Access Charges to DFCCIL

 

Access charges to DFCCIL

• What is the Access charge ? 

• Indian Railways pays access charges to DFCCIL - Dedicated Freight Corridor Corporation of India Limited  for utilizing these corridors for freight transportation. The charges are designed to ensure cost recovery for DFCCIL while providing affordable and efficient freight services for Indian Railways. The DFCCIL is responsible for operating and maintaining the dedicated freight corridors (DFCs) in India. 

• New classification as per F2 - Finance Code Volume 2

• Erstwhile Demand No.09 (Operating Expenses - Traffic) Detailed Head 735

• Sub Major Head 07 - Major Head 3002 - Indian Railways Working Expenses - Commercial Lines

 

• Authority: RBA No.33/2024  - ACS - Advanced Correction Slip Number 11 to Finance Code Volume 2 dated 02.12.2024

Key Points:

1. Purpose: Access charges cover infrastructure usage, maintenance, and operational costs of the dedicated freight corridors.

2. Computation Basis:

• Charges are calculated based on parameters like gross tonne kilometers (GTKMs), train path allocations, and distance covered.

• DFCCIL aligns these charges to incentivize higher utilization and efficient operations.

3. Mutual Agreement: Rates are determined through a mutual agreement between Indian Railways and DFCCIL, periodically reviewed for adjustments.

4. Revenue Sharing: The access charges also support DFCCIL's financial sustainability, enabling repayment of loans taken for DFC construction.

5. Operational Benefits: The use of DFCs reduces congestion on existing passenger rail lines, ensures faster transit for freight trains, and promotes economic efficiency.

In conclusion, these charges foster collaboration between DFCCIL and Indian Railways, facilitating the development of a robust freight transportation network.

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

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