Presentation on theme: "BEST PROCUREMENT PRACTICES ON INDIAN RAILWAYS BY M. P. JUNEJA ADDL"— Presentation transcript:
1 BEST PROCUREMENT PRACTICES ON INDIAN RAILWAYS BY M. P. JUNEJA ADDL BEST PROCUREMENT PRACTICES ON INDIAN RAILWAYS BY M.P.JUNEJA ADDL. MEMBER (Retd.) RAILWAY BOARDOn
2 Purchase Govt. Purchase Non-Govt. Purchase Govt. Purchase is also called Public Buying or Public Procurement
3 Public buyingCovers the procurement of Materials/Works/Services by all government ministries, departments, public sector undertakings ,banks and other agencies using public funds.
4 Cardinal principles of public buying To Procure Goods/Works/Services of the specified quality within specified time at the most competitive prices in a Fair, Just& Transparent Manner.
5 Principles of Public Buying (As per GFR-2005) Efficiency, Economy, Transparency, Fairness, Equitability and Competition in procurementClear and complete specifications in the tenders free of any ambiguity or deficiencyCorrect Quantity EstimatesWell publicized tendering and bidding procedures.Well recorded deliberations in decision makingNo arbitrariness
6 Principles of Public Buying Contd.. Recent initiativesRight to Information Act2005Integrity pact
7 Indian Railways Introduction Largest Railway system in the world under single management with 1.4mn employeesAbout 6b passengers carried annuallyFreight loading in excess of 900MTRoute KM 64000No of trains: 15,000No of stations:7,200
8 Assets to Maintain 8,000 locos 200,000 wagons 50,000 coaches Manufacturing of 300 locos,4000 coaches,20000 wagons and other rolling stock items
9 Assets to Maintain Contd.. To maintain and run such huge fleet of rolling stock efficiently, it is imperative that timely and un-interrupted supply of quality materials is ensured over the entire railway network
10 Mission StatementTo strive for continuous improvement in customer satisfaction through improved availability of materials & to contribute significantly in making rail operations safe, competitive and a delightful experience for rail users
11 Procurement VolumeAbout Rs.30,000crs annually and is likely to touch Rs.1 lakh crs in the next few yearsIR is one of the biggest and most diversified govt buyers in the country
12 Who Procures Railway Board Railways/Pus Divisional/Depot officers COFMOW/DLW/CLWDGS&D
13 How we procure Open Tender > Rs. 10L Limited Tender < Rs. 10L Single TenderBulletin TenderSpecial Limited Tender for safety items even with tender value > Rs. 10L
14 E-ProcurementCommon platform using secured site for buyer and seller to participate in the procurement process n a fair and transparent mannerGoverned by IT ActImplemented on all Railways since March 2010.
15 Notable Features GFR Guidelines CVC Guidelines Govt. policies on reservation for SSI unitsCodal/Financial ProvisionsDedicated Cadre of Technical officersMMIS covers almost 2lakh items of diversified nature
16 Notable Features Contd.. Adequate information/Time in BiddingUnambiguous Tender conditions and specificationsNon-restrictive and non-discriminatory bidding processEligibility and evaluation criteria clearly defined in the tender documentsClarifications (if any) to be given to all bidders through Press Release
17 Notable Features Contd.. To ensure Quality of the materials, purchase restricted from OEMs/Approved sources and inspection by RDSO/RITESSecurity deposit for safety items to ensure timely supplyNo waiver of Liquidated Damages (LD) for delay in suppliesWeeding of unreliable suppliers