and not as a percentage.
c) Delivery Schedule: In order to meet the project requirement, it vvould be prudent
to incorporate
an acceptable
range of deiivery periocl rvith the stipulation that no
credit will be given for earlier deliveries and offers rvith delir"ery beyond the
acceptable
range will be treated as unresponsive. within this acceptable range,
for the purpose
of evaluation,
an adjustment per month say 2o/ocould be added to
the quoted prices of bidders offering deliveries larer than the earliest delivery
period
specified in the bid documents.
d) The evaluation/loading
criteria with respect to the important terms like payment
terms' delivery period, performance
Bank Guarantee etc, having Ijnancial
implications
need to be specified in unambiguous terms in the bid documents so
that the evaluation of bids after tender opening could be made in t.urnpur.r,r
manner without any subjectivity.
e) Payment terms. Performance/Warrantee
Bank Guarantee.
pre-despatch
inspection,
Arbitration,
Liquidated Damages/Penalty
fbr the delayecl supplies and
Risk purchase
etc,. are to be specified carefully.
f) The detailed generic technical specifications including performance pararneters
and the technical evaluation criteria. if any need to be specified in the bidding
documcnts in uncquivocal tcrms.
g) The Government instructions on reservation of item and price preference to SSI
Units and purchase preference to PSUs need to be incorporated in bid documents.
h) It needs to be ensured that the evaluation of tenders should not be based on
conditional discounts . and suitable clause should be included in the biddinq
documents.
i) E-mail address of the Center/Unit concerned should be indicated in the tender
notices.
i)
With a view to have wide, fair and adequate competition, it is important that
sufficient time of say 4-6 rveek in case of Advertised/Global tenders and 3-4
rveek in case of limited tenders is allo' ,r' ed. except in cases of recorded
emergencies wherein also a reasonable time should be permitted and tenders
should be sent by faster means like speed post/fax. The tenders should preferably
be kept open for sale till the date of tender opening or
just
one day prior to the
date of tender opening.
k) Proper arrangement for receipt of tenders through tender box should be adopted.
l) Any change in the tender terms & conditions. specifications, and tender opening
date etc. should be notified to all the bidders. sufficiently in advance of the
revised tender opening date and time. in order ro give equal oppo(unity to all the
bidders and to maintain sanctity of tendering s)' stem.
3.2 List of suppliers:
3.2.1 A list of recognised and reputed suppliers shall be maintained by the Purchase
Division with the approval of the Head of the Purchase division. The list should
be revierved and amended/updated periodically. Inclusion and deletion of the
suppliers should be only with the approval of the t{ead of the Purchase & Stores
Di vi si on.
3.2.2 Heads of Purchase and Stores divisions ma1' circulate periodically once a quarter
the details of the names and addresses of the parties contacted and those which
responded, with the description of the material etc against limited tender in
respect of specialised articles/goods costing above Rs.2 lakhs. This procedure
will enable all centres/units to uodate their data bank.
I or . r
\ " '
\
3. 3 Publ i c Tender
3.3.1 Where the total estimated value of an item exceeds Rs.2 lakhs in case of
indigenous items and Rs.4 lakhs in case of imported items or rvhere the
estimated value of an indent exceeds Rs.4 lakhs in case of indigenous items and
Rs.6 lakhs in case of imported items, (amount
of estimated uniivalue of an item
multiplied by the total quantity
of that item) purchase shall be made by issuing
Pubic Tender.
3.3.2 In order to give rvide publicity,
and to generate enough competition as far
as Possible, issue of advertised/Global
tender inquiries should be resorted to and
published in India Trade Journal and select National Newspapers. The tenders
should also be posted in website of MoES. The copies of the tender notices
should be sent to all the registered/past/likely
suppliers and also the Indian
Missions/Embassies
of major trading countries on case of imported stores.
3.4 Cost of Public tender documents
3' 4' l The tender documents may be sold at the rates prescribed by Ministry of Earth
Sciences from time to time. The rates are excluiive of Sales Tax on the sale of
tender document. if any revied by the State Government.
3' 4' 2 Tender documents can be dorvnloaded
by tenderers from MoES website. In case
a tenderer is using the documents and forms clownloaded from the website. the
cost of tender documents can be sent by thc ten<jerer to the addressee i1 the lorm
of Bank draft attached to a forrvarding letter and along with (but separately) the
envelope containing the quotations.
3.5 Free supply of
public
Tender documenrs
One set of tender documents.
if requested can be supplied free of cost to
Government
Department. Public Sector Undertaking (both Central & State) and
Indian Consulates
in foreign countries through ITI-I-1, Paris/Washington. Tender
documents, if requested, can also be ruppll.d free of cost to Small Scale
Industries Units borne on the list of National Small Industries Corporation.
3.6 Dispensation
of
public
Tender
The follor' ving guidelines
are to be obsen,ed where waiver of issue of public
tender is contemplated:
i) Approval of the Controller should be obtained for the waiver of
public
Tender recording proper justification
routine the file through IFA for
indents below Rs.20 lakhs be1' ond r,vhich approval of Direclor is required.
ii) A clear note needs to be presented to the Pr-rrchase Committee and the
authority u' hich has to take decision for purchase against such limited
tender, indicating inter-alia. thc reasons as to rvhy public tcnder w.as 1ut
resorted to, and also as to horv all the knorvn suppliers ha'e been
contacted etc. The note should also indicate hor.v public tender might not
be helpful in getring better offers than limited tender.
iii) While issuing limited tenders in place of public renders. purchase division
should ensure that all the available sources are enlisted in the limited tender along with
the sources suggested by the indentor.
iu) Purchase division should develop an extensive data bank and periodically
update the data. ITLU Paris and Washington
shall advise the centre periodically about the
netv suppliers fbr imported materials and equipnrent so that the data bank is updated
meaningfully.
3.7 Rate/Running
Contracts:
3' 7' l Rate/Running
contracts can be entered into for items in regular demand fbr a period
of l2 months or any other specified period based on publii tender, or limited tender
following the procedure
ancl the guidelines specified in the
purchase procedure.
Copies of the Ratc/Running
contracts entered into by the centres/units shall be
forwarded to the Senior Purchase
Officer, MoES fbr information and co-ordination.
The Rate Contracts concluded
by MoES are to be followed by all Centres/t;nits.
unless the instruction
are to the contrary. The following guidelines for entering into
Rate/Running
contracts shall be followed:
a) All stores of standard types required in bulk quantity
,,r,hich
are in common and
regular demand. the price
of rvhich is not subject to appreciable
market
fluctuations are to be purchased
on the basis of Rate or ilunning contracts
whichever
is most suited to the circumstances of each particular case.
b) Rate and Running contracts should not as a general rule be entered into for stores
if the annual drawals against the contract are not expected to exceed I{s.10,000/-.
c) The period ol' the currency of a Rate or Running contract normally should be one
year' In special cases. a shorter or longer period of contracl may be entered into
u' ith the approval of Controller. No extension of the validity period of the
contract itself is required
' ,1' hen
deliveries against outstanding iupply orders
continue alier expiry of the validity period. The contract will remain uii* or. tt
" purpose of delivery for all the stores ordered during the currency of the contract
until deliveries are completeo.
d) No nerv Rate contract should be placed with firms havin-e backlog against
existing contracts and that the backlog is likell, to continue for a rnajor portion ol'
the nerv contract period.
e
3.7.2
e) Rate contract
should be placed
only on registered and/or reputecl and established
firms rvho
are capable
of supplying the stoies as required.
0 Quotations
for Rate contracts should be invited for slab quantities
and contracts
concluded
accordingly.
In addition to the usual applicable
standard terms and conditions,
the following
clauses should be included
in the Tender enquiries fbr Rate/Running contracts and in
the Rate/Running
contracts.
i) Fall Clause: The price/s
charged for the stores supplied under the contract by
the supplier shoulcl in no event exceed the lowesi price at which the supplier
sells the stores of identical
description to any other person during the period
of the contract.
i i )
i i i
)
i v)
The purchaser
reserves the right to enter into parallel
Rate contract
simultaneously
or at any time during the period
of itre Rate contract with
one or more tenderers,
to place ad hoc contract or contracts simultaneously
or at any time during the period
of the Rate contract rvith
one or more
tenderers,
and to terminate
the contract by giving
one month' s time.
The successful
tenderer
shall maintain stocks at the station and shall make
deliveries
against
suppry orders from such stocks as and rvhen required.
Agai.st ex-srock
deliveries,
the stores shall normally be supplied within a
fortnight
of the date of receipt of the order. Upon receipt ol' rhe order, the
supplier
shall within
seven days intimate the quantitl,.
tliat can be supplied
from stock ivithin
the period
stipulated therein ani the time required to
supply the balance quantity.
If the supprier fairs to gi' e such intimation
within the time aforesaid,
he shall be deemed to have agreed ro supply the
stores within the delivery
date stipurated in the suppry o.' d.r. If the ,rppri..
is unable to supply the stores o, uny part thereof lvrthin the time specified in
the Supply
order and intimate ths time within the specified in the Suppry
order and intimare
the time within which the supprl, *,iil be made b1,him.
the officer placing
the supply order rvill norif,v
' hir' u.."p,unce
of delivery
time of' fered by the supplier or negotiate until an agreement
rs reached. In all
cases' the delivery time as deemed to be accepted by the supprier or agreed
upon as afbresaid
between him and the officer placing rhe supply. order shall
be deemed to be essence
of the contract and delivery
must be completdd nor
later than such date- If in any case no agreement
with respect to the derivery
time is reached
between the supplier and the purchase,
it shall be lawful for
the latter to u' ithdraw
the Supply order an,J the supplier shail have no claim
in respect of such withdrawals.
3.8 Trvo-Paft Tender
3.8.1 Both teclrnical and commercial bids reccivecl or before the due date are to be
considered as valid offers. Any bids received afier tender due date and time
irrespective of r.r' hether it is technical or commercial should be considered as late
tenders, however. they must be kept on record unopened noting the time and date of
receipt. Valid technical bids are to be opened for evaluation. The price bids are to be
kept in safe custody till evaluation and finalisation of technical recommendation of
technically acceptable bids. The tender opening officers should sign on the envelopes
and the signatures of trvo trade representatives should also be obtained on all the
envelopes containing the price bids. There after all the envelopes should be put in a
bigger envelopes/box and the same should be properly sealed duly signed by the
tender opening officer and trade representatives.
3.8.2 Regarding opening of price bids, it is reiterated that in the firsr instance. technical
evaluation of all bids need to be completed including clarifications/discussions r.vith
the bidders. Price bids are to be opened onl1, after technical discussion/presentation
is over and detailed technical clarifications obtained and the contract terms frozen as
far as technical specifications are concerned.
3.8-3 During this process in case any major changes in original technical specifications are
expected, the parties should be asked to indicate separately the plus/minus impact
from the original quote either by amount or percentage from the quoted bid, instead
of calling for fresh bids. Once the revised bids are received, both oiiginal and revised
bids are to be opened. compiled, evaluated on a common platform unless the
purchase/negotiation
committee decides to reinvite the tenders because of material
difference in the technical specifications.
3.8.4 In case the Purchase/Finalisation
Committee feels that it would be able to discuss the
technical matters nlore meaningfully if the details of price bids are available to them,
the price bids may be opened in case of limited tenders, bur kept confidential. The
decisions to open price bids should be made by the Purchase/Contract Finalisation
committee after taking into consideration the merits of the case. Otherwise, normal
practice of opening valid price bids after complete evaluation and finalisation of the
valid technical offers received against the tender must be follor.ved. Horvever, the
details of all technical bids/price bids including those received lare must be placed
before the Purchase/Finalisation
committee and taken note of and such invalicl bids
be kept in the concerned files at all times. All the selected price bids are to be opened
in the presence
of attending tenderers or their authorised represenratives if it is a
Public Tender. Once it has been established that the offers meet the laid clown
specifications, the question of
' grading'
as u' ell as anv
' pick
and choose' should not
arise. The contract needs to be awarded to the lowest bidder meeting the laid down.
e
3. 9 Li mi t ed Tender
3' 9' l Where the total estitttatetl value of an item does not exceed Rs.2 lakhs in case of
indigenous items and Rs.4 lakhs in case of imported items or where the estimatecl
value of an indent does not exceed Rs.4 lakhs in .ur. of indigenous items and Rs.6
lakhs in case of imported items, (estimated unit value of an item multiplied by total
requirement
of that item) purchase
may be made through limited tenders by iisuing
enquiries to at least seven firms in the field/activity/business.
The
purchase
Division
shall, however- ensure that the field is adequately covered. In cases r.vhere the
number of firms is less than seven. the enquiries shall be issued to all known firms in
the line with proper recording
on the file. Assistance of ITLU Washington/paris ma1,
be taken if necessary. When the estimated value of an indent exceeds Rs.50,000 for
indigenous items and Rs.l lakh for imported items, Head
purchase
and Stores
division/Senior
Purchase
Officer shall endorse the list of parties to be contacted
through the limited tender.
3' 9' 2 Purchase of Proprietary/Specific
Brand Goods: Purchase of
proprietary
goods may be
made on single tender basis from tl-re manufacturers
or from their athorised
distributors-or
agents. In respect of specific brand goods, limited tenders may be
issued for obtaining competitive
offers wherever possible
from authorised dealers.
3' 9' 3 Patent Medicines
& Drugs: For patent medicines and drugs, direct orders can be
placed
in the basis of manufacturers price list as applicable to Hospitals and
Government
institutions.
3' 9' 4
Procurement
of Stores through DGS&D Rate Contracts: Where DGS&D rate
contracts exist, the agency of DGS&D shail be used if appropriate.
3-9.5 Low Value
purchase:
At the discretion ol' purchase officer,
indent does not exceed Rs.2,000/-, procurement
can be
payment.
'uvhere
the value of an
effected agai nst cash
3' 9' 6 Telephonic
Quotations:
Where the total value of an indent exceeds Rs.2,000/- bul
does not exceed Rs' 30' 000/- quotations
ma)' be obtained by telephone from at least
three firms and the same should be recorded by the Officers as shorvn below:
a) For i ndent val ue
bet rvec-n Rs. 200l l - and Rs. 10, 000/ - By
purchase
Officer.
b) For i ndent val ue
bet ween Rs. l 0. 00l / - and Rs. 30, 000/ - By Seni or
Purchase Officer.
3' 9' 7 Head, Purchase & Stores Division
may at his discretion call for earnest money deposit
in special cases like fabrication
& supply disposals at the tendering stage. Decision on
acceptance
of tenders not accompanied
b1' earnest money may be taken by Head.
Purchase
& Stores Division by recording the reasons.
l 0
4. 1
4.2
4.3
4.4
4. TENDER OPENING
Late tenders. delaycd tcndurs. and post tcnder olfers:
Late tenders i.e. tenders received after the specified time of opening and delayed
tenders i.e. tenders received before the time of opening but after the due date and time
for receipt of tenders and post-tender offers shall not be considered. In respect of
single tender, the due date is only to ensure timely receipt of tenders and if no
response is received. purchase division can extend the due date suitably.
In respect of both late and delayed tenders, the envelopes containing the postal
markings or other corroborative evidence shall be retained in the file along with the
offers unopened. However, if it is found necessary to open them for reasons other
than for placement of purchase orders, approval of the Centre Director shall be
obtained justifying
the reasons for such action.
Opening of Valid Tenders
All valid public tenders shall be opened in the presence of the attending tenderers or
their authorised representatives. IFA' s representative should be associated at the time
of opening of public renders and limited tenders.
While opening tenders each tender should be numbered serially, initialled and dated
on the first page. Each page of the tender should also be initialled with date and
particularly, the prices, important terms and conditions etc should be encircled and
initialled in red ink by the tender openers. Alterations in tenders, if any, made by the
firms should be on the tenders at the time of opening. Whenever any erasing/striking
off/over writing is observed, the substituted rvords should be encircled and initiated
and the lact that such erasing/striking offl over writing of. the original entry was
present on the tender at the time of opening be also recorded.
' fhe
tender opening
officer should also prepare
' on
the spot statement' giving details of the quotations
received.
The tenders received on or before the due date and time by fax also have to be
considered as valid tenders. l' o ensure that suppliers are able to respond in time,
Purchase Division should indicate in their enquiry one or maximum trvo fax numbers
through which suppliers can send their offers. A check has to be made at the fax
machine locations for fax rcsponse s up to the tinie fixed for reccipt of
tenders/quotations- In spite of such an arrangement, if the suppliers fax their offers to
some other machine of the centre/unit and such tenders, if not received b1, Purbhase
division before due time and date should be treated as invalid tenders. Telex offers
may be discouraged except where, it is unavoidable. In case of two-part tenders and in
othcr cascs of high value or where seclecy of price need to maintained, and sealed
quotations are only to be invited specifically, and fax offers may be rejected.
4. 5
l l
f,.
5. 1
EVALUATION & RECOMI\4ENDATION OF TENDERS
Recorttrrtendations on valid offers received shall be made by the originators of the
indents. In cases r.l' here an offer other than the lowest is proposed to be accepted, such
recommendations should be duly confirmed by the officer r.l' ho approved the indent in
the first instance and endorsed by the next higher authority. In the case of rejection of
lou' er offers, the reasons therefor should be recorded.
After the indentor' s recommendations, the Purchase division will process the case
further and obtain the approval of the competent authority/Purchase and Stores
Committees. as constituted by the Directors of Centres form time to time.
Evaluation of offers rn'ith advance payment ancl early delivery: rvhere advance amount
is insisted upon by tlie suppliers, more than the amount u' hat has been indicated in the
tender enquirl' . it is essential to cost and load the interest on rhe additional amount of
advance, appropriately
"vhile
evaluating the offers. The methodology adopted for
costing/loading is to be transparent and knorvn to the tenderers. The purpose of the
exercise should be to bring out the realistic cost so as to facilitate the best purchase
decision. Selection should be made from out of the offers, which meet the delivery
requirement, and no weightage should be given for unnecessary early delivery, rvhich
was not indicated in the tender. AMC charges shall be taken into account if it forms a
part of the tender for the purpose of cost comparison.
In cases r.vhere the proposal is for purchase of standard/shelf items. such as offlce
equipment, air conditioners, furniture. lubricants, t1' res and tubes. etc.. the Purchase
division may itself finalise its recommendations on the bases of lon,cst offbrs where
such offers are exactly identical to the indentor' s requirements without reference to the
indentor' In case of difference or any variation or in case of doubt, the offers may be
referred to the indentors.
When the tenders are under examination, no other authority should be allowed to make
queries or call for reports as, apart from the impropriety involved, these would lead to
del ays i n t aki ng deci si ons.
NEGOTIATIONS
6. 1 AI I post -t ender negot i at i ons are banned excepr i n t he case of negot i at i ons wi t h Ll
(i . e. ,
l orvest renderer) as per Cent ral Vi gi l ance Commi ssi on l et t er beari ng No. (l )(h)
98( I
)
dat ed 18t r' November 199g.
6.2 Normally there should be no case for negotiations as the invitation to tender would be
self-contained with comprehensive specifications. terms and conditions with an
objective of getting the best possible
offers r,,,ithout any need for negotiations. In case
more technical/commercial
information is needed to evaluate the offers on a common
platform, it is desirable to call for such clarifications in writing from the parlies.
5.2
5.3
5. 4
5. 5
t 2
6.2.1 Even at the time of inviting tenders the Department may specifically state that. it
would like to have more than one source of supply and the final orders may be given
accordingly to most eligible ones if necessary.
6.2.2 If the quantity to be ordered in much more than the Ll alone can supply, the order may
be distributed in such a manner that the purchase is done in a fair, transparent and
equitable manner.
6.2.3 In case of large value and specialized items, a Technical Evaluation Committee (TEC)
consisting experts r,vill be formed. The TEC rvill discuss l-echnical off' ers with vendors
and arrive at common minimum acceptable configuration. The Contract Finalization
Committee may discuss the final configuration/specifications rvith all TEC shortlist
vendors including the final contract terms and payment schedules. CFC then may ask
for Best and Irinal Offer on or before a siven date.
7. PURCHASE COMMI TTEE:
7.1 Junior Purchase Committee & Senior Purchase Committee: Besides Indentors'
recommendations, the approval of Junior Purchase Committee or Senior Purchase
Committee as appropriate is required before placement of Purchase Order as per
the monetary ceilings given below:-
Description of Junior Purchase Senior Purchase
Goods Committee Committee
a) Machinery & Unit rate between Unit rate above
Equipment Rs. I lakh & 4 lakhs Rs. 4 lakhs
b) Consumables, Total order value Total order value
Fumiture etc between Rs. 2 lakhs above Rs. l0 lakhs
Rs. l0 lakhs
7.2 The following cases need not be referred to Junior Purchase Committee/Senior
Purchase Commi t t ee:
a) Urgent Purchase
b) Repeat orders
c) Amendment to Purchase Orders not involving financial implications
d) Cancellation of order in part or in full and reinstatement of cancelled order
e) Orders placed rvith reference to MoES rate contracts
f) Orders placed with reference to DGS&D rate contracts/Direct orders placed
on DGS&D rate contract prices
g) Amendments resulting in Order value increase up to Rs.-50.000/-
h) Cases cleared by Contract Finalisation Committees
l 3
u
7.3
7.4
/ . 5
Directors of the Centres may constitute either a single committee or trvo
committees as mentioned above according to the requirements of the Centre.
To enable functioning of Purchase Committees/Contract Finalisation Committees
in a systematic manner, there shall be a pre-set agenda for every meeting of the
Committee. This agenda shall be circulated to each member of the Committee
before the meeting along with exhaustive notes/annexures on each subject to
enable the members to study in advance. Last minute additions to agenda may be
avoided as far as possible.
The following guidelines shall be follorved for constitution of Purchase
Committees and their proceedings etc:
i) Directors of the Centres/Units shall constitute Purchase Committees based
on the requirement covering the monetary limits prescribed. IFA and HPS
shall invariably be members of the committees especially where the value
exceeds Rs. 4 lakhs. In all other cases. representative of IFA/HPS shall
invariably be members if not IFA/HPS.
ii) For Purchases exceeding Rs. 50 lakhs, the Controller shall be a member if he
is not Chairman of the Committee.
iii) The file should contain clear recommendations of the indector and the
approval of competent authority.
iv) In all purchase committee proceedings. an agenda setting out the details of
the proposed purchases including the recommendation of the need aspect
committee should be available and placed before the committee.
v) Minutes of the meeting of the committee should be invariably recorded by
the Convenor/Secretary of the Purchase Committee and approved by the
Chairman and circulated to all members. If there were to be any comments
subsequently, they should be considered in the next meeting of the committee
or placed befbre the authority taking a decision on purchases.
vi) Proceedings of the committee should invariably contain very clearly the basis
of recommendat i ons.
vii) In case purchase proposal is based on limited tender with due rvaiver of
public tender requirement, the note as discussed in clause 3.6(ii) should be
perused by t he commi t t ee.
14
8.
8. 1
URGENT PURCHASES
In casc of urgent irrdcnts r,r,hcrc the total estilrrated value of tltc iltdcrtts cxcceds
Rs.30,000 but does not exceed Rs.50,000 the Purchase Division shall obtain
quotations from at least five firms by telephone/faxltelegram. In the case of
telephonic quotations. the same are to be recorded by an officer not below the
rank of Senior Purchase Officer. If it is not possible to obtain five quotations, the
reasons therefore should be recorded by the Senior Purchase Officer and
procurement may still be effected as per the powers specified in the Annexure.
Such purchase would require prior approval of Head. Purchase & Stores Division.
Constitution of Special Purchase Committee: Purchase against urgent indents of
an estimated value exceeding Rs.50,000/- can be made, rvhere considered
absolutely necessary, by a committee constituted for the purpose consisting of
representatives from Finance, Purchase and Indentor. The committee shall be
constituted by the Controller/Project Directors with the approval of Director of
the Centre for which action will be taken by Head. Purchase & Stores. The
committee shall follorv the guidelines for procurement as may be laid dor.vn by the
Director of the Centre in consultation r.vith IFA. Purchase division shall obtain
prior approval of the ar-rthorities as specified below
justiffing the need for such
mode of purchases.
8.2
Value of Stores to be purchased
Up to Rs. 1,00,,000i-
Above Rs. 1,00,000/-
Approving Authority
Controller/Project Director
Director of the Centre
8.4
A monthly statement indicating the value of urgent purchases made during the
month should be submitted by the Head of the Purchase Division to the Director
of the Centre/Controller/Head of the Proiect on or before the lOth of the
succeeding month.
The following procedure shall be followed while formulating the guidelines for
the committees making urgent purchases:
a) The committee should invariably include IFA of the Centre/Unit or
hi s represent at i ve.
b) Approval of the Director of the Centre/Ur-rit should be obtained after
clearly indicating i) non-availability of the items in the Stores to meet
the urgent requirement, ii)
justification to make the urgent purchases,
iii) approximate value of the items proposed to be purchased urgentll,.
t 5
e
c) Urgent purchased
should not normally be considered for office
equipment
and furniture.
d) Stores purchased
on urgent basis should be utilised rvithin a
reasonable time after their receipt.
e) The right source of supply should be contacred/visited
by the
committee
members for ascertaining
availability of materiais for
i mmed i at e requi rement s.
0
Enquiries incorporating
the terms and conditions of suppry should be
issued to at least five firms under acknowredgement.
specifuing the
time as needed within rvhich the quorations
should be submittecl in
sealed envelopes.
Ail the quotations
shourd be opened on the
prescribed
date and time by the committee.
In case the number of
firms to whom enquiries
are issued is less than five. reasons for the
same should be recorded on the fire.
purchase
of proprietary/specific
brand goods could be made by obtaining single quoiati,on pro' ided the
requisite
certificate
has been obtained.
g) Immediately
after opening of quotations.
comparative
statement
should be prepared,
the offers anarysed and inspection
of
equipment/samples
etc as may be needed carried out. The
comparative
statement
with all relevant details should be examined by
the committee,
which should function as the
purchase
committee for
this purpose-
Thereafter,
orders shourd be praced on the basis of-the
Iowest technically
acceptable
offer taking into account the delil,en,
factor.
h) where
the lowest technicalry
suitabre offer is rejected
on
considerations
o{- earry derivery, the question
of imposing riquidated
damages for thederivery
after trre prescribed
date ani/or risk purchase
clause should
be considered.
Liquidated
damages are generail1,
charged at O.Soh^of
the varue per rveek or part of a week sublect to a
maximum
of 10Yo of the total value of goods that could nor be put to
use due to late supply.
i) Inspection
of the materiars shourd be carried out as speediry as
possi bl e.
i)
Payments
can be made only against delivery of materials in question.
where immediate
or earry payment
terms are agreed to, efforts shourd
be nrade to obtain cost discounts. wherer,., .url discounts are oflbrecl,
these should be obtained in rvriting
fiom the suppliers.
l 6
9.
k) Prior arrangements for issuance of cheques as needed may be made.
l) Recommendations/decisions
of the committee made on the spot shall
be submitted to the Controller or the Proiect Director/Director of the
centre/unit for post-facto approval.
m) where
' letter
orders' are issued by the committee. the same shall be
regularised by issuing confirmatory purchase orders by the
purchase
division without loss of time.
PROCUREMENT FROM GOVT DEPARTMENTS
when it is proposed to procure goods from Government
Departments/Undertaking/Autonomous
bodies it is not necessary ro reson to
normal tendering tnodes, but instead purchase can be effected based on the rates
given by the Government agencies. Such purchase rvill be treatecl in the same way
as purchase of items on single tender basis as in the case of proprietary items. etc.
Consultation r,vith IFA is necessary in such cases.
DEVELOPMENTAL
ORDERS
For specialised items rvhere order cannot be finalised b1, inviting quotations or
rvhen
it is necessarv to establish a parallel indigenous source of supply, pretender
discussions may be canied out with the probable supplier (s) and devel-opmental
order placed with the approval of the Head of the Group/Depury Directoi where
the values of the order is up to Rs 1.00,000 and Directors of Centres/Chairman of
the Project Board for orders of value exceeding Rs. 1,00.000i-. These
purchase
Powers r.vill be as in the case of Single Tender Purchase. Consultation u,ith IFA is
necessary in the case of developmental orders.
TNDUSTY PARTICIPATION
With a vier.r' to promote the development of a cost-effective industry,. I\4OES may
subject to the guidelines
of the Earth Commission. enter into i\greements for
strategic procurentent
and/or production under collaboration. or hiring out in-
house facilities rvith
or rvithout lease charges, to the private induitries or
associate itself with private industry/consortia,
fbr productionalisation
of
different items as required from time to time.
l l .2 MoES may al so gi ve management contracts for effi ci ent and smooth
management of i ts producti on faci l i ti es by i ndustri es.
t 0.
l l
I l . l
t 7
I 1. 3
12.
The reasoning adopted for association of any private firm or indr-rstry for
collaboration, contracts. and development orders etc should be recorded.
ORDERS FOR FABRICATION
The purchase procedure
outlined for similar type of other orders under similar
conditions will also be applicable to r.vork orders for fabrication, suppll, and
erection and commissioning.
In respect of indents for fabrication alone not
falling under the purview
of this clause. normal tendering procedure shall be
f ol l owed.
TERMS AND C]ONDITIONS
General
The President should be made a party to every contract of the Government
and the words "for
and on behalf of the President of India" should follow the
designation appended below the signature of the officer authorised in this
behalf.
The terms of the purchase
order/contract must be precise and definite and there
must be no room for ambiguity or misconstruction therein.
As far as possible standard forms should adopted. The alternatives used in the
standard forms, which are not applicable. should be in' ariably scored out and
onl y t he appl i cabl e
ones ret ai ned.
No relaxation of specifications,
terms and conditions agreecl upon in a purchase
order/contract by the Government should be made without proper examination
of the financial effect involved in such relaxation. The interest of the public
exchequer should be taken due care of before agreeing to any relaxation of
agreement or contract.
13.
r3. l
l 3. l . l
13.1.2
t 3. 1. 3
13. 1. 4
f 3. 1. 5 Provi si on must be made i n purchase
Government property entrustecl to a party
any therefore.
order/contract for safeguardi ng
and for recoverv of hi re charges i f
13.2
t3.2.1
13.2.2
'I'erms
of Payment
The normal terms of payment are I 00vo payment
,,uvithin
30 days time after
receipt and acceptance of the materials in good conclition.
If. in spite of the stipulation of the normal payment terms, in the tenderenquiry.
the suppliers insist upon any other terms of payrnent in their tender. the
follorving could be agreed tp:
l 8
13.2.3 Payment up to 98% against proof of despatch taking into consideration aspects
like the standing and reputation and/or previous performance of the suppliers
and pre-inspectiult of tlrc guods at the suppliers premises wherever considered
necessary by the Head of the indenting division and Purchase division. The
powers in this regard will be up to Rs. 20.0001- for Asst. Purchase Officer, r:p
to Rs. 50,000/- for Purchase Officer and up to Rs. 2 lakhs for Senior Purchase
Officer and beyond Rs. 2 lakhs for Head. Purchase & Stores. Prior approval of
Head, Purchase & Stores and concurrence of Head AccountsilFA shall be
obtained for acceptance of l00o/o payment against proof of despatch.
13.2.4 Where payment against delir,ery is to be considered, pre-inspection should to be
carried out before collection of the material. As such, terms of payment in such
Purchase Orders should al' ,vays read as "payment against satisfactory
inspection and delivery".
13.2.5 Any other terms of payment can be accepted in exceptional cases only in
consultation with the IFA and rvith the approval of controller.
13.2.6 Wherever payment of advance is considered necessary or unavoidable, the
interest advantage to the party must be consciously taken into account and
allowed after getting an acceptable Bank Guarantee for an equivalent amount
with sufficient validity as to fully protect the interest of the Governrnent.
Reasonable time should be stipulated for submission of Bank Guarantee so that
contractual remedies could be enfbrced, if required.
13.2.7 The Bank guarantee need to be properly examined with respect to the
acceptable format and any conditions deterrent to the interest of Government
should be got rvithdrawn
before acceptance besides verifuing the genuineness
of the Bank Guarantee from the Bankers. Normally, the Bank Guarantees
permitting encashment
q,ithout
anv demur, merely on a demancl from the
purchaser should be accepted. Timely action for revalidation/encashmenl of the
Bank Guarantees also need to be taken so as to
protect
the interest of the
Government.
13.2.8 In order to safegr-rard the interest of Government, it would be appropriate to
obtain Performance Bank Guarantee for a reasonable amount valid up to
warranty period for due performance of the contract:
-fhe
validity of the Bank
Guarantee needs to be carefulll' watched and whenever extension in the
delivery period is granted. the validitv of Bank Guarantee should also be
appropriately extended so as to protect the interest of Government. The
genuineness of the Bank Guarantees should be checked from the issuing bank.
It also needs to be ensured that in installation/commissioning contracts. the
guarantee/warranty
should reckon only from the date of
installation/commi ssionins.
l 9
13.2.3 Payment up to 98% against proof of despatch taking into consideration aspects
like the standing and reputation and/or previous performance of the suppliers
attd pte-inspectit-rn of thc gt.rods at the suppliers premises wherever considered
necessary by the Head of the indenting division and Purchase division. The
powers in this regard will be up to Rs. 20.0001- for Asst. Purchase Officer, up
to Rs. 50,000/- for Purchase Officer and up to Rs. 2 lakhs for Senior Purchase
Officer and beyond Rs. 2 lakhs for Head. Purchase & Stores. Prior approval of
Head, Purchase & Stores and concurrence of Head Accounts/lFA shall be
obtained for acceptance of 100% payment against proof of despatch.
13.2.4 Where payment against delivery is to be considered. pre-inspection should to be
carried out before collection of the material. As such, terms of payment in such
Purchase Orders should al"vays read as "payment against satisfactory
inspection and delivery".
13.2.5 Any other terms of pavment can be accepted in exceptional cases onll, in
consultation with the IFA and rvith the approval of Controller.
13.2.6 Wherever payment of advance is considered necessary or unavoidable, the
interest advantage to the party must be consciously taken into account and
allowed after getting an acceptable Bank Guarantee for an equivalent amount
with sufficient validity as to fully protect the interest of the Governmenl.
Reasonable time should be stipulated for submission of Bank Guarantee so that
contractual remedies could be enlbrced, if required.
13.2.7 The Bank guarantee need to be properly examined with respect to the
acceptable format and an1' conditions deterrent to the interest of Government
should be got r.vithdrawn
before acceptance besides verifuing the genuineness
of the Bank Guarantee from the Bankers. Normally, the Bank Guarantees
permitting encashment rvithout anv demur, merely on a demand from the
purchaser should be accepted. Timely action for revalidation/encashment of the
Bank Guarantees also need to bc taken so as to orotect the interest of the
Government.
13.2.8 In order to safeguard the interest of
(jovernment,
it would be appropriate to
obtain Performance Bank Guarantee for a reasonable amount valid up to
warranty period for due perfbrmance of the contract:
' l-he
validity of the Bank
Guarantee needs to be carefully' watched and whenever extension in the
delivery period is granted. the validity of Bank Guarantee should also be
appropriately extended so as to protect the interest of Government. The
genuineness of the Bank Guarantees should be checked from the issuing bank.
It also needs to be ensured that in installatior/commissioning contracts. the
guarantee/rvarranty
should reckon only from the date of
installation/commi ssionins.
l 9
13.3 Payment to foreign suppliers
13.3.1 With regard to the paymcnt to foreign suppliers, the norrnal terms of
payment are against sight draft. Letter of credit in favour of foreign suppliers
can be established only with prior approval of the IFA & Head. Purchase &
Stores. In case the Unit does not har.,e Head, Purchase & Stores, the Letter of
Credit approval shall be accorded by Senior Purchase Officer/Deputl'
Director/Director.
13.3.2 The following guidelines
are to be observed by all concerned in Purchase
division, Finance division. pre-audit and Indenting division rvhile recording the
Foreign Exchange amount in the Noting, Recommenclations, Purchase
Approvals, Payment Approvals. Foreign Exchange release proposals. Foreign
exchange sanctions, Letter of Credit opening proposals and at all internal
correspondence:
a) The foreign exchange amount is properly worked ou1 ancl recording bn
the file.
b) The figures are reflected in words including the currency especially
u' hile recording the total amount payable.
c) Rupee equivalent is rvritten along with the foreign exchange amount
while noting the total amount payable.
d) Foreign exchange conversion rate adopted and the date should be
recorded in the note/recommendatiorlpurchase
approvals etc.
e) The note addressed to the Finance division tbr opening of Letter of
Credit is signed by the authorised Purchasc Officer as per the value
limits indicated in crause r4 of the
purchase procedure.
0
In Finance division the application and the letter addressed to Banker
for opening Letter of Credit is scrutinised by Head Accounrs &
IFA/Senior Accounts Ofllcer.
13.4 Payment of Agency Commission
13.4-l The Agency Commission to the Indian Agents of foreign firms should be paid in
Indian Rupees r.r' orked out on the basis of Telegraphic Transfer buying rate' of
exchange prevalling
on the date of placement
of order/contracr and within 30
days form the date of receipt ancl acceptance of stores. The contracts should
specificallY provide fbr pavment
of agency commission only in Indian Rupces.
This has to be incorporated
in all contracts rvith foreign firms where Indian
Agents are involved. In no case the agency commission to Indian Agents should
20
be paid in foreign exchange even if the Indian Agents claim payment in foreign
exchange on the basis of their obtaining permission from Reserve Bank of India.
13.4.2 In order to examine the genuineness of the prices quoted by the Indian Agent, the
nature of services rvhich
"vould
be available from Indian Agent and Compliance
of Tax Larvs by the Indian Agent and to prevent leakage of foreign exchange, the
follorving aspects should be examined while entertaining the offers of Indian
Agents for placing contracts on them:
"'
.
iffi
;1: ;'il:' ilnJ xl# i,'[ ;H:.' :?' : i: :
-,
^i ::,!,",[T','; t:
rendered by the Indian Agent.
b) Copl' of agency agreement rvith the lbreign principal. precise
relatior-rship between them and their mutual interest in the business.
c) The enlistment of the Indian Agent rvith Director General of
Supplies & Disposals under the Compulsory Registration Scheme of
Ministry of Finance.
13.5 Price escalation
13.5.1 Purchases should normally be made on firm and fixed prices. Flowever,
Variations on account of rate of exchange and statutory levies could be allorved
as provideci for in clause 13.6 below. Escalation on account of materials and/or
wages should be discouraged. In exceptional cases.
' uvhere
the rates quotecl
depend very' much upon statutory or otherwise controlled prices etc., or in cases
where the material costs are liable to rvide fluctuations, escaiation may be
considered on price of materials. In all such exceptional cases where escalations
are accepted, the of-fers and purchase orders should clearly and precisely mention
the base price levels and quantities assumed. the variation factors to be applied
and the indices or price documents to be produced for appll,ing the escalations.
Increase in base price is not to be allowed. Price escalations occurring during the
extended deliverv period are also not allowed. Similar conditions shall be
incorporated in the purchase orders to take advantage of redr-rction in statutory
l evi es or pri ces et c.
13.5.2 The authorities rvho can accept price escalation clause. with the concurrence of
IFA are the Head. Purchase & stores. Controller and Director of the
Centre/Chairman of the Project Board for value of the Orders as stipulated at
Sl . No. l i n t he Amexure.
2l
q_
13.6 Price increase due to statutory levies
Where tlte price increase asked for by suppliers are due to any governmental
action or due to statutory variations in the rate of customs dutv, exciie duty, sales
tax, etc., beyond the control of the supplier, full increases as applicable can be
allowed by the officer in Purchase division who approved the prrthur. in the first
instance, provided the terms of the contract with suppliers envisage such price
changes. Intimation regarding this increase should be sent to the indinting oifi...
and Finance and Accounts division after amendment of the Purchase order. Other
cases of price increase are to be dealt rvith in accordance with the delegation of
powers. Increase on account of statutory levies during the extended delivery
period beydnd the originallv agreed delivery date should not be considered except
for reasons of force majeure. Similarly clue advantage should be availed if' there is
reduction in statutory levies or prices etc.
13.7 Insurance
With regard to insurance of consignments. relevant provisions in the Book of
Financial Powers
of Ministry of Earth Sciences and the orders issued bv the
Department on this subject from time to time, shall be followed.
14. PURCHASE
APPROVALS
14' 1.1 The purchase
approval powers of various authorities are indicated in thc
Annexure and will be exercised in accordance with the Purchase
procedure
prescribed
and subject to the conditions stipulated.
l4' l' 2 The purchase powers
of Senior Purchase Officer shall be exercised by,
purchase
Officer in the Centres/Units where Senior Purchase Officer does not exist. The
Purchase pow' ers of Head, Purchase and Stores Division shall be exercised bythe
next higher approving authority rvhere Head Purchase ancl Stores Division does
not exi st .
l4' l' 3 lt is reiterated that the powers laid dorvn for purchase approvals b1, various
cadres of officers/scientists/engineers
should be strictlv exercised bv the
concerned and are not to be deviated.
11.1.4 The Purchase approval porvers mentioned in
f ol l owi ng condi t i ons:
the Annexure are subiect to the
a) For orders of value beyond the rimits stipulated in column 7. approval of
Centres Director will be necessary.
b) Unless othenvise stated. the gross value stipulatecl in this delegation is for
each case. The values are gross including duties, taxes, freight, eic.
22
c) Lor.vest technically suitable offer means the lowesl among the tenders
received rvhich confornr to the technical specifications specified in the tender
cnquiry.
In all cases of lack of competition. i.e. in the case of Public Tender and
Limited Tender enquiries, u' here less than three offers only are received,
approval of Senior Purchase Officer is required for value of orders below
Rs.1.00.000/- and of the Head Purchase and Stores Division for orders
valuing up to Rs.2.00.000. For orders above Rs.2,00,000, approval of
Controller is required.
Any purchase proposal, the value of rvhich exceeds Rs.300 lakhs shall be
referred to tl-re Ministry of Earth Sciences by VSSC, SHAR Centre, LPSC,
ISAC, and SAC for obtaining the approval of appropriate authorities. Other
centres/units shall refer the proposals exceeding Rs.200 lakhs to Ministry of
Earth Sciences.
0
Any negotiated or single tender proposal exceeding Rs.200 lakhs in value
shall be referred to MoES by VSSC. SHAR Centre, LPSC, ISAC and SAC
for obtaining the approval of appropriate authorities. Other centres/units
shall refer the proposals exceeding Rs.l00 lakhs to Ministrl' oi Earth
Sciences. (A limited or open tender. rvhich results in only one effective offer,
shall be treated as a single tender contract for this purpose),
g) Any purchase proposal for stores of proprietary nature, the value of which
exceeds Rs.l00 lakhs shall be ref' erred to the Ministry of Earth Sciences by
VSSC. SHAR Centre. LPSC. ISAC and SAC for obtaining the approval of
appropriate authorities. Other centres/units shall refer the proposal exceeding
Rs.50 lakhs to the Ministry of Earth Sciences.
h) Centres/Units may seek appro' ,,a| of MoES at the indenting stage or at the
stage of ordering. However, rvhere approval has been taken at indenting
stage, it will not be necessary to seek approval of MollS again at the order
stage provided the value of order is' "vithin l0% of the approved value.
14.2 Signing of Purchase Orders and C' ontracts
14. 2. 1 Purchase Orders not exceedi ng [ i s. 1, 00, 000/ - i n val ue may be si gned by' t he
Assistant Purchase Offi cer.
14. 2. 2 Purchase Orders exceedi ng Rs. 1. 00, 000/ - but not exceedi ng Rs. 2, 00, 000i - i n
value may be signed by the Purchase Officer.
14.2.3 Purchase Orders exceeding I1s.2,00.000/- br-rt not exceeding Rs.5,00.000/-
value will be issued over the signature of the Senior Purchase Officer
Purchase Officer r,,' here there is no Sc' nior Purchase Officer.
d)
e)
i n
or
/ )
14.2.4 Purchase Orders exceeding Rs.5,00.000/- rvill be signed by Head,
purchase
&
Stores Division. However. where there is no Head, Purchase & Stores Division.
the officer who has approved the purchase will sign such Purchase Orders.
14.2.5 The porvers laid down for signing of purchase orders by different grades
of
officers should be strictly exercised by the officers concerned and are not to be
deviated.
14.2.6 Before releasing of Purchase orders, Purchase Officers may verifV the
follou,ing:
a) Whether the terms and conditions as incorporated in the Purchase Order
are as per the quotation/tender
accepted by the competent authority.
b) Whether in the Purchase Order there are any unusual conditions or
deviations from the prescribed
standard terms and conditions and if so.
whether the approval of the authority competent to accept the same has
been obtained.
c) Whether the requisite certificate has been given in the prescribed form for
Purchases pertaining to proprietary/specificbrand
goods.
I 5. PRE- AUDI T
l5' 1 There will be no pre-audit
for purchase
orders of value Rs.1.00,000/- andbelorv
but the Finance & Accounts division will note the commitments before release of
such Purchase
Orders in the Budget Control Register for vcrifuing
funds
availability and watching commitments.
Horvever, there will be post-audit
of all
purchase
orders whose value is Rs.1,00,000/- and below also on a selective basis
in a manner to be decided by the IFA. All proposals exceeding Rs.1,00,000/- in
value, shall be pre-audited
before upp-uil of competent authority. All
amendments having financial implications
have to be similarly pre-audited,
if the
value of an order after amendment
exceeds Rs. r.00.000/-.
15.2 The following guidelines
are give' for the pre-audit:
a) It should be verified rvhether
sufficient buclget provision exists to meet the
total anticipated amount of expenditure.
b) It should be verified whether all the requirements
of the
purchase
Procedure have been complied rvith right fiom the beginning of the indenr
stage.
c) It should be checked
' ,vhether
the lorvest offer is accepted and in case the
lowest offer is not proposed
for acceptance. reasons for the same may be
1 l
L +
ascenained since they are to be recorded by the authoritl' conlpetent to
decide the case and that the same are to be available in the file for
reference.
d) Wherever Purchase Officer/lndentor is unable to agree rvith the vier,vs of
pre-audit, the matter shall be referred to the Head. Purchase and Stores
Division for his orders. In the event of difference of opinion between pre-
audit and ljead Purchase & Stores Division. the matter shall be referred
through the IFA to the Controller. If difference of opinion exists betrveen
IFA and Controller, the matter shall be referred to the Director of the
Centre. whose decision shall be final.
I 6. REPEAT ORDERS
While the intention is not to encourage repeat orders. one repeat order can be
placed based on the original order in case of absolute necessitl' and one more
repeat order can be placed in case of urgency after issue of an Eligibility
Certificate b1' Head Purchase & Stores division. Horvever, under no
circumstances. the total quantity ordered under both the Repeat Orders put
together should exceed the original quantity.
Repeat order ma1,be placed subject to fulfilment of the following conditions:
a) The repeat order proposed should be placed n' ithin one year from the date of
the original order.
b) The items to be ordered in the repeat order should be of identical
specification of the item in the original order.
c) I-he officer approving the repeat Purchase order should bc satisfied that there
is no do"vnu,ard trend in the market price.
d) The original order should have been placed for a proprietary, item or on the
basis of lorvest technically acceptable quotation.
e) Repeat order cannot be placed if the original order was an emergency order
or an order placed on
' preferred
delivery' basis or on lack of competition
basi s.
Norrnally' etforts should be made to obtain quantity discount from the
supplier. However. small value purchase orders up to Rs.10.000/- may be
released with the approval of the Head, Purchase & Stores.
The vah"re ol- the Repeat Order shall not exceed Rs.100 lakhs.
o \
b l
25
17. POST-CONTRACT
MANAGEMENT
AND MINITORING
17' l It is essential to accord priority to the post contract follorv up. The delivery periocl
is to be extended
on bonafide request only and not in a routine and casual manner.
After expiry of delii' ery period, the consignees should be refrained from
exchanging
correspondence
rvith the supplier. In case of delay in supplies by the
supplier. the liquidated dantages to the extent possible need to be reco' ered. Also
in case of delay attributable
on the part of the supplier, the Letter of Credit
extension charges
should be to supplier,s account.
l7' 2 Normally afier conclusion of the contracl, any relaxation in the contract
terms/specifications
should be severely discouraged. Hor.r' ever. in exceptional
cases where the modifications/amendments
are considerecl absolutely essential.
the same sliould be allowed after taking into account the financial impiicatiols.
17' 3 Delegation
o1' powers to various levels of officers, for issue of amendments are
set out in detail in the Annexure.
I 8. ACCEPTANCE
OF S' | ORES
l8' l Wherever it is absolutely
necessarl, to accept variations in supplies up to I 1yo in
quantity
for items like cables, condensers,
resistors, glass materials, fbsteners.
ferrous and non-ferrous
ntaterials, etc., these could be examined
by the?urchase
division in consultation
with the indentor. Formal amendments to
purchase
orders are, howe' er.
required to regularise the transactions.
l8' 2 All items of stores received from suppliers by Stores section shall be inspectecl
before acceptance
by the indentor or by his authorised officcr rvith the assistance
of Stores section n' ithin l0 days after ieceipt of intimation liom stores section. A
stores receipt voucher
in the prescribed
foim will be prepared ancl signed by the
Stores officer and Inspecting
officers/receiving
officers etc ancl shall be
forwarded by the Stores section to the Finance & A..ounts clivision r,,,ithin 20
days from the date of receipt of stores for arranging payment
or 1br adjustment of
advances already naid-
19. PAYMI TNI ' S
All matters relating
to payrnent
shall be dealt with by' Finance & Accounts
Division and accordingly
all bills/invoices
for supplies macle shall be received by
them. Before authorising pavment,
the bills shall be verified with reference to the
copies of the Purchase
Order. Receipt Voucher
and relevant records inclucling
acceptance
of stores and pa1' ment arranged if it is in order. Of for any reasons
26
P
20.
pa)' ment cannot be made. the supplier shall be inforrned of the specific reasons
therefore.
GENERAL GUIDELI}IES
The follorving general guidelines shall be followed scrupulously:
a)
' l' he
exercise of the porvers is subject to following the MoES Book of
Financial Powers, MoES Purchase Procedure and other extant rules.
regulations etc on the subject.
b) It has to be ensured before commencing an)' procurement action whether (i)
in respect of projects, the item is included in the approved Project
Report/Budget; of not approval of competent authority has to be obtained
from thc appropriation angle, simultaneously ensuring inclusion in the
Annual Budget Estimates. FE estimates (rvhere necessary); (ii) in respect of
Ce nt re act i vi t i es. provi si on i s ar ai l abl e i n t he l l udget , i f not act i on t o be
taken/commitment made only after ensuring it.
c) The IFAs of Centres/Projects nral' be associated even from the need aspect
approval stage so that the budget angle is kept in vierv.
d) Where a Contract Finalisation Committee is existing- a note gas to be made
available to the Chairman of the Committee regarding availability of funds
in the Voted Grant. duly signed by the IFA concerned.
e) Concurrence of IFA is required in cases where the organisation has to
necessarily accept special conditions of payments as stipulated by the
tenderer, whose offer is proposed to be accepted and in cases of price
vari at i on condi t i ons.
i )
All Purchase cases referred to the Director of the Centre/Chairman of thc
concerned Project Board should be routed through IFA.
All contracts rnav be got cleared by the IFA concerned fiom the Finance
angle. It is also desirable to have clearance from the l-ar,v Ministry from the
legal anglc. befbre signing, respect of important iurd complex Contracts.
In all cases r.vhere the value is Rs.50 lakhs and above, it is desirable to enter
in to a contract instead of a Purchase Order, and the agreed terms and
conditions as reflected in the approved Contract Finalisation Committee
report sl-rould be incorporated in the contract in addition to MOES/lr4oES
standard terms and conditions as applicable.
Details of the contracts. the value of rvhich is more than Rs.T5lakhs; rvhether
based on open. limited or negotiated tcnder. have to be reported to the
e)
h)
1' 7
P
20.
pa!' ment cannot be made. the supplier shall
therefore.
GENERAL GUIDELINIES
be inforrned of the specific reasons
The follorving general guidelines shall be follou' ed scrupulously:
l-he exercise of the por.vers is subject to following the MoES Book of
Financial Powers. MoES Purchase Procedure and other extant rules.
regulations etc on the subject.
It has to be ensured before commencing an)' procurement action whether (i)
in respect of projects, the item is included in the approved Project
Report/Budget; of not approval of competent authority has to be obtained
from thc appropriation angle, simultaneously ensuring inclusion in the
Annual Budget Estimates. FE estimates (rvhere neccssary); (ii) in respect of
Cent re act i vi t i es. provi si on i s avai l abl e i n t he Budget , i f not act i on t o be
taken/commitment made only aficr ensuring it.
The II' -As clf Centres/Projects mav be associated even fiom the need aspect
approval stage so that the budget angle is kept in view.
d) Where a Contract Finalisation Clommittee is existing, a note gas to be made
available to the Chairman of the Committee regarding availability of funds
in the Voted Grant. duly signed by the IFA concerned.
Concurrence of IFA is required in cases r,vhere the organisation has to
necessarily' accept special conditions of payments as stipulated by the
tenderer, rvhose offer is proposed to be accepted and in cases of price
vari at i on condi t i ons.
All Purchase cases referred to the Director of the Centre/Chairman of thc
concerned Project Board should be routed through IFA.
All contracts may be got cleared by the IFA concerned fiom the Finance
anglc. It is also desirable to have clearance from the Lar.v Ministry fiom the
legal angle. befbre signing. respect of important and complex Contracts.
In all cases r.vhere the value is Rs.50 lakhs and above, it is desirable to enter
in to a contract instead of a Purchase Order. and the agreed terms and
conditions as reflected in the approved C' ontract Finalisation Committee
report should be incorporated in the contract in addition to MOES/I\4oES
standard terms and conditions as applicable.
Details of the contracts. the value of rvhich is more than Rs.T5lakhs; rvhether
based on open. limited or negotiated tender. havc to be reported to the
a)
b)
c)
e)
o' l
b)
h)
i )
27
q
i )
k)
r)
Management Council concernecl. hi respect of contracts for a Centre
activity, the Purchase division concerned may send a monthly report to the
Director of the Centre/tinit.
In all cases where approval from the proprietory
angle has been given, such
approvals should be reported to the Management Council by the
project
and
to the Director by the Purchase division of the Clentre.
Any tender, whether public or limited, in wrrich after the opening of the
price bids the tenderer/s are required or rcquested either as a result of the
evaluation of the technical or commercial stipulations of one or more
tenderers or for sccuring better terms, to furnish revised offers, technical,
commercial or financial rvhich could have financial Implications. should be
considered as a negotiated tender.
In case s rvhere afler opening of the price bids. all the tenderers are given an
equal opportunity ro bring their ofrers in rine r,vitli the Departmental
stipulations (commercial/technical)
and also indicate the corresponding or
consequential financial implications in a sealed envelope by a stipulated date
to be opened in the same. manner as the original tenders would not be
treated as a negotiated tender.
m) Any tender. in the invitation of rvhich all the eligible tenderers are not given
an opportunity to bid because of the imposition of pre-bid qualification
or
requirements (other than that of' bclonging to a particular class of registration
or of past execution
of rvorks of a specified value). shoulcl be treated as a
l i mi t ed t ender and not as an open t ender.
n) The value of any contract for all purposes relating to financial and purchase
procedure should included all taxes ancl duties etc.
-l-his
includei excise
dut i es sal es t ax, oct roi and al l ot her si mi l ar l evi es rvherever
appl i cabl e.
where the exact tax is not knorvn. a gooci assessment may be made.
o) Liquidated damages clause is incorporated in the Purchasc Order/Contract to
avoid delavs in execution
of the order and recover clamages fiom the
supplier, for the portion of delay caused by the supplier. wheiever
delay in
execution o1' the contract is deflnitely attributable to Deparrmenr recoverv to
that extent can bc exempted, but the reasons for such delays rvithin the
Dcpartment need a careful evaluatiorr and action takcn foruuih lupr. upu,r
from remedial action to prevent such lailures. Also approval of Directoi of
the Centre/t,lnits is to be obtained for r.vaival of Liquidated clamages clause
Ibr rvhich filcs are to be routecl throueh IFA.
p) Wherever cross currency offers arc to be consiclered the Accounts
officer/Head Accounts & IFA concernecl shall invariably verify. the
correctness of the cross currency rates as rvell as implications of accepting
28
the alternative currency offers and place before Contract Finalisation
Committee/Purchase Committee a note explaining the implication of
accepting the alternative foreign currency offers.
The instructions/guidelines circulated by Department of Public Enterprises
for granting purchase preference to the Central Govt. Public Sector
Enterprises/Joint Ventures need to be scrupulously folloived.
The procurement files are very important and sensitive documents and thus
there is a need to have a single file system. with proper page numbering. In
case of urgencv, if opening of parr files is unavoidable" the same shouicl
thereafter be merged rvith the main file. The decisions and deliberations of
the individuals or the Purchase Cornmittee also need to be properly
recorded. well documented and preserved.
21. DEVIATIONS
2l.l If any deviation from the standard terms and conditions of contract and the
prescribed purchase procedure is considered necessary in any specific case, prior
approval of the Director of the Centre should be obtained by recording sufficient
justification.
All such proposals should be routed to the Director of the Centre
through the IFA and Controller. The exercise of the these powers will be subject
to the observance of the provisions o1' MoES Book of financial Powers. as well as
General Financial Rules and other relevant orders.
21.2 However, devi ati on powers under thi s cl ause are not to be exerci sed to i ncrease
the monetary cei l i ngs prescri bed i n the MoES Purchase Procedure.
PTJRCHASE APPROVAL POWERS (Subject to conclitions stipulated in the purchase procedure)
Fisures in ILu
i
Nature of Purchase
I
I
Sr. PO j Head P&S
I
Cont rol l er
j,oo,'ooo
-i-r
o,oo{no 20,00,000
q)
r)
I
---l
I
1
|
Lowesr t echni cal l y
I
1, 00. 000
I
suitable offer
I
S rpply
".d..t "gitrttf-S
O- O O O-
MOES/ MoES i
2. 00. 000
Rate/Running
Contracts
Supply orders against
DGS&D Rat e
Contracts
2. 00. 000
r, 00, 0002. 00. 000
29
4 Placement of Direct
Orders at DGS&D
Rate Contract prices
1, 00, 0002. 00. 000 5. 00, 000 10. 00. 000 20.00,000
5 Single quotation in
respect of proprietary
items or specific brand
50,000 1, 00, 000 2. 00, 000 5. 00, 000 10, 00, 000
6 Urgent Purchase 2, 000 r 0. 000 30.000 50, 000 1, 00, 000
7 Repeat Orders 25, 000 50. 000 1. 00, 0002.00,000 10, 00. 000
8
j a) Amendment to
I
purchase orders not
I
involving any financial
j
i mpl i cat i ons
I
I
Ul Amendment to
I
purchase
orders
I
involving financial
I
implications
I
i
.) Deliverv period
I extension
50, 000
25. 000
50,000
r. 00. 000
50, 000
1. 00, 000
2.00.000
1. 00, 000
2,00,000
Ful l Powers
2, 00. 000
Full Po,' vers
Full Powers
5, 00, 000
Ful l
30

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