ordnance factory board may 2009.pdfordnance factory board dated the 21st may 2009 . ordnance factory...

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The financial powers delegated to OFB and GMs have originated from various Govt. letters/ OFB orders issued over the years. Besides, a large number of orders in modification of or in supersession of those issued at initial stages were issued subsequently. Such orders are made available on the ofb.net as when issued. OFB is bringing out a compilation of delegation of powers available to the various authorities both at OFB Hqrs. and at the factories in coherent arrangement to avoid confusion with regard to the latest position against any item of delegation. This version is updated on the basis of resolutions passed by O.F. Board in the meetings held in June,2007 to June,2008. The compilation of delegation of financial powers will continue to be updated on the ofb.net as when a new order is issued. As the delegation of powers is subject to certain conditions and guidelines, no power having financial implications can be exercised unless there is supporting budgetary provision. Therefore exercise of all financial powers would require financial concurrence unless otherwise specifically waived. Apart from these general stipulations, certain specific restrictions are attached to some items of delegations and have been indicated under `Remarks' column. It is also to be noted that all procurement decisions will be taken at the level of TPC where Chairman of the TPC is the competent financial authority for the procurement case. This volume is intended to be a guide only and should not, therefore, be quoted /treated as authority, for which purpose the relevant Govt. letter/OFB order should be consulted / quoted.

Ordnance Factory Board Dated the 21ST MAY 2009

OORRDDNNAANNCCEE FFAACCTTOORRYY BBOOAARRDD

( ii )

I N D E X

FINANCIAL POWERS OF OFB

CATEGORY SUBJECT PAGE NO. 1. PROCUREMENT OF STORES, PLANT & MACHINERY ETC 1A. PROCUREMENT OF STORES FOR PRODUCTION AND MAINTENANCE 1 1B PROCUREMENT, ERECTION, REPAIR ETC. OF PLANT, MACHINERY & EQUIPMENT 2 1C. MATTERS INCIDENTAL TO PROCUREMENT. 5 1D. RELEASE OF FOREIGN EXCHANGE 12 2. DISPOSAL OF SURPLUSES 14 3. CIVIL TRADE /EXPORT 15 4. EXPENDITURE ON SCHEMES, PROJECTS & CIVIL WORKS. 17 5. REGULARISATION OF LOSSES. 20 6. CONSULTANCY. 20 7. CONTINGENT, MISCELLANEOUS AND GENERAL MATTERS 21 8. AUTHORISATION TO MEMBERS/OFB TO EXERCISE POWERS. 26 9. AUTHORISATION TO DDGOFs TO EXERCISE POWERS. 27 10. PROFORMA WITH REFERENCE TO ITEM NO. 32 29 11. GUIDE LINES FOR PROCUREMENT OF P&M (APPENDIX-I) 30 12. TPC/TEC STRUCTURE AT OFB 34

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I N D E X FINANCIAL POWERS OF THE GENERAL MANAGERS & OTHER OFFICERS IN FACTORIES. CATEGORY SUBJECT PAGE NO. 1. PROCUREMENT OF STORES, PLANT & MACHINERY ETC. 1A PURCHASE OF STORES FOR PRODUCTION AND MAINTENANCE 42 1B DEPOT STORES 44 1C PURCHASE, ERECTION, REPAIR AND MAINTENANCE OF PLANT 45 & MACHINERY 1D MATTERS INCIDENTAL TO PROCUREMENT INCLUDING RELEASE 50 OF FOREIGN EXCHANGE 2. DECLARATION OF SURPLUSES AND DISPOSAL 2(i) DECLARATION OF SURPLUSES 58 2(ii) DISPOSAL OF SURPLUSES 59 3. CIVIL TRADE 60 4. CIVIL WORKS AND EXPENDITURE FROM ESTATE FUND 62 5. REGULARISATION OF LOSSES 65 6. CONSULTANCY 65 7. CONTINGENT, MISCELLANEOUS AND GENERAL MATTERS 66 8. GRANT/LOAN/SUBSIDY TO DEPTT CANTEEN 73

LIST OF UPDATED PAGES SINCE JUNE, 2008 AND RELEVANT SERIAL NOs.

1. Page 1 Sl. No. 1A – Contents of Board Order No. 455/BS dated 25.07.2008 incorporated

2. Page 3 Sl. No. 5 to 8 – Contents of Board Order No. 455/BS dated 25.07.2008 incorporated

3. Page 4 Sl. No. 9 to 12 – Contents of Board Order No. 455/BS dated 25.07.2008 incorporated

4. Page 4 Sl. No. 13 - Contents of Board Order No.455/BS-Corr dated 27.02.2009 incorporated

5. Page 42 Sl. No. 1(h & I )- Contents of Board Order No. 458/BS dated 05.12.2008 & 457/BS dt. 25.7.2008 incorporated respectively

6. Page 43 Sl. No. 6 - Contents of Board Order No. 457/BS dt. 25.7.2008 incorporated.

7. Page 45 Sl. No. 9 - Contents of Board Order No. 439/BS-Corr-II dated 18.08.2008 incorporated.

8. Page 46 Sl. No. 10(d) - Contents of Board Order No. 457/BS dated 25.07.2008 incorporated.

9. Page 47 Sl. No. 12(d) - Contents of Board Order No. 457/BS dt. 25.7.2008 incorporated.

10. Page 49 Sl. No. 17 - Contents of Board Order No. 457/BS dt. 25.7.2008 incorporated.

11. Page 51 Sl. No. 19(ii) - Contents of Board Order No. 457/BS dt. 25.7.2008 incorporated.

12. Page 52 Sl. No. 24(iv) - Contents of Board Order No. 457/BS dt. 25.7.2008 incorporated.

13. Page 52 Sl. No. 25 - Contents of Board Order No. 387/BS-Corr dt. 09.03.2009 incorporated.

14. Page 53 Sl. No. 27 - Contents of Board Order No. 387/BS-Corr dt. 09.03.2009 incorporated.

15. Page 57 Sl. No. 42(ii) - Contents of Board Order No. 457/BS dt. 25.7.2008 incorporated.

16. 6 Sl. No. 73 - Contents of Board Order No. 457/BS dt. 25.7.2008 incorporated.

17. Page 67 Sl. No. 80 – Financial Power of Head of ODCs as Contained in Board Order No. 457/BS dt. 25.7.2008 incorporated.

18. Page 67 Sl. No.83 - Financial Power of Head of ODCs as Contained in Board Order No. 457/BS dt. 25.7.2008 incorporated.

19. Page 68 Sl. No.84 & 85 - Financial Power of Head of ODCs as Contained in Board Order No. 457/BS dt. 25.7.2008 incorporated.

20. Page 71 Sl. No.102 - Financial Power of Head of ODCs as Contained in Board Order No. 457/BS dt. 25.7.2008 incorporated.

OORRDDNNAANNCCEE FFAACCTTOORRYY BBOOAARRDD

1

NATURE OF POWER AUTHORITY EXTENT TO WHICH DELEGATED

REMARKS WHETHER FINANCE IS TO BE CONSULTED

DOCUMENTS IN WHICH DELEGATION IS CONTAINED

1. Procurement of all stores for production and maintenance such as raw materials, components, castings/forgings, spares, tools, gauges, fixtures etc. and contracts for fabrication/processing/ development of stores. 1A. Procurement of stores against LTE/OTE including that from M/S Rosoboronexport,Russia. 1B. Procurement of product support for Tank T-90 from M/s Rosoboronexport, Russia.

OFB

Chairman Member-in-charge of Material Management

M/Operating Division

Addl. DG/OEF

Addl. DG/AV

Addl. DG/AV

(a) Full Powers. (b) Rs.3 crores for single tender and

proprietary items. (c) Full powers for cases of procurement from Rosoboronexport, Russia satisfying the provisions of Para 64 of DPP-2006 and /or Para 4.1.2 of DPM-2006.

Full powers (both RE & FE) Rs.50 Cr. (both RE & FE) Rs.35 Cr. (both RE & FE) Rs.100 Cr. (both RE & FE) Full powers including release of FE .

Procurement will be subject to (i) conformance to the OFB’s provisioning procedure, (ii) availability of budget provision and (iii) inventory not exceeding the permissible limit approved by Govt

Satisfying the provision of Para 4.1.2 of DPM-2006.

Yes

Yes

Yes

MOD letter No. 5(12)/D(PROD)/B DT. 20.12.2006. OFB Order No.455/BS dt. 25.07.2008.

OFB Order No.443/BS dt. 21.06.2007.

1A. PROCUREMENT OF STORES FOR PRODUCTION AND MAINTENANCE

2


REMARKS WHETHER FINANCE IS

TO BE CONSULTED

DOCUMENTS IN WHICH

DELEGATION IS CONTAINED

1C. Procurement of Stores (a) of proprietary articles on single tender, (b) against ab-initio single tender, (c) from single known source and (d) where single acceptable offer is received against LTE/OTE.

Member/In-charge of Material Management

M/Optg. Divns./

Addl.DGs

Rs.3 Cr. (both RE & FE). Rs.2 Cr. (both RE & FE).

Yes OFB Order No.455/BS dt. 25.07.2008.



TO BE CONSULTED

DOCUMENTS IN WHICH


2. Procurement of Plant & Machinery both under New Capital against Government sanctioned projects and under Renewal & Replacement, including contract for modification and /or reconditioning of P&M

OFB (a) Rs. 3 crores in each case for single Tender and Propriety items.

(b) Rs. 50 Crores in each case for other items.

Furnished below :- Yes MOD letter No. 5(12)/D(PROD)/B DT. 20.12.2006

REMARKS.

(a) A careful appraisal of the proposed investment should be carried out form various angles such as �rioritization of expenditure, scrutiny of demand from the relevant outturn, assurance of reasonable IRR, cost benefit analysis etc. In case of any deviation/shortcoming found in such appraisals and if the investment is still considered necessary on any other ground, approval of Ministry will be obtained. The additional guidelines given in APPENDIX-I (MOD letter No.17(13)/2002/D(Proj-I) dt. 22.10.2003) should also be adhered to.

(b) Govt. sanctioned projects under ‘New Capital’ implies that OFB have already identified various categories of P&M, while obtaining sanction. Powers are for procurement of these P&M.

I The procurement shall be made in accordance with guidelines/procedures laid down by OFB.

1B. PROCUREMENT, ERECTION, REPAIR ETC. OF PLANT & MACHINERY AND EQUIPMENT

3

NATURE OF POWER AUTHORITY EXTENT TO WHICH

DELEGATED

REMARKS WHETHER FINANCE IS TO BE

CONSULTED

DOCUMENTS IN WHICH DELEGATION IS

CONTAINED

3. Maintenance cover for P&M.

OFB Full powers provided no Foreign Exchange is involved.

All cases involving foreign Exchange will be referred to Ministry.

Yes M of D Letter No. PC-1 to 2(2)/96/D(Fy-I)/99 D (Prod) dt. 30-11-1999.

4. Erection of P&M OFB Full powers departmentally or for contracts.

Yes M of D Letter No.2(1)/89/D(Fy-I) dt. 29-10-92.

5. Procurement, modification and/or re-conditioning of P & M through LTE/OTE under RR.

M/P&MM

M/Operating Divisions/Addl.DGs


Yes

Yes


6. Procurement, modification and/or re-conditioning of P & M on single tender/resultant single tender or proprietary items under RR

M/P&MM

M/Operating Divisions/Addl.DGs


Yes

Yes


7. Erection & Commissioning of P & M.

M/P&MM M/Operating Divisions/Addl.DGs


Yes

Yes


8. Maintenance cover of P & M .

M/P&MM M/Operating Divisions/Addl.DGs


Yes

Yes



4




CONTAINED

9. Procurement of P & M against LTE/OTE/single tender/resultant single tender or proprietary items under NC (Board powers)

M/TS & PEDB

Rs.2 Cr. (both RE & FE).


10. Procurement of P & M against LTE/OTE under NC (Govt. sanctioned projects)

M/TS & PEDB



11. Procurement of P & M against single tender/resultant single tender/ proprietary items under NC (Govt. sanctioned projects).

M/TS & PEDB



12. Erection & Commissioning of P & M procured against NC

M/TS & PEDB



13. Extension of Delivery period. Chairman

Member/P&MM

M/Optg. Divn.

Addl. DG/OEF

Addl. DG/AV

Chairman/OFB in consultation with Associated Finance may extend Delivery Period (DP) beyond 2 years for cases where Chairman or MOD is the Competent Financial Authority for the procurement case. Member/P&MM and Operating Members of OFB in consultation with Associated Finance may extend DP beyond 2 years for the cases falling under their Financial power.

Yes OFB Order No.455/BS – Corr dt. 27.02.2009.


5


DELEGATED


DOCUMENTS IN WHICH


14. Waiving of irrecoverable compensation or loss arising due to failure of contracts, refund claims on Custom's, Rail- ways, Port Trust, Shipping companies etc. not due to negligence of staff.

OFB Rs. 15 lakhs in each case.

a) All cases in which waiver is granted are to be reported annually with brief justification to Ministry with copy to the Integrated Finance. b) The waiver of loss will, inter-alia take into account the specific terms & conditions, contained in the contract.

-Yes- MOD letter No. 5(12)/D(PROD)/B DT. 20.12.2006

15. Issue of capital items including vehicles for repair and overhauling to Private Firms, State Undertakings and Govt. Depts.

OFB Full powers For such issues DGOF will obtain Security Deposit equivalent to Book Value or Market value plus 5% on the inclusive rate. In the case of PSUs/Govt. Depts/Firms of repute, Indemnity Bond may be accepted on consideration of merit.

-Yes- -do-

16. Sanction for demurrage, wharfage or freight including Air-lift.

OFB Full powers Subject to the provisions that necessary control is exercised in case of Air-lifting of stores and it should be resorted to only in case of extreme urgency and with the concurrence of the Int. Fin. Advisor.

YES. MOD Letter No. 2(6)/85/D(Fy-I) dt. 10-06-86.

IC MATTERS INCIDENTAL TO PROCUREMENT

6 NATURE OF POWER AUTHORITY EXTENT TO

WHICH DELEGATED


TO BE CONSULTED

DOCUMENTS IN WHICH


17. Placement of orders on more than one tenderer at different prices in response to bids received.

OFB As per provision of DPM-2006

-Yes- MOD letter No. 5(12)/D(PROD)/B DT. 20.12.2006

18. Acceptance of Price increase against fixed price contracts.

OFB Same powers as in case of negotiated contracts.

Subject to revised price being within the delegated powers of OFB.

-Yes- MOD Letter No. 2(6)/85/D(Fys-I) dt.10-6-86

19. Determination of payment terms in purchase cases under delegated powers or where Govt. has specifically authorised the purchase by OFB.

OFB Full powers Subject to the provision of Financial Rules.

-Yes- MOD Letter No. 2(6)/85/D(Fys-I) dt.10-6-86

20. Extension of Delivery Period against orders placed

OFB

Chairman

Member/P&MM

M/Optg. Divn.

Addl.DG/OEF

Addl. DG/AV

Full powers After placing on record the reasons and the public interest served Chairman/OFB in consultation with Associated Finance may extend Delivery Period (DP) beyond 2 years for cases where Chairman or MOD is the Competent Financial Authority for the procurement case.

Member/P&MM and Operating Members of OFB in consultation with Associated Finance may extend DP beyond 2 years for the cases falling under their Financial power..

-Yes- MOD Letter No. 2(6)/85/D(Fys-I) dt.10-6-86 Order No. 455/BS-Corr dated 27.02.2009.

21. Despatch of stores by other than the shortest route or cheapest mode of carriage.

OFB/DGOF Full powers *

*Subject to rendering a certificate that such dispatch is necessary to maintain continuity of production.

-Yes- MOD letter No. 4(11)/63/D(Fy) dt. 14-2-64

7




CONTAINED 22. Issue of Stores and materials from factory stock to Private Firm. Govt. Dept. and State Undertakings subject to recovery or adjustment of cost thereof as computed by finance and Accounts Branch.

OFB Full powers subject to the following conditions :-

-No- MOD letter No. 2(6)/85/D(Fy-I) dt.10-6-86

a) Board/DGOF can issue store/material as loan against Security Deposit equivalent to book value or market value, whichever is higher plus 5% over the book/market value plus another 5% on the inclusive rate. These will be returnable within six months from the date of issue. In exceptional cases, however, the Board/DGOF may extend this period upto one year for reasons to be recorded in writing. If the loan is not returned within this specified time, the security deposit should be forfeited and the transaction closed. In no case should items in short supply or which are difficult to procure be issued on loan or the value of such issues shall exceed Rs.5,000/-. b) Board/DGOF can issue store/material to private firms as assistance towards completion of orders placed on the firms for supply to factories, against the security deposit equivalent to book value or market value, whichever is higher, plus 5% over the book/market value plus 5% on the inclusive rate. On completion of order by the firm, the transaction will be adjusted as a payment issue. If any portion of the store issued to the firm is returned to the factory, as not consumed for the order, a proportionate refund of the security deposit will be afforded to the firm. In case of items of issues ex-manufacture by OFs as assistance programme, the price will be fixed by taking maximum estimated cost plus 20% of the same to cover contingencies. c) The Board/DGOF can also issue the stores/materials as assistance towards completion of orders placed on another Dept. of Central/State Govt. and State Undertaking at book value or market value, whichever is higher, plus 5% as departmental charges. On completion of the orders the transaction will be adjusted as payment issue. In cases of items of issue ex-manufacture by OFs as assistance programme, the price will be fixed by taking maximum estimated cost plus 20% of the same to cover contingencies.

8

NATURE OF POWER

AUTHORITY EXTENT TO WHICH

DELEGATED


DOCUMENTS IN WHICH DELEGATION

IS CONTAINED

d) The Board/DGOF can issue stores to private firm for fabrication/manufacture of the product/completion of order against the security deposit equivalent to book value or market value whichever is higher, plus 5% over the book/market value, plus another 5% on the inclusive rate. In exceptional circumstances and in the case of well-established and reputed firms, Board/DGOF may waive security deposit if it/he is satisfied that the Govt. interest are adequately safeguarded. In case of items of issue ex-manufacture by OFs as assistance programme, the price will be fixed by taking maximum estimated cost plus 20% of the same to cover contingencies. e) Board/DGOF can also issue stores/materials from the factory stock to other department of the Central/State Govt. and State Undertaking for fabrication of stores/components without security deposit for the execution of contract entered into by it/him under its/his financial powers. It will, however, ensured that such stores are used only for execution of particular contract of the Board/DGOF. f) Board/DGOF can also issue instruments and machines other than capital items, to well established and reputed firms, State undertaking and Govt. Deptts. for repair/overhauling without any security deposit if it/he is satisfied that Govt. interest is adequately safeguarded.

23. Loan issues of items in short supply or difficult to purchase.

OFB/DGOF Rs. 5,000/- in each case -Yes- MOD letter No. 14(11)/63/D(Fy) Dt. 14-2-64

24. Advance payment for canalised items.

OFB Full powers for 100% payment with the placement of order.

In such cases a provision will be made in the order that the firm would bear the cost of rejected material including transportation charges.

-Yes- MOD letter No. 12(73)/84/D(Proj-I) dt. 31-12-84

25. Advance payment for Steel Items to the Main producers.

OFB 100% payment with placement of orders.

-Yes- -do-

9


REMARKS WHETHER FINANCE IS TO

BE CONSULTED

DOCUMENTS IN WHICH


26. Advance payment to suppliers OFB As per guidelines /provisions stipulated in DPM-2006

Subject to received of Bank guarantee of equivalent amount for procurement of stores as per guidelines/provisions of DPM-2006 if making some payment become absolute necessary.

- Yes - MOD ID No.2(6)/Import-Gen/2006/DP(Plg-III) dt. 13.08.2007.

27. Advance payment for Steel Items to the SAIL Stock-yards.

OFB/DGOF Advance payment upto 105% of the Contract Value may be admitted (Subject to subsequent adjustment) after inspection at the stock yard.

-Yes- MOD letter No. 286/5/SP/C/573/ D(Prod), dt. 27-8-71

28. Payment of advance, or Earnest Money and provisional payments.

OFB Upto 2% of C.I.F. value Subject to provision of FR and taking suitable security or safeguards and placing on record public interest served.

-Yes- MOD letter No. 2(6)/85/D(Fy-I) dt. 10-6-86

29. Contractual advance payment as per contracts entered into by OFB under its delegated powers, where such advance payments are to be made to Electricity Boards and Companies, Municipalities, Public Sector Undertakings and Autonomous Bodies under Central and State Govt. and Local Bodies like Jal Nigam.

OFB Full powers -Yes- MOD letter No. 2(6)/85/D(Fy-I) dt. 17-07-87

10

NATURE OF POWER

AUTHORITY EXTENT TO WHICH DELEGATED REMARKS WHETHER FINANCE IS

TO BE CONSULTED

DOCUMENTS IN WHICH


30. Stage Payments

OFB

Upto 50% of CIF Value. This is admissible on drawal of proof samples and subject to production of Bank guarantee for the amount. Where the proof samples of a lot fail in proof interest will be charged on stage payments at the prevailing rates on Bank loans until the stage payment is recovered from Bank guarantee.

i) This power should be exercised only in rare cases and should not be used as a matter of routine. ii) This power can not be sub delegated by the Board. iii) Cases where a difference of opinion between the Members of OFB exists, should be referred to the Ministry for decision. iv) The exercise of this power will be subject to OFB's securing appropriate price reduction and ensuring adequate safe guards in the form of Bank guarantees etc. (v) The existing delegation upto 2% of CIF Value for other advance payments, earnest money and provisional payments will continue.

-Yes-

MOD letter No. 2(8)/87/D(Fy-I) dt. 25-05-88.

31. Waiver of Security Deposit

OFB Full Powers Provided the concerned Authority is satisfied about the reliability and financial Standing of the concerned firm.

YES. MOD letter No. 2(6)/85/D(Fy-I) dt. 10-06-86

11


DELEGATED


DOCUMENTS IN WHICH


32. Contracting for loading or unloading and Transporting of materials by private contractors and by other than shortest route.

OFB Full powers Subject to placing on record public interest served.

-Yes- MOD letter No. 2(6)/85(D(Fy-I) dt. 10-06-86.

33. Contracting for testing of items/sub-assemblies at Govt. Test House or in other reliable Testing Centres.

OFB Full powers -Yes- -do-

34 Waiving of Compensation or Loss due to failure of Contractor.

OFB Rs. 10,000/- in each ease.

-Yes- MOD letter No. 1(82)/78/D(Fy-I) dt. 9-2-79

12



TO BE CONSULTED


CONTAINED

35 Release of foreign exchange for

(i) procurement of stores and Plant & Machinery;

(ii) Consultation with Foreign specialists in cases where prior in-principle approval is already stipulated/ governed in prior agreement/Protocol.

(iii) Release of Foreign Exchange in respect of contracts placed on parties abroad for MOD approved contracts only.

(i) DGOF Addl.DGOF/Member (ii) DGOF Addl.DGOF/Member

(i) & (ii) Powers for release of Foreign Exchange will be the same as the powers in terms of Rupees and Competent Financial Authority will remain same irrespective of the currency of payment (iii) Full powers within the budgetary provisions.

.

Yes MOD letter No. 5(12)/D(PROD)/B DT. 20.12.2006

36. Release of additional foreign exchange in excess of amount released.

Same authority which released the original foreign exchange.

Full powers provided original release plus the additional release is within foreign exchange ceiling indicated at Sl. No. 34.

- do - M of D letter No. 2(6)/85/D(Fy-I) dt. 10.6.86.

37. Release of additional foreign exchange against fixed price contracts, where price increase is allowed.

OFB Full powers provided original release plus the additional release is within foreign exchange ceiling indicated at Sl. No. 34.

- do - M of D letter No. 2(6)/85/D(Fy-I) dt. 10.6.86.

1D. RELEASE OF FOREIGN EXCHANGE

13

NATURE OF POWER

AUTHORITY EXTENT TO WHICH DELEGATED


DOCUMENTS IN WHICH


38. Revalidation of foreign exchange sanction.

Same authority which released the original foreign exchange

Full powers within ceiling indicated against item at Sl. No. 34

1) If the order is directly placed by the OFB/GMs, the validity period of FE release is 6 months from the date of release. 2) If the order is to be placed through a Central Purchasing Agency, the indent on the CPA is to be placed within 6 months and the order by the CPA is to be placed within one year from the date of release of FE. 3) All proposals for revalidation of Foreign Exchange shall be got noted by Finance with full details.

If by revalidation release of additional FE is involved, the additional commitment is to be got noted by Finance.

M of D letter No. 2(6)/95/D(Fy-I) dt. 10.06.86.

39. Release of Foreign Exchange in respect of contracts placed on parties abroad.

OFB May release additional Foreign Exchange involved as a result of cost escalation upto 30% irrespective of whether the original FE and additional FE release exceeds the power of OF Board for release of FE.

M of D letter No.22(2)/80-D(Proj) dt. 27-8-80

14


DELEGATED


CONSULTED


IS CONTAINED

40. Disposal of surplus Plant & Machinery.

OFB Rs. 20 lakhs in each case.

Subject to the condition that normal procedure of disposal is resorted to.


41. Disposal of Stores, Scrap, Obsolete and Waste Material.

OFB Full powers -do- Except in the case of stores which are required to be declared to the DGS&D as per Rule 124(1) of GRF.

Yes M of D LETTER NO. No. 2(6)/85(Fy-I) dt. 10-6-86

Note : i) For Serviceable items, other than Drums and other packages/containers, recommendations of the Technical Team should be taken into account. ii) Disposal procedure as laid down in P&MM Divn. Circular No. 212/2/MM dt. 15-6-81 should be followed.

2. DISPOSAL OF SURPLUSES

15

NATURE OF POWER AUTHORITY

EXTENT TO WHICH DELEGATED


BE CONSULTED

DOCUMENTS IN WHICH


42. Contract for Supply of stores including Steel Melting and Rolling to civilian Customers as well as Govt. Depts. State Corporations, Municipalities etc.

OFB Full powers Annual report in respect of all such Supply contracts with value & brief description will be rendered to the Ministry with a copy to Integrated Finance as per Pro-forma at page No. 29.

-Yes- M of D letter No. 2(1)/89/D(Fy-I) dt. 29-10-92

43. (i) Pricing of OFB products against Civil Trade. (ii) Pricing of OFB products against Export.

OFB Power to quote minimum price to include DM + 50% of DL + Cost of Spl. Tools, if any, + Cost of Spl. Packing, if any, + Cost of utilities e.g. power, water, fuel, etc, wherever such cost exceeds 8% of Direct Material.

Power to quote minimum price to include DM+ 50% of DL + 8% FOB charges + agency commission.

In terms of MOD letter No.5(1)/2000/D(Prod) dt. 14.02.2001.

Member/Finance to be consulted.

- do-

M of D letter No.5(1)/2000/D(Prod) dt. 14.02.2001. MOD letter No.20(2)/2000/D(plg. Vii) 07.11.2000.

44. Rectification / Replacement after issue. OFB Full powers for civil trade and Export.

This excludes powers for foreign travel.


3. CIVIL TRADE/EXPORT

16



CONSULTED

DOCUMENTS IN WHICH


45 A. (i) Issue of consumable free samples which are likely to be expended in trials.

(ii) Issue of samples of non-consumable items for trials on returnable basis.

(iii) Expenditure for transportation of samples such as shipping costs, insurance, agency charges etc.

Chairman

Chairman

Chairman

Full powers

Full powers

Full powers

Expenditure incurred for various products under these powers are to be kept in view while pricing the respective products to be exported.

Yes

Yes

Yes

MOD letter No.20(2)/2000/DP(Plg-VII) dated 24.03.2004.

46. Incidental Expenditure :

a) Customers hospitality for Sales promotion.

b) Expenditure on Advertisement & Publicity.

OFB

OFB

(a) Not exceeding Rs1,00,000 for each case within budget provision.

(b) Full powers within the policy guidelines of DAVP in this regard. *

* Subject to the stipulation that the expenditure should not increase during a particular financial year, in percentage terms, more than the percentage increase in the overall budget of the Ministry.

Yes MOD letter No. 5(12)/D(PROD)/B dt.. 20.12.2006

17




TO BE CONSULTED

DOCUMENTS IN WHICH


47. Expenditure on Civil Works and Services of the sanctioned projects including issuance of administrative approval for civil works under sanctioned projects. Expenditure on water, power, air conditioning, steam and fuel oil distribution, chilled water plants and other services under sanctioned projects.

OFB Full powers Within the financial limit of the sanction

-Yes- M of D letter No. 2((6)/85/D(Fy-I) dt. 10-6-86

48. a) Sanction for new work and issuance of Administrative approval for Civil Work under the sanction. b) Sanction for new works for residential/hostel accommodation & special repair and issuance of administrative approval for civil works under the sanction.

OFB

OFB

Rs. 3 crore in each case Rs. 1.5 Crs. in each case.

The expenditure in non-productive areas will be in accordance with the scale of accommodation/norms laid down.

-Yes -

- Yes -

MOD letter No. 5(12)/D(PROD)/B DT. 20.12.2006.

- do -

49. Sanction of capital investment for production including diversification/augmentation of available capacity required for manufacture of products for services, MHA and Civil sectors in India as well as abroad.

OFB

Rs. 2 crore for each item not exceeding Rs.20 crore per annum.

Delegation will be subject to consideration of investment proposal by – (i) Full Board in case of MHA and CPMFs, (ii) Special Board in case of CT & Export requirements.

-Yes -

MOD letter No. 21(9)/2003/D(Proj-I) dt.09.05.2003.

4. EXPENDITURE ON SCHEMES, PROJECTS & CIVIL WORKS

18



DOCUMENTS IN WHICH


50. Sanction of expenditure in excess of sanctioned amount in projects sanctioned by Govt. or OFB.

OFB 15% of the sanctioned amount of the Project or Rs.3 crore whichever is less.

-Yes- MOD letter No. 5(12)/D(PROD)/B DT. 20.12.2006.

51. Sanction of expenditure for applied Research & Development for carrying out product & process improvement and development of New products.

OFB Full power within budget provision. * See below -Yes- MOD letter No. 5(12)/D(PROD)/B DT. 20.12.2006.

52. Tolerance Limit on Projects sanctioned for Rs. 20 crores and above.

OFB 3% of the sanctioned cost (exclusive of increase in Statutory levies, exchange rate variation and price escalation within the Original approved project time cycle)

-Yes- M of D letter No. 2(1)/89/D(Fy-I) dt. 13-11-92

53. Demolition of Buildings OFB Full powers to sanction sale or dismantlement of Public buildings (other than a purely temporary structure).

Subject to the conditions as per the provisions of Rule 24 of DFPR-2005.


* The power is for expenditure in the areas of process and product improvement, cost reduction and product development.

19



BE CONSULTED

DOCUMENTS IN WHICH


54. Direct contracts for civil works on contractor.

55. Re-appropriation within a "project sanction" of amount debitable to the same "demand for grant" between plant & equipment and civil works and vice-versa.

OFB

OFB

(i) Full powers through competitive tenders. (ii) Rs.75 lakhs in each case through single tender only in case of turnkey projects of specialized nature. Full power within the sanctioned cost of the project, enhanced within the limits Sl.No. 49 above.

In respect of sanctioned projects full powers subject to Govt. policy on using the agency of E-in-C Branch to the extent within the time allowed for completion of works.

-Yes-

-Yes-


-do-

56. Expenditure from the Estate Fund for "Direct Development" and upkeep of Estate.

OFB Rs. 1 lakh in each case subject to ceiling of total annual receipts.


N.B. : The items of works which comes within the scope of "Direct Development" and "Up-keep of the Estate" are as under : a) Provision, Upkeep and Maintenance of Gardens, Parks in the Estate. b) Provision, Upkeep and Maintenance of Children's Park and Play Ground. c) Provision, Upkeep and Maintenance of Sports Grounds/Stadium. d) Provision, Upkeep and Maintenance of Open Air Theater in indoor halls. e) Upkeep and Maintenance of Estate. f) Development and Maintenance of Arboriculture. g) Provision and Maintenance of Stalls, market etc.

20



REMARKS

WHETHER FINANCE IS TO BE CONSULTED

DOCUMENTS IN WHICH


57. Loss of Stores not due to theft, fraud or neglect

OFB Rs. 50 lakhs in each case. -Yes-


58. Loss of stores due to theft, fraud or neglect.

OFB Rs. 20 Lakh- in each case -Yes- -do-

59. Loss of Public Money not due to theft, fraud or neglect.

OFB Rs. 10 lakh each case -Yes- -do-

60. Loss of Public Money due to theft, fraud or neglect.

OFB Rs. 5 lakh in each case -Yes- -do-

61. Lose due to rejection in manufacture. (Excluding development stage)

OFB Upto an additional 100% of Un Avoidable Rejection percentage provided in estimates subject to :- (a) Rs.50 lakhs when there is no negligence. (b) Rs.20 lakhs when there is negligence.

-Yes- -do-

Note : The delegation is subject to the condition that reason for irrecoverable losses and unavoidable losses due to rejection are to be fully investigated and placed on record and that remedial action taken to prevent recurrence and to reduce unavoidable rejection in manufacture in future should also be placed on record. (Authority : M of D letter No. 2(6)/85/D(FY-I), dt. 10-6-86).



BE CONSULTED

DOCUMENTS IN WHICH


62. Contracts for engagement of consultant/specialist (other than foreign consultancy)

OFB i) Rs. 2 Crore per annum for sanctioned Projects. ii) Rs. 1 Cr. per annum in other cases.


5. REGULARISATION OF LOSSES

6. CONSULTANCY

21

NATURE OF POWER

AUTHORITY

EXTENT TO WHICH

DELEGATED


DOCUMENTS IN WHICH


63. Miscellaneous and Contingent Expenditure.

OFB Full powers for recurring as well as non-recurring items.

Subject to limits and condition in Rule 13 of DFPR and schedules V and VI thereunder applicable to the powers delegated to "other departments of Central Govt." But powers are limited to those of "Heads of Departments" in relation to purchase of Motor Vehicles and Rent as given in Annexure to Schedule V to DFPR.

Not necessary upto Rs 40,000/-


64. Telephone OFB Full powers to sanction residential and office Telephones and Telephone Circuits.

Subject to general order and instruction regarding economy and entitlement issued by Govt. of India.

-Yes- but not required for payment of recurring rentals, call and shifting charges.

M of D letter No.1(82)/78/D(Fy-I) Proj1/79, dt. 26-11-79.

65. Expenditure on local purchase of stationery stores including petty Bindings.

OFB Rs. 10,000/- per annum but Full powers subject to concurrence of Chief Cont. of Printing and Stationery.

Not required upto Rs. 5,000/- in each case.

-do-

66. Sanction and purchase of new Type writers Duplicators/ Office equipment’s.

OFB Full powers. Subject to guide lines in the relevant Army Instructions.

-do- -do-

7. CONTINGENT MISC. & GENERAL MATTERS

22



CONSULTED

DOCUMENTS IN WHICH


67. Repair of the items (old) against Sl. 65

OFB Full powers. Subject to guide lines of the relevant Army Instructions.

-do- M of D letter No. 1(82)/78/D(Fy-

I)/Proj-I/79 dt.26.11.79.

68. Repairs of M.T. Vehicles from Trade Sources.

OFB Full Powers upto the limit of economical repairs.

DGOF/OFB shall exercise these powers when M.T. Vehicles on their charge cannot be repaired in the Ord. Fys. departmentally for lack of facilities.

Not required upto Rs. 2,000/- in each case.

-do-

69. Cash awards for effecting economy in manufacture in Ordnance & Ordnance Equipment Fys.

OFB Full powers within the provision in the budget (Authority : F.R.I. 272 Pt.I)

Not required upto Rs.5,000/-

M of D letter No. 2(6)/85/D(Fy-I) dt. 10-6-86.

70. Expenditure on Award of Long Service Badges to Employees.

OFB Full Powers

-do- -do-

71. Provision of Utensils/ Furniture/Equipment of Canteens where proposals involve expenditure beyond Rs. 5,000/-

OFB Full powers. Subject to the conditions that this would be regulated by general orders issued by Department of personnel in regard to Canteens.

Yes M of D letter No.1(82)/78/D(FY-I) Proj-I/79, dt. 26-11-79.

23



CONSULTED


IS CONTAINED

72. Issue of Protective Clothings and other items of Physical Protection of Employees.

OFB Full powers. Subject to any General Instruction which may be issued by the Govt. in the matter.

Yes MOD letter No. 1(82)/78/D(Fy-I)/Proj-I)/79 dt. 26-11-79.

73. Compensation under the Workmen's Compensation Act.

OFB

Full powers upto the Ceiling Prescribed in Workmen's Compensation Act.

Yes No. 2(6)/85/D(FY-I), dt. 10-6-86.

74. Grant of Ex-gratia financial assistance to Ordnance Factories Employees /their families in accidents in Factory while on duty i) In case of death - grant to family ii) In case of Serious injuries - grant to the employees.

Chairman/OFB

Upto Rs. 25,000/- in each case. Upto Rs. 5,000/- in each case.

He will exercise his discretion on the merit of each case.

No No

M of D letter No. 16(3)/93/US/D(Fy-II) dt.12-02.1999

75. Grants and Loans OFB Full Powers Subject to Budget Provisions and in accordance with Rules framed by Ministry of Finance.

Yes No. 2(6)/85/D(FY-I), dt. 10-6-86.

24


DELEGATED


DOCUMENTS IN WHICH


76. Authorisation of Provisional Payment.

OFB Full powers whenever payments are primafacie clearly due.

The provisional payments will be authorised by the concerned DDGs in consultation with the Controller of Accounts(Fys). In case of difference of opinion the subject would be decided by the concerned Member in consultation with the Member/Finance.

See remarks M of D letter No. G.4(4)/Admin, dt. 26-8-80.

77. Waiving time-barred claims including those which cannot be investigated by Audit Authorities due to non-availability of records.

OFB/DGOF Full powers Government sanction will be required where a claim becomes time barred under the provisions of any law of limitation.

Yes F.R.I. 19. Pt.II and M of D letter dt. 26-11-79.

78. Powers of re-appropriation

OFB Full powers if Re-appropriation does not exceed 10% of the original budget provision.

Subject to general instructions permissible reappropriation between the Sub-Heads with in Minor Heads controlled by OFB under the same demand for Grant.

Yes M of D letter No. 2(6)/85/D(FY-I, dt. 10-6-86.

79. Re-appropriation of Govt. Accommodation for School, W.W.A., Bank and other Welfare activities.

OFB Full powers Subject to any general orders issued by the Ministry of Defence/Army HQrs.

Yes M of D letter No.. 1(82)/78/D(FY-I)/ Proj-I/79, dt.26-11-79.

25


DELEGATED


BE CONSULTED

DOCUMENTS IN WHICH


80. Powers to waive over- payment of Pay & Allowances.

OFB Full powers Subject to principles laid down in GFRs.

Yes M of D letter No. 1(82)/78/D(FY-I)/ Proj-I/79, dt. 26-11-79.

81. Leasing out of Land in Ordnance Factory to Kendriya Vidyalaya Sangathan.

OFB Full powers Subject to the conditions that it will be regulated in accordance with the General Orders issued by M of D, QMG in regard to Lease of Land

Yes -do-

82. Waiving of Security from Govt. Servants who officiates in leave vacancy.

OFB/DGOF Full powers

Financial concurrence not necessary.

No Rule 202(d), FRI Pt.I.

83. Sanctioning of Honorium to HQrs. as well as Fy. Personnel.

-do- Upto Rs. 500/- in a Financial year in each case.

Yes Rule 271 (J) (II), FRI Pt.-I.

84. Sanctioning fee to HQrs. as well as Fy. Personnel.

-do- Upto Rs.1,000/- in a Financial year in each case.

Yes -do-

85. Hiring of Office accommodation and accommodation for amenity purpose (Mess, Guest House, Holiday Homes etc.)

-do- (i) Upto Rs. 50,000/- per month in “A” class cities.

(ii) Upto Rs. 10,000/- per month in other cities.

Yes MOD letter No. 5(12)/D(PROD)/B DT. 20.12.2006.

26

Order No.2/BS dated : 19-05-79

The undersigned has been directed to state that the Ordnance Factory Board in exercise of its delegated powers, has ordered as follows :-

(a) The Powers of the Board can be exercised by the Members/Members concerned, so far as they are relevant to the functioning of their Divisions subject to the condition that where financial implications are involved, the concurrence of Member/Finance would be required.

(b) The above exercise of powers would however be subject to:

(i) The purchase of materials by the Board would be based on the decision of the Tender Purchase Committees, which have been constituted by the Board.

(ii) All new capital schemes and all matters which require the approval of the Ministry will be put up to the Board . (iii) All proposals for availing of consultancy or for sale of consultancy by the factoreis would be put up to the Board for approval. (iv) On all issues, considered major by the Members concerned the papers would be shown to the Chairman before issue of executive orders, so that

necessary co-ordination and uniformity could be taken care of. (v) Sanction of addition to the manpower would require the approval of the Board. (vi) Any change in the working of systematic overtime in the factories would require the approval of the Board.

2.0 This issues in consultation with Member/Finance.

ALL OFFICERS/ALL SECTIONS. Copies to : All concerned. SECRETARY/OFB ( C. N. CHANDRASEKHARAN )

8. AUTHORISATION OF MEMBERS/O.F. BOARD TO EXERCISE POWERS

ORDNANCE FACTORY BOARD, 6, ESPLANADE EAST, CALCUTTA-69.

27

NATURE OF POWER AUTHORITY EXTENT TO WHICH DELEGATED REMARKS WHETHER FINANCE IS TO BE CONSULTED

DOCUMENTS IN WHICH DELEGATION IS CONTAINED

1. Extension of Delivery period. DDG/MM DDG/Engg. DDG/Proj.

Upto a total period of 5 years (Original period plus extended period) in (with Financial Concurrence) respect of contracts concluded by GMs against sanction issued by OFB.

Yes OFB Order No. 375/BS - Corr-2 dt. 19-10-1994

2.Waiver of Loss due to rejection in manufacture.

DDG/Optg.Divn Upto an additional 75% of unavoidable rejection percentage provided in estimates subject to :- a) Rs. 25 lakh where there is no negligence or b) Rs.10 lakh when there is negligence.

Yes OFB Order No. 450/BS dt.12.11.07.

3. Waiver of Loss of Stores not due to theft, fraud or neglect.

DDG/Optg.Divn Rs.15 lakh in each case Yes OFB Order No. 450/BS dt.12.11.07.

4. Purchase of Technical Books and periodicals.

DDG/R&D Full power Yes OFB Order No. 375/BS –CORR-1 dt.08.11.1993.

5. (i) Miscellaneous & Contingent expenditure (both recurring and non-recurring) other than purchase of stationary, Mementos, small gifts and printing of Forms. (ii) Purchase of Stationary/Computer Stationary :- (a) against Rate & Running contract of DGS&D. (b) Non-standard Stationery items through LTE.

DDGs (i) Full power (ii) (a) Full power (b) Full power subject to annual ceiling of Rs.10 lakh

Yes for cases above Rs.40,000/- - do – - d0 -

OFB Order No. 450/BS dt.12.11.07.

For procurement cases valuing more than Rs.50,000/- per case against I&M grant (including computer stationary) TPC level IV to be constituted at OFB Headquarters with DDG/Hqrs as chairman, DDG/Director of indenting Sec. and Director/DFA(Fin) as members to decide the cases.

9. AUTHORISATION TO DDGOFs TO EXERCISE POWERS ON BEHALF OF

ORDNANCE FACTORY BOARD

28

NATURE OF POWER AUTHORITY EXTENT TO WHICH DELEGATED REMARKS WHETHER FINANCE IS TO BE CONSULTED

DOCUMENTS IN WHICH


6. Waiving time-barred claims including those which cannot be investigated by Audit Authorities due to non-availability of records.

DHS

DDG of the Estt. Section.

DDG/MM

DDG/Engg.

Upto 5 years on Medical claims etc. (in consultation with Finance.)

Upto 5 years on Administrative matters (in consultation with Finance.)

Upto 5 years on matters relating to purchase of Stores (in consultation with Finance.)

Upto 5 years on matters relating to P&M (in consultation with Finance.)

- Yes - OFB Order No. 375/BS - Corr-1 dt. 08-11-1993.

29

SL. NO.

BRIEF DESCRIPTION NATURE OF CONTRACT

ORDERED QUARTERLY

CONTRACTED PRICE

VALUE OF CONTRACT

NORMATIVE PRICE AS PER

OFB’s COSTING

REASONS FOR

QUOTING LOWER

THAN COST (IF

APPLICABLE)

(1) (2) (3) (4) (5) (6) (7)

10. PROFORMA WITH REFERENCE TO ITEM NO. 41 (Page No. 15)

(CONTRACT FOR SUPPLY OF STORES)

Appendix-I

30

( AGAINST ITEM NO.2 AT PAGE NO.2) 1. General : 1.1 All investment decisions should necessarily be based on a realistic assessment of production load vis-à-vis known demand from the user Services at least on a medium-term (five to ten years ) time scale. While modernisation of facilities is important, it cannot be an end in itself. There should be a conscious endeavor to ensure that capacities set up are utilised and that the replacement scheme conforms to the norms of a threshold internal rate of return (IRR) through positive net cash inflows or avoidance of net cash outflows arising out of non-replacements. 2. Investment planning, cash flows and prioritisation : 2.1 The total outlay for modernisation and renewal/replacement of plants and machinery in all the ordnance Factories for the relevant five-year plan should be broken up into a consolidated Division/Factory-wise list of machines to be procured during the plan period. The following steps should normally be involved in drawing up the consolidated list :

(I) Submission of detailed five-year investment plan with year-wise cash flow projections by each factory to OFB. (II) Scrutiny of each factory’s plan by the concerned operating Division, viz. A&E, M&C, WV&E, AV HQ and OEF HQ, and preparation of Divisional plans in order of

priority and with year –wise cash flows by eash Division. (III) Scrutiny, consolidation and aggregation of the Divisional plans by PEDB Division to work out the total cash outgo projection for OFB as a whole. (IV) Recommendation by PEDB Division of inter-se priorities of the items proposed by various Divisions within the total fund projections made in OFB’s five-year plan. (V) Approval of the consolidated list of plants and machinery by OF Board after vetting of the same by Member(Finance).

11. GUIDELINES FOR PROCUREMENT OF PLANT & MACHINERY UNDER OFB’S DELEGATED POWERS

31

3. Criteria for individual proposals : 3.1 Individual proposals for renewal and replacement should be subjected to an objective “zero based” review to ensure actual necessity of the machine to be purchased in relation

to production programme/targets as also its technological merits and suitability vis-à-vis such parameters as manpower utilisation/cost, rejection control, depreciation and its impact on product cost, energy consumption ets. Another important aspect to be looked into is the ‘make or buy” option, e.e. the possibility and economies of outsourcing the items to be produced by the proposed machine. In this context, the instructions contained in para-4 of Secretary(DP&S)'’ DO letter No.23(53)/99/D(B&C) dated 21 July 1999 addressed to Chairman, OFB are relevant. Any proposal for limited new capital (NC) investment (other than projects sanctioned by Government), for production of items indented by the Services or for diversification/augmentation purpose, for which powers to the extent of Rs. 2 crore for each item, within an annual total monetary ceiling of Rs. 20 crores stand delegated to OFB vide M of D letter No.21(9)/2003/D(Proj.I) dated 9th May,2003, should be put through an even more rigorous scrutiny from necessity angle. The following aspects may constitute an illustrative, but not exhaustive checklist for capital investment decisions in the Ordnance Factories organisation.

Necessity and capacity criteria.

• Details of components/end products required to be manufactured along with annual quantity. • Basis of computing the annual requirement/load vis-à-vis production plan/programme. • Scrutiny of the production load/plan with reference to the projected demands/indents for the end products placed by the user Services. • Cycle time data for each outturn obtained from machine tool suppliers and available literature. • Detailed calculation of number of machines needed based on cycle time and annual outturn.

32

Documents needed :

• Commitment of requirement in the form of demand or indent from the user. • Vetting of the demand (for the machine) by associate Finance/Accounts Office. • Condemnation report declaring the existing machine as beyond economic repair (for RR cases). • Original value, year of purchase and present/depreciated book value of the existing machine, obtained from Capital Block Register (for RR cases). • Budgetary quotations from reputed potential suppliers. • Factory/TPC’s recommendation regarding mode of tendering and list of prospective suppliers in case of limited tender.

3.2 Possible evaluation techniques/criteria : 3.2.1 In the case of major investments, involving plant and machinery costing Rs 50 lakhs or more, it is necessary to subject the proposal to certain evaluation

checks based on standard criteria like the Internal Rate of Return (IRR) method. 3.2.1(a) Simple evaluation technique like turnover/investment ratio/pay back matter may be applied for appraisal of investment

between Rs.50 lakhs and Rs.1 crore. 3.2.1(b) Internal Rate of Return (IRR) technique of investment appraisal may be applied for investment of Rs.1 crore and above. 3.2.2 Investment that are not for large scale modernisation or upgrade projects and where there is no direct nexus between the investment and cash in flow

(e.g, machines and equipments pertaining to quality control, inspection, services, tool room etc.) and investment in machinery required to meet safety , environment and statutory obligations may not be subjected to rigorous investment appraisal like IRR etc. though the proposal may be scrutinised from necessity angle. However, due care to apprise such proposals specially when alternates are available may be exercised. Such investment decisions should at least be supported by qualitative, if not by quantitative cost benefit analysis, technological merits and suitability vis-à-vis parameters like manpower utilisation/cost, rejection control, impact on production cost, energy consumption etc.

3.2.3 Plant and machineries required for production including general purpose machinery should not be classified as Machinery for Inspection, Tool Room,

services etc.

33 3.2.4 OFB shall ensure that no incremental FOH is involved in respect of any case falling within the category of machines covering renewal and replacement

involving a single machine or a cluster of machines, investment for intermediate product for operation or for import substitution. 3.2.5 The criterion generally employed with IRR method is to compare the IR with the required rate of return known also as the cut-off or hurdle rate. If the

IRR exceeds the hurdle rate, the proposal is accepted; otherwise it is rejected. Taking, in the context of an ordnance factory 12% as the required rate of return, which is also the minimum rate of return prescribed for PIB projects, an investment/RR proposal may be accepted. However, as already mentioned in para-1 above, such returns may be defined as not only the expected cash inflows as a result of the investments, but also in terms of avoidance of cash outflows if such investments are not made.

3.2.6 While a cut-off rate as mentioned above is a generally acceptable criterion for evaluating investment proposals, there could be strong reasons for taking

up projects where the IRR is below 12%. In such cases, the extent of deviation from the cut-off rate as also the reasons for taking up the investment will need to clearly spelt out.

3.3 Projectisation of high-value procurements :

Proposals for capital investment valuing Rs.10 crores or above should ideally be projectised. Even if it is not practicable to prepare detailed Project Reports for such individual RR proposals, these should incorporate realistically estimated costs (with full details of all cost elements) and PDCs with activity milestones, based on which sanction is to be accorded by OFB. Once approved, the projects should be monitored by OFB. Any cases of cost overrun beyond 10% of the original sanctioned cost and time overrun beyond one year should be specially examined by the OF Board as to whether the cost increase or delay is attributable to incorrect/inadequate estimation or to any failure in execution of the scheme with reference to the milestones. If so, action should be taken to fix responsibility for such faulty estimation or slack execution on the individuals concerned. A report in this regard should also be rendered by OFB to the Ministry.

* * * * * * *

34

Sub : Constitution of Tender Purchase Committees (TPC's) and Technical Evaluation Committees (TEC's) at OFB for procurement of "Plant & Machinery" and "Stores". The constitution of TPC & TEC at OFB for procurement of "Plant & Machinery" and "Stores" is as under :- 1. PROCUREMENT OF PLANT & MACHINERY (P&M) TENDER PURCHASE COMMITTEES/TECHNICAL EVALUATION COMMITTEES. (A) Level-I

(a) All those cases exceeding the delegated financial power of OFB that require the approval of Ministry of Defence as under :- (i) For procurement of Plant & Machinery including contract for modification and/or reconditioning of Plant & Machinery against RR grant of all cases valued

above Rs 50 Cr. (both RE & FE). (ii) All those cases of procurement of Plant & Machinery under NC for Govt. sanctioned projects valued above Rs.50 Cr. (both RE & FE). (iii) All those cases of Procurement of Plant & Machinery under NC not covered under Govt. sanction valued above Rs.2 Cr. (both RE & FE). (iv) All cases of procurement of Plant & Machinery including contract for modification and/or reconditioning of Plant & Machinery on single Tender/Resultant

single tender or on Proprietary item basis under NC for Govt. sanctioned projects & under RR valuing above Rs.3 Cr. (both RE & FE). (v) Any other cases beyond delegated financial power of OFB.

(b) All cases for Erection and Commissioning of Plant & Machinery exceeding Rs.25 Cr. (both RE & FE).

(c) All cases for maintenance cover of Plant & Machinery exceeding Rs.25 Cr. in RE

(d) The TPC will be the competent financial authority for release and revalidation of Foreign Exchange (FE) for the cases decided by them. Accordingly FE release as necessary may be done in the TPC meeting itself at the time of deciding the case. DGOF & Chairman/OFB - Chairman Member/P&MM - Member Member/Finance/C of F* - Member Member/ TS & PEDB - Member

12. TPC/TEC STRUCTURE AT OFB

35

Member/Operating Division - Member or Addl.DG/AV (for AV HQrs. Cases) - Member or Addl.DG/OEF (for OEF HQrs. Cases) - Member DDG/Engg/OFB - Member DDG/Proj./OFB (for NC cases of all Divisions) - Member DDG/Proj/OFB or DDG/AV (for RR cases of AV GP.) - Member DDG/NC/EP (for cases of EP/NC) - Member

DDG/Operating Division - Member DDG/Director/Jt.Director (Processing the case) - Secretary

*C of F will represent the Committee only in the absence of Member/Fin.

(B) LEVEL-II (a) For procurement, modification and /or reconditioning of Plant & Machinery under Renewal and Replacement (RR) valued between Rs. 35 Cr. and upto Rs. 50 Cr.

in each case (both RE & FE).

(b) All cases of procurement of Plant & Machinery including contract for modification and/or reconditioning of Plant & Machinery on single tender/Resultant Single Tender or proprietary items valued between Rs.2 Cr. and Rs.3 Cr. (both RE & FE)

(c) All cases for Erection and Commissioning of Plant & Machinery valuing between Rs.10 Cr. and Rs.25 Cr. (both RE & FE).

(d) All cases for maintenance cover of Plant & Machinery valuing between Rs.10 Cr. and Rs.25 Cr. in RE

(e) The TPC will be the competent financial authority for release and revalidation of Foreign Exchange (FE) for the cases decided by them. Accordingly FE release as necessary may be done in the TPC meeting itself at the time of deciding the case. Member/P&MM - Chairman Member/Finance or his representative - Member

at C of F/JCF/Dir(Fin) level Member/TS & PEDB - Member Member/ Operating Division - Member or Addl. DG/AV (for cases of AV Group) - Member or

Addl. DG/OEF (for cases of OEF Group) - Member DDG/Engg(OFB) - Member

36

DDG/Operating Division. - Member DDG/Proj.(for Proj. Cases under RR | not pertaining to Explosives) | or | - Member

DDG/NC/EP (for projects cases under RR| pertaining to NC/EP) |

DDG/Director/Jt. Director - Secretary (Processing the cases)

LEVEL-II (UNDER NC AND NC FOR GOVERNMENT SANCTIONED PROJECTS) (a) For procurement of P&M under NC(Board Powers) valued between Rs.1 Cr. to Rs.2 Cr. in each case (both RE & FE). (b) All cases of procurement of Plant & Machinery on single tender/Resultant single tender/Proprietary item basis under NC(Board power) valued upto Rs.2 Cr. in each

case (both RE & FE). (c) For procurement of P&M under NC for Govt. sanctioned projects valued between Rs.25 Cr. and Rs.50 Cr. in each case (both RE & FE). (d) All cases of procurement of Plant & Machinery on single tender/Resultant single tender/Proprietary item basis under NC for Govt. sanctioned projects valued upto

Rs.3 Cr. in each case (both RE & FE). (e) All cases for Erection and Commissioning of Plant & Machinery valuing between Rs.25 Lakh . and Rs.25 Cr. (both RE & FE). (f) The TPC will be the competent financial authority for release and revalidation of Foreign Exchange (FE) for the cases decided by them. Accordingly FE release as

necessary may be done in the TPC meeting itself at the time of deciding the case. Mermber/TS & PEDB - Chairman

Controller of Finance/JCF/Dir.(Fin.) - Member DDG/Engg.(OFB) - Member

DDG/Proj. - Member DDG/NC/EP (for Cases pertaining to NC/EP) - Member

or DDG/Engg/AV HQrs.(for cases under AV Gp) - Member or DDG/Engg/OEF HQrs.(for cases under OEF Gp.) - Member

DDG/Operating Division - Member DDG/Director/Jt. Director (Processing the cases) - Secretary

37

(C) LEVEL – III

(a) For procurement of Plant & Machinery under Renewal and Replacement (RR) valued between Rs.25 Cr. and Rs. 35 Cr. in each case (both RE & FE).

(b) All cases of Procurement of Plant & Machinery on Resultant Single Tender basis valuing between Rs.1 Cr. and Rs.2 Cr. (both RE & FE).

(c) All cases of Procurement of Plant & Machinery on Single Tender or Proprietary items valuing upto Rs.2 Cr. (both RE & FE)

(d) For modification and /or reconditioning of Plant & Machinery under Renewal & Replacement (RR) valued between Rs.1 Cr. to Rs.35 Cr. in each case (both RE & FE).

(e) For modification and /or reconditioning of Plant & Machinery on Single Tender/Resultant Single Tender/ Proprietary Item basis under RR valued upto Rs.2 Cr. in each case (both RE & FE).

(f) All cases for Erection and Commissioning of Plant & Machinery valuing above 25 Lakh and upto Rs.10 Cr. (both RE & FE).

(g) All cases for maintenance cover of Plant & Machinery valuing between Rs.50 Lakh and upto Rs.10 Cr. in RE

(h) The TPC will be the competent financial authority for release and revalidation of Foreign Exchange (FE) for the cases decided by them. Accordingly FE release as necessary may be done in the TPC meeting itself at the time of deciding the case. Member/ Operating Division

or Addl. DG/AV (for cases of AV Group) Chairman or

Addl. DG/OEF (for cases of OEF Group) Controller of Finance/JCF/Dir.(Fin) - Member

DDG/Engg/OFB(for A&E, M&C & WV&E Gp.) - Member DDG/Engg/AV HQrs. (for cases under AV HQrs.) - Member or DDG/Engg.(OEF HQrs.) (for cases under OEF HQrs.) - Member DDG/Operating Division - Member DDG/Director/Jt. Director (Processing the cases) - Secretary

(D) LEVEL IV : DELETED

38

2. PROCUREMENT OF STORES. (A) LEVEL-I

(a) For procurement of Stores above Rs. 50 Cr. in RE or FE & RE against LTE/OTE and above Rs. 3 Cr. (both RE & FE) in cases of procurement (i) of

proprietary articles on Single Tender, (ii) against ab-initio single Tender, (iii) from single known source, and (iv) where single acceptable offer is received against LTE/OTE.

(b) The TPC will be the competent financial authority for release and revalidation of Foreign Exchange (FE) for the cases decided by them. Accordingly FE release as necessary may be done in the TPC meeting itself at the time of deciding the case.

Chairman/OFB - Chairman Member/P&MM - Member Member/Finance/Controller of Finance* - Member Member/Operating Division - Member or Addl.DG/AV (for AV HQrs. Cases) - Member or Addl.DG/OEF (for OEF HQrs. Cases) - Member DDG/Operating Divn. - Member

DDG/Director/MM/PV(VFJ & GIF cases) - Secretary *C of F will represent the Committee only in the absence of Member/Fin.

LEVEL-II

(a) For procurement of stores valued above Rs.35 Cr but upto Rs. 50 Cr.. (both RE & FE) against LTE/OTE and above Rs. 2 Crs. but upto Rs.3 Cr. (both RE & FE) in cases of procurement (i) of proprietary articles on Single Tender, (ii) against ab-initio single Tender, (iii) from single known source, and (iv) where single acceptable offer is received against LTE/OTE.

(b) The TPC will be the competent financial authority for release and revalidation of Foreign Exchange (FE) for the cases decided by them. Accordingly FE release as necessary may be done in the TPC meeting itself at the time of deciding the case.

39

Member/P&MM - Chairman Member/Finance or his rep C of F /JCF/Dir(Fin) - Member Member/ Operating Division or Addl. DG/AV (for cases of AV Group) Member. or Addl. DG/OEF (for cases of OEF Group) DDG/Operating Divn. - Member

DDG/ Director/MM/PV(VFJ&GIF cases) - Secretary

(B) LEVEL – III

(a) For Procurement of Stores exceeding Rs. 20 Crs. and up to Rs.35 Cr. (both RE & FE) against LTE/OTE and upto Rs. 2 Cr. (both RE & FE) in cases of procurement (i) of proprietary articles on Single Tender, (ii) against ab-initio single Tender, (iii) from single known source, and (iv) where single acceptable offer is received against LTE/OTE.

(b) The TPC will be the competent financial authority for release and revalidation of Foreign Exchange (FE) for the cases decided by them. Accordingly FE release as necessary may be done in the TPC meeting itself at the time of deciding the case. Member/ Operating Division

or Addl. DG/AV (for cases of AV Group) Chairman or

Addl. DG/OEF (for cases of OEF Group) Controller of Finance/JCF/Dir.(Fin)/ - Member Jt. Director(Fin)/AFA DDG/Operating Division. - Member. DDG/Director/MM/AV/OEF/ PV - Secretary (VFJ & GIF cases) (C) LEVEL IV : DELETED

40

SPECIAL NOTES :

(1) All cases where "make or buy" decision is involved, especially all IFD cases will be carefully decided by Member/P&MM in consultation with concerned Operating Members to optimise full utilisation of available capacities with the Ordnance Factories and reasons clearly recorded if it is decided to go to trade when capacities are available in the Ordnance Factories.

(2) Nodal agencies and procedures for procurement of bulk common materials should be decided by Member/P&MM and the performance of nodal agencies right

from necessity/TE stage onwards and this should be carefully watched and monitored.

(3) PFCs will be chaired and approved by the concerned Operating Member/Addl.DG and a presentation will be made in the next Board Meeting by the DDG/Optg.Divn. and DDG/Engg. for ratification. PFCs for a particular year should be completed by 31st December of the preceding year to ensure proper investment projection. PFCs pertaining to AV and OEF Group will be attended by DDG/Engg./OFB. and rep of Member/Fin.

(4) The secretary of respective TPC/TEC shall provide a full brief of the cases in stipulated time to each member and Chairman. He should not put up the brief unless

he is fully satisfied on the above account. Important points needing special attention / consideration should be highlighted.

(5) The sanctions issued under the delegated powers by the individual members of the Board should be got ratified by the Board through Secretary OFB.

(6) All extant orders will be followed.

Authority : OFB Order No.434/BS-Corr dt. 16.05.2007, Order No.434/BS-CORR-I dt.21.05.2007 & Order No.434/BS-CORR-II dt.08.01.2008.

41

GENERAL REMARKS

1. Exercise of the powers listed in this section will be subject to the availability of budget provision for the respective expenditure and in accordance with the guideline/orders/Standard Operating Procedures (SOPs), if any, issued by OFB from time to time.

2. It may be noted that General Financial Rules, 1963 and Delegation of Financial Power Rules, 1978 have been made applicable to O.F. Organisation vide M of D letter No.2(6)/85-D(Fy-I) dt. 10.6.86 and General managers of all O.F.s have been declared as `Head of the Department'/ 'Competent Authority' under various statutory Rules viz GFR, CSR, TR, DFPR, Central Treasury Rules, etc as specified in para 2 of M of D letter No. PC 5 to 2/2(6)/85/D (Fy-I) dt.14.8.86 circulated under OFB letter No 708/A/A dt.2-10-86. Accordingly, apart from the powers given in this section, General Managers may exercise the other powers of `Head of the Department/'Competent authority' under above statutory rules.

* * *

FINANCIAL POWERS DELEGATED TO GENERAL MANAGERS

AND

OTHER OFFICERS IN FACTORIES

THE GENERAL MANAGERS

&

OTHER OFFICERS

42


DELEGATED



IS CONTAINED 1. Procurement of stores (such as raw materials, components, castings/forgings, spares, tools, gauges, inspection aids, fixtures etc. for production, maintenance & other related activities) and conclusion of contracts for fabrication/ processing/development of stores through OTE/LTE or through rate / running contract placed by DGS&D or OFB/or from M/S Rosoboronexport, Russia (b) against PAC issued by GM (c) from single known source approved by GM (d) against single tender from source nominated by indentor/design agency/collaborator. (e) against resultant single tender subject to confirmation of receipt of TE by identified vendors. (f) Placement of Development orders (g) against single ab-initio tender other than 1(d) due to urgency (reason to be recorded) (h) Procurement of product support for Tank T90 from M/s Rosoboronexport, Russia. (i) Purchase of Computers and software including accessories.

Sr.GM/GM AGM Jt. GM DGM WM

(b) GM

AGM

(c) GM AGM

(d) GM

AGM

(e) GM AGM

(f) GM

(g) GM

(h) Sr. GM/HVF GM/OLF

(i)Head of ODCs

(a) Rs. 20 cr. Rs.5 cr. Rs.1 Cr. Rs.50 lakh Rs.25 lakh (b) Rs.1 Cr. Rs.50 Lakh (c) Rs.1 Cr. Rs.50 Lakh (d) Rs.1 Cr. Rs.50 Lakh (e) Rs.1 Cr. Rs.50 Lakh (f) Rs..5 lakh (g) Rs. 5 Lakh (h) Rs. 50 Cr. (i) Full powers

(I) Procurement will be subject to adherence to Material Management and Procurement Manual of Ordnance Factories. (II) In case of development order GMs have the discretion to :- (i) waive risk purchase and other penalties in these cases; (ii) and also to consider claims for price variation on merit upto a limit of 10% subject to recording of reasons in writing. Satisfying the provision of Para 4.1.2 of DPM – 2006. Subject to approval in AAP.

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

OFB Order No.439/BS dated 11.04.2007 & 439/BS-corrigendum dt. 13.04.2007 OFB Order No.443/BS dated 21.06..2007 & 458/BS dt.05.12.08. OFB Order No.457/BS dated 25.07..2008

1A. PURCHASE OF STORES FOR PRODUCTION AND MAINTENANCE

43



DOCUMENTS IN WHICH


2.. Direct Purchase of Steel and Alloys from Public Sector Undertaking.

GM Addl. GM Jt. GM Dy. G.M. W.M.

Full powers. Rs.5 Cr. in each case Rs. 1 Cr. in each case Rs. 50 Lakhs in each case Rs. 25 lakhs in each case

Same as Sl. No. 1 above and also subject to the NOTE below.*

Not necessary upto Rs.25,000/- only

OFB Order No. 439/BS dt 11..04.07.

3. Direct Purchase of canalised items mentioned in Import Trade Policy Hand Book from M.M.T.C /S.T.C/Public Sector Undertakings / Govt. Depett. by tender of any type including single tender

GM Addl.GM Jt. GM Dy.GM WM

Full powers Rs.1 crores in each case. Rs.50 Lakh in each case Rs.25 Lakhs in each case. Rs.10 Lakhs in each case.

Same as against Sl. No.1 above and also subject to the condition that all purchases will be made on the basis of Tenders which will be sanctioned by TPC, whose recommendation will be placed before the component authority. Normally purchases will be made on the basis of open Tenders. In special circumstances purchases may be made on the basis of limited Tender or negotiation as per laid down conditions.

Not necessary upto Rs.25,000/- in each case.

OFB Order No. 439/BS/dt. 11. .04.07 .

4. Cash Purchase for requirement of production and maintenance of Plant & Machinery.

GM Addl. GM Jt.GM Dy.GM WM

Rs. 20,000/- in each case. Rs. 10,000/- in each case. Rs. 5,000/- in each case Rs. 5,000/- in each case. Rs. 500/- in each case.

This power may be invoked in case of stock out/production/ maintenance held up (Reasons to be recorded).

NO OFB Order No. 439/BS/dt. 11.04.07.

5. Spot payment for purchase of Stores.

GM Addl.GM

Rs. 50 Lakh in each case. Rs.25 Lakh in each case.

The Spot payment should be accepted only after other standard modes of payment are not accepted by the firms. The Spot payment in such cases should be made only after full acceptance and delivery of the Stores.

YES.

OFB order No. 439/BS dt. 11.04.07

6. Purchase of goods through Local Purchase Committee to meet urgent requirement.

GM Head of ODCs

Rs.1 Lakh Rs. 1 Lakh

The purchase may be made as per procedure laid down under Rule 146 of GFR 2005. The local Purchase Committee will have a representative from Finance Division whenever available. All such cases will be subjected to post-audit.

- do -

YES

YES

OFB Order No.444/BS dt. 12.07.2007 & No.444/BS- Corrigendum dt. 13.09.2007. OFB Order No.457/BS dt. 25.07.2008.

*NOTE : AGM as Head of cost centre having integrated purchase function as well as DGM and WM under him for procurement of exclusive materials for his own cost center function or the AGM exclusively heading purchase function as well as DGM and WM under him will exercise these powers.

44



TO BE CONSULTED

DOCUMENTS IN WHICH


7.DIRECT PROCUREMENT OF STORES OF ORDNANCE ORIGIN : a) When the item is available on DGS&D rate contract. b) When the requirement is urgent and the factories do not have adequate time to project requirements on depots and obtain the same. c) When the supplies from the depots are not forthcoming and the stock levels in factories have fallen down and the production activity is likely to be affected.

GM

GM

GM

Full powers without obtaining a non- availability certificate from DOS To obtain supplies for a period of 3 months. To obtain supplies for a period of 3 months.

The exercises of these powers will be subject to the condition that action to cancel/reduce the requirements projected on the Ordnance Depot is taken simultaneously with the action for the local purchase and in all such cases the justification for the requirement being deemed urgent will be the responsibility of the DGOF and the financial repercussions, if any, as a result of the cancellation/local procurement action will rest with the DGOF.

YES

YES

YES

M of D Cor. No. F-12 (118)/81/D (Proj-I), dt. 27-8-82.

-do-

-do-

1B. DEPOT STORES.

45


DELEGATED


BE CONSULTED

DOCUMENTS IN WHICH


8. Procurement of Plant & Machinerythrough LTE/OTE :

(a) in replacement of beyond economical repair P & M (RR)

(b) against Govt. Sanctioned projects

(c) In replacement of beyond economical repair P&M through rate/running contract of DGS&D

(a) GM

AGM

(b) GM

AGM

(C) GM

AGM

(a) Rs.25 cr. in each case but Rs.1 Cr. for resultant single vendor situation.

Rs.1 cr. in each case

(b) Rs.25 Cr. in each case but Rs.50 lakh in case of receipt of single acceptable offer against open tender.

Rs.1 cr. in each case.

(c) Full powers

Rs.25 lakh in each case

Power at (a) is restricted to P&M against RR Plan approved by PFC in OFB. IT related equipment to be procured after prior sanction of OFB

Power at (b) is to be exercised in respect of P&M specially listed in Project Sanction.

Yes OFB Order No. 439/BS dated 11.04.2007, 430/BS dt. 24.01.2007 & 451/BS dt. 21.11.2007.

9. Procurement of Plant & Machinery under New Capital to improve production for which firm Orders have been placed by Services. (Except Computers & IT related equipment and Vehicles)

GM Rs. 1 Cr. in each case.

Subject to (i) Budget provisions (ii) Acceptance of NC demand by

Operating Member if value of such P&M exceeds Rs. 10 lakh.

Yes OFB Order No. 439/BS-Corr-II dt. 18.08.2008

1C. PURCHASE, ERECTION, REPAIR AND MAINTENANCE OF PLANT & MACHINERY

46


DELEGATED


TO BE CONSULTED

DOCUMENTS IN WHICH


10 Procurement of Plant & Machinery under New Capital through LTE/OTE.

(a) Maintenance

(b) Training & Hospital

(c) Purchase of Hospital specific equipments/instruments from trade.

(d) Purchase of scientific equipments/ laboratory equipments etc.

GM.

GM

Sr.PD/NADP

Medical Officer-in-charge of Factory Hospital

Head of ODCs

Rs.1Cr. in each case but Rs.5 lakh in case of receipt of single acceptable offer against open tender.

Rs.10 Lakh in each case but Rs.5 lakh in case of receipt of single acceptable offer against open tender.

-do-

Rs.2 Lakh in each case within budget provision.

Rs.25 Lakh in each case

As above.

subject to competitive tendering.

Subject to Acceptance of Necessity by Member/TS & PEDB.

YES

YES

Yes

OFB Order 439/BS dt.11.04.07, 442/BS dated 28.05.2007 & MOD letter No. 12(32)/80/D(Project) dt.28.02.81 & 451/BS dt. 21.11.07. OFB Order 454/BS dt.19.02.2008. OFB Order 457/BS dt.25.07.2008.

47

ORDNANCE FACTORY

BOARD

ORDNANCE FACTORY

BOARD

ORDNANCE

FACTORY BOARD

ORDNANCE FACTORY BOARD

ORDNANCE FACTORY

BOARD

ORDNANCE

FACTORY BOARD

11. Modification/ reconditioning of Plant & Machinery through contract.

GM

AGM

Rs1 Cr. in each case Rs.50 lakh in each case

Subject to approval in PFC and budget allotment from OFB. No payment in foreign exchange will be involved. AGM should be incharge of Engg. or Project to be nominated by GM..

YES

OFB Order No.439/BS dt. 11.04.07 & 439/BS-Corr-I dt.28.05.07.

12. .Maintenance cover/ repair of P&M other than M.T. Vehicle. a) Departmentally b) By contract c) Maintenance cover /repair of Hospital equipments/instruments through contract. (d) Maintenance of computers

GM Sr. PD/NADP

AGM

PD/OFIOL

GM Sr. PD/NADP

Addl. GM PD/OFIOL

Medical Officer-in-charge

Head of ODCs

Full powers Full powers Rs.50 Lakh in each case Rs.50 Lakh in each case Rs.50 Lakh in each case Rs.50 Lakh in each case Rs.25 Lakh in each case Rs.25 Lakh in each case Rs.2 Lakh in each case within budget provision. Full powers

Subject to budget allotment from OFB. No payment in foreign exchange will be involved. AGM should be incharge of Engg. or Project to be nominated by GM Sr. PD/NADP & PD/OFIL to exercise this power for P&M belonging to Capital Block Register of NADP/OFIL & subject to budget provision. By competitive tendering in case such services are not covered through AMC and are not provided by the manufacturer/supplier or their authorized Agent.

- do -

Yes

Yes

Yes

Yes

OFB Order No.439/BS dt. 11.04.07 & 439/BS-Corr-I dt.28.05.2007. OFB Order No.454/BS dt. 19.02.2008. OFB Order 457/BS dt.25.07.2008.

48



TO BE CONSULTED

DOCUMENTS IN WHICH


13. Erection & commissioning of Plant & Machinery including installation of Services e.g . distribution of steam, compressed Air, Oil etc.

a) Departmentally

b) By Contract

GM

Sr. PD/NADP

AGM

PD/OFIOL

GM

Sr. PD/NADP

Addl. GM

PD/OFIOL

Full powers

Full powers

Rs.25 lakh in each case.

Rs.25 lakh in each case.




Rs.10 Lakh in each cas

.

To be exercised by Sr. PD/NADP and PD/OFIOL for plant & Machinery belonging to capital Block Register of NADP/OFIL & subject to budget provision.

YES OFB Order No.439/BS dt. 11.04.2007

14. (a) Repair of M T Vehicles by contract including Motor Cycles, all Mechanical handling equipment.

(b) Repair of departmental Ambulance Vehicles by contract.

GM Sr. PD/NADP

PD/OFIOL

Medical officer -in-charge of Fy. Hospital

Full powers upto limits of economical repairs.

Full powers upto limits of economical repairs subject to budget allotment from OFB.

**** See Note below.

To be exercised by Sr. PD/NADP and PD/OFIOL for MT vehicles belonging to capital Block Register of NADP/OFIL

Subject to competitive tendering, provided that cost of repair does not exceed 20% of market value of the Ambulance or Rs.1 lakh whichever is less. In all such cases an estimate would be prepared and vetted by LAO before issuance of tender for conclusion of contract.

YES.

YES

OFB Order No.448/BS dt.06.12.2007.


15. Repair to Office Equipment like Typewriter etc. through Trade.

GM

Sr. PD/NADP

PD/OFIOL

AGM

Full powers..

Rs.50000/- in each case

YES OFB Orders No. 387/BS, Dt. 25.7.96 & OFB Order No.417/BS dt. 29-03-2006.

49




CONTAINED

16. Sanction for expenditure under RR in excess of amount sanctioned by PFC/OFB.

GM 15% of original sanctioned amount or Rs.1 Cr. whichever is less.

Provided that :- i) Value of the order falls within financial power of Sr. GM/GM.

ii) requisite fund is available and

iii) the purchase is not a Resultant single Tender case.

YES


17. Sanction of expenditure for applied Research & Development for carrying out product and process improvement and development of new products

GM

Head of ODCs

Rs.25 Lakh per Project within budget provision.

Rs.25 Lakh per Project within budget provision.

Subject to R&D finalization committee’s approval.

Subject to approval of Annual Plan by Member/TS & PEDB

YES

Yes

OFB Orders No. 439/BS dt.11.04.2007.

OFB Order 457/BS dt.25.07.2008.

NOTE : Applicable to Sl. No.11 to 15 i) Instructions given in case of procurement of stores will apply mutates mutandis in case of direct purchase/contract for Plant & Machinery also. ii) When any Machine or Equipment is placed at the disposal of the Contractor, suitable security cover should be obtained. This may be waived at the discretion of the General Managers in case of Public Sector Undertakings. ***** Applicable to Sl. No. 14 : 20% of Market value of the item or Rs. 20,000/- for 2 Wheelers or Rs. 1 Lakh for 4 Wheelers, whichever is less will be considered as limit of economical repairs. In all such cases an estimate would be prepared and vetted by LAO before issuance of tender for conclusion of contract.

50



DOCUMENTS IN WHICH


18.(a) Release of Foreign Exchange for procurement of Stores and Plant & Machinery.

GM

AS per financial power of GM within budget provision.

Commitment to be got noted by Associate Finance.

OFB Order No. 430/BS dt 24.01.2007.

(b) Release of Additional Foreign Exchange

(i) for excess amount upto 25% of original release.

(ii) Additional amount in excess 25% of the original sanction.

Same authority which released the original amount of Foreign Exchange

Same authority which released the original amount of Foreign Exchange

Subject to ex-post-facto sanction being obtained from M of D.

Subject to the condition that original release plus the additional release is within the Foreign Exchange ceiling upto which the concerned authority is authorised to release Foreign Exchange.

- do -

Commitment to be got noted by Associate Finance.

Decision of HLC circulated through Budget Section RN No. 002/FE/79-80/A/B, dt. 20-2-80.

1D. MATTERS INCIDENTAL TO PROCUREMENT INCLUDING RELEASE OF FOREIGN EXCHANGE

51



CONSULTED

DOCUMENTS IN WHICH


19. (i) Dispatch/Collection of Stores by other than shortest Route or cheapest mode of dispatch.

(ii) Collection /dispatch of material/equipment by a route other than the shortest route or cheapest mode of carriage to meet urgent requirements.

GM

Addl. GM

Head of ODCs

Full powers.

Rs. 3 lakhs in each case.

Rs.3 Lakh in each case.

Subject to a certificate that to maintain continuity of Production normal mode of conveyance cannot be resorted to and remarks against Sl. 2 above.

YES

YES

OFB Order No. 387/BS,

dt. 25-7-96

OFB Order No. 457/BS,

dt. 25.07.2008.

20. Air Lifting of Stores :

(a) Within India

(b) From Abroad

GM

GM

Rs. 40,000/- per occasion.

Rs. 8 lakhs per occasion.

YES

OFB Order No. 423/BS dt. 06-10-2006.

21. Loading/Unloading and transporting Materials by Private Contracts.

GM

Sr. PD/NADP

PD/OFIOL

Full powers within budget provision.

This power will be limited to loading and unloading contracts inclusive of local transportation only.

Not necessary upto

Rs. 5,000/-


22. Conclusion of Contracts for road transport between places not connected by Rails.

GM

Sr. PD/NADP

PD/OFIOL

Rs. 8 lakhs per contract. This power to be made general for transporting of goods and not limited to places not connected by Rails.

Yes OFB order Nos.424/BS dt.06.10.2006

23. Conclusion of contracts for road transport where Rail facilities have been dislocated temporarily.

GM

Full powers for the period Rail services remain dislocated.

Prescribed procedure for conclusion of contracts should be followed.

YES M of D letter No.12(72)/83/D(Proj-I), dt. 3-10-83.

52



BE CONSULTED


IS CONTAINED

24. (i) Placing of order for testing of items/ sub-assemblies at Govt. Test House.

(ii) Testing in NABL accredited test centres.

(iii) Placing of orders for testing of items/ medicines from Govt. test house/NABL accredited test centers.

(iv) Testing/ inspection assistance from reliable labs / Institutions

GM

Addl. GM

GM

Medical Officer-in-charge of Ordnance Factory Hospital

Head of ODCs

i) Full powers in Govt. Test House

Rs.20,000/- in each case for test in Govt. test house.

ii) Rs. 50,000/- in each case in NABL accredited test house.

Rs.20000/- in each case for test in Govt. Test House or at NABL accredited Laboratory.

Rs.20000/- in each case

Yes

Yes

Yes

Yes

Yes

OFB Order No. 387/BS, dt. 25-7-96 and Order No.422/BS dated 25.08.2006.

OFB Order No. 454/BS dt. 19-2-2008.

OFB Order No. 457/BS dt. 25.07.2008.

25. Extension of Delivery Date. GM.

AGM

JT. GM

DGM

WM

According to their purchasing powers (of the respective TPCs against contracts concluded by them).

(i) Unless it is certified that delay has not given rise to any loss, damage or inconvenience, the right to recover L/D shall be reserved.

(ii) The purchaser shall not be liable for any increase in price for any reason what so over beyond the original Contract D/P, but the benefit of decrease in price, if any shall accrue to the purchaser.

(iii) Extension shall not be given in cases where higher rate has been paid for earlier delivery.

(iv) GMs may extend DP upto 2 years for cases where OFB or MOD is CFA.

YES OFB Order Nos. 387/BS-Cor dt. 09.03.09 & 452/BS dated 19.02.2008.

26. Waiver of liquidated Damages.

GM. AGM

JT. GM DGM WM

According to their purchasing powers. (of the respective TPCs against contracts concluded by them)

Provided that there is not loss, damage or inconvenience caused to the consignee due to delay in supply and also subject to the condition that there is no loss in production and/or no idle time wages were paid.

YES Order No.449/BS dt.14.11.07.

53


DELEGATED


DOCUMENTS IN WHICH


27. Waiver of Security Deposit. GM.

AGM

JT. GM

DGM WM

According to their purchasing powers.

Provided the concerned Authority is satisfied as regards the status, financial standing of the Firm on the basis of their Registration with DGS&D, DDS, NSIC, Ordnance Factories etc.

YES OFB Order Nos. 387/BS-Cor dt. 09.03.09 & 452/BS dated 19.02.2008.

28. Lodging of Security Deposit with Suppliers of Gas Cylinders.

GM/Addl.GM Full powers. YES OFB letter No. 387/BS

dt. 25.7.96

29. Issue of Proprietary Articles Certificate for purchase.

GM

Full powers. PAC for procurement cases exceeding GM’s financial power on procurement on PAC be issued by the General Managers in consultation with the operating Member of OFB.

NO M of D letter of 31-12-79 read with MOD letter No.2(2)/96/D(Fy.I)/ D(Prod) dt.13.5.02..

30..(i) Sanction for Demurrage and Wharf age.

(ii) Regularisation/Settlement of demurrage (container detention charges)

GM

OIC, DGOF Cell, Mumbai.

Rs. 1,00,000/- in each case.

Rs.1,00,000/- in each case.

Monthly report on cases regularised under his power to be forwarded to Optg. Div. & Fin. Div.

NO OFB Board Order No. 439/BS dt.11.04.2007.

31. Increase in Price in respect of Steel items from M/s. SAIL.

GM Free to accept price increase sought for

YES OFB Order No. 375/BS, dt. 6-9-93.

32. Acceptance of price increase against Fixed Price Contracts placed within their powers.

GM Upto a ceiling of 5% of the contracted price.

This power may be exercised in cases where the price increase is justified on account of circumstances beyond the control of the Supplier. The price increase in such cases should be allowed only after conducting negotiations with Suppliers and after taking all the relevant factors into account.

YES M of D letter No.F12(7)/80/D(Proj), dt. 31-7-80.

54



TO BE CONSULTE

D


IS CONTAINED

33. Advance payment for Steel Items to the Main Producers.

GM 100% payment within 14 days of the presentation of the Bill duly supported by proof of inspection and dispatch.

YES OFB letter No. 215/G2/ SP/I,dt.26-2-71.

34. Increase in Price in respect of items from PSUs.

GM/Addl.GM Full powers in respect of steel items.

Same as Note at Sl. No.2 above

YES

OF Board Order No.387/BS, dt. 25-7-96.

35. Placement of order at differential rate.

GM As per provision of DPM 2006.

YES MOD letter 5(12)/99/D(Prod)/B dt.20.12.2006.

36. Advance payment for Steel Items to the SAIL stock-yards

GM/Addl.GM Advance payment upto 105% of the Contract Value may be admitted (subject to subsequent adjustment) after inspection at the stock-yard.

Same as Note at Sl. No.2 above. To be exercised by the respective authorities within their powers.

YES OFB Order No. 387/BS dt. 25.7.96

37. Advance payment for suppliers GM Advance payment not exceeding 15% of value of contract.

Subject to receipt of Bank guarantee of equivalent amount for procurement of stores as per guidelines/provision of DPM-2006 if making such payment becomes absolute necessary.

OFB Order No. 446/BS dt. 26.09.2007

55




CONTAINED

38. Advanced payment to Private Oil companies.

GM./Addl.GM

Full powers upto 100% of their financial powers for local purchase of Oil & Lubricants.

Applicable only when the oils and lubricants are not available from M/s Indian Oil Corporation or these are proprietary articles of private oil Company. **

YES.

** subjects to the remarks at Sl. No. 36 above.

OFB Order No.387/BS dt. 25-07-96.

39. Advance payments for canalised items

GM Full powers for 100% payment placement of order.

YES

MOD letter No.12(73)/84/D(Proj-I) dt. 31-12-84.

40. Payment of Earnest Money in connection with procurement of canalised items of stores through canalising Agency.

GM Upto 2% of CIF value or Rs. 2 Lakhs, whichever is less.

NO. OF Board Order No.353/BS, dt. 12-7-88 as amended from time to time.

41. Advance payments to contractors where competative conditions do not exist or goods are in short supply or monopoly supply.

GM Full powers. Subject to the condition as laid down in M of D letter No. 286/5/SP/C/6438/D(Pord), dt. 3-7-73.

YES M of D letter No.286/5/SP/C/6438/D(Prod), dt. 3-7-73.

56

NATURE OF POWER


DELEGATED


TO BE CONSULTED

DOCUMENTS IN WHICH


42. (i) Issue of stores/ materials from factory stock to private firms, Govt. Deptts. and State Undertakings.

GM/Addl.GM.

Full powers.

(i) Price fixation as per existing procedure. Issue to private firms only for execution of orders placed.

(ii) This powers are subject to the following conditions :

(a) General Managers can issue stores/ materials as a loan against a security deposit equivalent to book value or market value whichever is higher plus 5% over the book/ market value plus another 5% on the inclusive rate. This will be returnable within 6 months from the date of issue. In exceptional cases, however, the GMs may extend this period upto 1 year for the reasons to be recorded in writing. If the loan is not returned within the specified time, the Security Deposit should be forfeited and the transaction closed.

In no case should item in short supply or which are difficult to procure be issued on loan or the value of issue to be made is arrived at above should exceed Rs.1000/- only. (Rupees one thousand only)

(b) General Managers can issue stores/materials as assistance towards completion of orders placed on firm for supply to Fys. against a Security Deposit equivalent to book value or market value whichever is higher plus 5% over the book or market value plus another 5% on the inclusive rate. On completion of order by the firm, the transaction will be adjusted as a payment issue. If any portion of the stores/ materials issued to the firm is returned to the Fys. as not consumed for the order, a proportionate refund of the Security Deposit to the firm will be afforded. In the case of items of issues ex-manufacture by Ordnance Fys. As assistance programme, the price will be fixed by taking maximum estimated cost plus 20% of same to cover contingencies.

General Managers can also issue stores/ materials as assistance towards completion of the orders placed on other departments of the Central Govt., State Govt. and State Undertakings at book value or market value whichever is higher plus 5% as departmental charges. On completion of the orders transaction will be adjusted as payment issue.

YES OFB Order No.387/BS dt. 25-07-96.

57

NATURE OF POWER


DELEGATED


TO BE CONSULTED

DOCUMENTS IN WHICH


(ii) Issue of materials/equipment on loan to OFs, Sister Dev labs, Govt. Deptt. and State undertakings

Head of ODCs

Full powers

(c) General Managers can issue stores/ materials to private firms for fabrication/ manufacture of stores/components against a Security Deposit equivalent to book value or market value whichever is higher plus 5% over the book/market value plus another 5% on the inclusive rate.

In exceptional circumstances and in the case of well established and reputed firms, GMs of Fys. may waive Security Deposit if they are satisfied that Govt. interest are adequately safeguarded. In the case of items of issue ex-manufacture by Ordnance Fys. as assistance programme the price will be fixed by taking maximum estimated cost plus 20% of the same to cover contingencies. GMs can also issue stores/materials from the factory stock to the other departments of the Central Govt., State Govt. and State Undertakings for fabrication of stores/ components without a Security Deposit for the execution of the contracts entered into by him under his financial powers. It will, however, be ensured that stores/material released are only in the execution of the particular contracts placed by the GMs

d) General Managers can issue instruments, stores (except raw materials) and machines other than Capital items to well established and reputed firms. State Undertaking and Govt. Deptt. for repairs, overhauling without any security deposit if they are satisfied that Govt. interest are adequately safeguarded.

e) Same as Note at Sl. No.2 above. To be exercised by the respective authorities within their powers.

The loan issue to OFs and Sister Dev. Labs is to be regularised within 6 months.

Issue of materials/stores to Govt. Deptt. & State Undertakings can be made after ensuring safeguard of Govt. interest.

Yes

OFB Order No. 457/BS dated 25.07.2008.

58



DOCUMENTS IN WHICH


(i) DECLARATION OF SURPLUSES

43. Serviceable Stores :

(i) Drums, Containers and Packages.

(ii) Serviceable Stores other than Drums, Containers & Packages.

(iii) Declaration of surplus of medicines or healthcare related items.

GM

GM

Medical Officer-in-charge of Ordnance Factory Hospitals

Full powers.



Subject to recommendation of a Board constituted for that purpose.

YES

YES

YES



44.Unserviceable Stores: GM

AGM

Jt. GM/DGM

Full powers

Rs. 25 Lakhs in each case.


NIL. YES

M of D letter dt. 31-12-79 & Order No. 439/BS dt.11.04.2007.

45. Scrap and Swarf GM

AGM

Jt.GM/DGM

Full powers


Rs 10Lakhs in each case

YES

M of D letter dt. 31-12-79& Order No. 439/BS dt.11.04.2007..

46. Unserviceable Plant Machinery beyond economical repair.

GM Full Power Before declaring any item of P&M as unserviceable and surplus all avenues for its Cost effective reconditioning have to be explored.

YES OFB Order No. 375/BS/Corr-1,dt. 08-11-93.

2(i). DECLARATION OF SURPLUS AND DISPOSAL

59



TO BE CONSULTED

DOCUMENTS IN WHICH


47. Serviceable Stores :

(i) Drums, Containers and Packages.

(ii) Serviceable Stores other than Drums, Containers & Packages.

GM

GM

Full powers.


Subject to adherence to operating procedures for disposal. Clearance from the central Technical Team is not necessary.

YES

YES

M of D letter dt. 31-12-79 & OFB Order No. 439/BS dt.11.04.2007.

48. Unserviceable Stores: GM AGM

Jt. GMs/DGMs

Full powers Rs.25 Lakh in each case. Rs.10 lakhs in each case.

YES

YES

M of D letter dt. 31-12-79 & OFB Order No. 439/BS dt.11.04.2007.

49. Scrap and Swarf. GM AGM

Jt. GMs/DGMs

Full powers Rs.25 Lakh in each case. Rs.10 lakh in each case.(Book Value).

YES

YES

M of D letter dt. 31-12-79 & OFB Order No.439/BS dt. 11.04.2007..

50. Unserviceable Plant & Machinery beyond economical repair.

GM Full powers when Book Value is less than Rs.5 Lakh.

YES OFB Order No. 439/BS, dt. 11.04.2007.

NOTE :

1) The disposal shall be effected by Public Auction/Open Tender. Limited Tender may be resorted to with proper justification with the prior approval of OFB/Concerned Member.

2) Rate/Running Contract may also be concluded with the prior approval of OFB/Concerned Member.

3) Detailed procedural instruction in regard to declaration of surplus and disposal are contained in P&MM Divn. Circular No. 212/2/MM, dt. 15-6-81 & OFB letter No.109/Disposal Procedure/MM/D dated 27.09.2000.

51. Waiver of Ground Rent. GM Rs. 10,000/- in each case.

i) The disposal shall be effected in accordance with the prescribed procedure.

ii) The reason for waiver of ground rent will be recorded in clear terms and approved by GMs.

YES M of D letter dt. 29-10-92.

2(ii). DISPOSAL OF SURPLUSES

60


DELEGATED


CONSULTED

DOCUMENTS IN WHICH


52. Execution of Lease. GM Rs. 5,000/- per year in each case.

YES MOD letter No.1(82)/78/D(Fy.I) dt. 31.12.79.

53. Acceptance of order for Civil Trade items from Govt. Dept. State Corpn. Municipalities & Civilian Customers.

GM Full powers. Price will be fixed in accordance with the existing Govt. order in consultation with Finance Division and subject to the conditions and guidelines for pricing relating to marginal cost being observed.

YES M of D letter No. 2(1)/89/D(Fy-I), dt. 29-10-92.

54. Contracts relating to Steel Melting & Rolling.

GM Upto a monetary limit of Rs. 10 lakhs output per month per contract.

YES Annexure II to M of D letter dt. 14-2-64.

NOTE : Applicable for a period of one year. Price will be fixed in accordance with existing Government Orders, where there are no Government Orders, Price will be fixed in consultation with Finance.

3. CIVIL TRADE

61



CONSULTED


IS CONTAINED

55. Fixation of Minimum Price for Civil Trade and Export Quotation.

GM Full powers for quoting Prime Cost (i.e. Direct Labour and Direct Material charges) plus 20% of total variable and fixed Overhead charges subject to the provisions of Ministry of Defence letter No. 1/4/1/55/D(Prod), dt.28-10-57 as amended from time to time

NIL. NO

but cost data to be vetted by L.A.O.

OFB letter No63/CT/I dt.6.10.80

56. Rectification/Replacement after issue.

GM Full powers as per contractual obligations.

NO OFB Order No. 375/BS, dt. 6-9-93.

62



TO BE CONSULTED

DOCUMENTS IN WHICH

DELEGATION IS

CONTAINED

57. Acceptance of necessity and issue of administrative approval for new works, special repairs including incidental works like. surveying, estimating etc. by Railways and other Agencies, except Construction of Residential Accommodation and Amenity Buildings.

GM Rs. 50 lakhs in each case. a) Subject to the formal clearance of annual plan by concerned Operating Member/OFB vide OFB No. 002/Budget/E/B, dt. 14-5-93.

b) The power of Rs. 50 lakh is for sanction issuance of A/A for work done through MES only.

c) The power for acceptance of FC proposal & issuance of Financial concurrence to MES for accepting a tender limited upto financial commitment of Rs.50 lakhs and within a variation of 20% of A/A.

YES OFB Order No.453/BS dt. 19.02.2008.

58. Demolition of Buildings. GM Rs.10 lakh in each case within the factory/Estate through contract by tendering. (subject to provisions of Rule 24 of DFPR 2005).

All General Managers would have Full powers for demolition/disposal of condemned buildings through Public Auction, subject to provisions of Rule 24 of DFPR 2005.

YES OFB Order No.430/BS dt. 24.01.2007.

4. CIVIL WORKS AND EXPENDITURE FROM ESTATE FUND

63


DELEGATED


BE CONSULTED

DOCUMENTS IN WHICH


59. Periodical Services for Buildings and Roads (both departmental & Contract execution)

GM/

Sr. PD, NADP .

Addl. GM

PD/OFIL

Full powers

Full powers


* Full powers

* Subject to formal clearance of annual plan by Member/Per and availability of budget provision.

YES OFB Order No.. 353/BS, dt.12-7-88.

OFB Order No375/BS, dt. 6-9-93 and OFB Order No428/BS-Corrigendum dt. 15.12.2006.

60. (i) Maintenance Works-Special Repairs (applicable to both departmental and contract execution) under revenue grant.

(ii) Maintenance Works-Special Repairs (applicable to both departmental and contract execution)

(i) GM

(ii) Sr. PD/ NADP

PD/OFIL

Rs.25 lakhs in each case.

Rs.25 lakhs in each case.

*Rs.10 lakh in each case within budget provision.

* Subject to formal clearance of annual plan by Member/Per and availability of budget provision.

YES OFB Order No. 439/BS dt.11.04.2007.

61. Re-appropriation of buildings entailing no alteration and no cost.

GM Full powers. YES M of D letter No. 1(82)/78/D(Fys-I) dt. 31-12-79.

62. Direct Contract for Civil Works under revenue grant.

GM Rs. 25 lakhs in each case. Through competitive Tenders YES OFB Order No. 439/BS dt. 11.04.2007

64


DELEGATED


BE CONSULTED

DOCUMENTS IN WHICH


63. a) Sanction of all New works and execution of direct contract for Civil Works, special Repairs including works like Survey, estimating etc. by Railways or agencies other than MES.

b) Acceptance of necessity and issue of A.A. for works connected with residential accommodation excluding hostel accommodation and amenity buildings.

GM.

GM.



This will be through Competitive Tender and subject to the approval of annual plan by concerned Operating Member/OFB and sanction issued for scope of works as per authorisation and Scale of accommodation.

YES.

YES.


-do-

64. Expenditure from Estate Fund for Direct Development and upkeep of the Estate.

GM

Upto Rs. 1,00,000/- in each case subject to the ceiling of total annual receipts..

YES OFB Order No. 437/BS, dt. 06.03.2007.

N.B. : The items of works falling within the scope of "Direct Development" and upkeep of the Estate, as enumerated in M of D letter No. 106/A/Cs, dt. 8-11-79 are as under :

a) Provision, upkeep and maintenance of Gardens, Parks in the Estate.

b) Provision, upkeep and maintenance of Children Parks in the Estate.

c) Provision, upkeep and maintenance of Sports Ground and Stadium.

d) Provision, upkeep and maintenance of Open Air Theatre and Indoor Halls.

e) Upkeep and maintenance of Estate.

f) Development and maintenance of Arboriculture.

g) Provision and maintenance of Stalls, Market etc.

65. Testing of buildings, Structures etc. in connection with issue of annual stability certificate to the State Authorities.

GM Full powers for testing by Govt. Deptts./PSUs and Autonomous Institutions.

M of D letter No. 2(1)/89/d(Fy-I) dt. 29-10-92.

65

NATURE OF POWER



TO BE CONSULTED


CONTAINED

66. Loss of Stores due to theft, fraud or neglect.

GM Rs. 5 lakh in each case. Subject to convening Board of Enquiry to investigate the loss and compliance of other provisions laid down in F.R. Pt. I.

YES OFB Order No. 430/BS dt.24.01.2007.

67. Loss of Stores not due to theft, fraud or neglect.

GM

Addl. GM

Rs. 10 lakh in each case.

Rs. 1 lakh in each case.

Subject to half-yearly report being sent to OF Board and convening Board of Enquiry to investigate the loss and compliance of other provisions laid down in F.R. Pt. I.

YES OFB Order No. 430/BS dt. 24.01.2007.

68. Loss of Public money not due to theft, fraud or neglect.

GM Rs. 2.5 lakh in each case. Subject to condition shown at Sl. No. 67 YES OFB Order No. 430/BS dt. 24.01.2007.

69. Loss of Public Money due to theft, fraud or neglect.

GM Rs. 1 lakh in each case. Subject to condition shown at Sl. No. 66. YES OFB Order No. 430/BS dt. 24.01.2007.

70. Loss due to rejection in manufacture.

GM Upto an additional 50% of unavoidable rejection percentage catered in the standard estimate subject to (a) Rs. 10 lakh where there is no neglect and (b) Rs. 2 lakh where there is neglect.

When rejection is not more than 50% of unavoidable rejection percentage catered in the standard estimate irrespective of value, subject to Board of Enquiry being held, responsibility fixed where necessary and half-yearly report sent to OF Board.

YES OFB Order No. 430/BS dt. 24.01.2007.

71. Engagement of Chartered Accountants/Tax consultants to deal with matters of Sales Tax, Central Excise duty, Service Tax related laws.

Sr. GM/

GM

Not exceeding Rs.2 Lakh per annum

The above delegation is subject to :-

Procedure laid down in Rule 163- 177 of GFR 2005 will be observed for appointing consultant.

Yes OFB Order No.441/BS dated. 28.05.2007.

5. REGULARISATION OF LOSSES

6. CONSULTANCY

66

NATURE OF POWER AUTHO-

RITY



DOCUMENTS IN WHICH


72. Cash purchase for purpose other than production & maintenance.

GM

AGM

JT. GM

DGM

WM

Rs.15,000/- each item in each transaction




Rs. 500/- each item in each transaction

In conformity with Rule 145 of GFR 2006.

NO OFB order No.432/BS dt.11.04.2007.

73. Cash purchase by ODCs

(i) SAG level

(ii) JAG level



In conformity with Rule 145 of GFR 2006.

No OFB Order No.457/BS dt. 25.07.2008.

74. Cutting of Grass Wild Growth in Factories/ Estate and inside Institute & Hostel premises of NADP/OFIOLS through Contract.

GM

Sr. PD/NADP

PD/OFIOL

Full powers Subject to contract action being based on competitive tendering.



75. Uniform for Canteen Employees.

GM Full powers. Where authorised scales have been laid down.

NO M of D letter dt. 31-12-79.

76. Purchase of Canteen Equipments, Utensils and Furniture for Ord.Fys.

GM Full powers. Where authorised scales have been laid down.


N.B. : i) All purchase shall be made either against Rate Contract or on the basis of competitive tendering. Uniforms may be procured from the sister Factories.

ii) Any unauthorised item or an item for which there is no prescribed scale shall be referred to the HQrs. for approval.

77. Advertisement and Publicity.

GM Full powers. Expenditure shall be kept within funds specifically allotted to each Factory on annual basis.

Not necessary upto Rs. 2,000/- in each case.

M of D letter dt. 31-12-79 (i) of schedule I FRI Pt. I for other GMs.

7. CONTINGENT MISCELLANEOUS AND GENERAL MATTERS.

67 NATURE OF POWER AUTHORITY EXTENT TO

WHICH DELEGATED



CONTAINED 78. Purchase of Book: Technical, Professional, Scientific & other categories of Books.

GM Full power Yes M of D letter dt. 29-10-92 and Order No. 425/BS dt.06.10.2006.

79. Supply of free samples to customers.

GM Rs.50,000/- against an enquiry

Subject to recording of reasons. Yes OFB Order No.430/BS dt. 24.01.2007.

80. Whole job contract for upkeep/ Maintenance of Office and Govt. property including conservancy but excluding Civil Works.

GM

Sr. PD/NADP

PD/OFIOL

Medical Officer-in-charge of Ordnance Fy. Hospital

Head of ODCs

Full powers

Full powers subject to budget allotment from OFB.

Full powers

Subject to competitive tendering & provision of contract labour Act.

-do-

-do-

Yes

OFB Order No.418/BS -CORRIGENDUM dt. 03-04-2006.



81. Whole job contract for kitchen & Catering services.

GM

Sr. PD/NADP

PD/OFIOL

Medical Officer-in-charge of Ordnance Fy. Hospital

Full powers


Subject to competitive tendering & provision of contract labour Act.

-do-

Yes

Yes


OFB Order No.454/BS dt. 19.02.2008

82. Energy Audit through accredited Energy Auditors

GM Full powers subject to budget provision.

Subject to adherence to SOP on the subject.


83. Purchase of Postage Stamps for Franking Machine.

GM

Head of ODCs

Full powers

Full powers

Subject to provision of Schedule V Rule 13 of DFPR 2005.

-do-

Yes

Yes



68



CONSULTED

DOCUMENTS IN WHICH DELEGATIO

N IS CONTAINED

84. Miscellaneous & Contingent expenditure (both recurring and non-recurring)other than Purchase of stationary, printing of forms, Mementos and small gifts.

GM

Head of ODCs

Full powers

Full powers

Schedule V, Rule 13 of DFPR 2005.

Schedule V, Rule 13 of DFPR 2005.

Not necessary upto Rs.40,000/-

-do-

OFB order No.432/BS dated 11.04.2007.


85. Purchase of Stationary and Computer stationary.

GM

Head of ODCs

i) Full powers against Rate/Running Contract of DGS&D.

II) Full power subject to an annual ceiling of Rs.2,00,000/- for purchase of non-standard/exclusive stationary items purchased through LTE.

Subject to Non availability certificate from controller of stationary (In respect of stationary items, not falling under non-standards exclusive category)

YES

Yes

M of D letter dt. 29.10.92 & OFB Order No.432/BS dated 11.04.2007.


86. Powers for printing Forms etc. GM Rs. 8,000/- per transaction subject to an annual ceiling Rs. 40,000/-

Yes M of D letter dt. 29-10-92 & OFB Order No.432/BS dt.11.04.2007.

87. Presentation of Memento and small gifts to high dignitaries during their visit to factories.

GM Rs.8,000/- per year not exceeding Rs.800/- each time.

Yes OFB order No.432/BS dated 11.04.2007.

88. Cash Awards or Award of HMT watches.

GM Rs. 1000/- per individual or HMT Watches.

Subject to conformance to Guide Lines laid down by OFB.

Not necessary upto Rs. 500/- in each case.

OFB Order No. 353/BS, dt. 12-7-88.

89. Protective clothing. GM Full powers Subject to scale as laid down for Ord. Fys. & against item No. 23 of Annex to schedule V of DFPR.

Not necessary. M of D letter dt. 29-10-92.

69


DELEGATED


DOCUMENTS IN WHICH


90. Institution of Legal Proceedings and Defending Legal Cases in Courts and Arbitration Engagement of Legal Practioners.

GM

JT. GM

DGM

W.M

(Admin)

Full powers.

Rs.2,000/- per case

Rs.1,000/- per case

i) Subject to Guide Lines of Min. of Law being followed.

Not upto Rs.2000/- M of D letter dt. 31-12-79 & f(i) of Schdl.-I, FRI Pt.-I.

91. Compensation under Workman's Compensation Act, 1923 and WC (Amendment) Act, 1976.

GM Full powers upto the ceiling prescribed in W C Act for all employees defined as "Worker" of the Factory.

YES M of D letter No.1(82)/78/D(Fy.I) dt. 31-12-79.

92. Admitting time-barred claims GM

DGM

WM

Full powers upto 3 years

Full powers upto 1 years

Govt. sanction is required where claims become time barred under any provisions of Law relating to Limitation vide FRI 191 (Part-I).

Financial concurrence is required where Audit Authorities are not in a position to investigate the claims due to limited period of reservation of record.

Provision of FRI 188/198 (Part-I) and position to M of D letter dt.11-11-83.

93.. Grant of advance for Medical Treatment including purchase of appliances for Serious ailment in the Heart/Eyes, Lungs, Kidney, Brain and Cancer cases etc. for Critical patients under CSMA Rules.

GM

Full powers as per Central Services Medical Attendance Rules (CSMA).

M of D letter, dt. 29-10-92.

70


EXTENT TO WHICH

DELEGATED


DOCUMENTS IN WHICH


94. Authorisation for movement of Patients by higher than entitled class of travel including Air Travel alongwith an attendant by same class on recommendation of Specialist.

GM Full powers as per CSMA rules except movement of patient by A/C Ist Class and by Air.

M of D letter.dt. 29-10-92.

95. Consultation with Specialists of all disciplines of Allopathy Systems in Factory Hospitals for outdoor/indoor treatment of the entitled patients where the Specialist centre is not available or the centre is not having the required Specialists in position.

GM i) Rs. 40 to 100 (Outdoor Consultation fee)

ii) Rs. 10 to 25 (as conveyance charges)

iii) Rs. 20 to 50 (as investigation charges for each consultation)

M of D letter dt. 29-10-92.

96. Issue of Capital items including Vehicles for Repairs and Overhauling to Private Firms, State Undertaking and Govt. Departments.

GM Full powers to waive security deposit in the case of firm of repute, provided approval of OF Board has been obtained for the proposed issue.

NO Sl. No. 12 of Annex III of M of D letter No. 1 (82/78/D(Fy-I), dt.9-2-79.

97. Authorisation of provisional payment.

GM Full powers whenever payments are prima facie clearly due.

In consultation with JCDA/DCDA/Accounts Officer incharge of the factory.

M of D letter No. G4(4)/Admn/62/OFB, dt. 28-6-80.

71



DOCUMENTS IN WHICH

DELEGATION IS

CONTAINED

98. Grant of Ex-gratia financial assistance to Ordnance Factories Employees/families in accidents in Factory while on duty .

i) In case of death- grant to family

ii) In case of Serious injuries-grant to the employees.

GM

GM

Not exceeding Rs.25,000/- in each case.

Not exceeding Rs.5,000/-in each case

NO

NO

OFB letter No. 868/A/A, dt. 21-06-99.

99. Manufacture of Components and Semi for stock towards anticipated services.

GM Rs. 50,000/- Not applicable to obsolescent and perishable items.

YES M of D letter, dt. 31-12-79.

100. Cash purchase to meet the requirement of the Hospital.

Medical Officer in-charge

Rs.10,000/- each item in each transaction within budget provision

in conformity with Rule 145 of GFR 2006.

No OFB Order No.454/BS dt19.02.2008.

101. Purchase of Technical, Professional, Scientific and other category of Books, Periodicals, Journals.



Yes OFB Order No.454/BS dt19.02.2008.

102. Purchase of Technical, Professional, Scientific and other category of Books/Journals including payment made for e-books and Journal/Technical literature.

Head of ODCs Full powers Subject to Acceptance of necessity by Member/TS & PEDB.

Yes OFB Order No.457/BS dt.25.07.2008.

72


DELEGATED


CONSULTED

DOCUMENTS IN WHICH


103.Purchase of medicines or other items related with healthcare which are not available at AFMSD supply or are required on urgent basis from trade.


Rs.10 lakh in each case within budget provision.

Subject to competitive tendering. Yes OFB Order No.454/BS dt19.02.2008.

104. Purchase of ration stores items which are not available at ASC supply or are required on urgent basis from trade.


Rs.1 lakh in each case within budget provision.

Subject to competitive tendering. Yes OFB Order No.454/BS dt19.02.2008.

73

NATURE OF POWER



CONSULTED

DOCUMENTS IN

WHICH DELEGATI

ON IS CONTAINE

D

105. (A) Capital Grant to Start Canteens.

Head of Office Canteen Type Amount authorised

NO

Equipment Crockery

Utensil

Furniture Total

A 12,000/- 3,000/- 5,000/- 20,000/-

B 9,600/- 2,400/- 4,000/- 16,000/-

C 7,200/- 1,800/- 3,000/- 12,000/-

D 6,000/- 1,200/- 2,000/- 9,200/-

Tiffin Room

A 500/- 200/- - 700/-

B 500/- 200/- - 700/-

Para 3.1 & 3.8 of Administrative Instruction on Departmental Canteen in Govt. offices and Industrial establishments Published by the Department of Personnel & Administrative Reforms, Edition, 1980.

8. GRANT/LOAN/SUBSIDY TO DEPARTMENTAL CANTEEN REGISTERED WITH DEPARTMENT OF PERSONNEL & A R

74

NATURE OF POWER




CONTAINED

(B) Replacement Grants.

Canteen Tiffin Room NO

A B C D A B NO

i) for Equipment

- do- 12,000/- 9,600/- 7,200/- 6,000/- 500/- 500/- To be reviewed by Managing Committee for 7 to 8 years.

NO

ii) For Crockery & Utensils.

- do - 3,000/- 2,400/- 1,800/- 1,200/- 200/- 200/- -do-

every 3 to 5 Yrs.

NO

iii) For Furniture. - do - 5,000/- 4,000/- 3,000/- 2,000/- - - -do-

every 8 to 10 Yrs.

NO

75

NATURE OF POWER


REMARKS WHETHER FINANCIAL CONCURRENCE IS

NECESSARY OR NOT

DOCUMENTS IN WHICH


C) Grant of repair of Main Equipment.

Head of Office with concurrence of Integrated F A.

Suitable grant to be worked out on competitive basis at reasonable rates.

(Para 3.6 ibid)

NO

-

D) Lone for bulk purchase of Materials etc.

Head of Deptt./ Office. i) Rs. 500/- per Canteen.

ii) Rs. 500/- per Tiffin Room.

Repairable within 5 years starting from not beyond 6 months from the month of drawl.

NO

-

E) Subsidy on Wages :

i) For Canteens type D and above.

ii) For Tiffin Rooms type A / B.

Head of Deptt./ Office. 70% (unless higher percentages sanctioned under special Govt. order)

(Para 3.2 & 3.8 ibid)

NO

-

F) Subsidy on Wages for Ad-hoc Leave Vacancy Workers.

Head of Deptt./ Office.

70% or higher if specially sanctioned.

Total overall number not to exceed entitlement as per prescribed Scale laid down in Para 5.1 & Annexure III of Literature mentioned against "Authority".

NO

-

G) Subsidy on Uniforms

Head of Deptt./ Office. As per Scale laid down in Annexure-II to the Literature mentioned against "Authority".(Para 3.5 & 3.8 ibid)

NO

-