Railway Accounts Department Examinations

Showing posts with label T&P. Show all posts
Showing posts with label T&P. Show all posts

Saturday, January 21, 2023

Difference between M&P and T&P

Difference between M&P and T&P

 

Source: Para 1019 & 1020 of Rolling Stock Code

 

SN

M&P

SN

T&P

1

M&P stands for Machinery & Plant

1

T&P stands for Tools & Plant

2

A Machine that remains stationary nd immovable (Job comes to Machine) and all Vehicles (all types)

2

An item that is movable (Machine comes to Job)

3

Examples: All immovable Machines, Staff cars, Lorries, Buses, Ambulances, Road Mobile cranes,  etc

3

Examples: Pneumatic drills, power saws, tools and plants such as jigs & fixtures. Small tools & equipment. Upkeep of Office such as Furniture, computers, printers etc 

4

Costing more than Rs. 50 Lakhs and Vehicles irrespective of its cost  processed through M&P Portal (maintained by Railway Board)

 

Costing up to Rs. 50 Lakhs each - (except Vehicles) can be sanctioned by Zonal Railways under GM’s powers

4

Costing up to Rs. 10 Lakhs referred as T&P and procured by Zonal Railways 

5

Charged to Capital (Plan Head 41 - M&P)

5

Charged to Revenue

 

Key Points for MCQ



  1. M&P stands for Machinery & Plant 
  2. T&P stands for Tools & Plant 
  3. M&P - Job comes to Machine
  4. T&P - Machine comes to Job 
  5. M&P - costing more than Rs. 50 Lakhs processed through M&P Portal
  6. All Road vehicles treated as M&P irrespective of Value and processed through M&P Portal
  7. M&P portal maintained by Railway Board 
  8. M&P - costing less than Rs. 50 Lakhs - processed by Zonal Railways under GM’s powers
  9. T&P - costing up to Rs. 10 Lakhs charged to Revenue
  10. M&P charged to Capital (Plan Head 41) 

—--end—-


Tuesday, August 18, 2020

M&P Programme (Machinery & Plant)

ROLLING STOCK PROGRAMME AND M&P PROGRAMME - ppt video online download

M&P Programme

 

Source: 10th Chapter of Rolling Stock Code  Click for Rolling Stock Code

 

 

·        Investment decisions relating to the creation, acquisition and replacement of assets on the Railways are processed through the 3 different Programs

 

·        They are 

1. Rolling Stock Program (Plan Head 21)

2. M & P Program (Plan Head 41 )  

3.  Works Program (Rest of the Plan Heads)

 

·        Click for article on Works Program

 

·        Click for article on Rolling Stock Program

 

·        Plan Head  41 - covers M&P items (under RB & GM powers)

 

·        2020-21 M&P Grant - Rs. 487 Crores

 

·        Nodal Officer - PCME  (for budget allotments & utilization of funds).  He is nodal officer for distribution of Ceiling (preliminary M&P Programme) among various depts.  The overall ceiling should, however, be followed strictly.

 

·        Machinery and Plants are expensive assets both to acquire and maintain.  Hence, it is important that investments in M&P shall be made thoughtfully.

 

·        Items proposed under GM’s Out of turn sanctions should not be included in the regular M&P Programme for Board’s sanction.

 

·        The monetary limits for submission of preliminary M&P proposals to Railway Board are revised from time to time.

 

 

M&P Portal

 

·        Website address: http://www.irmnp.com/

·        Developed to allow easy creation and processing of M&P proposals by users on Indian Railways.

Salient features of Portal

1.      Can create proposals in minutes and refine them as needed.

2.     Users can stay ahead of all the deadlines.

3.     Submit the proposals electronically to Zonal Hqrs and Railway Board  within no time.

4.     Can track the sanction  of proposals issued by the Railway Board.

5.     Tracking the status of procurement (by COFMOW)

6.     Submit information about WIP - Works in Progress and receive funds accordingly.

7.     Keep the Asset Register updated automatically.

8.      User ID and Password of users by CME(Planning) of Zonal Railway/PU.

Preliminary M&P Program

 

·        Items included are   (Figures may vary from time to time. Please check latest amendments to Model SOP)

 

ü Rs. 50 lakhs above - each item

 

ü  Rs. 30 lakhs above - each item (Electronic in motion weigh bridges)

 

ü All Road vehicles irrespective of cost (Exception is sanctioning of procurement of two wheelers under M&P– under GMs powers)

 

·        Submit consolidated Preliminary M&P Programme  through M&P Portal maintained by Railway Board.

 

·        Estimated costs of the machines indicated in the proposals should be present day realistic costs and should include cost of essential accessories.

 

·         The present day cost  - adopt from  1. The latest compendium issued by COFMOW   2. M&P Portal

 

·        Costs for other machines may be obtained through market surveys.

 

·         Preliminary M &P Due Date:  September / October month of every year or date specified by the Railway Board.  After which, the portal would disallow any subsequent submissions.

 

·        Final M&P Due Date - Discussed with the Railways by the Railway Board during December or January of every year

 

End-loaded expenditure : 

 

·        In other works, there is steady outflow of cash as the project advances, and the trend of expenditure is uniform.

 

·        But, in case of M&P procurements the booking starts only after a machine is dispatched and hence the expenditure is end- loaded.

 

·        With an average lead time of 3 years, the value of W.I.P items is often therefore more than 3 times the budget sanctions.

 

 

Difference between M&P and T&P

                                                                                                                     

M&P  - Machinery & Plant covers:

 

ü A machine that remains stationary and immovable.

ü That means job comes to machine and not vice versa.

ü All vehicles such as staff cars, Lorries, Diesel utility vehicles, Road mobile Cranes, Front end loader/JCB cranes & Fork lifts.

 

T&P - Tools & Plant covers:

 

ü All movable machines like pneumatic drills, power saws, tools & plants such as jigs and fixtures.

ü Small tools and equipments required for maintenance of machines

ü All measuring instruments / Gauges (irrespective of their unit cost)

ü Upkeep of office such as   furniture, computers, printers etc.

ü Limit for Tools and Plant  - Up to Rs. 10 Lakhs each - Charged to Revenue.   If it is Rs. above Rs. 10 lakhs, procurement of such T&P is processed under M&P.

 

 

Codal life:

 

·  Subject to modification from time to time as amended in Accounts Code.

·  It is merely an average economic life, assumed for the specific purpose of making long term planning for replacements.

·  Normally condemnation should be on age and condition basis.

·  Condition basis arrived by derivative/derived of hours usage (double or single shift), load factor, maintenance standards etc.

 

Annexure 10.2 of Chapter 10 of Rolling stock code.

 

S.No

Codal life of machines

 

Average

Life in Yrs

1.

Machine Tools like Lathes, Planners, Drilling, Boring and Milling machines etc.

15

2.

High Precision and special purpose machine like wheel lathes etc.

15

3.

Tool Room and Testing Laboratory equipment

15

4.

Foundry and Forge Equipment

15

5.

Heat Treatment Equipment

15

6.

Cranes – E.O.T

25

7.

Power Generation Machinery & Switches

15

8.

General purpose light machinery e.g. band saws, floor grinder etc.

10

9.

Air compressor

15

10.

Miscellaneous machines e.g. light cleaning machines, test equipment in diesel sheds, workshops, depots and sick lines

15

11.

Construction Machinery

15

12.

Track Maintenance equipment

20

13.

Station machinery e.g. weighing machines etc.

15

14.

Miscellaneous machinery and equipment for hospital, offices etc.

10

15.

Mechanical Weigh Bridges

15

16.

Electronic-In-Motion Weigh Bridges

08

17.

Diesel Pumps

10

18.

Welding equipment including diesel welding sets

10

19.

Diesel refrigeration equipment

15

20.

Material handling equipment like FLT, Lister trucks etc.,

10

21.

Traversers

25

22.

Fuel station dispensation equipment

10

23.

Bulldozers and other earth moving equipment

15

24.

Motor Boats

10

25.

Hydraulic re-railing equipment

15

26.

Staff cars including Jeeps

07

27.

Light Motor vehicles

10

28.

Heavy Motor vehicles

10

29.

Tractors

10

 

 

Creation of new assets on Additional account

 

·        Proposals should be supported with Financial justification and Rate of Return (10%) (Chargeable to Capital)

·        Vetted by Associate finance

·        Vetting is not required for machines required on safety considerations  such as medical/safety equipment for ART/ARME (chargeable to DF IV)

·        Other particulars such as Reduction in cycle time, improved quality and reliability, reduction in monotony etc should indicate in the proposal.

 

 

Replacement proposals:

 

·        Chargeable to DRF  

·        Proposing one-to-one replacements should be avoided, unless

·        The requirements of the proposer have remained unchanged since the original equipment was acquired and

·        Machines of higher productivity and reliability cannot be economically justified.

 

The following details - spelt out in the replacement proposal:

 

 

1.     Codal life of the machine and actual years worked along with the number of shifts per day.

2.     Jobs undertaken and the workload for the machine. 

3.     If reconditioning of the existing machine or outsourcing was considered and the outcome.

4.     Total number of similar machines in the load-centre and shortfall in capacity.

5.     Economics of acquiring one or two machines to replace a larger set.

6.     Replacement proposed should be substantially for same function and differences, if any, should be clearly brought out with reasons. 

7.     The cost of replacement may be compared with original equipment and reason for any abnormal increase explained. 

8.     Proposals for Road vehicles should accompany survey committee report comprising the condition of the vehicle, expenditure incurred, mileage and recommendation.

9.     Reconditioning or Replacement: There are situations where partial/ full reconditioning of machine is financially more viable in comparison to its condemnation and replacement.

 

Master Plan:

 

·        For utilization of space & Layout in Workshops/Repair Sheds.

·        Every Workshop or Repair Shed should have a Master Plan pinpointing locations of the machine to be procured in additional / replacement account in future.

·        So that, as and when new machines are acquired, these should straight away get installed according to this master plan.  

·        Critical review of 20 Years and above Machines and  Over aged machines incl: Cranes for their continued retention, so that floor space is effectively utilized.   Retaining them only after a clear certification of the in charge Officer duly certifying the sufficient load exists for the same. 

 

Works in Progress (WIP) Statement

 

·        Sanctioned and for which vetted indents are submitted, but not completed or closed.

·        Should state the status of procurement.

·        In absence of any clear indication of procurement, funds should not be allotted.

·        Due date: 15th December every year.

·        Funds projection  - through M&P Portal maintained by Railway Board.


Summary - Top of the WIP Statement

 

1.     Costing Rs. 2.5 Crores and above each

2.     Costing below Rs. 2.5 Crores each

3.     Sanctioned under GM's Powers  ( However list of items need not be sent to Railway Board)

 

 

Budgeting :

 

·        Validity of Sanction  - 5 Years  - sanctioned under M&P

 

·        Validity of Sanction  - 3 years  - Sanctioned under GM's OOT powers

 

·        Above 2.5 Crores each itemised in Pink Book with Pink book number, allocation wise breakup separately

 

·        Allotment of M&P items - Less than 2.5 Crores each and sanctioned under GM's OOT powers  - distribution by the Nodal Officer i.e.,  PCME and itemised in the LAW - List of Approved Works with a unique LAW number.

 

Four Categories -   M&Ps

 

Category A

 

·        Sophisticated and unique machines requiring extensive market survey

·        Specialized knowledge of the World of machine tools.

·        Procured by COFMOW only.

 

Category B

 

·        Machines like EOT cranes, welding machines, compressors, Road Mobile Cranes, Diesel Gensets etc., that figure frequently in the M&P Programs

·        Carefully procured, duly eliminating unreliable vendors from a highly competitive market

·        Requirements from Zonal Rlys are in bulk.

·        Entering into Running / Rate contracts for 2 to 3 years with price variation clause

·        Consider ILM option  - Install, Maintain & Lease  like construction companies hire cranes on long term basis

·        Procured by COFMOW only.

 

Category C

 

·        Special machines of unique and sophisticated nature for which domain knowledge may not exist with COFMOW

·        Requirements are not in bulk

·        Procured by Zonal Railways but after seeking dispensation from COFMOW well in time.

 

Category D

 

·        Other machines of smaller value below a certain limit barring certain excluded items, as stipulated by RB.

·        Medical equipment whose procurement is best left to the user Railway.

 

Notes:

 

1.     M&P items costing up to Rs. 30 Lakhs each can be procured by Zonal Railways/Production units on their own, without seeking dispensation from COFMOW subject to the exception list issued by COFMOW and items covered under Rate contracts of COFMOW.

2.     Medical items equipments can be procured by Zonal Railways/Production units.

 

Budgetary Reviews:

 

·        PCME is Nodal Officer - He/She will critically review these projections recd from Depts and submit to PFA duly giving the reasons for allocation wise variations with the Budget Grant during the budgetary stages.

 

Asset Register of M&P:

 

·        On procurement, a unified 9 digit code number to be allotted for each machine.

·        On successful commissioning of a new machine, it is included in teh Asset register with all the details.

·        No machine shall be kept in service without Unified Code Number, which is prominently painted on it for easy identification.

·        On disposal (condemnation) or transferred to Other Railway, the same is removed from the Asset Register of Parent Railway. 

 

1

2

3

4

5

6

7

8

9

Unit

Sub Location

Machine Group

Individual machine No.

ICF/Division

Shop like Machine shop

Wheel Lathe, Cranes etc

 

 

Likely Descriptive Questions

 

1.     Essay question on M&P Progrramme

2.     Short Notes questions on A. Differences between M&P and T&P  B. Master Plan  C. M&P Portal  D. Asset Register of M&P

 

Material for MCQs - Multiple Choice Questions

 

1.     Nodal Officer for M&P Programme in Zonal Railway  - PCME

2.     Validity for RB Sanctions  - 5 years

3.     Validity for GM Sanctions - 3 years (OOT - Out Of Turn)

4.     Unified code - 9 digits

5.     Categories of M&Ps - for M&P Programme - 4

6.     Dispensation of COFMOW not required - up to Rs. 30 Lakhs

7.      Plan Head for M&P - 41

8.     GM's Powers - M&P  - up to Rs. 50 Lakhs

9.     GM's Powers - Electronic Weighing Machine  - Up to Rs.30 Lakhs

10.                  Sanctioning of Two Wheeler for RPF post - by GM

11.                  T&P item up to Rs. 10 Lakhs - Charged to Revenue

12.                  T&P item - Rs. 10 Lakhs and above processed as M&P and charged to erstwhile Demand No.16 (DRF/CAP/DF)

13.                  Medical equipments - of any cost - Procured by Zonal Raiways

14.                  Rs. 2.5 Crores and above - itemised in Pink Book

15.                  Below Rs. 2.5 Crores - included in the LAW - List of Approved Works

16.                  LAW Full form - List of Approved Works

17.                  WIP  Full form - Works In Progress

18.                  With an average lead time of 3 years, the value of W.I.P items is often therefore more than 3 times the budget sanctions.

19.                  All Road vehicles Proposals irrespective of its cost to be included in the M&P Programme (except Two Wheelers, which can be sanctioned by GM)

20.                  Vetting of Associate finance is required for all M&P Proposals of New Assets on Additional Account (Except for Safety and Medical equipments - charged to DF)

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