WORKSHOP COSTING IN SOUTHERN RAILWAY

GOVERNMENT e MARKET PLACE

GOVERNMENT e MARKET PLACE

Government e-Marketplace (GeM) is a one stop portal to facilitate online procurement of common use Goods & Services required by various Government Departments / Organizations / PSUs. GeM aims to enhance transparency, efficiency and speed in public procurement. It provides the tools of e-bidding, reverse e-auction and demand aggregation to facilitate the government users achieve the best value for their money.

The purchases through GeM by Government users have been authorized and made mandatory by Ministry of Finance by adding a new Rule No. 149 in the General Financial Rules, 2017.

The platform can be accessed at https://gem.gov.in/.

GeM Advantages For Buyers

·        Offers rich listing of products for individual categories of Goods/Services

·        Makes available search, compare, select and buy facility

·        Enables buying Goods and Services online, as and when required.

·        Provides transparency and ease of buying

·        Ensures continuous vendor rating system

·        Up-to-date user-friendly dashboard for buying, monitoring supplies and payments

·        Provision of easy return policy

GeM Advantages For Sellers

·        Direct access to all Government departments.

·        One-stop shop for marketing with minimal efforts

·        One-stop shop for bids / reverse auction on products / services

·        New Product Suggestion facility available to Sellers

·        Dynamic pricing: Price can be changed based on market conditions

·        Seller friendly dashboard for selling, and monitoring of supplies and payments

·        Consistent and uniform purchase procedures

FAQs on GeM

For Buyers

1.     Who can buy/purchase through GeM?
All Central government and State Government Ministries/Departments including its attached/subordinate offices, Central and State autonomous bodies, Central and State Public Sector Units and local bodies etc. are authorized to make procurement through GeM portal.

2.     Who is authorized to register as Primary User on GeM?
Authorized officers of the rank of Deputy Secretary/Equivalent or Head of the Office at Sub Center / Unit / Branch of Government Organisation / PSU / Autonomous Bodies / Local Bodies / Constitution Bodies / Statuary Bodies can register as Primary User on GeM.

3.     What are the Requirements to utilize the GeM portal? 
For Using GeM portal first a Primary User needs to register on GeM portal. Requirement of Registration on GeM are as follows: Aadhaar linked with mobile no. (To receive OTP for e-sign): Official Email ID (Preferably .nic.in OR .gov.in Email).

4.     Goods up to what value can be purchased on GeM?
Please refer Rule 149 of GFR 2017. The GeM portal shall be utilized by the Government buyers for direct on-line purchases as under : 

·        Up to Rs.50,000/- through any of the available suppliers on the GeM, meeting the requisite quality, specification and delivery period. The procuring authorities will certify the reasonability of rates.

·        Above Rs.50,000/- and up to Rs.30,00,000/- through the GeM Seller having lowest price amongst the available sellers, of at least three different manufacturers, on GeM, meeting the requisite quality, specification and delivery period. The tools for online bidding and online reverse auction available on GeM can be used by the Buyer if decided by the competent authority. The procuring authorities will certify the reasonability of rates.

·        Above Rs.30,00,000/- through the supplier having lowest price meeting the requisite quality, specification and delivery period after mandatorily obtaining bids, using online bidding or reverse auction tool provided on GeM. The procuring authorities will certify the reasonability of rates.

5.     How to make purchase on GeM? 

·        SignUp using the link https://gem.gov.in/register/buyer/signup. On completion of verification, Login as Primary user/HoD in GeM portal and create secondary users (Buyer/Consignee/PAO/DDO) after clicking on Manage users tab available in Dashboard.

·        Buyer to login to GeM portal. Select and cart the product as per the requirement through application of various filters. Buyers should apply filters carefully to define their requirement without adversely affecting competitiveness. Select the proper buying method as per the GFR-149.

·        Create demand -- Generate Sanction order -- Generate contract. Once order is placed, Seller to deliver the Goods/ Services to consignee within stipulated delivery date and generate on-line invoice on GeM portal.

·        Consignee to login after receipt of Items. Generation of Provisional receipt Certificate (PRC) within 48 hrs of receipt of stores. Generation of Consignee Receipt and Acceptance Certificate (CRAC) within 10 days of receipt of stores.

·        Bill processing by buyer (within 2 days of generation of CRAC by consignee) -- Bill to be forwarded to PFMS by DDO within 1 day of on-line receipt of bill from Buyer against e-signed Consignee’s Receipt and Acceptance Certificate (CRAC) (In case of central government organizations paying through PFMS) -- Payment to be made by PAO from PFMS within 2 days of receipt of bill from DDO (total time limit for payment is 10 days from date of generation of CRAC). Or Buyer to forward all documents for payment to Paying Authority and Payment to be released by Paying Authority / PAO within 10 days of generation of Consignee’s Receipt (In case of users paying through SBI e-pay or Other mode of Payment.)

For sellers

1.     Who can sell on GeM?
The “Seller(s)” on GeM will be the OEMs (Original Equipment Manufacturers) and/or their authorized channel partner(s)/ resellers (having any general authorization / dealership of the OEM to sell their product in open market) and e- Marketplaces.

2.     How do I sell on GeM?

·        To sell on GeM, Register yourself on the GeM portal.

·        List your products under specific product categories.

·        Once an order is received, deliver the product to the Consignee duly entering its details on the portal.

·        Once an order is successfully delivered, Consignee shall inspect / test the product for its conformity with contract specifications and issue acceptance / rejection through on-line CRAC.

·        After CRAC, buyer will process the bill and forward to paying authority for time bound payments.

Source : GeM portal.

CONTRACT - GENERAL EXPENDITURE

CONTRACT

Definition of Contract.-When two or more persons have a common intention communicated to each other to create some obligation between them there is said to be an agreement.  "An agreement" which is enforceable by law is a "Contract".  According to Section 10 of the Indian Contract Act 1872 only those agreements are enforceable bylaw which are made by the free consent of the parties

 (see para 1256), competent to contract (see para 1259), for a lawful consideration (see para 1224) and with a lawful object, and are not expressly declared to be void.  This is subject to any special condition.

Works Contracts.-All works and supplies relating to the Engineering Department executed through the agency of contractors may be broadly classed as follows :-

Zone Works Such as works of ordinary repairs and maintenance and others of petty nature in a particular zone. or area:

Special Works Such as the construction of bridge, the formation of an embankment etc. other than zone works . 

Supplies of building materials Such as bricks, tiles, lime, bamboos, ballies, mattings doors. windows, ballast, boulders, moorum, stone chips, fire bricks.  

Forms of Works Contracts.-The following forms of contract are

 primarily  intended for application

to Works Contracts (c.f. Para 408 S):-

(i)        Lump sum contract;

(ii)       Schedule contract; and

(iii)      Piece work contracts.

"Lumpsum" Contracts.-The  Lumpsum Contract is a contract under which the contractor engages to carry out a work or effect supply as specified and within a given period for a fixed total sum; his receipt of this sum being dependent on his completing the work or supply to specification and time, irrespective of the actual quantities and kinds of work done of materials supplied in achieving his results (c.f. para 403 S). In the case of such contracts a scale of rates or prices may be agreed upon by which enhancement of or reduction from the lumpsum may be regulated in the event of any departures from the work or supply as specified being made subsequently under the order of competent authority; or by which reductions may be made, at the discretion of competent authority for failure on the contractor's part to conform to specification. (c.f. paras 1328 and 404 S).

1207.  Schedule Contract.-The Schedule Contract is a contract under which the contractor engages to carry out a work or effect supply as specified anti within a given period, at fixed unit rates or prices for each of the various items comprising such work or supply, the sum he is to receive depending on the actual quantities and kinds of work done or materials supplied in completing the work or supply to specification and time.  It is not repugnant to the above definition to show in such contracts the approximate amount of the contract, based on approximate quantities and the fixed unit rates. (c.f. para 405 S).

1208.  Piece Work Contract.-This means a contract under which only unit rates or prices for various kinds of work or materials are agreed upon, without reference either to the total quantity of work to be done or materials supplied; or to the quantity of work to be done or material supplied within a given period. The Zonal Contract adopted on the Railways (refer para 1209) fall under this category (c.f. para 406 S).

1218.     Documents forming integral part of contracts.-

q  the conditions of contract standard or special;

q the specifications, standard or special (and any plans necessary)

q the schedule of items,

q quantities and rates;

q the agreement form;

q instructions to tenderers, and

q tender forms (if any). (c.f. paras 630 F and 416 S).

1211.  Circumstances when tenders need not be called for.-Except where for reasons which should be in public interest the General Manager decides that it is not practicable or advantageous to call for tenders, all contracts over Rs. 25,000/- in value should be placed after tenders have been called for in the most open and public manner possible and with adequate notice.  For works contracts based on Schedule of Rates in force on the Railway, calling of tenders up to Rs. 50,000/- can be dispensed with by the General Manager without recording reasons for doing so.  In all other cases where it is decided not to call for tenders. the reasons should be recorded and financial concurrence obtained.

MATERIAL AT SITE ACCOUNTS GENERAL EXPENDITURE

MATERIAL AT SITE ACCOUNTS

1. For works estimated to cost each Rs 1 lakhs or Rs 3 lakhs for relaying or track renewal work in relaxation of the limit of Rs 25000/-.
2. for stores not used up immediately
3. suspense head – on receipt of materials  is debited with the cost of stores and is credited with issued of materials for work
4. daily record of such material in form E 1737  materials obtained for work on receipt are entered under with quantity, issued note and reference – Receipts: issues of stores for consumption, the date, quantity, sub head charged are recorded under – Issues . Materials issued but surplus – Minus Issues
5. materials released from the work are separately recorded as receipts with date, quantity on their utilization of the works shown as issues Materials retuned to stores transferred or otherwise deposed of is shown as minus receipts
6. works costing  more than Rs 1 lakh to Rs 3 lakhs for relaying or track renewal works- monthly Return is sent containing only those items for which there have been any receipts or issue transactions during the month.
7. the monthly MAS a/c returns may be followed by a complete MAS a/c return for all the items of each quarter June, September, December & March on the basis of monthly returns from sub ordinates, the Divisional Officers prepare monthly adjustments get them approved by DEN and AO for necessary adjustment
8. periodical verification by the executive in charge for works costing  more than Rs 1 lakh to Rs 3 lakhs for relaying or track renewal a. P Way material b. other MAS which can be readily operated and distinguished from any of the description but by a different category all items verified at least once in a year.

A certificate that such verification has been carried out should together with a note as to whether or not the materials were found to be duly depreciated, be furnished on the MAS returns this is in addition to stock verification.

At the end of every financial year the AO prepares a schedule of MAS balances of works of Rs 1 lakh to Rs 3 lakhs for relaying or track renewal and review in consultation with the executive.

At the end of every month, an excess materials return should be prepared in the prescribed proforma in respect of all the completed works. These returns should show separately for materials obtained and material released, the numerical balance only of MAS i.e. those that have neither have been consumed on the work nor returned to stores, transferred or otherwise disposed of and the ate of completion of the work to which they relate. If the excess materials cannot be utilized in some other work they should be returned to stores.

PS; Plz check the monetary limit from your SOP

MATERIAL MODIFICATION:- GENERAL EXPENDITURE

MATERIAL MODIFICATION:

Any work in open line and line under construction outside the original sactioned estimate and costing more than Rs 1 Crore is to be treated as Material Modification.

1. Change in alignment which may affect the facilities given to public or increase/decrease in the length of line by over One Kilo Meter.
2. Introduction of a new station or omission of an existing station.
3. Alteration in the type –number of engines/vehicles provided in the Rolling Stock estimate.
4. Change in layout of yard which may affect the general method of working or which may result in increase/decrease in number of trains dealt.
5. Any departure from the standards of construction or use of second hand material which may affect speed of trains or number of trains originally contemplated.
6. The introduction or omission of any work or facility involving a sum of Rs  5 lakhs.
7. Introduction of a sub-work involving an outlay of more than Rs 5 Lakhs.
8. Any modification of a sub-work involving an outlay of more than Rs  5 Lakhs
9. Any alteration in the standards of interlocking (signaling).

Any Material Modification of the nature indicated above, requires prior approval of Railway Board. No liability should be incurred nor any savings used elsewhere as a result of Material Modification without the approval of Railway Board.

Material Modification can be sanctioned by the General Manager or lower authority provided the additional expenditure does cause an excess beyond his powers of sanction.

MANAGING OF VARIOUS RAILWAY FUNDS

MANAGING OF VARIOUS RAILWAY FUNDS

1.1 The Railways maintain the following funds for different purposes viz

INTERNAL FUNDS

a)     Depreciation Reserve Fund (DRF)

b)     Pension Fund

c)    Development Fund

d)   Capital Fund

RESERVE FUNDS

234 Railway Revenue Reserve Fund – This is a minor head under the major head 816-revenue Reserve Funds (under J-Reserve Funds-(a) Reserve Funds bearing interest) the account of the Fund will be maintained in the Office of the Railway Board only. The Fund will be credited mainly with appropriation from revenue surplus, interest on the balances of the fund and loans from General Revenues. The accounts of the Fund will be debited with (i) such sums as may be required for dividend equalisation that is to say to make up the shortfall in the revenue surplus available for payment of dividend to the General Revenues, (ii) repayment of loans form General Revenue and interest on loan. The balance of the fund will be carried forward from year to year.

Fund is closed.

235. Railway Development Fund- This is a minor head under the major head 817- Development Funds (under J-Reserve Funds-(a)-Reserve Funds bearing interest). The accounts of the Fund will be maintained in railway board’s Office. The Fund will be credited with appropriation from revenue surplus, interest on Fund balances and loans from General Revenue. The withdrawals from the Fund will be in accordance with the rules of the Fund, namely to meet the expenditure on providing amenities for passengers and other railway users, labour welfare works, unremunerative operating improvements etc. The balance of the Fund will be carried forward from year to year.

Fund is closed.

237 Accident Compensation, Safety and Passenger Amenities Fund - This is a minor head under the major head 821-General and other Reserve Funds (under J-Reserve Funds, (a) Reserve Funds bearing interest). The Fund will be credited with the amount collected as surcharge on passenger tickets (towards accident compensation etc.) and interest on the balance in the Fund. The Fund will be debited with (a) payments of compensation to passengers involved in railway accidents, (b) expenditure on safety works such as Track Circuiting or Axle Counters, Automatic warning System, Vigilance Control Device, Lifting Barriers at level crossings, inter-locking of level crossing gates with signals and such other safety works as may be authorised to be financed out of this fund from time to time and (c) expenditure on specified items of passenger amenities and allied works such as provision of platforms and covers there on, Train indicator Boards, Rest Shelters for licensed porters etc. The balances of the Fund will be carried forward from year to year.

Fund is closed.

OLWR :

This fund is meant for debiting those expenditure Which are costing more  than Rs 1 Lakh and upto Rs 10 Lakhs.  New Minor Limits.  The object of this fund is to enable those  Expenditure costing more than Rs 10 Lakhs to be charged not To Revenue but to this fund.  This would reduce the Revenue Expenditure  considerably.

Now closed

External Funds:

1.     Market borrowing through Indian Railway Finance  Corporation IRFC  Raising bonds in  market Fund Rolling Stock production On lease basis Charges 16 % p a

2.     General Exchequer – support from GOI Interest bearing loan in perpetuity 7 % p a

3.     Railway Safety Fund – a share from the Central Road Fund – every lr of petrol sold railways get 12.5 paise and diesel 6.25 paise meant for construction of ROB/RUB,  manning unmanned level crossing

4.     Special Railway Safety Fund –  non lapsable fund Rs 15000 Crores for renewal and Rplacement of tracks, bridges,  Rolling Stock Over aged coaches and wagons,  signaling gears

5.     Ministry of Defence for rail lines in  strategic areas – Udhampur – Katra – Baramulla – Quazigund 100 % support

6.     North East Development Forum – for all projects in the seven North Eastern States

7.     State Participation: Since the construction of new Lines have cost dearly to the railways, the RailwayMinisters Namely Shri George Fernandez and Shri Nitish Kumar have Raised this issue in the Parliament through “Status Paper On Railways” and a “White Paper on Railway Projects”. They have appealed the State Governments to take up The new lines under Infra Structure Development Projects In their respective States. 
Maharashtra:            Mumbai Rail Vikas Corporation 2/3

Karnataka   :             Karnataka Rail Infrastructure Development Enterprises  2/3

Andhra Pradesh:      50 : 50 sharing

West Bengal    :       Metro Rail – Dolliganj – Dahria     1/3 share

Jarkhand         :       2/3 sharing

Tamil Nadu :            MRTS – Taramani – Velacheri 2/3

                                              GC – MSB – TBM               50:50

                                  GC  -  SA  - COT                 50:50

8.     PPP Public Private Participation:

Pipavav Mundra Port Railway

9.     LIC of India has come forward to invest Rs 150000 Crores in Indian Railways

Rashtriya Rail Sanraksha Kosh (RRSK) 

A fund namely ‘Rashtriya Rail Sanraksha Kosh’ (RRSK) has been created in 2017-18 with a corpus of ₹1 lakh crore over a period of five years for critical safety related works. Accordingly, a provision of ₹20,000 crore has been made in Budget Estimates and Revised Estimate, 2017-2018 out of ‘Rashtriya Rail Sanraksha Kosh’ to fund essential works for ensuring safety.

The details of works to be executed through Rashtriya Rail Sanraksha Kosh (RRSK) have been summarized as under: –

Summary of RRSK works identified
(1)	Civil Engineering Works
	(including Track works, Bridge rehabilitation, Vehicular ultrasound testing system for rail/welds, broken rail detection system, adoption of flash butt welds & weld quality improvement etc)
(2)	Safety works at Level Crossings (includig elimination of LC/ROB/RUB/Subways etc)
(3)	S&T Works (including Train Protection & Warning System, Train Collision Avoidance System, up-gradation of standard of interlocking, replacement of overaged signalling gears by electrical/electronic interlocking etc)
(4)	(including Freight Design & Maintenance, Coach Design & Maintenance, Diesel Locomotive maintenance, Crew Management and Disaster management)
(5)	Electrical Engineering (Replacement of overaged traction distribution assets, conversion of unregulated OHE to regulated OHE, replacement of masts/portals, replacement of transformers, cables,earthing, panels, wiring etc)
(6)	Human Resource Development

The above works of asset replacement are targeted for liquidation in a period of five years. Outlay of the ₹20,000 crore has been allocated in Budget Estimates 2018-19 also.

Safety is accorded the highest priority by Indian Railways and all possible steps are undertaken on a continual basis including upgradation of technology to aid safe running of trains. These include replacement of over-aged assets, elimination of unmanned level crossings, adoption of suitable technologies for upgradation and maintenance of track, rolling stock, signalling and interlocking systems, safety drives, greater emphasis on training of officials and inspections at regular intervals to monitor and educate staff for observance of safe practices.

As a safety culture a well established safety management systems is existing which identifies Safety hazards and unsafe practices in the railway operation so that corrective action can be initiated much before occurrence of a disaster. Instructions have been issued from time to time to inculcate safety habits amongst all railway employees.

This information was given by the Minister of State of Railways Shri Rajen Gohain in