MACHINERY & PLANT PROGRAMME - IR
Brief About Works Programme
1. All
expenditures of Railways in the following year (say April 2010 to
March 2011) are estimated and consolidated in the form of
Annual Budget during February (in this case Feb’ 2010)
itself.
2. The
complete Budget (Demands for Grants) will be presented to the Lok sabha and the Rajya sabha for voting.
1. The
Grants as voted by Parliament are distributed by Rly Board
among the Railway administrations. This is called “Budget
Grant”
2. For
the preparation of the Budget by Rly Board, Rly administrations
are required to submit their requirements for the
following year during December itself.
3. The
estimates of expenditure on Works, Machinery & Rolling
stock, to be incurred during the following year are to be
submitted to Rly Board.
4. In
respect of New works, it is submitted in the form of Preliminary Works Programme (PWP).
1. User
who needs the infrastructure facility should identify the
ideal location and indicate the facilities in a neat sketch.
2.
Where Open Line Yard is involved, the proposed facility should form part of the Master Plan for the
Yard.
3.
Obtain estimated cost for civil, electrical and S&T portion of
works from the concerned branches.
4. For
Mechanical portion of work (mainly M&Ps), obtain latest
Budgetary offers from reputed firms / OEMs. Points to be
taken care on arriving the M&P cost are given separately.
5.
After framing the proposal, it should be vetted by Associate
Finance.
6.
Finance observations are to be attended before proceeding further.
7.
Approval of DRM’s / CWM’s to be obtained.
8.
After approval, the proposal has to be forwarded to Planning wing of
HQ Mechanical department within the specified time frame
(Standard Calendar - given separately).
9.
Individual proposals received from different streams i.e. Carriage
and Wagon, Workshop and Diesel sheds are compiled
and put up to respective HODs for approval and to indicate
priority.
10. The
combined list of proposal with HODs’ priority will be discussed
with CME and proposals are finalized.
11. The
finalized proposals formulated with cost estimate are sent to
CPDE for compilation as a booklet for discussion in the
Preliminary meeting conducted by GM.
12.
Meanwhile, Board indicates ceiling limit for each Plan Head and
advises to the Railways to frame PWP proposals.
13. GM
will conduct a PWP meeting with all PHODs and DRMs to finalize
the list of proposals within ceiling limit.
14. The
agreed proposals are then sent to FA&CAO for concurrence.
15. The
concurred proposals are then submitted to Board with the approval of GM.
1. while initiating proposals the following guidelines
should be kept in mind
Advancement in Machine Tool technology.
Possibility of acquiring one/two machines to replace a large set. -
Multipurpose / special purpose machine to replace a group of machines
for manufacture of a single product.
The current and future workload – Define load centres adequately.
Draw a blueprint of demand verses availability to identify deficiencies
/
grey area.
2.The Following are the areas where inputs may be
considered
Material handling facilities, like mechanized handling of heavy items.
Cleaning equipments for sub-assembly like Bogie, Wheel sets, Traction
Motor, Roller Bearing and Axle Boxes. For these, savings in Manpower
that will accrue may be indicated.
Flaw detectors and hotbox detectors for maintaining higher safety
Adequacy of wheel lathes based on load arising.
M&P more than 20 years old should be critically examined and
proposed
for replacement if sufficient load exists.
However it may be noted that completion of codal life is not
ipso-facto,
sufficient ground for replacement of a machine. Its condition and cost
of
repair should form the basis of its replacement. The justification
should
indicate the jobs undertaken and the workload on the machine. The
total
number of similar machine in the load centre and shortfall of capacity
should be clearly indicated.
The estimated cost of the machines indicated in the proposals should
be
present day cost and should include essential accessories. The cost
can
be taken from latest COFMOW compendium and costs for other machines
by market survey.
Investment in M&P is to be thoughtfully made as the cost has
escalated
exorbitantly and one to one replacement is not at all desirable.
For items costing more than Rs. 1 crore Railway Board prior approvals
is
to be taken.
All the items proposed on Additional account should be accompanied
with
financial justification by DCF technique working out the Rate of
Return
duly
vetted by Associate finance.
ALLOTMENT OF UNIFIED CODE NUMBERS & MAINTENANCE OF
ASSET REGISTER.
On Successful commissioning of a new asset, it is included in the
Asset
Register of M&P by allotting an Unified Code Number.
This is a Nine Digit Number:
The first two digits identify the units – LW/PER, MAS DIV etc.
The next two digits indicate Sub Location – CR (shop) AJJ (Division)
etc.
The next two digits indicate the Machine group – Like Wheel Lathe,
AJTB
Lathe, Crane etc.
The next three digits give the individual machine number.
It should be ensured by the units that no machine is kept in service
without Unified Code No and the same should be painted on the machine
for easy identification. Similarly when the machines is condemned and
disposed
off, this machine is removed from the Asset register.
CONDEMNATION OF M & P.
Condemnation of M&P is done on two accounts.
1) When the machine is replaced and the new asset is acquired, the old
machine for which replacement has been sanctioned has to be condemned
and disposed off.
2) A machine can also be condemned on age and condition basis. For
this a
review has to be done by the HOD of the Workshop under whose
jurisdiction
the machine falls.
3) Disposal can be on ‘ AS IS WHERE IS’ condition or as ‘SCRAP’,
depending on the value it will fetch.
4) If sufficient justification for retention is available Railway
Board’s
approval has to be obtained for the same. But it is seen that only in
rare
cases and for a temporary period such approvals are accorded.
5) No replaced machine should be kept in service.
6) Machines within codal life cannot be condemned by these methods.
7) Once the condemnation is approved by CA, it should be disposed off
immediately under DS8 and the credit obtained should be advised to
this
office.
ASSISTING SHOPS /SHEDS / DIVISIONS IN GETTING THE
MACHINES REPAIRED DURING WARRANTY COMPLAINTS.
This office assists in Unit level offices in getting the machines
repaired by
interacting with the firm, the procurement agency and the consignees.
Wherever
necessary CA’s sanction is obtained for expenditure on repairs.
IDENTIFYING SURPLUS MACHINES AND THEIR DISPOSAL
A machine becomes surplus due to:
1. Closure / change in activity
2.
Reduction in workload.
IDENTIFYING SURPLUS MACHINES AND THEIR DISPOSAL
The Surplus machines are identified at regular intervals and offered
to
other Railways/ Production units. Such machines are transferred to
them if
demand exists.
Similarly the list of surplus machines offered by other Railways /
Production
Units is scrutinised and if found suitable to our requirement, action
is taken
to transfer such machines to this Railway.
PROCUREMENT UNDER COFMOW
As soon as the year’s Machinery and Plant sanctioned is advised by
Board
COFMOW will send a list of Machinery and Plant which would be procured
by COFMOW, duly conveying the dispensation to procure other low valued
items through COS/PER. Accordingly vetted indents in the COFMOW
format would be forwarded to COFMOW for processing the procurement.
COFMOW would consolidate the requirements of all the Railways and
float
tender duly bunching the like machines.
PROCUREMENT UNDER COS
Vetted indents in S.1302 format along with the indenting specification
for
all the Machinery and Plant for which dispensation of COFMOW is
conveyed
and for the Machinery and Plant sanctioned under GM’s Out of Turn, for
processing the procurement wherever, DGS&D rate contract are
available
(i.e.) Vehicles, material Handling equipments. The procurements would
be
processed through RC if found suitable, to avoid any delay in
procurement.
Other
items would be processed through LT / SLT / OT.
From time immemorial, the Machinery & Plant Programme
under Demand
No.16 – Plan Head “41” was prepared and finalised manually
involving
enormous paper work and minor mistakes in the process.
Hence, a Web based system for creation, process and
finalization of
Machinery & Plant proposals were initiated in the
Programme year of 2004-
2005. This can be accessed at www.irmnp.com:
Works
Costing Sanctioning Authority Remarks
5 cr
& above Rly Board Prior Approval is Necessary
1 cr
& above but Rly Board
upto 5
cr
Upto 1
cr GM
Upto 5
lakhs DRM 30 lakhs in case of P A.
Compilation of Approved Works
Works Costing Compiled
As
2.5 cr & above PINK
BOOK
5 lakhs** &
above but up LAW BOOK
to 2.5 cr
** Different for different plan heads.
Time Schedule
Works Costing Target
Date Remarks
(for submission
to
CPDE)
(Previous Year) 15 Jan
2009
1 cr & above but
28 February For PWP
2010-11,
upto 5 cr
(Previous Year) 28 Feb
2009
Upto 1 cr 5 January For LAW 2009-10,
(Current Year) 5
Jan 2009
Common Mistakes in the Proposals
1. Associate Finance gives vetting subject to some conditions which are not attended / remarks provided.
2. Not obtaining All Concerned Departments’ clearance especially Traffic, for Openline proposals.
3. Not obtaining costs from Respective departments.
4. Improper Plan Head. (e.g. Canteen in PH 42 – can be under PH 52 Staff amenities)
5. Improper Allocation. (e.g. Renewal of flooring in DF – can be under DRF)
6. Non inclusion of D&G charges in the estimates
Common Mistakes in the Proposals – in M&P Estimates
1. The common mistake is adopting only Basic rates in the estimate
leaving out Excise duty & Cess, packing, forwarding, VAT, Freight etc.
2. Excise duty as applicable (max @ 16%) and VAT as high as
12.5% constitute a major chunk.
3. Non inclusion of these costs lead to delay in
procurement, necessitate revision of estimate.
4. Sometimes this will result in change of level of the
officials as per Schedule of powers apart from reduction in D&G charges and
contingency charges.
5. The delay will result in further escalation of the
costs.
6. Also, the Accessories, Toolings, Additional attachments
and length of the DSL required are not taken into consideration while arriving
at the cost.
7. Inclusion of the same at the time of specification
leads to insufficient costs.
8. Power requirement of each M&P should be clearly
spelt out to plan for adequate power supply arrangements
Allocation: Capital
Works which can yield financial
return (RoR) of minimum 14% per annum can be charged under CAP. Since funds are
borrowed from open market through IRFC, utmost care has to be taken to ensure
the financial yield (a minimum of 14%) is obtained.
•Increase in POH of AC/Non AC
coaches.
•ROH outturn of wagon depots.
•Augmentation of Diesel loco
holding in Diesel sheds.
Allocation: DRF
Works which are entirely for
replacing the old assets after their codal life are charged against DRF.
•Repair / Replacement of
Covered shed.
•Replacement of Floors /
Roofing.
•Replacement of Old Pit line.
Allocation: DF
Works which are for developing
/ augmenting of some existing facilities are proposed under DF. There are four
sub heads under DF
D F I : PASSENGER AMENITIES PH 52
D F II : LABOUR WELFARE ACTIVITES PH 53
D F III : UN REMUNERATIVE
OPERATING EXPENSES
D F IV : SAFETY WORKS
