MOMENTUM JHARKHANDVendor Development Programme

Organized By Govt. of Jharkhand

in association with

Ministry of Railway & Ministry of Defence, Govt of India

(19-20 December 2018, JAMSHEDPUR)

Ease of doing Business with Railways By

Ujjal Kumar Mondal, IRSS

Dy.CMM/ S.E.Railway

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Head Quarter and Divisional office Photo

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Material Management in Indian Railways

(General Overview)

Done in integrated manner in Digital Modes with Web Based Online Real Time

based software on Portal of IREPS (Indian Railways E-Procurement

System) with Web Address www.ireps.gov.in

Material Support for

Maintenance of Rolling Stock

Diesel Locomotives

Electric Locomotives

Coaches

Wagons

Manufacturing & POH activity by Workshop

Requirement of General Items by Divisions

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Material Management in Indian Railways

(General Overview)

Upgradation & Maintenance of Track, Signaling Equipments and

Traction Distribution

Maintenance of Other Assets

Disposal of Scrap Worth Rs.3143 Crore (FY 2017-18)

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What Railway Procures

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LHB Coaches and its Spares

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Spares for Conventional Coaches

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3 Phase Electric locomotives and

its Spares

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Spares for ALCO Diesel loco

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Spares for EMD Diesel locos

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Wagons and its Spares

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HQ ORGANISATION OF S.E.RAILWAY

Field Organization

Type of Depot Depots Location

Workshop attached Depots Electrical WS depot

C&W Work Shop Depot

Diesel Work Shop depot

Electrodes & Steel Depot

Kharagpur

General Stores Depots General Store Depot

Signal & Telecom Depot

Engg. Store Depot

Kharagpur

Printing & Sty. Depot Printing & Stationery Store Kharagpur

Scrap Depot Reclamation Yard

Scrap Yard

Kharagpur

Engg. Depot Engg. Depot Sini

Cont…….

• Workshop, General Stores and Printing

Contd..

Type of Depot Location

Diesel Loco Store Depot Bondamunda

Kharagpur

Bokaro

Elect. Loco Store Depot Tatanagar

Bondamunda

Santaragachi

Bokaro

Divisional Store Depot Ranchi

Adra

C&W Depot Tatanagar

Santraganchi

• Divisional Units

Purchase Procedures in Railways

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Tendering System

All tenders of Railway are hosted on ireps.gov.in

Types of Tenders

Open Tender

Limited Tender

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Participation in Rly. Tenders (IREPS)

Registration in IREPS is compulsory

▪ Documents Required for Registration

GSTN registration,

PAN No. of Firm & Proprietor,

Class III Digital Signature Certificate with Company Name.

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IREPS Home Page

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TENDER…

•No Cost of Tender Document

▪ EMD and SD as per Rules (Exempted for

Approved Vendor and Registered Vendor)

▪Any Firm can participate in the open tender.

▪MSEs should upload their registration certificate to avail

certain benefits/ Preference.

Acceptability and Legal Status

For E Commerce Activities – IT ACT 2000

Any document which is digitally signed, using digital

certificate issued by a Certifying Authority (CA),

licensed by Controller of Certifying Authorities

(CCA), will be considered as a valid document in the

court of law.

For E Procurement – CVC Guidelines E Procurement is allowed as per the guidelines of CVC order no. 98/ORD/1 dated 11th Sep. 2003.

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❖ To Vendors

❖ No chances of threat to Vendors / unfair practices

❖ Fair and transparent process

❖ Centralized information at one place

❖ Reduction in cost

❖ Real time availability of tender status

❖ Online submission of Bid and Negotiation Bid.

❖ E-Mail and SMS alert

❖ Online Receipt of PO and MA

Benefits of E-Procurement

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❖ To Railways

❖ Wider Choice of Suppliers

❖ Avoidance of Mediators

❖ No late/delayed/unsolicited offers

❖ Availability of Dynamic Reports

❖ Less Chances of Cartel Formation

❖ Increased and fair Competition

❖ Increased transparency

Benefits of E-Procurement

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Creation of IREPS account by Vendors

E-Mail ID provided by the Vendor will be used as user

name.

User Name cannot be changed after registration.

If the details are found in order, you will be sent an E-

Mail (normally within 3-4 working days) confirming

your registration and providing you the password for

logging in.

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Bidder Home Page

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Search Tender

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Features of IREPS

➢ E-Procurement of different Types of tenders with

varying evaluation criteria -

➢ Normal Supply tenders (all types)

➢ M&P tenders

➢ Global Tenders

➢ Rate Contracts/Running Contracts

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Features of IREPS

❖ Creation of Railway users.

❖ Online request for registration by Vendors and approval thereof.

❖ Online NIT creation (including corrigendum), Publication and

Intimation to prospective vendors

❖ Online submission of EMD by Vendors

❖ Online submission of encrypted bids by Vendors

❖ Electronic locking of tender box at due date/time

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Features of IREPS

IProcurement Process …❖ Online opening of tenders by two nominated officials

❖ Automatic & Instantaneous generation of Comparative

Statement on opening of tender (visible to all participating

vendors)

❖ Online decision of tenders involving activities of technical

scrutiny, TC meeting and acceptance

❖ Online issue of Purchase order and Modification Advice.

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Reverse Auction

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Reverse Auction

❖ Reverse Auction is a utilization of Auctioning Processfor procurement of Material.

❖ Bidders are pre qualified in 1st stage of bidding process.

❖ Qualified bidders are given sufficient time of onlinebidding process. Rates are progressively decreasing inthis type of auction.

❖ Bidders can view the bidding history to take decision tosubmit his next bid.

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Reverse Auction:

❖ e-RA for tender value > Rs.10 Cr.

❖ At least 5 Nos of approved/ Likely source available.

❖ 2 stage Process.

❖ 1st Stage- Technical Bid and Initial Price offer.

❖ 2nd Stage- Reverse Auction among the Qualified Bidders.

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Benefits of RA

❖ Transparency

❖ A fair and level playing field for suppliers.

❖ It is helpful for the first time purchase when the buyer wants toutilize the price discovery feature of the module as he doesn’thave fairly reasonable estimate of price.

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Salient Features

❖ Normal NIT creation like two bid system.

❖ Bidders to fill techno-commercial offer and Initial Price beforetender closing date.

❖ Vendors have to submit offers for all the items and full quantity.

❖ Techno-commercial offers are opened, evaluated, vendors arequalified / disqualified and start and close date/time are fixedfor bidding.

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Salient Features

❖ Bidders can view the bidding history take decision to submit hisnext bid.

❖ Identity of bidders is hidden from each other. They are howeverable to see relative price.

❖ Minimum decrement in percentage of total value for first bid.

❖ After closing of bidding financial tabulation can be generated.

❖ Other processes remain similar to normal tenders.

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Benefits to MSME firms

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Benefits to MSE firms

in Registration

Item MSE Others

Application form Free Not Free

Inspection of Firm Exempted Mandatory

Registration Automatic

against

application

After receipt of

application and

verification

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➢ Exclusively Reserved Group IV Items

❖ Total 358 items

➢ Exempted from EMD

➢ Price Preference if MSE firm offered rate is within L1+15%.

❖ 20% of Quantity is ordered at L1 rate

➢ 20% of overall Procurement volume of Govt from MSE firms is

mandatory under Public Procurement Policy for MSEs Order, 2012.

➢A sub-target of 4% out of 20% target of annual procurement

earmarked for procurement from MSEs owned by SC/ST entrepreneurs

Benefits to MSE firms

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➢ National Small Industries Corporation (NSIC)

➢District Industries Centers

➢ Khadi & Village Industries Commission

➢ Khadi & Village Industries Board

➢ Coir Board

➢ Directorate of Handicraft and Handloom

➢Udyog Aadhaar Memorandum

➢Any other body specified by Ministry of MSME

MSEs Registration Agencies

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Make in India

Benefits to local suppliers under Make in India Policy

The margin of Purchase preference for local supplier is 20%.

If Price quoted by a local supplier within L1 + 20%, then eligible

for purchase preference for at least 50% of procurable quantity at

L1 rate. .

If there is sufficient local capacity and local competition. For

Procurement value upto Rs.50 lakhs, only local suppliers shall be

eligible.

Benefits to local suppliers under Make in India Policy

For tenders above 50 lakhs, if L1 bid is not from a local supplier,

50% of the order quantity shall be awarded to L1. Thereafter, the

lowest bidder among the local suppliers, will be invited to match

the L1 price for the remaining 50% quantity subject to the local

supplier’s quoted price falling within the margin of purchase

preference

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Vendor Registration process in

South Eastern Railway

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Documents required with Application for

Registration

• Registration Certificate of NSIC, under Single Point Registration –desirable.

•Registration Certificate

• Balance Sheet audited by CA

• GSTN registration certificate

• Bankers Statement

• Copies of POs to other Govt. agencies if any

• Digital Signature certificate for e - procurement

• EFT/ECS mandate with Bank details – for payment

• ISO Certificate – desirable

• Cartel Declaration & Integrity Pact

• PAN Number

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Renewal of Registration:

• After initial period of 2 years – Registration to be renewed

• During initial period, firm is required to execute some P.Os, else

extended only on trial basis on the merits

• Renewal is for 3 years subject to validity of MSE registration

• Firms to submit satisfactory performance of all POs placed

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Product Approval

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Vendor approval for Safety/ Vital items

Railway maintains Approved Vendors for certain specific

items, to ensure Quality of material in its processes and

Capacity and Capability of Vendor.

Vendor Approval agencies-

RDSO- Rolling Stock items, S&T, TRD and Track items.

CLW- Electric Loco items.

DLW- Alco and EMD loco items.

ICF- EMU, ICF coach items, LBH Coach items .

RCF- LHB Coach items.

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Benefits to Approved Vendor of Railway

Minimum 80% of Net Procurable quantity shall be

ordered on approved vendors.

Automatic inclusion in the panel for Limited tender.

Exemption from payment of EMD.

Exemption from payment of SD.

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Purchase Powers for Head Quarter officer

Acceptance of Tender

GM –Above 500 Cr.

AGM- Above 200 Cr upto 500 Cr.

PCMM- Upto 200 Cr.

CMM- Upto 10 Cr.

Dy.CMM- Direct acceptance upto 50 Lakh. On recommendation

of Sr.Scale TC Rs. 1 Cr.

SMM-Upto 10 Lakh

AMM- Upto 5 Lakh

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Field Officers

Sr. DMM/ Dy.CMM (Depot)- upto Rs. 50 Lakhs.

DMM/ SMM (Depot)- upto Rs. 10 Lakhs.

ADMM/ AMM (Depot)- upto Rs. 5 Lakhs.

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IRS Conditions

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IRS conditions

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Free delivery upto consignee.

Delivery within Date specify in contract.

LD- 2% per month for delayed supply.

GD/Risk Purchase- if failed to supply.

Warranty- 30 months after delivery or 24 months from date

of placement in service whichever shall be sooner.

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General Conditions of Contract

General Conditions of Contract

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Split clause

Option clause- 30%

Price Variation Clause- IEEMA, HZL Index, etc

Statutory Variation Clause.

Price Difference Between L1 And

L2

Quantity distribution ratio

between L-1 and L-2

UPTO 3% 60:40

MORE THAN 3% AND UPTO 5% 65:35

MORE THAN 5% At least 65% on the L1 tenderer

Government e-Marketplace (GeM)

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Government e-Marketplace (GeM)

The Procurement of Goods and Services by Ministries or

Departments will be mandatory for Goods or Services available on

GeM.

Seller(s) on GeM will be the

1. OEMs (Original Equipment Manufacturers)

2. Authorized channel partner(s)/ resellers (having any general

authorization / dealership of the OEM to sell their product in

open market) and e- Marketplaces

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GeM: Salient features

Online generation of Provisional Receipt Certificate (PRC)

Online generation of onsignee receipt-cum acceptance certificate

( CRAC)

Online Submission of Bill and Online Payment

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Procedure for inspection

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Quality control for the supplies:

• For BIS registered products, acceptance against WTC

• Inspection before Final Acceptance

• Pre dispatch inspection by

By RDSO ( all critical items)

By RITES

• Inspection by Railways Internal Consumers

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How to make online inspection Call request

RITES http://ritesinsp.com/RBS/

RDSO http://rdso.ggn.rcil.gov.in/qaop1/

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RITES website

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RDSO Product Inspection Monitoring system

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Payment Procedure

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Payment procedure

95% against proof of inspection and dispatch and

remaining 5 % against receipt of store.

Bill to be submitted to Account office directly.

Payment through online system (RTGS/NEFT).

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Steps taken by Railway to enhance transparency

E-Procurement started at all purchase offices in HQ and

field

Elaborate tender conditions, Eligibility criteria, Evaluation

criteria uploaded on IREPS portal for each tender case.

All information of contract placed by Railway are available

in public domain i.e IREPS portal and can be seen easily.

All Information regarding source approval are available at

respective website of Source Approving Authority.

Online finalization of all tenders.

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Continue..

Online bill submission and tracking system for Bills

provided in IREPS.

Online issue of LOA, PO and MA.

Issue of Online receipted challan and R-note started.

E-Auction – all activities from Lot formation, Bid

submission till issue of SRO are done online.

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Dos and Don’ts – Important Precautions for Vendors

while dealing with Supply Tender of Railways.

Always go through the detailed description, drawing and

specification of the item given in the Tender. In case of any

doubt/ambiguity, make a reference to the concerned Purchase

Officer through letter/mail well in time i.e. well before opening

of tender.

Always read all the tender conditions in detail, and understand the

same, to ensure 100% compliance.

Always comply with the eligibility criteria given in the tender.

Also understand evaluation criteria, inspection condition, and

delivery requirement given in the tender.

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Dos and Don’ts

In case you are overloaded, due to orders from other

Railways, PUs and you are not in a position to supply as per

Delivery Period, the same information should be given in the

offer.

No Commercial andTechnical deviation is desirable.

In case of any deletion/down-gradation in the approval for an

item by the Approving Authority, such item should not be

quoted.

Classification of the item under GST (i.e. HSN code) should

be quoted correctly to avoid complications.

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Dos and Don’ts

For availing any benefit under MSE Act, firm to upload valid

and admissible certificate along with offer.

Tender invited with PVC should be quoted as per PVC

formula and base date, given in the tender.

Bills to be submitted to Railway, should be complete in all

respect, as per the terms and conditions of the Purchase

Order, to avoid any back reference by Paying Authority

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Steps taken by S.E.Railway towards Vendor

development in Jharkhand

Vendor meet organized by S.E.Railway at Tatanagar on 10th oct

2018 in which 81 Vendors from Jharkhand alongwith officials of

MSME, NSIC, SIDBI, RITES, RDSO, DIC, GST department

participated. Procedure of doing business with Railway explained.

Vendor Registration Cell for registration of vendors opened at

Electric Loco Shed Depot atTatanagar

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Steps taken by S.E.Railway towards

Vendor development in Jharkhand

An elaborated advertisement published in Newspaper

published in Jharkhand giving guidance on procedure for

doing business with Railway.

A display of items required by S.E.Railway has been made on

permanent basis at electric loco shed Deport at Tatanagar for

benefit of interested and prospective vendors

Above action of S.E.Railway will give boost to

MOMENTUM JHARKHAND.

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Advertisement published in Newspaper published in

Jharkhand

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Wishing you all the best for

bright future in doing

business with Railway.

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