BEST PROCUREMENT PRACTICES ON INDIAN RAILWAYS BY M.P.JUNEJA ADDL. MEMBER (Retd.) RAILWAY BOARD

1. BEST PROCUREMENT PRACTICES ON INDIAN RAILWAYSBYM.P.JUNEJAADDL. MEMBER (Retd.)RAILWAY BOARD On 27-11-2010

2. Purchase • Govt. Purchase • Non-Govt. Purchase • Govt. Purchase is also called Public Buying or Public Procurement

3. Public buying • Covers the procurement of Materials/Works/Services by all government ministries, departments, public sector undertakings ,banks and other agencies using public funds.

4. Cardinal principlesof 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 procurement • Clear and complete specifications in the tenders free of any ambiguity or deficiency • Correct Quantity Estimates • Well publicized tendering and bidding procedures. • Well recorded deliberations in decision making • No arbitrariness

6. Principles of Public Buying Contd.. • Recent initiatives • Right to Information Act2005 • Integrity pact

7. Indian RailwaysIntroduction • Largest Railway system in the world under single management with 1.4mn employees • About 6b passengers carried annually • Freight loading in excess of 900MT • Route KM 64000 • No of trains: 15,000 • No 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 Statement • To 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 Volume • About Rs.30,000crs annually and is likely to touch Rs.1 lakh crs in the next few years • IR 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/CLW • DGS&D

13. How we procure • Open Tender > Rs. 10L • Limited Tender < Rs. 10L • Single Tender • Bulletin Tender • Special Limited Tender for safety items even with tender value > Rs. 10L

14. E-Procurement • Common platform using secured site for buyer and seller to participate in the procurement process n a fair and transparent manner • Governed by IT Act • Implemented on all Railways since March 2010.

15. Notable Features • GFR Guidelines • CVC Guidelines • Govt. policies on reservation for SSI units • Codal/Financial Provisions • Dedicated Cadre of Technical officers • MMIS covers almost 2lakh items of diversified nature

16. Notable Features Contd.. • Adequate information/Time in Bidding • Unambiguous Tender conditions and specifications • Non-restrictive and non-discriminatory bidding process • Eligibility and evaluation criteria clearly defined in the tender documents • Clarifications (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/RITES • Security deposit for safety items to ensure timely supply • No waiver of Liquidated Damages (LD) for delay in supplies • Weeding of unreliable suppliers

18. THANK YOU