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‘C’ 80% 10%

Q 16. Delegation of Powers
Purchase is one of the vital functions of the controller of stores as it effects the capital and
cash flow of Railways. It should be ensured that there should be no blockage of capital for

which a definite rate of dividend is payable to general revenues. In order to reduce the capital
at charge thus saving ultimately the payment of dividend and also to ensure efficient, quick
and smooth working of Railways, the Railway Board have delegated certain powers to GM
in the matter of purchases, sales etc of stores. Subject to safe guard Railways interest, the

GM may re-delegate these powers (within specified limits) to COS/CMM and other officers
sub-ordinate to them. In consultation wiuth the FA & CAO, expecting those where a level of

delegation have been fixed by Rly. Board.

While exercising these powers the finance branch of the FA&CAO office shall be consulted
and the vetting shall be obtained before commitments or incurring any expenditure. The need

of such delegations is to make every stores officer responsible for the job interested and the
responsibility fixed for the limits of spending, to avoid wastage, unnecessary blocking of
capital and smooth cash flow as per device of exchequer control.

Q 17.
Q 18.

Q 19. Ordering Cost
Ordering cost includes the cost of tendering, finalisation of tenders, order placing cost of
handling and inspection, testing, transportation, receiving materials, stocking depots and

finally payment of bills.

Q 20. Difference between M&P, RSP & WP

Sr M&P Programme Works Programme Rolling Stock Programme
No
It includes such It includes such It includes such proposal in
proposal in which more proposal in which which procurement of all types
1 than 50% of the work more than 50% of the of rolling stock, major
involve in Mechanical work involve in Civil modification / up-gradation in
nature. nature. rolling stock.
Its coordinating agency Its coordinating Its coordinating agency is –
2
is – CME. agency is – PCE CME.
3 M&P programs are WP are finalized by RSP are finalized by Mechanical