MACHINERY & PLANT PROGRAMME

NIRUPMA KUMAR

PROF. (FINANCE & INVESTMENT)

MACHINERY & PLANT PROGRAMME PROCEDURE

• The M&P programme is prepared for ensuing year in the current year, M&P 2000-2003 already finalised.

• The preliminary M&P programme for next year i.e. 2003-2004 should now be initiated and sent to Board by 30.10.2002.

GUIDELINES

• A proposal with abstract cost of the M&P, allocation and justification to be sent to Finance after administrative approval of PHOD, consolidated by CME’s office.

• Proposals on additional account to be accompanied with rate of return, otherwise summarily rejected.

GUIDELINES (contd….)

• Estimated cost of machines to be based on realistic costs and should also include costs of essential accessories.

• Present day costs can be extracted from compendium issued by COFMOW circulated to all Rlys. & PUs.

• Wherever applicable, COFMOW specification number, type and capacity of machine should be mentioned.

GUIDELINES (contd….)

• Estimate of M&P should bear provision for charges such as freight, insurance, installation and commissioning, D&G charges and custom duty wherever applicable. Proposals not accompanied by such an estimate shall be rejected.

• Replacement of machines to be done keeping in mind advancements in machine technology, possibility of acquiring one or two machines to replace a larger set.

GUIDELINES (contd….)

• Current and future work load

• Material handling facilities like mechanised handling of heavy items

• Cleaning equipments for sub assemblies like traction motors, roller bearings should indicate savings.

• Maintaining higher safety standards

POWERS OF GM

• GM can sanction on out of turn basis upto Rs.10 lakhs which lapses after 2 years, requiring fresh review.

• Separate account for M&P items procured under GM’s power and total funds utilised under plan head 41 should be advised to Board.

• Due to limited availability of funds under capital, proposals on additional account to be limited to 20% of total ceiling limit.

VETTING OF PROPOSALS ON M&P