Capital / Unit exchange spares.

Capital / Unit exchange spares.

Certain items of spares for diesel locos, diesel rail cars, electric locos, Break Down Cranes and EMU/MEMU stock which are not in the nature of consumable stores but  intended to accelerate repairs are identified as capital/unit exchange spares chargeable to Capital directly. In view of the increase in the cost of locomotives in the past few years, obsolescence in the current list of items of capital/unit exchange spares, improvement in the degree of reliability of major components/assembly kept as spares, utility of each component by itself or as a part of a major assembly, lead time for the procurement & nature of the item and whether kept as stock items or not,

the monetary limit for capitalization of spares which are procured through IRSP is fixed at a certain level by Railway Board, which shall be revised periodically according

to an appropriate formula, taking inflation into account. Low-cost unit exchange Spares with unit cost below such monetory limit is not included in the proposal for IRSP, but procured through Stock/Non-stock indents allocating the expenditure to Revenue.

Lists of capital/unit exchange spares along with their percentage on the holding as well as the provision/ share between workshops and sheds to be maintained, shall be advised by Railway Board periodically. The list should be for restricted number of items only, which are very critical rolling stock sub-assemblies, having longer lead for procurement and the repair practice in workshops is cumbersome/ time consuming, affecting the cycle time of repair of rolling stock in the workshops.

Note: While Items with unit cost below the threshold monetory limit stipulated by Railway Board may not be generally included as capital spare in the RSP, same does not imply that the items costing above the threshold monetory limit are to be treated only as Capital Spares same can be allowed to be purchased under revenue, subject to exigencies and emergent situations.