Stores Budget - Derived one स्टोर बजट - व्युत्पन्न

 

Stores Budget - Derived one

• Derive means obtain something from

• The term "Derived Budget" underscores the fact that this is not created in isolation but is a synthesis of the projected demands of multiple stakeholders within the railway system.

• In Indian Railways, the Stores Budget is often referred to as a "Derived Budget" because it is formulated based on the projected requirements and consumption patterns of various departments and projects. 

• Unlike other budgets that may be prepared independently, the Stores Budget is inherently dependent on the anticipated needs of different operational and maintenance activities across the railway network. 

MCQ on Derived Budget in CBT

Stores budget is a 'derived' budget because ________________  (AFA LDCE 2023 & AFA 70% 2023) 

1. Stores department does not have its own budget

2. Stores department budgets for all other departments

3. All revenue and workshop stock items requirements are compiled in Stores budget 

4. All of the above 

D. All of the above is the correct answer. 

स्टोर बजट - व्युत्पन्न

व्युत्पन्न का अर्थ है किसी चीज़ से प्राप्त करना

"व्युत्पन्न बजट" शब्द इस तथ्य को रेखांकित करता है कि इसे अलग से नहीं बनाया जाता है, बल्कि यह रेलवे प्रणाली के भीतर कई हितधारकों की अनुमानित मांगों का संश्लेषण है।

भारतीय रेलवे में, स्टोर बजट को अक्सर "व्युत्पन्न बजट" के रूप में संदर्भित किया जाता है क्योंकि इसे विभिन्न विभागों और परियोजनाओं की अनुमानित आवश्यकताओं और खपत पैटर्न के आधार पर तैयार किया जाता है।

अन्य बजटों के विपरीत जिन्हें स्वतंत्र रूप से तैयार किया जा सकता है, स्टोर बजट स्वाभाविक रूप से रेलवे नेटवर्क में विभिन्न परिचालन और रखरखाव गतिविधियों की प्रत्याशित आवश्यकताओं पर निर्भर करता है।

CBT में व्युत्पन्न बजट पर MCQ

स्टोर बजट एक 'व्युत्पन्न' बजट है क्योंकि ________________ (AFA LDCE 2023 और AFA 70% 2023)

स्टोर विभाग का अपना बजट नहीं होता है

अन्य सभी विभागों के लिए स्टोर विभाग बजट

सभी राजस्व और कार्यशाला स्टॉक आइटम आवश्यकताओं को स्टोर बजट में संकलित किया जाता है

उपर्युक्त सभी

D. उपरोक्त सभी सही उत्तर है।

EMD & SD in Stores - Differences between

                                        

                                      Differences between EMD & SD in Stores 

	EMD  Earnest Money Deposit	SD Security Deposit
Calculated on	Tender Value	Contract value
Rounded off to nearest higher	Rs. 10	Rs. 10
Up to Rs. 25 Lakhs	Nil	Nil
Rs. 25 Lakhs to Rs. 50 Crore	2%	5%
	Maximum is Rs.20 Lakhs	Maximum is Rs. 50 Lahs
Above Rs. 50 Crore	Fixed Rs. 50 Lakhs	Fixed Rs. 1 Crore (Global Tenders - No ceiling)
Valid for	Final bid validity period plus 45 days	Date of completion of all contractual obligations plus 60 days
If not submitted	Offers shall be summarily rejected	The EMD shall be forfeited and case be dealt with as that of withdrawal of offer by the Tenderer as per extant instructions
	EMD  Earnest Money Deposit	SD Security Deposit
Forfeit	If withdraws the Offer within validity  or  If not submit the balance SD within 21 days in case of awarding the Stores contract	In case of failure by the Supplier to meet deliveries for any lot, Railway may cancel the Contract for default part by forfeiting SD commensurate to that lot
Exempted cases	1.Up to Rs. 25 Lakhs  2. Govt Depts 3. Other Railways 4. Indian Ordnance factories 5. Railway PSUs 6. MSEs	1.Up to Rs. 25 Lakhs  2. Govt Depts 3. Other Railways 4. Indian Ordnance factories 5. Railway PSUs
Exempted for Single Tender / PAC items	Hqrs:  1. Personal Approval of TAA, not below the level of PCMM. 2. Finance concurrence not required 3. Decided on case to case basis  4. Suitably incorporated in the Tender conditions Field Units:  1. Personal approval of TAA, but not below the SAG level  2. Finance concurrence is required 3. Decided on case to case basis 4. Suitably incorporated in the Tender conditions	Hqrs:  1. Personal Approval of TAA, not below the level of PCMM. 2. Finance concurrence not required 3. Decided on case to case basis  4. Suitably incorporated in the Tender conditions Field Units:  1. Personal approval of TAA, but not below the SAG level  2. Finance concurrence is required 3. Decided on case to case basis 4. Suitably incorporated in the Tender conditions
Debarment - exemption in case of False declaration	6 Months	6 Months

Note: 

1. In exceptional cases, Railways reserves the right to increase the upper ceiling of Security Deposit, up to 10% of the contract value.
2. SD clause is applicable - Risk purchase clause shall not be applicable 
3. SD clause is not applicable - Risk purchase clause shall be applicable 

 

LD – Liquidated damages for delayed supply

 

• 0.5 % of the price of stores per week or part of the week of delay

 

• Upper limit – 10% of the value of contract (irrespective of delays)

 

end

 

 

Developmental Orders - Stores

 

Developmental Order

Source: Click for Railway Board Letter No. 99/RS(G)/709/1Pt. dated 13.01.2015 

Developmental Orders - Percentage of NPQ

Percentage of NPQ	Regular Tender  / Developmental Tender
Up to 5% (within or outside NPQ)	Regular Tender - Category A (i) - Grading of Vendors as Part I & Part II
Up to 20% (within NPQ only)	Regular Tender - Category A (ii) - No grading of Vendors
Not specified	Developmental Tender - Category B

Invitation of Single Tenders for Developmental items
Level of Officer	Value
PCMM	15 Lakhs
CMM	8 Lakhs
DY.CMM	5 Lakhs
SMM	Nil
AMM	Nil

• Background: Railway Budget 2014-15 emphasised the “Indigenisation and economy in Railway purchases” 

• Nomenclature: Trial Order / Developmental Order / Education Order have been interchangeably used in the past. To avoid ambiguity, the term Developmental Order should be used for all such orders and should be written on all such purchase orders

Developmental Order considered only, if  

1. Where the approved sources are not adequate or 

2. The rates received from new sources are lower than those applicable to approved sources 

3. To bring in more competition or improvement in quality or indigenisation. 

4.  Where new sources are having potential for supply of quality material and are having infrastructure of plant and machinery and testing equipment

Developmental Orders - Two broad categories:  A. Ordered through Regular Tenders B. Ordered through Developmental Tenders 

Category A - Ordered through Regular Tender  - Two sub divisions

A (i) - Grading of Vendors as Part I and Part II (by Vendor approving agencies) 

 

• up to 5% of NPQ - The Developmental order quantity  - Net Procurable Quantity (can be within or outside the NPQ) 

• In case, Such items, the number of sources is considered inadequate or for developing indigenous sources for imported items  - 5% quantity restriction will not apply  - Can exceed 5% limit (outside NPQ) subject to the  

• Justification 

• Concurrence of associate finance 

• The ordered quantity which can be ordered as a Developmental Order on a vendor may be the minimum quantity required for approval of a Vendor as part I / Part II status 

A (ii) - No grading of Vendors as Part I and Part II (by Vendor approving agencies) 

 

• Up to 20% of the NPQ (within the NPQ only)  - on unregistered / untried firms 

• The firms about whom Railway is prima facie satisfied that they are capable of executing the order.  

• Can permit differential rates within reasonable limits to different firms in order to develop the multi sources in the Railways interest. 

Category B - Ordered through Developmental Tender 

• Resort to where the number of sources is considered inadequate or for developing indigenous sources for imported items or for new product development 

• Quantity percentage not specified (unlike in Category A).  However the quantity ordered should be enough for an entrepreneur to acquire or develop the know-how and also to absorb the expenses of making investment in M&P (Machinery & Plant)  

 

• Can permit differential rates within reasonable limits to different firms in order to develop the multi sources in the Railways interest. 

 

• Developmental Tender - Approved vendors for an item will not be permitted to quote 

 

• Pre-bid conference: To understand the quantity to be ordered through Developmental Tender, assess suitable eligibility criteria. 

Identification of Firms for Development: 

• Ascertain the capacity or capability of firms for Developmental Orders in the shortest possible time say within 6 months of advice from purchase authority. 

  

• Call for EOI - Expression Of Interest by giving wide publicity for development of Sources. 

 

• Ensures QAP - Quality Assurance Programme, technical capability, adequate testing equipment for maintaining quality standards, adequate capacity, financial status etc. 

Upgradation: Developmental Vendors to Approved Vendors by the Vendor Approving agencies in a transparent procedure in a time frame subject to fulfilling the required criteria and satisfactory performance. 

Key Points: 

1. Developmental Orders - Railway Board Policy 2015 

2. Trial Order / Developmental Order / Education Order have been interchangeably used in the past. To avoid ambiguity, the term Developmental Order should be used for all such orders and should be written on all such purchase orders. 

3. Developmental Orders - Two broad categories:  Ordered through A. Regular Tenders    B. Developmental Tenders  

4. Category A - Ordered through Regular Tender  - Two sub divisions (i) Grading of Vendors as Part I & Part II  (ii) No grading of Vendors 

5. 5% of NPQ (within or outside NPQ) - (i) Grading of Vendors as Part I & Part II 

6. Up to 20% of the NPQ (within the NPQ only)   - (ii) No grading of Vendors

7. NPQ - Net Procurable Quantity

8. QAP - Quality Assurance Programme 

9. EOI - Expression Of Interest

10. Quantity percentage not specified (unlike in Category A) - Category B - Ordered through Developmental Tender

—end—