Training Allowance & Sumptuary Allowance

Training Allowance & Sumptuary Allowance

Reference of Railway Board letters

1. Railway Board letter No. E(MPP)/2008/3/18 dated 20.10.2008- RBE 156 of 2008 Clickhere

2. Railway Board Letter No. E(MPP)/2012/3/28 dated 06.10.2017- RBE 145/2017 Clickhere

       Colloquially called as Teaching Allowance, since it is granted to Teaching persons/faculty.  But the official name is Training Allowance.

       Revised Training Allowance (due to 7th PC recommendations) is as follows

National/Central training Academies & Institutes for Group A officers	24 % of Basic Pay
In other training establishments	12 % of Basic Pay

       Basic Pay means Pay in the prescribed pay Band plus applicable Grade pay only, but does not include any other type of pay like Special pay etc.

       Admissible to the employees who join the training institutes for specific period of time and are then likely to go back.

       Will be admissible to the faculty members without any ceiling of 5 years and standard cooling off period between tenures will apply.

       Not admissible to those employees who are directly employed by the training institutes for imparting training.

       Separate Deputation allowance is admissible to the trainers who are in receipt of Training allowance.

       Revised rates of Training Allowance  and abolition of Sumptuary Allowance are w.e.f  01.07.2017.

Sumptuary Allowance

       Abolished w.e.f. 01.07.2017 (based on 7th PC recommendations)

       Sumptuary allowances are granted to various grades of personnel in the Central Government, to compensate for the expenditure incurred on entertaining visitors.  However due to 7th PC recommendations, Sumptuary allowance paid to Head of CTI - Centralised Training Institue (Rs. 3500 per month), to Course Directors ( Rs. 2500 per month) and to Counselors (Rs. 2000 per month is abolished.

        Sumptuary allowances are granted to various grades of personnel in the Central Government (that is Head of Training Institutes),  to compensate for the expenditure incurred on entertaining visitors.

Performance Guarantee

Performance Guarantee

(as per GCC 2018)  Click here

Ø   Introduced in lieu of risk action procedure (contracts rescinded due to failure of contractors)

Ø The successful bidder shall have to submit the Performance Guarantee - 5%  of the Contract value

Ø    Time limit: within 21 days from the date of issue of Letter Of Acceptance (LOA).

Ø    Extension of Time limit: Beyond 21 days and up to 60 days from LOA by the Authority who is competent to sign the contract agreement.

Ø    Penal interest of 12% per annum  - beyond 21 days, i.e. from 22nd  day after the date of issue of LOA.

Ø    If 60th day happens to be a declared holiday in the concerned Railway office, submission of PG can be accepted on the next working day.

Ø    PG shall be valid up to the Date of completion of the work plus 60 days.  In case the completion time extended, the validity of PG extended to cover such extension plus 60 days.

Ø    If contractor fails to submit PG,

A.    the contract shall be terminated

B.     b)  forfeiting EMD and other dues, if any payable against that contract. and

C.      c) the failed contractor shall be debarred from participating in re-tender for that work.

Ø    After work started, whenever the contract is rescinded or withdrawn,

A.  the security deposit shall be forfeited

B.   the Performance Guarantee shall be encashed and

C.    the balance work shall be got done independently without risk and cost of the failed contractor.  (This is the main objective of introducing the Performance Guarantee procedure. Before that, the balance work is to be carried out by inviting fresh tenders and if any higher charges on account of the fresh tender, the same is at the risk and cost of failed contractors)

D.  The failed contractor shall be debarred from participating in the tender for executing the balance work.

Ø    Variations to the value of Contract - PG

A.   Up to 25 %  increase of original contract value - No additional PG.

B.   Beyond 25 % increase of original contract value - Additional

5 % PG for the excess value over the original contract value shall be deposited by the contractor.

C.   If the value of contract decreases by 25% of original contract value , PG amounting to 5% of decrease in the contract value shall be returned to the Contractor on the basis of his request.

Ø    The Performance Guarantee (PG) shall be released after physical completion of the work based on 'Completion Certificate' issued by the competent authority .

Ø    The Security Deposit shall, however, be released only after expiry of the maintenance period and after passing the final bill based on 'No Claim Certificate' from the contractor.

Performance Guarantee - various forms for submission

(i)     A deposit of Cash;

(ii)    Irrevocable Bank Guarantee;

(iii)   Government Securities including State Loan Bonds at 5% below the market value;

(iv)   Deposit Receipts, Pay Orders, Demand Drafts and Guarantee Bonds. These forms of Performance Guarantee could be either of the State Bank of India or of any of the Nationalized Banks;

(v)    Guarantee Bonds executed or Deposits Receipts tendered by all Scheduled Banks;

(vi)   A Deposit in the Post Office Saving Bank;

(vii)  A Deposit in the National Savings Certificates;

(viii) Twelve years National Defence Certificates;

(ix)   Ten years Defence Deposits;

(x)    National Defence Bonds and

(xi)   Unit Trust Certificates at 5% below market value or at the face value whichever is less.

(xii) Also, FDR in favour of FA&CAO (free from any encumbrance) may be accepted.

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Cash Imprest

Cash Imprest

Authority: 1) Para No.1050 of Indian Railways Finance Code Volume 1

                     2) ACS No.83 vide Railway Board Letter No.2016/F(X)II/10/27 dated 13.03.2018

                   3) Item No.1 (A) of Part C of Model SOP (Schedule of Powers)

·         What is the meaning of Imprest in general ?  A sum of money advanced to a person for a particular purpose or  A fund used by a business for small items of expenditure and restored to a fixed amount periodically (say one month)

·          

·         Definition of Cash Imprest by Railways is “ An Imprest is standing advance of a fixed sum of money placed at the disposal of an Individual (Officer or Supervisor) to meet the following types of expenditure.

1.       Petty Office expenses

2.       Cost of raw materials for the diet of Indoor patients of Hospitals

3.       Emergent charges which cannot be foreseen

4.       Other petty expenses up to an amount of Rs. 15,000 /- in each case subject to a certificate recorded by procuring official/Imprest holder in the format given below.

“I am personally satisfied that these goods are of the requisite quality and specification and have been purchased from a reliable supplier at a reasonable price”  

·         GM has full powers in respect of sanctioning cash imprest to the Officers & Supervisors.

·         As per Model SOP, PHOD, HOD, DRM, ADRM,CWM & SAG officers in field units have full powers to sanction the Cash Imprest to the Officers & Supervisors.

·         Finance concurrence is required for fixing the Cash Imprest amount.

·         Cash imprest amount to be created purely on the need basis.

·         Cash Imprest amount to be reviewed periodically.

·         The amount of an Imprest must not be larger than is absolutely necessary.

·         It should be reckoned at the lowest possible figure calculated to suffice for meeting the office expenses.

·         Total amount of expenditure through cash imprest should not be exceeded the Budget grant for the purpose during the year.

·         The Cash Imprest holder may sanction emergent petty advances out of Imprest money placed at his disposal. ( that is Mini cash Imprest out of Cash Imprest sanctioned to the Officer/Supervisor)

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LDCE - MULTIPLE CHOICE QUESTIONS

Salient features of LDCE/70% Selection -  Objective type questions

CLICK FOR RAILWAY BOARD LETTER

70% Selection

·         Applicable to all Departments, except Accounts.  Separate instructions for similar pattern in Accounts Dept will follow.

·         100 % -MCQ -Multiple Choice Questions  - Selections -70% exam - 100 marks

·         100 marks consists of

1.       70 Marks - Technical subjects & Official Language

2.       30 Marks - Establishment and Financial Rules

·         Qualifying marks - 60

·         Non -safety categories - Best among failure scheme for SC/ST candidates - will continue

30% LDCE

·         Two stages

1.       Pre-qualifying exam

A.      Multiple choice questions -100 Marks (Technical subject -40 marks, General Knowledge & Official Language-30 Marks & Establishment & Financial Rules -30 marks)

B.      Qualifying Marks -75 (No of candidates should be restricted to 5 times the number of vacancies)

C.      For SC/ST candidates - Qualifying Marks  -45 ( 3/5th of the  qualifying marks 75) -Non Safety categories

D.      Negative Marks - 1/3rd of marks for wrong answer

2.       Main Examination

A.      One Descriptive paper

B.      Profession subject only

C.      Total Marks -100

D.      Qualifying Marks - 60

E.       For SC/ST candidates - Qualifying Marks  -36 ( 3/5th of the qualifying marks 60) -Non Safety categories

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LDCE - MULTIPLE CHOICE QUESTIONS -OBJECTIVE TYPE

Railway Board letter 

Click here

Salient features of LDCE/70% Selection -  Objective type questions

70% Selection

·         Applicable to all Departments, except Accounts.  Separate instructions for similar pattern in Accounts Dept will follow.

·         100 % -MCQ -Multiple Choice Questions  - Selections -70% exam - 100 marks

·         100 marks consists of

1.       70 Marks - Technical subjects & Official Language

2.       30 Marks - Establishment and Financial Rules

·         Qualifying marks - 60

·         Non -safety categories - Best among failure scheme for SC/ST candidates - will continue

30% LDCE

·         Two stages

1.       Pre-qualifying exam

A.      Multiple choice questions -100 Marks (Technical subject -40 marks, General Knowledge & Official Language-30 Marks & Establishment & Financial Rules -30 marks)

B.      Qualifying Marks -75 (No of candidates should be restricted to 5 times the number of vacancies)

C.      For SC/ST candidates - Qualifying Marks  -45 ( 3/5th of the qualifying marks) -Non Safety categories

D.      Negative Marks - 1/3rd of marks for wrong answer

2.       Main Examination

A.      One Descriptive paper

B.      Profession subject only

C.      Total Marks -100

D.      Qualifying Marks - 60

E.       For SC/ST candidates - Qualifying Marks  -36 ( 3/5th of the qualifying marks) -Non Safety categories

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EMD – Earnest Money Deposit (as per GCC for Works – Nov, 2018)

EMD – Earnest Money Deposit

(as per GCC for Works – Nov, 2018)

ü  Earnest means – Showing sincere interest/serious in participating the Tender process, if awarded executing the Work for Organizations like Indian Railways.

ü  EMD – Earnest Money Deposit – means an earnest payment as specific form of Deposit to demonstrate that the applicant is serious/sincere to participate the Tender work and complete the work for orgnisations like Indian Railways, if awarded.

ü  EMD Rates are as follows.

Value of the Work	EMD Amount ( Rounded to a nearest Rs.100)
Up to Rs.1 Crore	2 % of value of the work
Beyond Rs. 1 Crore	Rs. 2 lakhs + 0.5 % of the excess of the estimated cost of work beyond Rs.1 Crore

ü  Maximum EMD is Rs. One Crore only.

Examples for calculation of EMD under different circumstances: -

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1.       Value of Work  - Rs. 25,60,520

2 % of Rs.25,60,520  - Rs. 51,210

Answer is Rs. 51,200 /- (Rounded off to a nearest Rs.100)

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2.       Value of Work  - Rs. 4,00,00,000 ( Rs. Four Crores)

First one Crore	Rs.2,00,000 (Rs. Two Lakhs)
One Crore to Four Crore ( 3 Crores)	Rs.3 Crores x 0.5 % = Rs. 1,50,000 (Rs.1.5 Lakhs)
For Value of Rs.4 Crores	Rs.2 Lakhs plus Rs.1.5 Lakhs = Rs.3.5 Lakhs

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3.       Value of Work  - Rs. Two Hundred Crores

First one Crore	Rs.2,00,000 (Rs. Two Lakhs)
One Crore to Two Hundred Crore ( 199 Crores)	Rs.199 Crores x 0.5 % = Rs.99,50,000
For Value of Rs.200 Crores	Rs.2,00,000 plus Rs.99,50,000 = Rs.1,01,50,000.  However maximum EMD is Rs.1 Crore.  So EMD is Rs.1,00,00,000/- ( Not Rs.1,01,50,000)

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ü  EMD is applicable to all modes of Tenders such as Open, Limited, Single etc.

ü  Exemption for Submission of EMD – Firms recognized as “STARTUPS” by DIPP (Dept of Industrial Policy & Promotion.

ü  EMD of Successful Tenderer – Retained as part of Security Deposit.  But Railway shall return the EMD, if a Successful Tenderer submit “Term Deposit Receipt (TDR) / Bank Guarantee Bond towards the Full Security Deposit.

ü  EMD shall be deposited in Cash (through E-Payment Gateway) or as mentioned in Tender documents.

ü  EMD of unsuccessful Tenderers – Returned to them. But Railway is not liable to pay the depreciated value, if any or any interest on EMD.

ü  Forfeit of EMD:

1.       If the successful tenderer unable to submit the PG – Performance Guarantee within validity of time, or

2.       If the successful Tenderer resile/abandon from his offer, Or

3.       Modify the terms and conditions there of in a manner not acceptable to the Railways.

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