ANNEXURE-VII

No A-11013/24/2017-Ad IV
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise and Customs)
5lhFloor, HUDCO Vishala Building,
Bhikaji Cama Place, R.K. Puram
Now Delhi, Dated 12th June, 2017.
To,

All Pr. Chief Commissioners/Chief Commissioners

Pr. Commissioners/Commissioners/Pr. Directors General/ Directors
General/Additional Directors General under CBEC. Pr.CC A, CBEC.

Subject: Declaration of Heads of Department in the field

formations of CBEC in GST regime - Reg.

Sir,
I am directed to convey the sanction of the President to declare the
officers occupying the posts as mentioned in the Annexure to this letter as
Head of Department (HoD) w.e.f. 01.07.2017 under Rule 13(2) of DFPR, 1978
as amended from time to time.
2. This issues with the approval of Revenue Secretary dated 07.06.2017.
Hindi Version will follow.

Copy to

1. DGHRD (EMC), CBEC, w.r.t their letter No.

8/B/10(133)/HRD/EMC/2017/746 dated 05.06.2017.
2. PS to FM/PS to MOS(R).
3. PS to Secretary, Revenue.
4. PPS to Addl. Secretary (R)
5. Sr. PPS to Chairman CBEC

168
Heads of Department in the field formations of CBEC in GST Regime

[w.e.f. 01.07.2017]
S.No Budgetary Authority S.No Heads of Department
CENTRAL EXCISE
1 PCCGST, Ahmedabad 1 CGST, Ahmedabad (South)
2 CGST, Ahmedabad (North)
3 CGST, Gandhinagar
4 CGST, Rajkot
5 CGST, Bhavnagar
6 CGST, Kutch (Gandhidham)
7 CGST (Appeal), Ahmedabad
8 CGST (Appeal), Rajkot
9 COST (Audit), Ahmedabad
10 CGST (Audit), Rajkot
2 PCCGST, Bengaluru 11 CGST, Bangaluru (East)
12 CGST, Bengaluru (West)
13 CGST, Bengaluru (South)
14 CGST, Bengaluru (North)
15 CGST, Bengaluru North West
16 CGST, Mysuru
17 CGST, Mangalore
18 CGST, Belgavi
19 CGST (Appeal), Bengaluru-1
20 CGST (Appeal), Bengaluru-IT
21 COST (Appeal), Mysuru
22 COST (Appeal), Belgavi
23 CGST (Audit), Bengaluru-1
24 COST (Audit), Bengaluru-11
25 COST (Audit]), Mysuru
26 CGST (Audit), Belgavi
3 CCGST, Bhopal
27 COST, Bhopal
28 COST, Indore

169
 29 COST, Jabalpur
30 COST, Ujjain
31 COST, Raipur
32 COST (Appeal), Bhopal
33 COST (Appeal), Indore
34 COST (Appeal), Raipur
35 COST (Audit), Bhopal
36 COST (Audit), Indore
37 COST (Audit), Raipur
4 CCGST, Bhubaneshwar
38 COST, Bhubaneshwar
39 CGST, Rourkela
40 COST (Appeal), Bhubaneshwar
41 COST (Audit), Bhubaneshwar
5 CCGST, Chandigarh
42 COST, Jammu
43 COST, Shimla
44 COST, Chandigarh
45 COST, Ludhiana
46 CGST, Jalandhar
47 COST (Appeal), Jammu
48 CGST (Appeal), Chandigarh
49 CGST (Appeal), Ludhiana
50 COST (Audit), Jammu.
51 COST (Audit), Chandigarh
52 COST (Audit), Ludhiala
6 PCCGST, Chennai 53 CGST, Puducherry
54 CGST, Chennai (North)
55 CGST, Chennai (South)
56 CGST, Chennai (Outer)
57 COST, Coimbatore
58 CGST, Trichy
59 CGST, Madurai

170
 60 CGST, Salem
61 CGST (Appeal), Chennai-I
62 CGST (Appeal), Chennai-II
63 CGST (Appeal), Coimbatore
64 CGST (Audit), Chennai-I
65 CGST (Audit), Chennai-II
66 CGST (Audit), Coimbatore
CCGST,
7 67 COST, Thiruvananthapuram
Thiruvananthapuram
68 COST, Kochi
69 COST, Calicut
70 CGST (Appeal), Kochi
71 COST (Audit), Kochi
8 PCCGST, Delhi 72 COST, Delhi (North)
73 COST, Delhi (South)
74 COST, Delhi (East)
75 CGST, Delhi (West)
76 CGST (Appeal), Delhi-I
77 CGST (Appeal), Delhi-11
78 COST (Audit), Delhi-I
79 CGST (Audit), Delhi-TI
9 CCGST, Panchkula 80 CGST, Gurugram
81 CGST, Faridabad
82 CGST, Panchkula
83 CGST, Rohtak
84 CGST (Appeal), Gurugram
85 CGST (Appeal), Panchkula
86 CGST (Audit), Gurugram
87 CGST (Audit), Panchkula
10 CCGST. Hyderabad 88 CGST, Hyderabad
89 CGST, Secunderabad
90 CGST, Medchal
91 CGST, Rangareddy
92 CGST (Appeal), Hyderabad-1

171
 93 CGST (Appeal), Hyderabad-11
94 CGST (Audit), Hyderabad-1
95 CGST (Audit), Hyderabad-II
11 CCGST, Jaipur 96 CGST, Jaipur
97 CGST, Jodhpur
98 CGST, Aiwar
99 CGST, Udaipur
100 CGST (Appeal), Jaipur
101 CGST (Appeal), Jodhpur
102 CGST (Audit), Jaipur
103 CGST (Audit), Jodhpur
12 PCCGST, Kolkata 104 CGST, Kolkata (North)
105 CGST, Kolkata (South)
106 CGST, Howrah
107 CGST, Haldia
108 CGST, Siliguri
109 CGST, Bolpur
110 CGST (Appeal), Kolkata-I
111 CGST (Appeal), Kolkata-II
112 CGST (Appeal), Siliguri
113 CGST (Audit), Kolkata-I
114 CGST (Audit), Kolkata-11
115 CGST (Audit), Durgapur
13 PCCGST, Lucknow 116 CGST, Lucknow
117 CGST, Allahabad
118 CGST, Kanpur
119 CGST, Agra
120 CGST, Varanasi
121 CGST (Appeal), Lucknow
122 CGST (Appeal), Allahabad
123 CGST (Audit), Lucknow
124 CGST (Audit), Kanpur
14 CCGST, Meerut 125 CGST, Meerut
126 CGST, Noida

172
 127 CGST, Gautam Buddha Nagar
128 CGST, Ghaziabad
129 CGST, Dehradun
130 CGST (Appeal), Meerut
131 CGST (Appeal), Noida
132 CGST (Appeal), Dehradun
133 CGST (Audit), Meerut
134 CGST (Audit), Noida
135 CGST (Audit), Dehradun
15 PCCGST, Mumbai 136 CGST, Mumbai (East)
137 CGST, Mumbai (South)
138 CGST, Mumbai (Central)
139 CGST, Mumbai (West)
140 CGST, Bhiwandi
141 CGST, Paighar
142 CGST, Navi Mumbai
143 CGST, Raigarh
144 CGST, Belapur
145 CGST, Thane
146 COST, Thane Rural
147 CGST (Appeal), Mumbai-I
148 CGST (Appeal), Mumbai-II
149 CGST (Appeal), Mumbai-IJI
150 CGST (Appeal), Thane
151 CGST (Appeal), Raigarh
152 CGST (Audit), Mumbai-i
153 CGST (Audit), Mumbai-H
154 CGST (Audit), Mumbai-III
155 CGST (Audit), Thane
156 CGST (Audit), Raigarh
16 CCGST, Nagpur 157 CGST, Nagpur- I
158 CGST, Nagpur-II
159 COST, Nasik

173
 160 CGST, Aurangabad
161 COST (Appeal) , Nagpur
162 CGST (Appeal) , Nashik
163 CGST (Audit) , Nagpur
164 CGST (Audit) , Nashik
17 CCGST, Pune 165 CGST, Pune-I
166 CGST, Pune-11
167 CGST, Koihapur
168 CGST, Goa
169 CGST (Appeal), Pune-I
170 CGST (Appeal), Pune-11
171 CGST (Appeal), Goa
172 CGST (Audit), Pune-I
173 CGST (Audit), Pune-11
18 CCGST, Ranchi 174 CGST, Patna-I
175 CGST, Patna-II
176 CGST, Ranchi
177 CGST, Jamshedpur
178 CGST (Appeal), Patna
179 CGST (Appeal), Ranchi
180 CGST (Audit), Patna
181 CGST (Audit), Ranchi
19 CCGST, Guwahati 182 CGST, Shillong
183 CGST, Guwahati
184 CGST, Dibrugarh
185 CGST, Itanagar
186 CGST, Dimapur
187 CGST, Imphal
188 CGST, Aizawl
189 CGST, Agartala
190 CGST (Appeal), Guwahati
191 CGST (Audit), Shillong
20 CCGST, Vadodara 192 CGST, Vadodara-I

174
 193 CGST, Vadodara-IT
194 CGST, Surat
195 CGST, Daman
196 CGST (Appeal), Vadodara
197 CGST (Appeal), Surat
198 CGST (Audit), Vadodara
199 CGST (Audit). Surat
21 CCGST, Visakhapatnam 200 CGST, Vizag
201 CGST, Guntur
202 CGST, Tirupati
203 COST (Appeal), Guntur
204 CGST (Audit), Guntur
22 DO, ARM 205 PADG (Hqrs.), Delhi
206 ADG (GST RM&TE), Delhi
207 ADG (Customs RMD), Mumbai
208 PADG(NTC), Mumbai
23 PADG, DIC 209 Commissioner
24 DG, Taxpayers Services 210 PADG, Delhi
211 ADG, Mumbai
212 ADG, Chennai
213 ADO, Kolkata
214 ADG, Ahmedabad
215 ADG, Bengaluru
216 ADG, Bhopal
25 DG, GST, Delhi 217 PADG, Delhi
218 PADG, Chennai
219 PADG, Mumbai
220 ADG, Kolkata
Pr.CCA(Central Excise),
26 New Delhi 221 PAO (C.Ex)

DG, Performance
27 222 PADG, Delhi
Management
223 PADG, Mumbai
224 ADG, Kolkata
225 ADG, Chennai

175
 Commissioner, Directorate
28 of 226 Commissioner, Delhi
Legal Affairs
29 DG, HRD 227 PADG (EMC), Delhi
228 ADG (FIRM-I), Delhi
229 ADG (HRM-II), Delhi
230 ADG (I &W), Delhi
30 DG, Audit 231 ADG, Delhi
232 PADG, Delhi
233 PADG, Mumbai
234 ADG, Chennai
235 ADG, Kolkata
236 ADG, Hyderabad
237 ADG, Ahmedanad
238 ADG, Bangaluru
31 DG, Safeguards 239 Commissioner, Delhi

32 CDR, CESTAT 240 Pr. Commissioner, Mumbai

241 Pr. Commissioner, Delhi
242 Commissioner, Chennai
243 Commissioner, Kolkata
244 Commissioner, Bengaluru
245 Commissioner, Ahmedabad
246 Commissioner, Chandigarh
247 Commissioner, Allahabad
248 Commissioner, Hyderabad
33 DG, NACIN 249 PADG, Faridabad
250 PADG, Delhi
251 PADG, Delhi
252 ADG, Chandigarh
253 ADO, Kanpur
254 ADG, Hyderabad
255 ADG, Vizag
256 ADG, Bengaluru
257 ADG, Kochi

176
 258 PADG, Chennai
259 ADG, Patna
260 PADG, Kolkata
261 ADG, Bhubaneshwar
262 ADO, Jaipur
263 ADG, Vadodara
264 PADG, Mumbai
265 ADG, Shillong
34 DG, Vigilance 266 PADG, Delhi
267 ADG, Delhi
268 PADG, Mumbai
269 ADG, Chennai
270 ADG, Kolkata
271 ADG, Ahmedabad
272 ADG, Hyderabad
273 ADG, Lucknow

35 Commissioner, (DP&PR) 274 Commissioner

36 DG, GSTI 275 PADG, Delhi
276 PADG, Chandigarh
277 PADG, Lucknow
278 PADG, Delhi
279 ADG, Ludhiana
280 ADG, Meerut
281 ADG, Gurugram
282 ADG, Jaipur
283 PADG, Chennai
284 ADG, Coimbatore
285 ADG, Belgavi
286 ADG, Kochi
287 ADG, Vizag
288 PADG, Bengaluru
289 PADG, Hyderabad
290 PADG, Kolkata

177
 291 ADG, Siliguri
292 ADG, Guwahati
293 ADO, Patna
294 ADG, Bhubaneswar
295 ADG, Raipur
296 PADG, Mumbai
297 PADG, Ahmedabad
298 ADG, Bhopal
299 ADG, Pune
300 ADG, Nagpur
301 ADG, Surat
37
Pr ,CCA, Directorate 302 PAO (Directorate)
Commissioner, Settlement
38 Commission 303 Commissioner, Delhi
304 Commissioner, Mumbai
305 Commissioner, Chennai
39 DG, Systems 306 PADG, Delhi
307 PADG, Chennai
308 ADG, Mumbai
309 ADG, Kolkata
310 ADG, Bengaluru
Commissioner, Data
40 Management 311 ADO (DM), Delhi
Commissioner, Authority
41 for Advance Rulling 312 Commissioner, Delhi

178
S.No Budgetary Authority Heads of Department
CUSTOMS
1 Chief Commissioner of PCC, Ahmedabad / PCC, Mundra / CC (P),
Customs, Ahmedabad Jamnagar / CC, Kandla.
2 Chief Commissioner of PCC (Airport & ACC) / CC, Bangalore City
Customs, Bangalore (ICDs, etc.) / CC, Mangalore.
3 Commissioner of Customs CC (P), Bhubaneswar
(P), Bhubaneshwar
4 Chief Commissioner of PCC, Chennai-I Customs (AP) / CC,
Customs, Chennai Chennai-II Customs / PCC, Chenna-III
Customs / CC, Chennai-IV Customs / CC,
Chennai-V Customs / CC, Chennai-VI
Customs / PCC, Chennai-VII Customs /
CC, Chennai-VIII Customs General.
5 Commissioner of Customs, CC (Custom House), Cochin
Cochin
6 Commissioner of Customs CC (P), Cochin
(P), Cochin
7 Chief Commissioner of CC, Delhi Airport / CC, Delhi ACC (Export)
Customs, Delhi / CC, Delhi (PPG & Other ICDs) / PCC,
ICD-Tuglakabad (Import), CC, ICD-
Tuglakabad (Export) / PCC, Delhi ACC
(Import) / CC, Delhi Customs (General).
8 Chief Commissioner of CC (P), Delhi / CC, Ludhiana / CC (P),
Customs (P), Delhi Amritsar / CC (P), Jaipur (Jodhpur).
9 Commissioner of Customs, CC (Custom House), Goa
Goa
10 Commissioner of Customs, PCC, Hyderabad
Hyderabad
11 Chief Commissioner of PCC, Kolkata Port / PCC, Kolkata (AP &
Customs, Kolkata ACC) / CC (P), W.B.
12 Chief Commissioner of PCC, Mumbai (Gen.) / CC, Mumbai
Customs, Mumbai-I (Import-I) / CC, Mumbai (Import-II) / CC,
Mumbai (Export-I) / CC, Mumbai (Export-
II).
13 Chief Commissioner of CC, Nhava Sheva (Gen.) / PCC, Nhava
Customs, Mumbai-II Sheva-I / PCC, Nhava Sheva-II / CC,
Nhava Sheva-III / CC, Nhava Sheva-IV /
14 Chief Commissioner of CC, Nhava
PCC, Sheva-V.
Mumbai-I (AP) / CC, Mumbai-II /
Customs , Mumbai-III PCC, Mumbai-III / CC, Mumbai-IV / CC,
Mumbai-V / PCC (P).
15 Commissioner of Customs, PCC, Noida
16 Noida Commissioner of
Chief CC (P), Patna / CC (P), Lucknow
17 Customs (P), Patna
Commissioner of Customs, CC, Pune
Pune

179
18 Commissioner of Customs CC (P), Shillong
(P), Shillong
19 Chief Commissioner of CC, Tuticorin / CC (P), Tirchy
Customs (P),Tirchy
20 Commissioner of Customs, PCC (Custom House), Vizag
Vishakhapatnam
21 Commissioner of Customs CC (P), Vijayawada
(P),Vijayawada
22 Director General, Export DG, Export Promotion
Promotion
23 Director, CRCL Director, CRCL
24 PAO, Customs PAO, Customs
25 Commissioner, Logistics Commissioner, Logistics
26 Director General, Revenue Pr. ADG (Delhi Hqrs.) / Pr. ADG (Delhi ZU)
Intelligence / Pr. ADG (Ahmedabad ZU) / Pr. ADG
(Bangalore ZU) / Pr. ADG (Chennai ZU) /
Pr. ADG (Kolkata ZU) / Pr. ADG(Mumbai
ZU) / Pr. ADG (Lucknow ZU) / Pr. ADG
(Hyderabad ZU) / Pr. ADG (Ludhiana ZU).
27 Director General, DG, Valuation, Mumbai
Valuation, Mumbai
28 PADG DIC

180
 ANNEXURE-VIII

F.No. 15/6/2008-IFU.III
Ministry of Finance Department of Revenue
Integrated Finance Unit
New Delhi, dated 15th September, 2011

OFFICE MEMORANDUM

Subject:Delegation of Financial Powers to Heads of

Departments of Department of Revenue, CBDT and CBEC-
reg

The delegation of financial powers to Heads of Departments (HoDs) of

CBDT and CBEC has been reviewed by the Integrated Finance Unit (IFU) of
Department of Revenue. Based on, inter-alia, proposals received from CBDT
& CBEC, the revised delegation, duly approved by the competent authority
under Rule-13 of the Delegation of Financial Powers Rules, 1978, has been
compiled as per Annexure.

2. For exercising the delegated financial powers, as mentioned in the

enclosed Annexure, there is no necessity to refer the proposals to the
Department/IFU except where proposals are not in consonance with the
existing instructions. The provisions of GFRs and instructions issued by
the Department of Expenditure and other competent authorities i.e.
CVC and DGS&D etc. shall be followed. The expenditure against these
delegations is subject to availability of the Funds with the HoDs.

3. The revised delegation, which is applicable with immediate effect, may

be circulated to all HoDs.
-sd-
(H.Pradeep Rao)
Joint Secretary & Financial Adviser (Finance)

TO:
(1) Chairman, CBDT
(2) Chairman, CBEC
(3) Joint Secretary (Revenue)
(4) Joint Secretary (Admn.), CBDT
(5) Joint Secretary (Admn.), CBEC
Copy to:
(1) Pr.CCA, CBDT
(2) Pr.CCA, CBEC
(3) CCA (Finance), D/o Revenue

181
 Annexure
DELEGATION OF FINANCIAL POWERS TO HEADs OF DEPARTMENTS
(HoDs) OF CBDT, CBEC AND DEPARTMENT OF REVENUE
(Ref: O.M. No. F.15/6/2008-IFU dated 15.09.2011)

Note1: The instructions issued by Department of Expenditure vide their

O.M. No 7(1)/E. Coord/2011 dated 11th July, 2011 and other item-wise or
general instructions, as issued from time to time by Department of
Expenditure, Budget Division, Department of Revenue, CBDT,CBEC and
other competent authorities, shall apply while exercising the delegation in
respective items.

Note 2: The General Financial Rules, 2005 (effective from 01.07.2005) and
the Delegation of Financial Powers Rules, 1978, as amended up to the date of
issue of this compilation, shall apply in respect of each of these stated items.

Note3: Regarding the position on the available delegation of HODs on

various items, after issue of Department of Expenditure’s Notification
No.1(11)/E.II.A/2003 dated 16.9.2003, it is clarified that with the issue of
this Notification, the Departments have been authorized to decide the extent
of financial powers which they can delegate to their HoDs in the matter of
contingent expenditure and miscellaneous expenditure, subject to fiscal codes
and procedures and limits being within budgetary allocations. Accordingly,
the HoDs of CBDT, CBEC and Department of Revenue will continue to have
the same delegation as prevailing before the issue of above notification dated
16.9.2003 unless powers are specifically enhanced under the items in the
enclosed compilation.

Note4: For exercising delegated financial powers as mentioned in the

enclosed compilation there is no necessity to refer the proposals to
Department/IFU, except where the proposals are not in consonance with the
existing instructions.

Note5: All proposals beyond delegated powers of HoDs are to be invariably

referred to the Ministry/ Department for consideration/ approval.

182
 Annexure
DELEGATION OF FINANCIAL POWERS TO THE HEADs OF THE
DEPARTMENTS OF DEPARTMENT OF REVENUE, CBDT & CBEC
(Ref: O.M. F. No. 15/6/2008-IFU-III (EC) dated 15.09.2011)
S. No. Item of Expenditure Rules applicable and delegation of
financial powers to HODs of CBDT,
CBEC and D/O Revenue
(A) (B) (C)
1. Write-off losses
i. Loss of revenue or
irrecoverable loans and The details of powers available to
advances. Chief Commissioners/ Director
Generals and Commissioners/
ii. Deficiencies and Directors in all these three sub-
depreciation in the value of heads may be seen in Schedule-VII
stores (other than motor of DFPRs.
vehicle) included in the stock
and other accounts.

iii. Irrecoverable loss of stores

or of public money.
2. Contingent expenditure Full Powers.
2.1 Bicycle
2.2 Conveyance hire charges Powers delegated under DFPRs will
be applicable. The position of
allocation of financial powers to
HODs from the powers available with
the Department, as prevailing before
the issue of Department of
Expenditure Notification No. 1
(11)/E.II(A)/2003 dated 16.09.2003
will continue.
2.3 Electric, gas and water charges Full Powers.
2.4 Fixtures, Furniture Full Powers.
(Purchase and Repair)
2.5 Freight and demurrage/ Full Powers.
wharfage charges
2.6 Hire of office furniture, fans, Full Powers
heaters, coolers, clocks, call
bells etc.
2.7 Legal charges Powers delegated under DFPRs will be
applicable. The position of allocation
of financial powers to HoDs (along
with restrictions, conditions etc.) from
the powers available with the

183
 Department, as prevailing before the
issue of Department of Expenditure
Notification No. 1(11)/E.II(A)/2003
dated 16.09.2003 will continue.
2.8 Motor vehicles i) No Powers.
i) Additional purchase of
additional ii) Full Powers subject to GFRs 2005
hiring of vehicles (on regular and instructions issued from time to
basis) time

ii) Replacement hiring in lieu ii)

of No Powers.
regularly (mature) condemned
vehicle. iv) There is general ban imposed by
Department of Expenditure vide O.M.
iii) Replacement hiring in lieu No 7(1)E-Coord/2011 dated
of pre- maturely condemned 11.07.2011 on purchase of vehicle
vehicle. and, therefore, proposals for purchase
iv) Replacement purchase in are to be referred to the Department.
lieu of mature or premature
condemned vehicle v) Full Power.
v) Maintenance, upkeep and
repairs of vehicles. vi) Full Powers for mature
condemnation. The Department has
vi) Mature and pre-mature to be approached for pre-mature
condemnation of vehicles. condemnation.

vii) The offices headed by ITO/AC/DC

vii) Hiring of vehicles in can hire vehicles for survey, search
connection with search and and seizure operations as and when
seizure operations. required subject to availability of
budget and monitoring by the
concerned HOD. In case of Survey, the
concerned Joint CIT/ Addl.CIT would
be competent to hire subject to ex-
post-facto approval by the HOD.
2.9 Municipal rates and taxes Full Powers.
2.10 Repair and maintenance work Rs. 30 lakh. Provision of GFR 2005
in buildings owned by the will apply.
Department (Minor Works)
2.11 Provision of DG set Rs. 15 lakh per annum per building
for each HOD for purchase of DG
(Diesel Generating) set, subject to
GFRs 2005, Works Manual and
guidelines for essential and non-
essential loads for DG Sets.
2.12 Repair and alterations to A total of Rs. 50,000/- in a year, non-

184
 hired and requisitioned recurring. Provision of GFRs 2005 will
buildings. apply.
2.13 Original works (through CPWD) Rs. 10 lakh in each case. Provisions
on Department land and of GFRs 2005 will apply. Government
buildings. (Only in cases where of India decision below Rule 10 of
funds are provided by MOUD). DFPRs on New Service/ New
The power will not be used for Instrument of Service shall apply. All
purchase of land/building. original works beyond Rs. 10 lakh
Original works required reporting to Parliament and
(through CPWD) on beyond Rs. 50 lakhs requires prior
Department land and approval of Parliament. Budget
buildings. (Only in cases where provision should be available under
funds are provided by MOUD). the grant provided by MoUD.
The power will not be used for
purchase of land/ building.
2.14 Computers i) Site preparation of computers/
installation – Rs. 5 lakh/year.
Maintenance of site for Computers–
Rs. 5 lakh/ year.
iii) AMC of Computers (Hardware)
excluding sites-Rs. 10 lakh/year (non
PSU) & full powers in case of PSU.
iv) Training in computers in India
Rs. 5 lakh/ year in consultation with
respective Systems Wing of CBDT &
CBEC.
v) Purchase/procurement of PCs/
Hardware – Rs. 15 lakh/year.

(vi) Software development and website

related expenditure-Rs. 2 lakh per
year for Systems wing and Training
Institutes of CBEC & CBDT. For
Training Institutes, the software
should be developed in consultation
with the respective Systems wing.
Note: The above powers are subject to
relevant instructions on these items
issued from time to time.
2.15 Hiring of office accommodation Rs. 3 lakh per month for 13 major
Cities (A-1 and A) & Rs. 1.5 lakh per
month for other cities.
Note: These powers are subject to
non- availability certificate from
Directorate of Estates and/ or CPWD,

185
 Fair Rent Certificate from CPWD,
observance of GFRs, 2005,
admissibility of space norm as
prescribed and also subject to
relevant instructions on this item
issued from time to time.
Any deviation from norms
including acceptance of single offer,
should be referred to the Ministry.
Hiring should be recommended by a
Hiring Committee duly constituted
by the HoD.

2.16 Postal & Telegraph charges Full Powers to incur expenditure on

this item subject to following the
existing government instructions.
Through e-governance activities,
electronic mode to be increasingly
adopted.
2.17 Printing and binding i) Full Powers to HODs. in case of
printing is done in Government Press
or through Directorate of Printing.
ii) Rs. 1 lakh per annum through
private party including cost of paper
and binding following GFRs 2005
provisions and Govt. instructions on
the subjects.
2.18 Publications Full Powers.
2.19 Repairs to and removal of Full Powers.
machinery (where expenditure
is not of capital nature)
2.20 Rewards, fees, bonus etc. The position of allocation of financial
(Other than powers of HODs from the powers
those granted under service available with the
rules ) Department, as prevailing before the
issue of Department of Expenditure
Notification No. 1(11)/E.II(A)/2003
dated 16.09.2003 will continue.
2.21 Staff paid form contingencies Full Powers (Only for casual
engagement for short duration).

186
2.22 Purchase of stationery Upto Rs. 10 lakh per annum.
Govt’s economy instructions & GFRs
2005 provisions are to be
followed in procurement and
inventory management. HODs have to
ensure that there is no wasteful
expenditure.
2.23 Stores Full Powers.
2.24 Supply of uniforms etc. Full Powers.
2.25 Telephone charges Full Powers.
2.26 Tents and camp furniture The position of allocation of financial
power to HODs from the powers
available with the
Department, as prevailing before the
issue of Department of Expenditure
Notification No.1(11)/E.II(A)/2003
dated 16.09.2003 will continue.

2.27 All office equipments Full Powers.

including typewriters,
electronic typewriters,
dedicated word processors,
intercom equipments,
calculators, electronic stencil
cutter, Dictaphones, tape
recorders, photo copiers,
copying machine, franking
machine, filing and indexing
systems etc.

2.28 Departmental and inter- The position of allocation of financial

departmental meetings, power to HODs from the powers
conferences, seminars, available with the Department, as
receptions and workshops prevailing before the issue of
Department of Expenditure
Notification No.1(11)/E.II(A)/2003
dated 16.09.2003 will continue. O.M.
No. 7(2)/E.Coord/03 dated
25.03.2004 of Department of
Expenditure shall apply. Limit of Rs.
150/- per head for serving
refreshments/ working lunch which
start in the forenoon and continue
beyond lunch time. The holding of
meetings, conference, seminars,

187
 workshops, etc. in hotels should be
avoided. However, the limit for serving
refreshments/ working lunch meeting
in 5 Star Hotel etc., which is allowed
in case of bi-lateral/multi-lateral
official engagements which are held at
the level of Minister-in-charge or
Administrative Secretary with Foreign
Governments or International Bodies
of which India is a Member is revised
in Office Memorandum dated
06.05.2015 (Annexure-XIX)
2.29 Medical advance to eligible Upto Rs. 2 lakh, subject to
employees under CS(MA) instructions of Ministry of Health
Rules issued from time to time.
2.30 Expenditure on visit The guidelines of Ministry of
of Parliament Committee Parliamentary Affairs (Circulated by
D/O Revenue (Parliament Cell) vide
Dy. No.906/2005 – Parl. Dated
13.7.2005)
provides for the manner of incurring
of such expenditure and also that
such expenses will be borne from the
grants of Secretariat of Lok Sabha /
Rajya Sabha.
3. Other items of contingent Recurring – Rs. 1,00,000/- per
expenditure annum in each case.
Non-recurring- Rs. 1,00,000/- in each
case.
4. Miscellaneous Expenditure Recurring – Rs. 10,000/- per annum
in each case
Non-recurring- Rs. 20,000/- in each
case.
5. Advertising & Publicity by (i) For approved Publicity Plan.
CBDT & CBEC Both the Boards will prepare their
quarterly publicity plan and obtain
the approval of Finance Minister. The
Director (PR PP & OL) in CBDT and
Commissioner (DP & PR) in CBEC
are delegated full powers to incur
expenditure in connection with such
approved publicity plan within the
budgetary allocations, subject to the

188
 condition that expenditure would be
incurred through DAVP/Prasar
Bharati (for Doordarshan and
AIR)/NFDC (for web- based publicity
and TVC) at the approved rates,
fulfillment of economy instructions
and following the provisions of GFRs.
Wherever DAVP/PB/NFDC rates are
not available, the respective HODs
would follow the provisions of GFRs
2005 and other instructions issued
from time to time.
ii) For isolated advertising other
Publicity requirements not Covered
under Quarterly Plan:
The DIT (PR, PP & OL) in CBDT and
Commissioner (DP& PR) in CBEC
are delegated financial powers up-to
Rs. 50 lakh per annum for incurring
expenditure on isolated advertising
and a publicity to be undertaken.
Proposal beyond this limit should be
sent to Financial Adviser for
concurrence.
iii. Delegation to HODs: All other
HODs of CBEC/CBDT are delegated
powers upto Rs. 1 lakh per annum,
subject to
the condition that the expenditure will
be incurred by following the relevant
instructions and guidelines on the
subject.

6. Incurring expenditure on Heads of Departments (HODs) are

implementation of court orders delegated financial powers upto Rs.
20,000/- in each case (Non –
recurring) on implementation of
judicial orders.

189
7. Outsourcing of Services Partial modification of the OM F. No.
15/6/2008-IFU.III dtd.15.09.2011
was made vide OM dated 17.08.2017
on the subject “Delegation of
Financial Powers to Heads of
Departments of CBDT and CBEC”
issued under F. No. 14/11/2017-IFU
(B&A) DT dated 16.08.2017. As per
the said OM, the financial powers
upto Rs.60/90 lakhs per annum have
been delegated to the Head of
Departments of CBEC and CBDT for
‘Outsourcing of Services”.
No outsourcing should be resorted:
(i) to augment manpower against the
abolished posts,
(ii) to augment manpower against the
abolished posts,
meet the services like security and
cleaning while the sanctioned
strength in these cadres are already
on roll and drawing regular salaries
and allowances to augment posts at
Gr. ‘C’ and above level.

8. AMC payment of X-ray Once the rates and terms and

baggage inspection systems in conditions are approved by
CBEC Department, release of advance and
balance payments may be made by
Commissioner (Logistics) CBEC
subject to the observance of terms and
conditions.

Sd/-
(Praveen M. Khanooja)
Director (Finance)
Department of Revenue
15.09.2011

190
 ANNEXURE-IX

F.No. 15/6/2008-IFU-III
Government of India
Ministry of Finance
Department of Revenue
North Block, New Delhi
Nov. 01, 2012

OFFICE MEMORANDUM

Sub: Delegation of Financial Powers to Heads of Departments of

CBDT & CBEC-reg.
In partial modification of IFU’s O.M. of even number dated 15.9.2011,
read with O.M. dated 22.9.2008, on the subject mentioned above, it has been
decided to delegate financial powers up to Rupees One Crore for “ Original
Works for Office Accommodation only” to the Chief Commissioners of CBEC &
CBDT, where the funds are provided under MoUD/CPWD Grant. In these
cases, IFU’s vetting will not be required and the Chief Commissioners will
give the administrative approval and expenditure sanction keeping in view
the prescribed norms and checklist issued by IFU/HRD wings in this regard.
The Chief Commissioners will send a certificate to the respective Boards, of
having personally satisfied themselves with the proposal as per the standard
checklist, after issue of administrative approval and expenditure sanction to
the CPWD.

2. Rest of the provisions of the O.M. dated 15.9.2011 related to ‘Original

Works’ will remain the same.

-sd-
(Praveen M. Khanooja)
Director (Fin-Rev)

To:

1. Chairman, CBEC
2. Chairman, CBDT
3. Member (P&V), CBDT / CBEC
4. JS (Admn.), CBDT / CBEC
5. Addl. Secretary (Revenue)
6. Dir (Fin-DT)
7. All Under Secretaries in IFU

191
 ANNEXURE-X

F.No. 919/07/R&M/DFR/HOD/HRD/2013
Directorate General of Human Resource Development
(Infrastructure & Welfare Wing)
Customs & Central Excise
IRCON International Ltd.,
Plot No. C-4, District Centre, Saket,
New Delhi-17.
Dated: 15.04.2013
To

All Chief Commissioners of Customs/Central Excise/Service Tax,

All Directors General.

Sir/Madam,

Sub:- Delegation of Financial Powers to Head of Department for

“Original Works” vide Ministry/IFU’s O.M. dated
01.11.2012-reg.

This office had received queries from various field formations requesting
to clarify on the following issues regarding the delegation of financial powers
to HODs vide O.M. dated 15.09.2011 & 01.11.2012. Details of the same are
under:-

(i) Whether the delegation of financial powers to HODs i.e.

Commissioners up to Rs. 10 lakhs in each case for ‘Original Works’ vide O.M.
dated 15.9.2011, still stands?

(ii) Whether the delegated powers of HODs (Commissioners) up to Rs.

10 lakhs is in each case/proposal of “Original Works” or whether it is the
total limit of expenditure (of Rs. 10 lakhs) which can be done under this
head?

(iii) Whether the delegated financial power up to Rs. 1.00 crore for
“Original Works for office accommodation” to the Chief Commissioners of
CBEC/CBDT is for each case or for the whole financial year?

2. The Ministry/IFU has clarified the aforesaid issues as under:-

(a) The delegation of financial powers to HODs (Commissioners) up to

Rs. 10.00 lakhs in each case for ‘Original Works’ continues even after the
issue of the partial modification on 15.09.2011.

192
 (b) Further, the delegation of powers up to Rs. 10 lakhs in each case in
respect of ‘Original Works’ as clearly indicated in the O.M. dated 15.9.2011.

(c) The delegated financial power up to Rs. 1.00 crore for “Original Work
of office accommodation” to the Chief Commissioners of CBEC/CBDT is for
each case, as HODs have also been delegated financial power up to Rs. 10.00
lakhs in each case.

3. Hence, the delegation of financial powers to HODs/Chief Commissioners

is as follows:-

S. Item of Expenditure/Subject Budget Power delegated

No. (Nature of Work) Head to.
1 Original Works (through 4059/4216 HOD(Commission
CPWD) on Departmental land er) up to Rs. 10
and building (Only in case lakhs in each
where funds are provided by case.
MOUD).
2 Original Works (through 4059 Chief
CPWD) on Departmental land Commissioner up
and building (Only in case to Rs. 1 Cr in
where funds are provided by each case.
MOUD but for Office
Accommodation only).

The copies of O.M. dated 01.11.2012 & 15.09.2011 are also available on
the CBEC’s website i.e. www.cbec.gov.in.

Yours faithfully,

Sd/-

(Krishna A. Mishra)
Additional Director General (HRD/I&W)

193
 ANNEXURE-X A

GOVERNMENT OF INDIA
Office of the
Additional Director of Income Tax (Expenditure Budget)
Ground Floor, ARA Centre, Jhandewalan Extension
New Delhi
Phone no 011-23684412, Fax 011-23547285
F.No. Addl.DIT(EB)/DelFinPow/2017-18/942- Date: 17/08/2017

To,
All Budget Controlling Authorities

Sir/Madam,

Sub: Enhancing of Delegation of Financial Powers to Heads of

Departments of Department of Revenue, CBDT and CBEC for
the item of expenditure 'Outsourcing of Services'- Regarding

Kindly find enclosed herewith the OM issued by Department of Revenue vide

F.No. 14/11/2017IFU (B&A) DI dated 16 August, 2017 enhancing the delegated
financial powers for 'Outsourcing of Services' in the following manner:

"The enhanced delegated financial powers for outsourcing of services to the

HoDs of CBDT, CBEC & Department of Revenue (Hqrs) shall be Rs. 90 lakh per
annum in respect of HoDs situated at four metro cities viz. Delhi, Mumbai,
Chennai and Kolkata. For other HoDs apart from those situated at aforesaid four
cities, the same shall be Rs 60 Iakh per annum."

The above enhanced powers are subject to certain stipulations mentioned in

aforesaid CM.

Yours faithfully,

(B.L.Sharma)
Additional Director of Income Tax (EB) New Delhi
End: as above

Copy to:The Web Manager, Data Base Cell, New Delhi with the request for
uploading on ,rsoffscersonline.com.

(B.L.Sharma)
Additional Director of Income Tax (EB) New Delhi

194
 F.No.14/11/2017-IFU (B&A)DT
Government of India
Ministry of Finance
Department of Revenue
IFU (B&A)DT
New Delhi, Dated 16th August, 2017.

OFFICE MEMORANDUM

Subject: Delegation of Financial Powers to Head of

Departments of Department of Revenue, CBDT
and CBEC for the item of expenditure
'Outsourcing of Services'-reg.

The delegated financial power to Heads of Department (HoDs) of

Department of Revenue (Hqrs ), CBDT and CBEC issued by IFU vide M No
15/6/2008-IFU.JIl dated 15.09.2011 has been reviewed in respect of a single
item of expenditure 'Outsourcing of Services' Considering the enhanced
requirement of 'Outsourcing of Services' and the inflationary trend, it has
been decided to enhance the delegated power under this head.

2 The enhanced delegated financial powers for 'Outsourcing of Services'

shall be as follows.

'The enhanced delegated financial powers for 'Outsourcing of services' to

HoDs of CBDT, CBEC & Department of Revenue (Hqrs.) shall be Rs. 90 lakh
per annum in respect of HoDs situated at four metro cites viz. Delhi,
Mumbai, Chennai and Kolkata. For other HoDs apart from those situated at
aforesaid four cities, the same shall be Rs. 60 lakh per annum".

3. The above enhanced delegation of power under the head 'Outsourcing of

Services' is subject to following stipulations:

(i) Provisions of GFR 2017 and instructions issued by the Department of

Expenditure and other competent authorities i.e. CVC etc. shall apply,
(ii) It is to be ensured that there is no liability on Govt. towards permanent
employment to the personnel engaged by the service providers,
(iii) No outsourcing should be resorted to
a) Augment manpower against the abolished posts,
b) Meet the services like security and cleaning while the sanctioned strength
in these cadres are already on roll and drawing regular salaries and
allowances;
c) Augment posts at Cr. ‘C’ and above level.

4. For exercising the above mentioned delegated financial powers, there is

no necessity to refer the proposals to the Department! IFU except proposals
are not in consonance with the existing instructions. The expenditure

195
against these delegations is subject to availability of the funds with the
HoDs.

5. The revised delegation which is applicable with immediate effect may

be circulated to all HoDs.

To

(1) Chairman, CBDT

(2) Chairman, CBFC
(3) Joint Secretary (Revenue)
(4) Joint Secretary (Admit), CBDT
(5) Joint Secretary (Admit), CBEC

Copy to

(1) Pr.CCA, CBDT

(2) PF.CCA, CREC
(3) CCA (Finance), D/o Revenue

196
 ANNEXURE-X B
No. 24(35)/PF-II/2012
Government of India
Ministry of Finance
Department of Expenditure
North Block, New Delhi.
Dated: 05 August. 2016
OFFICE MEMORANDUM

Subject: Appraisal and Approval of Public Funded Schemes and

Projects (except matters required to be placed before the
Cabinet Committee on Security)

Reference is invited to this Department OM no. 24(35)/PF-Ii/2012 dated

29" Aug. 2014 regarding the guidelines for formulation, appraisal and
approval of Public Funded Plan Schemes and Projects. With the
announcement in the Union Budget 2016-17 of doing away with Plan Non-
Plan distinction at the end of Twelfth Five Year Plan, it is imperative that a
plan non-plan neutral appraisal and approval system is put into place. After
a comprehensive review of the extant guidelines in this regard, the revised
guidelines placed below will henceforth apply to the formulation, appraisal
and approval of public funded schemes and projects, except matters required
to be placed before the Cabinet Committee on Security.
2. Schemes are program based cost centres through which the Ministries
and Departments spend their budgetary and extra-budgetary resources for
delivery of public goods and services to the citizens. They are of two types:

a) Central Sector Schemes are implemented by the Central

Ministries/Departments through their designated implementation agencies
and funds are routed through the functional heads relevant for the sector.
b) Centrally Sponsored Schemes are implemented within the domain of
National Development Agenda identified by the Committee of Chief Ministers
constituted by NITI Aayog. They can have both Central and State
Components. While the former are fully funded by the Central Government
and implemented through functional heads like the central sector schemes
in para-a above, the latter are routed through the intergovernmental transfer
heads 3601/3602 The expenditure on State Components is shared between
the Central and State Governments in accordance with the fund sharing
pattern approved for the purpose.
3. Projects are best understood by the common-sense usage of the term.
They involve onetime expenditure resulting in creation of capital assets,
which could yield financial or economic returns or both. Projects may either
be approved on stand-alone basis or as individual projects within an
approved scheme envelope. They may be executed through budgetary, extra-
budgetary resources, or a combination of both.
197
4. Rationalization: It was found that over the years
Ministries/Departments had started operating small and multiple schemes,
which spread resources too thinly to realise any meaningful outcomes. In the
run up to the Union Budget 2016-17, Schemes were rationalized in
consultation with the implementing Ministries/Departments. As per para-1
13 of the Budget Speech 2016, the number of Central Sector Schemes was
brought down to around 300 and the number of Centrally Sponsored
Schemes to around 30. However, this exercise is not an end in itself. In
reiteration of the standing instructions in this regard and to ensure efficient
management of public expenditure at all times, it is directed that henceforth.

(i) No new Scheme or Sub-Scheme will be initiated without the prior in-
principle' approval of the Department of Expenditure. This will, however, not
apply to the announcements made in the Budget Speech for any given year.
(ii) The Statement of Budget Estimates should be prepared in accordance
with the approved scheme architecture and any deviation in this regard
should be a priori agreed with the concerned division of the Department of
Expenditure
(iii) Administrative Ministries/Departments should continuously
endeavour to merge, restructure or drop existing schemes and sub-schemes
that have become redundant or ineffective with the passage of time. For this,
the restriction of in-principle approval mentioned in para-(i) above will not
apply.
(iv) Department of Expenditure reserves the right to merge restructure or
drop any existing scheme or sub-scheme, in consultation with the
Administrative Department concerned, to enhance efficiency and improve
economies of scale in the execution of government programs.

5. Formulation: The quality of Scheme or Project Formulation is the key

bottleneck leading to poor execution at the implementation stage including
time and cost over-runs, often resulting in a series of revised cost estimates.
Additional time and effort spent at the scheme/ project formulation stage
can not only save precious resources, but also enhance the overall impact,
leading to a qualitative improvement in outcomes.
For all new Schemes, a Concept Paper should be prepared while seeking
in-principle approval, holding stakeholder consultations, conduct of pilot
studies etc. While submitting proposals for continuation of on-going
schemes, a careful rationalization must be done through merger and
dropping of redundant schemes. The feedback from the formulation stage
should be used for improving the scheme design so that a Detailed Paper can
be presented for appraisal at the EFC stage.
Similarly, project preparation should commence with a Feasibility
Report, which helps establish the project is techno-economically sound and
resources are available to finance the project. It provides a firm basis for
starting land acquisition, approval of pre-investment activities. etc. In-

198
principle approval for initiating a project will be granted by the Financial
Adviser concerned after examining project feasibility and availability of
financial resources.
Generic structure of a Detailed Paper for Schemes/Detailed Project
Report for Projects is given at Annex-I. While designing new schemes/sub-
schemes, the core principles to be kept in mind are economies of scale,
separability of outcomes and sharing of implementation machinery.
Schemes which share outcomes and implementation machinery should not
be posed as independent schemes, but within a unified umbrella program
with carefully designed convergence frameworks.

6. Appraisal: The Institutional framework for appraisal of Schemes and

Projects is given at Annex-11. Depending on the level of delegation, the
Schemes will be appraised by the Expenditure Finance Committee (EFC) or
the Standing Finance Committee (SF0), white Projects will be similarly
appraised by the Public Investment Board (PIB) or the Delegated Investment
Board (DIB). The step-wise time-lines for appraisal are given at Annex-III.
The formats for submitting Schemes and Project Proposals are given at
Annex-IVA and Annex-IVB respectively. For Schemes, a Concept/Detailed
Paper which outlines the overall schemes, a Concept/Detailed Paper which
outlines the overhall scheme architecture and its main structural elements
should be attached, Similarly, for Projects either the Feasibility or the
Detailed Project Report should be attached. The word Scheme is used here in
a generic sense. It includes programs (umbrella schemes), schemes and sub-
schemes. which, depending on the need, may be appraised as stand-alone
cost centres.

7. New Bodies: No new Company, Autonomous Body,

Institution/University or other Special Purpose Vehicle should be set up
without the approval of the Cabinet/Committee of the Cabinet, irrespective of
the outlay, or any delegation that may have been issued in the past. All such
cases would be appraised by the Committee of Establishment Expenditure
chaired by the Expenditure Secretary for which separate orders will be
issued by the Pers. Division. If setting up of a New Body involves project
work, combined CEE/EFC/PIB may be held.

8. Original Cost Estimates: The delegation of powers for appraisal and

approval of Original Cost Estimates (OCE) is given in the table below:-

Scheme//Project Appraisal Scheme/Project Approval

Cost Appraisal by Cost Approval by
(RsCr.) (RsCr.)
Up to The Financial Adviser Up to 100 Secretary of the
100 Administrative
Department

199
 > 100 SFC/DIB Chaired by Minister-in-charge of the
>100 & Lip
& Lip Secretary of the Admn. Administrative
to 500
to 500 Dept. Department
EFC/PIB Chaired by the >500 & up to Minister-in-charge of the
Expenditure Secretary, 1000 Admn. Dept. and
except departments! Finance Minister, except
schemes/projects for where special powers
> 500 which special have been delegated by
dispensation has been the Finance Ministry
notified by the >1000 Cabinet/Committee of
Competent Authority the Cabinet concerned
with the subject.

Note:1. The financial limits above are with reference to the total size of the
Scheme/Project being posed for appraisal and includes budgetary support.
extra-budgetary resources, external aid, debt/equity/loans, state share, etc.
2. Financial Advisers may refer any financial matter and may also seek
participation of the Department of Expenditure in the SFC/DIB meetings, if
required. For proposals above Rs. 300 crore such a participation would be
mandatory.
3. Delegated powers should be exercised only when the budgetary
allocation or medium-term scheme outlay as approved by Department of
Expenditure is available.
4. While exercising delegated powers, the Ministries/Departments
should also ensure the proposals are subject to rigorous examination in
project design and delivery, and careful attention should be paid to
recurring liabilities and fund availability after adjustment of the committed
liabilities.
5. For appraisal and approval of PPP projects separate orders issued by
The Department of Economic Affairs will apply.

9. Revised Cost Estimates: Any Increase in costs due to statutory levies,

exchange rate variation, price escalation within the approved time cycle
and/or increase in costs up to 20 percent due to any other reason, are
covered by the approval of the original cost estimates. Any increase in this
regard would be approved by the Secretary of the Administrative Department
concerned with the concurrence of the Financial Adviser.

Any increase in costs beyond 20 percent of the firmed-up cost estimates

due to time overrun, change in scope, underestimation, etc. (excluding
increase in costs due to statutory levies, exchange rate variation and price
escalation within the approved time cycle) should first be placed before a
Revised Cost Committee chaired by the Financial Adviser (consisting of the
Joint Secretary in-charge of the program division and representative of the
Chief Adviser Cost as members) to identify the specific reasons behind
such increase, identify lapses. if any. and suggest remedial measures for
200
the same The recommendations of the Revised Cost Committee should be
placed for fresh appraisal and approval before the competent authority as
per the extant delegation of powers (It may be noted that a firmed-up cost
estimate here means a cost estimate which has been through the full
appraisal and approval procedure as per the extant delegation of powers).

10. Pre-Investment Activities: include preparation of Feasibility

Reports, Detailed Project Reports; Pilot Experiments/Studies for Schemes.
Survey/Investigation required for large projects; payment for land
acquisition in accordance with the orders of a competent authority under
the law: construction of boundary wall, access roads, minor bridges/
culverts. Water power lines, site offices, temporary accommodation, etc. at
the project site; preparation of environment management plans forestry
and wildlife clearances; compensatory a forestation, payment for
conversion of forest land to non-forest purposes etc.

Pre-investment activities un to Rs. 100 crore (including budgetary and

extra-budgetary resources) may be approved by the Secretary of the
Administrative Department with the concurrence of the Financial Adviser
concerned provided financial resources are available and in-principle
approval has been obtained, wherever necessary. For pre-investment
activities above Rs. 100 crore, the prescribed appraisal and approval
procedure should be followed. When firmed-up cost estimates are put up
for approval, the expenditure on pre-investment activities should be
included in the final cost estimates for the competent authority to get a full
picture of the total resources required for the scheme or the project to be
implemented.

11. Medium Term Outlay: It has been stated in para-1 10 of the Budget
Speech 2016 that every scheme should have a sunset date and an outcome
review. In the past, every scheme was revisited at the end of each plan
period. After the Twelfth Five Year Plan, the medium term framework for
schemes and their sunset dates will become coterminous with the Finance
Commission Cycles, the first such one being the remaining Fourteenth
Finance Commission (FF0) period ending March, 2020. This is necessary
because fixation of medium term scheme outlay needs a clarity over flow of
resources, which is likely to be available to both Central and State
Governments over the Finance Commission periods.

Accordingly, it is directed that at the end of the Twelfth Plan period all
Ministries! Departments should undertake an outcome review and re-
submit their Schemes for appraisal and approval, unless the scheme has
already been made coterminous with the FF0 period. The Department of
Expenditure will, on its part, communicate, in consultation with the
Budget Division, the outlays for both Central Sector and Centrally
Sponsored Schemes over the remaining FFC period. The same process will,
mutatis mutandis, apply to the subsequent Finance Commission Cycles.
201
12. Outcomes and Evaluation: Finance Secretary vide D.O.
66(01)/PF.li/2015 Dated 18 May 2016 (Annex-V) has directed all
Ministries/Department to prepare an output-outcome framework for each
Central Sector and Centrally Sponsored Scheme with the approval of CEO
NITI Aayog. Measurable outcomes, which deal with the quality aspect of
schemes and programs. need to be defined over the relevant medium term
framework, while physical and financial outputs need to be targeted on
year-to-year basis in such a manner that it aggregates to achieve the
measurable outcomes over the medium term. NITI Aayog, while approving
the output-outcome framework, will kick-start a third party evaluation
process for both Central Sector and Centrally Sponsored Schemes.
Extension of Schemes from one Finance Commission Cycle to another
would be contingent on the result of such an evaluation exercise.

13. Repeal: The following OMs of Department of Expenditure, and linked

circulars of other Departments, including the erstwhile Planning
Commission, are hereby superseded:
OM No. 24(35)/PF-11/2012 Dated 29 August, 2014 OM No. 1(1)/PF-
ll/2011 Dated 31 March, 2014 OM No. 1(3) PF-11/2001 Dated 1St April,
2010 OM No. 1(3)/PF-11/2001 Dated 15111 November. 2007 OM No.
1(2)/PF-1I!2003 Dated 7 May, 2003 OM No. 1(3)/PF-11/2001 Dated 18th
February. 2002 OM No. 1(8)IPF-11/1 998 Dated 30th October, 1998 OM
No. 1(6)IPF-H/1 991 Dated 24" August. 1992 OM No. 1(4)IPF-l1/1 984
Dated 25' August, 1984

The concerned Departments may, however, reissue their linked circulars

in consultation with the Department of Expenditure after suitably
realigning it with the new circular.

This issues with the approval of the Finance Minister and will come
into effect with immediate effect.

(Arunish Chawla)
Joint Secretary to the Government of India

All Secretaries to the Government of India

All Financial Advisers to Ministries/Departments
Cabinet Secretariat
Prime Ministers Office
NITI Aayog
Railway Board
Internal Circulation

202
 Annexure-I
GENERIC STRUCTURE OF A DETAILED PAPER/DETAILED PROJECT
REPORT

(i) Context/Background: This section should provide a brief description

of the sector/subsector as well as the national strategy and policy
framework. This section should also provide a general description of the
scheme/project being posed for appraisal.
(ii) Problems to be addressed: This section should elaborate the problem
to be addressed through the project/scheme at the local/regional/national
level. Evidence regarding the nature and magnitude of the problems should
be presented, supported by baseline data/survey/ reports etc.
(ii) Aims and Objectives: This section should indicate the development
objectives proposed to be achieved, ranked in order of importance. The
outputs/deliverables expected for each development objective should be
spelt out clearly.
(iii) Strategy: This section should present an analysis of alternative
strategies available to achieve the development objectives. Reasons for
selecting the proposed strategy should be brought out. Basis for
prioritization of locations should be indicated (wherever relevant).
Opportunities for leveraging government funds through public-private
partnership or savings through outsourcing must be explored. This section
should also provide a description of the ongoing initiatives, and the
manner in which duplication can be avoided and synergy created with the
proposed scheme/project.
(iv) Target Beneficiaries: There should be clear identification of target
beneficiaries. Stakeholder analysis should be undertaken, including
consultation with stakeholders at the time of scheme/project formulation.
Options regarding cost sharing and beneficiary participation should be
explored and incorporated in the project. Impact of the project on weaker
sections of society, positive or negative, should be assessed and remedial
steps suggested in case of any adverse impact.
(v) Legal Framework: This section should present the legal framework, if
relevant, within which the scheme/project will be implemented, as well as
the strengths and weaknesses of the legal framework in so far as it impacts
on achievement of stated objectives.
(vi) Environmental Impact: Environmental Impact Assessment should be
undertaken, wherever required, and measures identified to mitigate the
adverse impact, if any. Issues relating to land acquisition, diversion of
forest land, wildlife clearances, rehabilitation and resettlement should be
addressed in this section.
(vii) Technology: This section should elaborate on the technology choices,
if any; evaluation of the technology options, as well as the basis for choice
of technology for the proposed project.
(viii) Management: Responsibilities of different agencies for project
management or scheme implementation should be elaborated. The
organization structure at various levels, human resource requirements, as

203
well as monitoring arrangements should be clearly spelt out.
(ix) Finance: This section should focus on the cost estimates, budget for
the scheme/project, means of financing and phasing of expenditure.
Options for cost sharing and cost recovery (user charges) should be
explored. Infrastructure projects may be assessed on the basis of the cost
and tenor of the debt. Issues relating to project sustainability, including
stakeholder commitment, operation-maintenance of assets after project
completion and other related issues should also be addressed in this
section.
(x) Time Frame: This section should indicate the proposed zero date for
commencement and also provide a PERT/CPM chart, wherever relevant.
(xi) Cost Benefit Analysis: Financial and economic cost-benefit analysis
of the project should be undertaken wherever such returns are
quantifiable. Such an analysis should generally be possible for
infrastructure projects, but may not always be feasible for public goods
and social sector projects. Even in the case of latter, the project should be
taken up for appraisal before the PIB and some measurable
outcomes/deliverables suitably defined.
(xii) Risk Analysis: This section should focus on identification and
assessment of implementation risks and how these are proposed to be
mitigated. Risk analysis could include legal/contractual risks,
environmental risks, revenue risks, project management risks, regulatory
risks, etc.
(xiii) Outcomes: Success criteria to assess whether the development
objectives have been achieved should be spelt out in measurable terms.
Base-line data should be available against which success of the project will
be assessed at the end of the project (impact assessment). Similarly, it is
essential that base-line surveys be undertaken in case of large, beneficiary-
oriented schemes. Success criterion for scheme deliverables/outcomes
should also be specified in measurable terms to assess achievement
against proximate goals.
(xiv) Evaluation: Evaluation arrangements for the scheme/project,
whether concurrent, mid-term or post-project should be clearly spelt out. It
may be noted that continuation of schemes from one period to another will
not be permissible without a third-party evaluation.
Last but not the least, a self-contained Executive Summary should be
placed at the beginning of the document. In cases where only a Concept
Paper or Feasibility Report is attached to the EFC/PIB proposal, it should
cover the main points mentioned in the generic structure above.

204
 Annexure-II

Institutional Arrangement for Appraisal OF Schemes and

Projects
Expenditure Finance Committee (EFC)
Expenditure Secretary Chairperson
-
Secretary of the Administrative Ministry/Department Member

Financial Advisor of the Administrative Ministry/Department Member

Adviser, PAMD, NITI Aayog Member
Representative of Budget Division Member
Representatives of concerned Ministries/Agencies Member

Joint Secretary, Department of Expenditure Member-Secretary

For appraisal of schemes of scientific nature, Scientific Adviser may be invited as Member.
Standing Finance Committee (SFC)
Secretary of the Administrative Ministry/Department Chairperson

Joint Secretary in Charge of the Subject Division Member

Representative of NITI Aayog Member

Financial Advisor of the Administrative Ministry/Department Member-Secretary

Representative of Department of Expenditure and any other Ministry/Department that the

Secretary/Financial Advisor may suggest may be invited as per requirement.
Public Investment Board (PIB)
Expenditure Secretary Chairperson
Secretary of the Administrative Ministry/Department Member

Financial Advisor of the Administrative Ministry/Department Member

Adviser, PAMD, NITI Aayog Member
Representative of Budget Division Member
Representatives of concerned Ministries/Agencies Member

Joint Secretary, Department of Expenditure Member-Secretary

For appraisal of scientific projects, Scientific Adviser maybe invited as Member.
Delegated Investment Board (DIB)
Secretary of the Administrative Ministry/Department Chairperson

Joint Secretary in Charge of the Subject Division Member Member

Representative of NITI Aayog Member

Financial Advisor of the Administrative Ministry/Department Member-Secretary

Representative of Department of Expenditure and any other Ministry/Department that the

Secretary/Financial Advisor may suggest maybe invited as per requirement.

205
 Annexure-III

Time Frame for Appraisal and Approval of Schemes and projects

The scheme/project cycle would commence with the submission of a
Concept Paper/Feasibility Report by the Administrative Ministry/
Department.

(i) Decision on “in principle” approval, if 2 weeks

required

(ii) Preparation of a Detailed Paper/ The time limit will vary

Detailed Project Report by the depending on the
Administrative Ministry/ Department nature of scheme
and circulating the same along with and project. This is an
draft EFC/PIB Memo internal matter of the
Administrative Ministry
Department concerned

(iii) Appraisal Note and Comments to be 4 weeks

offered on the DP/DPR and
draft EFC/PIB memo by
Department of Expenditure, NITI Aayog
and concerned Ministries/Agencies

(iv) Preparation of final EFC/PIB Memo 1 week

based on comments received, and
circulating the same for Appraisal and
Approval

(v) Fixing the date of EFC/PIB 1 week

meeting after receiving the final
EFC/PIB Memo

(vi) Issue of minutes of EFC/PIB after the 1 week

meeting has been held

(vii) On-file approval of Administrative 2 weeks

Minister and Finance Minister

(viii) Submission for approval of the 2 weeks

Cabinet Committee of the Cabinet (for
proposals above Rs. 1,000 cr.)

Note: Wherever the recommended time frame is not adhered to any stage, the
concerned organization should work out on appropriate trigger mechanism to
take the matter to the next higher level for timely decision making.
206
 Annexure-IVA

FORMAT FOR EFC/SFC MEMORANDUM FOR APPRAISAL OF SCHEMES

1. Scheme Outline
1.1 Title of the Scheme.
1.2 Sponsoring Agency (Ministry/ Department/Autonomous Body or
Undertaking)
1.3 Total Cost of the proposed Scheme
1.4 Proposed duration of the Scheme
1.5 Nature of the Scheme: Central Sector Scheme! Centrally Sponsored
Scheme
1.6 For Central Sector Schemes, sub-schemes/components, if any, may
be mentioned. For Centrally Sponsored Schemes, central and state
components, if any, may be mentioned.
1.7 Whether a New or a Continuing Scheme? In case of a Continuing
Scheme, whether the old scheme was evaluated and what were the main
findings?
1.8 Whether in-principle approval is required? If yes, has it been obtained?
1.9 Whether a Concept Paper or a Detailed Paper has been prepared and
stakeholders consulted? In case of new Centrally Sponsored Schemes,
whether the State Governments have been consulted?
1.10 Which existing schemes/sub-schemes are being dropped, merged or
rationalized?
1.11 Is there an overlap with an existing scheme/sub-scheme? if so, how
duplication of effort and wastage of resources are being avoided?
1.12 In case of an umbrella scheme (program) give the details of schemes
and sub-schemes under it along with the proposed outlay component-
wise.
Note: It may kindly be noted that the word scheme here is used in a generic
sense. It includes programs, schemes and sub-schemes, which, depending on
need, can be appraised and approved as stand-alone cost centers.
2. Outcomes and Deliverables
2.1 Stated aims and objectives of the Scheme
2.2 Indicate year-wise outputs/deliverables in a tabular form.

Components Year 1 Year 2 & so on Total

Physical Financial Physical Financial Physical Financial
1,2,3 & so
on

2.3 Indicate Outcomes of the Scheme in the form of measurable indicators

207
which can be used to evaluate the proposal periodically. Baseline data or
survey against which such outcomes should be benchmarked should also be
mentioned.

2.4 Indicate other schemes/sub-schemes being undertaken by Ministries/

Departments which have significant outcome overlap with the proposed
scheme. What convergence framework have been evolved to consolidate
outcomes and save public resources?
3. Target Beneficiaries

3.1 If the scheme is specific to any location, area and segment of

population,
please give the details and basis for selection.
3.2 Please bring out specific interventions directed in favour of social
groups, namely Sc, ST, differently abled, minorities and other vulnerable
groups.
3.3 If the scheme has any gender balance aspects or components
specifically directed at welfare of women, please bring them out clearly?
3.3 Please bring out special interventions, if any, in North East, Himalayan,
LWE, Island territories and other backward areas.
3.4 In case of beneficiary oriented schemes, indicate the mechanism for
identification of target beneficiaries and the linkage with Aadhaar/UID
numbers.
3.5 Wherever possible, the mode of delivery should involve the Panchayati
Raj Institutions and Urban Local Bodies. Where this is intended, the
preparedness and ability of the local bodies for executing the proposal may
also be examined.

4 Cost Analysis
4.1 cost estimates for the scheme duration: both year-wise, component-
wise segregated into non-recurring and recurring expenses.
4.2 The basis of these cost estimates along with the reference dates for
normative costing.
4.4 In case pre-investment activities or pilot studies are being carried out,
how much has been spent on these?
4.5 In case the scheme involves payout of subsidy, the year wise and
component wise expected outgo may be indicated.
4.3 In case the land is to be acquired, the details of cost of land and cost of
rehabilitation/resettlement, if any.
4.6 In case committed liabilities are created, who will or has agreed to bear
the legacy burden? In case assets are created, arrangements for their
maintenance and upkeep?

5. Scheme Financing
5.1 Indicate the sources of finance for the Scheme: budgetary support,
extra-budgetary sources, external aid, state share, etc.

208
5.2 If external sources are intended, the sponsoring agency may indicate, as
also whether such funds have been tied up?
5.3 Indicate the component of the costs that will be shared by the State
Governments, local bodies, user beneficiaries or private parties?

6. Approvals and Clearances

Requirement of mandatory approvals and clearances from various local,

state and national bodies and their availability may be indicated in a tabular
form (land acquisition, environment, forestry, wildlife etc.)

S.No. Approvals/Clearances Agency Availability (Y/N)

concerned

7. Human Resources

7.1 Indicate the administrative structure for implementing the Scheme.

Usually creation of new structures, entities etc. should be avoided
7.2 Manpower requirement, if any. In case posts, permanent or temporary,
are intended to be created, a separate proposal may be sent on file to Pers.
Division of Department of Expenditure (such proposals may be sent only
after the main proposal is recommended by the appraisal body)
7.3 In case outsourcing of services or hiring of consultants is intended, brief
details of the same may be provided.
8. Monitoring and Evaluation
8.1 Please indicate the monitoring framework for the Scheme and the
arrangements for statutory and social audit (if any).
8.2 Please indicate the arrangement for third party/independent
evaluation? Please note that evaluation is necessary for extension of scheme
from one period to another.
9. Comments of the Financial Advisor, NIT! Aayog, Department of
Expenditure and other Ministries/Departments may be summarized in
tabular form along with how they are being internalized and used to improve
this proposal.

10. Approval Sought:

(--------------------)
Joint Secretary to the Government of India
Tel. No.___________ Fax No.___________
E-mail_______________________________
Please attach an Executive Summary along with the Concept/Detailed Paper
outlining the main elements and overall architecture of the proposed Scheme.

209
 Annexure-IVB
FORMAT FOR PIB/DIB MEMORANDUM FOR APPRAISAL OF
PROJECTS

1. Project Outline
1.1 Title of the Project
1.2 Sponsoring Agency (Ministry! Department/Autonomous Body or
Undertaking)
1.3 Proposed Cost of the Project
1.4 Proposed Timelines for the Project
1.5 Whether Project will be implemented as part of a scheme or on stand-
alone basis?
1.6 Whether financial resources required for the Project have been tied up?
If yes, details?
1.7 Whether Feasibility Report and/or Detailed Project Report has been
prepared?
1.8 Whether the proposal is an Original Cost Estimate or a Revised Cost
Estimate?
1.9 In case of Revised Cost Estimates, whether the meeting of Revised Cost
Committee has been held and its recommendations suitably addressed?
1.10 Whether any land acquisition or pre-investment activity was under-
taken or is contemplated for this Project? Whether the cost of such
intervention has been included in the Project Proposal?
2. Outcomes and Deliverables
2.1 Stated aims and objectives of the Project
2.2 Indicate year-wise outputs/deliverables for the project in a tabular form.

Components Year 1 Year 2 & so on Total

Physical Financial Physical Financial Physical Financial

1,2,3 & so
on

2.3 Indicate final outcomes for the project in the form of measurable
indicators which can be used for impact assessment/evaluation after the
project is complete. Baseline data or survey against which such outcomes
would be benchmarked should also be mentioned.
3. Project Cost
3.1. Cost estimates for the project along with scheduled duration (both year
and activity-wise). Also the basis for these cost estimates along with the
reference dates for normative costing (it should preferably not be more than
a year old)
3.2. In case land is to be acquired: the details of land cost, including cost of
rehabilitation/ resettlement needs to be provided
3.3. In case pre-investment activities are required, how much is proposed to

210
be spent on these, with details activity-wise?
3.4. Whether price escalation during the project time cycle has been
included in the cost estimates and at what rates?

3.5 Whether the Project involves any foreign exchange element, the
provision made or likely impact of exchange rate risks?
3.6. In case of the Revised Cost Estimates, a variation analysis along with
the Report of the Revised Cost Committee needs to be attached.

4. Project Finance

4.1. Indicate the sources of project finance: budgetary support, internal and
extra-budgetary sources, external aid, etc.
4.2. Indicate the cost components, if any, that will be shared by the state
governments, local bodies, user beneficiaries or private parties?
4.3. In case of funding from internal and extra-budgetary resources,
availability of internal resources may be supported by projections and their
deployment on other projects?
4.4. Please indicate funding tie-ups for the loan components, if any, both
domestic and foreign, along-with terms and conditions of loan based on
consent/comfort letters.
4.5. If government support/loan is intended, it may be indicated whether
such funds have been tied up?
4.6. Please provide the leveraging details, including debt-equity and
Interest coverage ratios, along with justification for the same.
4.7. Mention the legacy arrangements after the project is complete, in
particular, arrangements for the maintenance and upkeep of assets that will
be created?
5. Project Viability
5.1. For projects which have identifiable stream of financial returns, the
financial internal rate of return may be calculated. The hurdle rate will be
considered at 10 percent.
5.2. In case of projects with identifiable economic returns, the economic rate
of return may be calculated. In such cases project viability will be
determined by taking both financial and economic returns together.
5.3. In case of proposals where both financial and economic returns are not
readily quantifiable, the measurable benefits/outcomes simply may be
indicated.
Note: It may kindly be noted that all projects, irrespective of whether financial
and/or economic returns can be quantified or not, should be presented for
PIB/DI8 appraisal.
6. Approvals and Clearances
Requirement of mandatory approvals/clearances of various local, state and
211
national bodies and their availability may be indicated in a tabular form
(land acquisition, environment, forestry, wildlife etc.) In case land is
required, it may be clearly mentioned whether the land is in the possession
of the agency free from encumbrances or encroached or stuck in legal
processes?
S.No. Approvals/Clearances Agency Availability (Y/N)
concerned

7. Human Resources

7.1 Indicate the administrative structure for implementing the Project.

Usually creation of new structures, entities etc. should be avoided
7.2 Manpower requirement, if any. In case posts (permanent or
temporary) are intended to be created, a separate proposal may be sent on
file to Pers. Division of Department of Expenditure. Such proposals may be
sent only after the main proposal is recommended by the appraisal body.
7.3 In case outsourcing of services or hiring of consultants is intended,
brief details of the same may be provided.
8. Monitoring and Evaluation
8.1 Indicate the Project Management/Implementing Agency(s). What agency
charges are payable, if any?
8.2 Mode of implementation of individual works: Departmental/ltem-
rate/Turnkey/EPC/ Public-Private Partnership, etc.
8.3 Please indicate timelines of activities in PERT/Bar Chart along with
critical milestones.
8.4 Please indicate the monitoring framework, including MIS, and the
arrangements for internal/statutory audit.
8.5 Please indicate what arrangements have been made for impact
assessment after the project is complete?

9. Comments of the Financial Advisor, NITI Aayog, Department of

Expenditure and other Ministries/Departments may be summarized in
tabular form along with how they have been internalized and used to
improve this proposal.

10. Approval Sought:

(-------------------)
Joint Secretary to the Government of India
Tel. No.___________
Fax No.___________
E-mail_______________________
Please attach an Executive Summary along with the Feasibility Report/Detailed
Project Report prepared for the Project.

212
 Annexure-V
Ashok Lavasa
Finance Secretary Government of India, Finance Secretary
Ministry of Finance, Department of Expenditure
D.O. No.66(01)/PF-II/2015 18th May 2016
Dear Secretary,
Following rationalization of schemes in the 2016-17 BE, instructions
were issued for preparation of outcome budgets with the approval of CEO,
NITI Aayog. However, due to paucity of time outcome budget for 2016-17 was
submitted in the old format with the understanding that follow up action will
be taken soon thereafter.
2. It is again reiterated that outcomes need to be defined for both Central
Sector
Schemes and Centrally Sponsored Schemes. The following action needs to be
taken in this regard:
Measurable Outcomes reed to be defined for each scheme over the medium
term, that is going forward up to the year 2019-20 (the end of Fourteenth
Finance Commission period).
On the financial side, the budgetary allocation for 2016-17 may also be
normatively projected going forward up to the year 2019-20 (assuming a
normative increase of 510% every year).
Year to year physical outputs, consistent with the financial resources
projected above, need to be worked out in a manner that is not out of line
with the measurable outcomes as defined in para (a) above.
The output-outcome framework may be got approved from CEO, NITI Aayog
by the end of the first quarter i.e. 30 June 2016.
a) An evaluation framework will also be designed for each scheme based
on this exercise. Continuation of any scheme beyond the Fourteenth Finance
Commission period will be contingent on the result of such evaluation
conducted by NITI Aayog,
3. I would request you to carefully identify the outcome parameters that
would be true indicators of the desired outcome. This may be given top
priority as the forthcoming RE/BE and outcome budgets will be based on
this exercise.

With regards, Yours sincerely,

Sd/-
(Ashok Lavasa)
Secretary to the Govt. of India as per list attached.
Copy to: CEO, NITI Aayog

213
 ANNEXURE–XI
IMMEDIATE

No.F.1 (23)-B (AC)/2005

Government of India
Ministry of Finance
Department of Economic
Affairs (Budget Division)
New Delhi, the 25th May, 2006.

OFFICE MEMORANDUM

Subject: Revised Guidelines on Financial Limits to be observed in

determining cases relating to ‘New Service’/ ‘New
instrument of Service’.

In accordance with the commitment made in the Fiscal Policy Strategy

Statement (Budget 2005-06) under the mandate of the Fiscal Responsibility
and Budget Management (FRBM) Legislation and in pursuance of the
approval of Public Account Committee (2005-2006) in the twenty-third report
(Fourteenth Lok Sabha) on the proposal for review of Financial Limits to be
observed in determining the cases relating to ‘NEW SERVICE’/ ‘NEW
INSTRUMENT OF SERVICE’ for reappropriation of funds (Annex), which
has the concurrence of the C&AG, the following revised guidelines for
re-appropriation of funds are hereby conveyed, in modification of this
Ministry’s Office Memorandum No. F.7 (15)-B(RA)/82 dated 13th April,
1982.

2. Definition of the terms ‘New Service’/ ‘New Instrument of Service’

and its application:

(i) ‘New Service’: As appearing in article 115(1)(a) of the Constitution of

India, this has been held as referring to expenditure arising out of a new
policy decision, not brought to the notice of Parliament earlier, including a
new activity or a new form of investment.

(ii) ‘New Instrument of Service’: Refers to relatively large expenditure arising

out of important expansion of an existing activity.

(iii) While using these terms and applying the financial limits as indicated in
the Annex, it needs to be noted that no expenditure can be incurred from the
Consolidated Fund of India on a ‘New Service’/ ‘New Instrument of Service’
without prior approval of Parliament through supplementary demands for
grants. Further, the determination of these financial limits will be with
reference to Primary Unit of Appropriation.

214
(iv) Where in an emergent case of ‘New Service’/ ‘New Instrument of Service’
it is not possible to wait for prior approval of Parliament, the Contingency
Fund of India can be drawn upon for meeting the expenditure pending its
authorization by Parliament. Recourse to this arrangement should normally
be taken only when Parliament is not in session. Such advances are required
to be recouped to the Fund by obtaining a Supplementary Grant in the
immediate next session of Parliament. However, when Parliament is in
session, a Supplementary Grant should preferably be obtained before
incurring any expenditure on a ‘New Service’/ ‘New Instrument of Service’.
That is to say, recourse to Contingency Fund of India should be taken only in
cases of extreme urgency; in such cases the following procedure
recommended by the Sixth Lok Sabha Committee on Papers Laid on the
Table in their 4th Report should be observed:

“As far as possible, before such withdrawal is made, the concerned

Minister may make a statement on the floor of the Lok Sabha for information
giving details of the amount and the scheme for which the money is needed.
In emergent cases, however, where it is not possible to inform the Members in
advance, the withdrawal may be made from the Contingency Fund and soon
thereafter a statement may be laid on the Table of the Lok Sabha for the
Information of the Members”.

It has been suggested by the Rajya Sabha Secretariat that the above
procedure may also be observed in Rajya Sabha.

3. Checks to be observed by the Ministries/Departments to ensure

compliance of the provisions of this Office Memorandum are as under:

(i) By Integrated Finance Division/Budget Unit: A specific certificate

should be recorded in each case involving augmentation of sanctioned
provision on receipt of related proposals, to the effect that the proposed
augmentation attracts/does not attract financial limits of ‘New Service’/ ‘New
Instrument of Service’.
(ii) By PAOs: Each expenditure sanction to be examined by PAOs from ‘New
Service’/ ‘New Instrument of Service’ angle keeping in view the financial limits
indicated in the Annex.
(iii) Where any doubt arises about the application of financial limits of ‘New
Service’/ ‘New Instrument of Service’, the PAO would seek decision form CCA/
FA of appropriate jurisdiction.

4. Circumstances for obtaining Supplementary grants for expenditure

qualifying as ‘New Service’/ ‘New Instrument of Service’ and the
reporting procedure thereof are as follows:

(i) If sufficient savings are available within the same section of the relevant

215
grants for meeting additional expenditure to the extent mentioned in column
2 of the annex, re-appropriation can be made, subject to report to
Parliament.
(ii) The Report to Parliament should ordinarily be made through the ensuing
batch of Supplementary Demand for Grants, failing which by adding an
Annex in the Detailed Demands of the Ministry/Department for the ensuing
year.
(iii) A suitable write-up of such cases where possible, may also be made in
the Notes on Demands for Grants of the Ministry/Department.
(iv) Mere depiction of augmented provisions in the Revised Estimates
included in the Demands for Grants will not be adequate to meet the
requirement to incur expenditure. In cases where the financial limits of ‘New
Service’/ ‘New Instrument of Service’ are attracted, approval of Parliament
may be obtained for incurring such expenditure through supplementary
demands for grants.
(v) The provision in the ‘Vote on Account’ are not intended to be used for
expenditure on any ‘New Service’. In cases of urgency, expenditure on a ‘New
Service’ during Vote on Account period can, therefore, be incurred only by
obtaining an advance from the Contingency Fund in the manner
recommended by the Sixth Lok Sabha Committee on the Papers Laid on the
Table already referred to in para 2(iv) of this OM. Such advances will be
resumed to the Contingency Fund on enactment of Appropriation Act in
respect of expenditure for the whole year.

5. Exceptions:
(i) Having regard to the volume and nature of Government transactions, it
is not possible to list out all such cases which are not attracted by ‘New
Service’/ ‘New Instrument of Service’ limits. Broadly, however, expenditure on
normal activities of Government(such as normal administrative
expenditure– including that resulting from re-organization of
Ministries/Departments, holding of conferences, seminars, exhibitions,
surveys, feasibility studies, etc. assistance to foreign Governments
contributions to international bodies and fulfillment of Government guarantee
on its invocation) are not attracted by the limits of ‘New Service’/ ‘New
Instrument of Service’.
(ii) Transfers to State and Union Territory Governments are also exempt from
these limits provided the scheme is not new.

(iii) Further, these limits are applicable only to expenditure which is subject
to Vote of Parliament.
6. Doubtful cases:
In case of disagreement between the Integrated Finance Wing and Pay
and Accounts Office, the Ministry/Department may send a self-contained

216
communication to the Budget Division, Ministry of Finance bringing out the
specific point of doubt incorporating their Financial Adviser’s view thereon.
The decision taken by the Budget Division in the matter will be final.
7. Conclusion:
While agreeing to the revision of norms for re-appropriation of funds as
annexed, the Public Accounts Committee in its twenty-third report
(Fourteenth Lok Sabha) has concluded by stating as under:

“The Committee also expects the Financial Advisors of the

Ministries/Departments to ensure that there is no violation in
implementation of the said revised norms for re- appropriation of funds and
any slackness in complying with the said norms is strictly dealt with”.

8. Hindi Version will follow.

-sd-
(Dakshita Das)
Director (Budget)

To,

1. All Ministries/Departments of the Government of India.

2. Financial Commissioner (Railways), Financial Advisor (DS), Member
Finance (Telecom) and all other Financial Advisors.
3. Finance Secretaries of Union Territory Administrations (Chandigarh,
Andaman and Nicobar Islands, Dadra and Nagar Haveli and Lakshadweep).
4. Controller General of Accounts, Controller General of Defence Accounts
and Chief Controller of Accounts.

Copy forwarded for information to:

1. Lok Sabha Secretariat (PAC) Branch/Rajya Sabha Secretariat.

2. Comptroller and Auditor General of India and all Directors of
Audit/Accountants General.
3. Finance Secretaries of all State and Union Territory Governments.
-sd-
(Dakshita Das)
Director (Budget)

217
 Annex to Ministry of Finance O.M. No. F.1(23)-B(AC) 2005
dated 25.05.2006
Finance limits to be observed in determining the cases relating to ‘NEW
SERVICE’/ ‘NEW INSTRUMENT OF SERVICE’

Nature of transaction Limits upto whichLimits beyond which

expenditure can be met byprior approval of
re-appropriation of savingsParliament is
in a Grant subject to reportrequired for
to Parliament expenditure from the
Consolidated Fund

1 2 3
I. CAPITAL EXPENDITURE

A. Departmental Undertakings

(i) Setting up a new …. All cases

undertaking, or taking up
a new activity by an
existing undertaking.
Above Rs. 2.50 crore but Above Rs. 5 crore
(ii) Additional investment not exceeding Rs. 5 crore.
in an existing undertaking

B. Public Sector Companies/Corporations

(i) Setting up of a new All cases
Company, or splitting up
of an existing Company, or
amalgamation of two or
more Companies, or
taking up a new activity
by an existing Company.
(ii) Additional Above Rs. 50 Lakhs but notAbove Rs. 1 crore
exceeding Rs.1 Crore
investment in / loans to
an existing company
(a) Where there is no
Budget Provision. Where
Budget Provision exists for
investment and/ or

218
 Where Budget Provision Above 20% of
exists for investment and/ appropriation
or loans Paid up capital of already voted or Rs.
the Company 10 crore, whichever
i) Up-to Rs. 50 crore 20% of appropriation is less
already voted or Rs. 10
crore, whichever is less Above 20% of
appropriation
already voted or Rs.
ii) Above Rs.50 crore 20% of appropriation 20 crore, whichever
already voted or Rs.20 is less
crore, whichever is less
C. All bodies or authorities within the administrative
control/management of Central Government or substantially financed
by the Central Government.
Loans Upto10% of the More than 10% over
appropriation already the appropriation
voted or Rs.10 crore, already voted by
whichever is less Parliament or Rs.10
crore, whichever is
less

Note: Where a lump sum provision is made for providing ‘Loans’ under a
particular scheme, the details of substantial apportionment (10% of lump sum
or Rs.1 crore, whichever is higher) should be reported to Parliament, in the
case of lump sum provision to loans to States, the state-wise distribution
should be reported to Parliament.
D. Expenditure on new Above Rs. 50 lakhs but Above Rs.2.5 crore
Works (Land, Buildings not exceeding Rs. 2.5 or above 10% of the
and/or Machinery) crore or not exceeding appropriation
10% of the appropriation already voted.
already voted, whichever
is less.
II REVENUE EXPENDITURE

E. Grants-in-aid to …. All Cases

anybody or authority

Note: Where a lumpsum provision is made for providing grants-in-aid under a

particular scheme, the details of substantial apportionment (10% of lumpsum
or Rs.1 crore, whichever is higher) should be reported to Parliament. In the
case of lumpsum provision of grants to States, the State-wise distribution
should be reported to Parliament.

219
 F. Subsidies

(i) New Cases -------- All Cases

(ii)Enhancement of Upto10% of the More than 10% of

provision in the existing appropriation already the appropriation
appropriation Payments approved by the already voted by
against cess Parliament or Rs. 10 crore, Parliament or Rs.10
collections whichever is less Limits as crore, whichever is
applicable to grants- in-aid less All Cases
to statutory or public
institutions will at apply

New Commissions or …. Above Rs. 20

Committees of Enquiry lakhs (total
expenditure)
G. Write off of Above Rs.50,000 butAbove Rs.1 lakh
Government not exceeding Rs.1 lakh(individual cases)
loans (individual cases)

H. Othercases of Each case to be considered on merits.

Government
I. Posts Railways Defence The aforesaid limits, The aforesaid limits,
including those relating to including those
Works expenditure, will relating to Works
also apply to these expenditure, will
Departments subject to also apply to these
considerations of security Departments
in the case of Defence subject to
considerations of
security in the case
of Defence Services
Estimates
Note 1: For investment in Ordnance Factories, the limit of Rs. 5 crore
mentioned in item A
(ii) will be applicable with reference to investment in all the factories as a
whole.
Note 2: Civil Works, which do not form part of any project of the
departmental undertakings (Ordnance Factories) should be treated as
ordinary Defence Works. As such, prior approval of Parliament will be
necessary if the cost of individual works exceeds Rs.2.5 crore and in cases
where the individual works cost Rs.50 lakhs or more but not exceeding Rs.2.5
crore, a report to Parliament will be required. A list of such works should,
however, be supplied to Director of Audit, Defence Services.

220
 ANNEXURE-XII

No. F. 1(5)-B(AC)/2011
Ministry of Finance
Department of Economic Affairs
(Budget Division)

New Delhi 21.5.2012

OFFICE MEMORANDUM

Subject: Clarification on the Financial Limits to be observed in

determining cases relating to ‘New Service’/ ‘New
Instrument of Service’
The undersigned is directed to invite attention to this Ministry’s O.M.
issued vide letter No. 1(23)-B(AC)/2005 dated 25.5.2006, wherein the revised
guidelines on financial limits to be observed in determining cases relating to
‘New Service’ (NS)/ ‘New Instrument of Service’ (NIS) were prescribed, and to
state that there has been lack of clarity at Ministry/Department level while
determining the cases of NS/NIS on augmentation of funds under the object
heads ‘Grants-in-aid’, ‘Subsidies’ and ‘Major Works’. It is observed the
Ministries/Departments, in some cases, have failed to obtain the prior
approval of Parliament through Supplementary Demands for Grants
whenever funds are augmented through re-appropriation of funds leading to
avoidable objection from Audit. With the addition of new object heads like
‘Grants for creation of capital assets’, ‘Grants-in-aid-Salaries’, It has become
necessary to issue a circular clarifying/amplifying the following:

‘Grants in aid’: Any augmentation under the object head ‘Grants-in-aid’

through re- appropriation of savings within the same section of grant
requires prior approval of Parliament through Supplementary Demands for
Grants except in cases of Grants to States and Union Territory Governments
on existing schemes. Cases requiring augmentation of funds, arising out of
reclassification of expenditure, from ‘Grants in aid General’, ‘ G r a n t s for
creation of capital assets’ and ‘Grants in aid Salaries’ under the same
scheme also require the prior approval of Parliament.

‘Subsidies’:All cases for augmentation of funds (through either re-

appropriation of funds or Additionality) under the object head ‘subsidies’
require prior approval of the Parliament through supplementary demands for
grants, without any exemption.

Major Works’: A view is being held in some instances that the financial
limits prescribed in column 3 against item ‘D- Expenditure on New Works
(Land, Buildings and/or Machinery)’ in Annex to this Ministry’s O.M. issued
under letter No. F.1 (23)-B(AC)/2005 dated 25.5.2006 are applicable to cases
of ‘New Works’ only. This view is incorrect in view of the fact that column
3 also mentions about the augmentation of funds by above Rs. 2.5 crore or
221
10% of the appropriation already voted with the prior approval of the
Parliament. Thus, the words ‘appropriation already voted’ refer to the
existing on-going works and hence the financial limits prescribed under
column 3 against item D-Expenditure on New Works (Land, Buildings and/or
Machinery) are equally applicable to cases relating to existing works and
attract provisions of ‘New Instrument of Services’. It is therefore clarified
that all cases relating to augmentation of funds under object head ‘Major
Works’ would require prior approval of the Parliament in case the
augmentation is above Rs.2.5 crore or above 10% of the appropriation
already voted irrespective of the fact that the augmentation is for ‘New’ Works
or for the existing works.

-sd-

(N.M.Jha)
Director (Budget)

All FAs/CCAs of Ministries /Departments.

JS (PF.I)/JS (PF.II)/JS (Pers) of Department of Expenditure for
information.

222
 ANNEXURE-XIII

F, No. C-3001 3/9/2016-Ad. IV-A

Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs

5 th Floor, Hudco Vishala Building,

Bhikaji Cama Place, New Delhi-110066. Dated, the 30th August, 2016.

To
All Principal Chief Commissioners
All Chief Commissioners/Directors General
All Commissioners under CBEC

Subject:-Recommendations of Expenditure Management

Commission (EMC) relating to Public Procurement.

Sir,
I am directed to refer to forward herewith a copy of Ministry of
Finance, Department of Expenditure's O.M. No.16/1/2016-PPD dated
04.08.2016 regarding EMC Recommendations No. 48 (September, 2015),
No.71 (December, 2015), No.77(December, 2015), No.78(December, 2015),
No.79(December, 2015) and No.87(December, 2015), relating to Public
Procurement for information and further necessary action.

Yours faithfully,

End, as above. (

Copy to DG (Systems & Data Management) New Delhi with the request to
kindly upload this circular on the website of CBEC.

-Sd-

(B. Ginkhan Mang)

Under Secretary to the Govt. of India.

223
 F No. 16/1/2016-PPD
Government of India
Ministry of Finance
Department of Expenditure
Procurement Policy Division
***
516, Lok Nayak Bhawan, New Delhi.
Dated the 41h August, 2016.

OFFICE MEMORANDUM

Subject: -Recommendation of Expenditure Management

Commission (EMC) -regarding

The Government of India had constituted EMC in September, 2014 to

look into various aspects of Expenditure reforms to be undertaken by the
Government. The Committee was headed by Dr. Bimal Jatan, eminent
economist and public policy experts.

2. In this context it is noted that EMC has recommended following related

to Public Procurement.

Recommendation No.48 (September, 2015)

"Government should also consider going in for arrangements such as use of

buyback facility for standard furniture like tables, chairs, cupboards,
compactors and partition cubicles. Items such as photocopiers can be taken on
lease basis with payment made on per copy basis. Apart from reduction in
initial cash outgo, this also obviates the need for expensive Annual
Maintenance Contracts.

3. In this regard it is stated that Rule 162 of the GFR related to buy-back
facility already facilitates buying of items like tables, chairs, cupboards,
compactors, partition cubicles etc. on buy-back basis. Further Rules 178 to
185 of GFR related to "Outsourcing of Services" also enables taking items
such as photocopiers on tease basis with the payment on per copy basis.

4. All Ministries! Departments are requested to consider and implement

the EMC recommendation.

1. Secretaries! All Ministries & Departments.

2. Financial Advisors! All Ministries & Departments.

224
 F No. 16/1/2016-PPD
Government of India
Ministry of Finance
Department of Expenditure
Procurement Policy Division
516, Lok Nayak Bhawan, New Delhi.
Dated the 4th August, 2016.

OFFICE MEMORANDUM
Subject: - Recommendation of Expenditure Management
Commission (EMC) -regarding
The Government of India had constituted EMC in September, 2014 to look
into various aspects of Expenditure Reforms to be undertaken by the Government.
The Committee was headed by Dr. Bimal Jalan, eminent economist and public
policy experts.
2. In this context it is noted that EMC has recommended following related
to Public Procurement:
Recommendation No.71 (December, 2015)

Qualifying criteria-for bidders While defining qualification criteria for selecting

bidders, experience for execution for similar works and total turnover of bidder is
generally defined. However solvency/ financial capacity of the bidder and liquidity of
the bidder do not generally form a part of the criteria for large projects other than PPP
projects. EMC is of the view that solvency of the bidder and liquidity are important
criteria to determine the capacity of the contractor, especially for large value contracts.
It is recommended that the bid document for large value projects should also include
the requirement of a viable financial model to explain how the contractor proposes to
fund the execution of the project.

3. In this regard, it is noted that the Rule 160 (i) (a) of GFR, 2005 already
stipulates that bidding document should contain criteria for eligibility and
qualifications to be met by the bidders including their financial position.
4. All Ministries! Departments are requested to consider and implement
the EMC recommendation.

To

1. Secretaries! All Ministries & Departments.

2. Financial Advisors! All Ministries & Departments.

225
 F No. 16/1/2016-PPD
Government of India
Ministry of Finance
Department of Expenditure
Procurement Policy Division
***
516, Lok Nayak Bhawan, New Delhi.
Dated the 4th August, 2016.

OFFICE MEMORANDUM

Subject: -Recommendation of Expenditure Management

Commission (EMC) -regarding

The Government of India had constituted EMC in September, 2014 to

look into various aspects of Expenditure Reforms to be undertaken by the
Government. The Committee was headed by Dr. Bimal Jalan, eminent
economist and public policy experts.

2. In this context it is noted that EMC has recommended following related

to Public Procurement.

Recommendation No.77 (December, 2015)

Variation Clauses - Delays are also often witnessed during the post-
contractual period when a variation is required to be exercised in the contract. It
is recommended that a time schedule for critical decisions (such as approval of
variations) during the post contractual period should be included in the contract
document. This would impart certainty to decision making during project
execution.

3. During the meeting of Department of Expenditure with major procuring

Departments, it is noted that the proposed system of fixing time schedule for
critical decisions such as approval of variations during post contractual
period is already in place.

4. All Ministries! Departments are requested to consider and implement

the EMC recommendation.

To

1. Secretaries/ All Ministries & Departments.

2. Financial Advisors/ All Ministries & Departments.

226
 F No. 16/1/2016-PPD
Government of India, Ministry of Finance
Department of Expenditure
Procurement Policy Division
516, Lok Nayek Bhawan, New Delhi.
Dated the 4th August, 2016.
OFFICE MEMORANDUM

Subject: - Recommendation of Expenditure Management

Commission (EMC) -Regarding

The Government of India had constituted EMC in September, 2014 to

look into various aspects of Expenditure Reforms to be undertaken by the
Government. The Committee was headed by Dr. Bimal Jalan, eminent
economist and public policy experts.

2. In this context it is noted that EMC has recommended following related to

Public Procurement.

Recommendation No.78 (December, 2015)

Building capacity - There is an urgent need to build internal capacities in
Government for handling procurement and project management. A critical input
for improving the process Public procurement and reducing time/cost overruns
is the quality of manpower handling for process. It is understood that
Department of Expenditure has commenced certain training programmes on
procurement for administrative personnel. It is recommended that such
programmes be scaled up and made mandatory for persons engaged in
procurement. The Government may also tie up with professional training
institutes for this purpose.

3. In this context, it may be recalled that Department of Expenditure (DoE) in

collaboration with National Institute of Financial Management (NIFM) is already
conducting training programs for officers engaged in Public Procurement since
January, 2015. The details of this programme has been already communicated
to all Departments vide DoE O.M. No.F.2616!2014-PPD dated 23.1.2015 and
22.12.2015. The complete cost of training including boarding/lodging is borne
by DoE. Soon NIFM will also be starting to conduct these training programmes
at locations other than Faridabad in collaboration with other training institutes!
organisations. Ministries/Departments are encouraged to make use of these
training programs initiated by this Department.They are also requested to
arrange similar programmes at their own level in their Ministries! Departments
to supplement these efforts.

To
1. Secretaries/ All Ministries & Departments.
2. Financial Advisors/ All Ministries & Departments.

227
 F No. 16/1/2016-PFD
Government of India
Ministry of Finance
Department of Expenditure
Procurement Policy Division
516, Lok Nayak Bhawan, New Delhi.
Dated the 4th August, 2016.
OFFICE MEMORANDUM

Subject: - Recommendation of Expenditure Management

Commission (EMC)-regarding

The Government of India had constituted EMC in September, 2014 to

look into various aspects of Expenditure Reforms to be undertaken by the
Government. The Committee was headed by Dr. Bimal Jalan, eminent
economist and public policy experts.

2. In this context it is noted that EMC has recommended following

related to Public Procurement

Recommendation No.79 (December 2015

Interactions with experts from industry and representatives from various

Ministries/Departments indicated that there is a direct correlation between an
empowered project team and the success of the project. This is also borne out
by large disparities in execution within the same system. The success stories,
some of which have been highlighted above, had the benefit of dedicated and
competent project teams. It is recommended that empowered project teams are
put in place for all large value projects and that these teams are tasked only
with project execution and not given other operational duties.

3. During the meeting with major procuring Departments, it is noted

that this system of nominating empowered project teams is already in place
for all large value projects.

4. All Ministries! Departments are requested to consider and implement

the EMC recommendation.

To,
1. Secretaries! All Ministries & Departments.
2. Financial Advisors! All Ministries & Departments.

228
 F No. 16/1/2016-PPD
Government of India
Ministry of Finance
Department of Expenditure
Procurement Policy Division
516, Lok Nayak Bhawan, New Delhi.
Dated the 4th August, 2016.

OFFICE MEMORANDUM
Subject: - Recommendation of Expenditure Management
Commission (EMC) -regarding

The Government of India had constituted EMC in September, 2014 to

look into various aspects of Expenditure Reforms to be undertaken by the
Government. The Committee was headed by Dr. Bimal Jalan, eminent
economist and public policy experts.

2. In this context it is noted that EMC has recommended following related

to Public Procurement-

Recommendation No.87 of December, 2015

Identification of likely sources: Rule 168 specifies identification of likely

sources for consultancy. The provisions of limited tender should be extended
for procurement services through consultancy firms.

3. In this regard it is noted that Rule 168 of the GFR already permits that
when the estimated cost of the consulting services is upto Rs.25 lakhs,
the preparation of the list of potential consultants may be done on the
basis of formal or informal inquires from other Ministries! Departments
or involved in similar activities. chamber of commerce & industry,
association of consulting firms etc. Hence, provision of limited tender for
buying the consultancy service upto Rs.25 lakh is already available.

4. All Ministries! Departments are requested to make use of these

provisions. Further in order to facilitate Ministries/Departments.
Department of Expenditure is also in process of revising Manual on
Procurement of Consultancy Services.

To,
1. Secretaries! All Ministries & Departments.
2. Financial Advisors! All Ministries & Departments.

229
 ANNEXURE-XIII-A1
F.No. 900/33/Admn./e-procurement/HRD/2015
Directorate General of Human Resource Development
Infrastructure & Welfare Wing
Customs and Central Excise, Plot No.0-4, West Wing,
Ground Floor, IRCON Building, Saket
New Delhi-110017.
Date: .01.2016
CLRCULAR

Sub:- Implementation of end-to-end E-procurement - reg.

1. This is in continuation of this Directorate's earlier Circulars dated 09.07.15 &

19.10.15 on the above subject.

2. Kind attention is invited to the latest Office Memorandum dated 17.12.15 issued
vide F.No. 6/1 1/2012-IFU(B&A)EC by Director (Fin.-EC) vide which it has been
conveyed that it is mandatory for all Ministries/Departments of the Central
Government. their attached and subordinate offices, Central Public Sector
Enterprises (CPSEs) and autonomous/statutory bodies would need to commence c-
procurement in respect of all procurement with estimated tender value of Rs.5.00
lakh or above w.e.fOLO4.1S and further down to Rs. 2.00 lakh w.e.f. 01.04.16.
However, it has been observed that very few CBEC field offices! Commissionerates are
publishing their tenders for procurement of services viz. Hiring of Office Space,
Outsourcing of House keeping/Security Services etc. on the Central Procurement
Portal (CPP).

3. Therefore, all the Commissionerate/Directorates working under CBEC and all

attached/subordinate offices, CPSEs and autonomous/statutory bodies etc. under
their administrative/financial control are required to commence c-procurement for all
tenders above the prescribed limit compulsorily and to publish their enquiries,
corrigenda thereon and publish details of bid award on CP Portal as per the
instruction issued by Department of Expenditure vide above OM's and earlier OM's
available on Department of Expenditure website http://finmin.nic.in.

4. All purchasing entities in the Department should publ.ish details of the Bid
award on CP Portal.

5. In this context, NIC has developed an c-procurement solution which can be

accessed on the link http://eprocure.gov.in. Detailed guidelines on using the solution on
c-procurement have been circulated by NIC separately and same is also available on
the Central Public Procurement Portal (CPP).

6. All the formations are requested to take immediate action to commence c-

procurement in respect of all procurements failing which the proposal would not be
considered by the integrated Finance Unit of the Department of Revenue.
End: O.M. dated 17.12.15.
To,

All Chief Commissioners/Commissionerates

All Director Generals/Directorates
CBEC.

230
 ANNEXURE-XIII-A2

F .No. 900/33/Admn./e-procurement/HRD/2015 Reminder

Directorate General of Human Resource Development
Infrastructure & Welfare Wing
Customs and Central Excise
Plot No.0-4, West Wing,
Ground Floor. IRCON Building, Saket
New Delhi-110017.
Dated: .10.2015
CIRCULAR
Sub:- Implementation of end-to-end E-Procurement-reg.

2. Kind attention is invited to Department of Expenditure's O.M.

No.10/3/2012-PPC dated 09.01.14 and 21.01.15 and also to this office circular
of F.No. 900/33/Admn./e-procurement/HRD/2015/2159 to 2205 dated
09.07.15 vide which it has been conveyed that apart from the
Ministries/Departments of the Central Government, their attached and
subordinate office Central Government, their attached and subordinate office
Central Public Sector Enterprises (CPSEs) autonomous/statutory bodies would
need to commence e-procurement in respect of all procurement with estimated
value of Rs.2.00 lakhs or more in a phased manner as per the prescribed
schedule.

3. Therefore all the Commissionerate/Directorates working under CBEC

and all attached/subordinate offices, CPSEs and autonomous/statutory bodies
etc. under their administrative/financial control are required to commence c-
procurement for all tenders above the prescribed limit compulsorily and to
publish their enquiries. corrigenda thereon and publish details of hid award on
CP Portal as per the instruction issued h\ Department of Expenditure vide
above OM's and earlier OM's available on Department of Expenditure website
http://finmin.nic.in.

4. All purchasing entities in the Department should publish details of the Bid
award on CP Portal.

5. In this context, NIC has developed an c-procurement solution which can

be accessed on the link hnp://eprocure.gov.in. Detailed guidelines on using the
solution on c-procurement have been circulated by NIC separately and same is
also available on the Central Public Procurement Portal (CPP).

6. All the formations are requested to take immediate action to commence

c-
procurement in respect of all procurements with the estimated value of Rs. 2
lakhs and above compulsorily.

End: O.Ms dated 09.0 1.14 & 21.01.15 ,

To,
All Chief Commissioners/Commissionerates
All Director Generals/Directorates
CBEC.

231
 ANNEXURE-XIII-A3
F. No. 900/33/Admn/e-procurement/BRD/2O 15
Directorate General of Human Resource Development.
(Infrastructure & Welfare Wing),
Customs & Central Excise,
IRCON International Ltd.,
Plot No. C-4, District Centre, Saket,
New Delhi-17.
Dated: 07.07.2015
CIRCULAR

Sub:- Implementation of end-to-end E-Procurement-reg.

Kind attention is invited to Department of Expenditure's O.M. No. 10/3/20

12-PPC dated 09.01.2014 and 21 .01 .201 5 vide which it has been conveyed that
apart from the Ministries/Departments of the Central Government, their attached
and subordinate office Central Public Sector Enterprises (CPSEs)
autonomous/statutory bodies would need to commence e-procurement in respect
of all procurements with estimated value of Rs. 2.00 lakhs or more in a phased
manner as per the prescribed schedule.

2. Therefore all the Commissionerate/Directorates working under CBEC and

all
attached/subordinate offices, CPSEs and autonomous/statutory bodies etc. under
their administrative/financial control are required to commence c-procurement for
all tenders above the prescribed limit compulsorily and to publish their enquiries,
corrigenda thereon and publish details of bid award on CP Portal as per the
instruction issued by Department of Expenditure vide above OM's and earlier OM's
available on Department of Expenditure website http://finmin.nic.in.

3. All purchasing entities in the Department should publish details of the Bid
award on CP Portal.

4. In this context. NIC has developed an e-procurement solution which can be

accessed on the link http://eprocure.ov. in. Detailed guidelines on using the solution on
c-procurement have been circulated by NIC separately and the same is also
available on the Central Public Procurement Portal (CPP).

5. All the formations are requested to take immediate action to commence c-

procurement in respect of all procurements with the estimated value of Rs. 2 lakhs
and above compulsorily.

End: O.Ms dtd. 09.01.14 & 21.01.15

(Neerja Shah)
Member (Central Excise) & DG, HRD
To,
All Chief Commissioners/Commissioners All Director
General/Directorates CBEC

232
 ANNEXURE-XIII-B
OMs No. 10/1/2011-PPC dated 30th November, 2011 and No.
10/3/2012-PPC dated 30th March, 2012 related to e-tendering
No. 10/1/2011-PPC
Ministry of Finance Department of Expenditure Public Procurement Cell
North Block, New Delhi
Dated 30th November, 2011

OFFICE MEMORANDUM

Subject: Mandatory publication of Tender Enquiries on the

Central Public Procurement Portal.

Pursuant to the decisions of the Group of Ministers constituted to

consider measures to tackle corruption and improve transparency, on the
recommendations of the Committee on Public Procurement set up to look
into various issues having an impact on public procurement policy,
standards and procedures, it has been decided that:

a. NIC will set up a portal called the Central Public Procurement Portal
(hereinafter referred to as CPP Portal) with an e-publishing module (similar
to NIC’s website www.tenders.gov.in ) and an e- procurement module (similar
to NIC’s e-procurement sites such as pmgsytenders.gov.in and epro-
nicsi.nic.in). The CPP Portal will be accessible at the URL eprocure.gov.in and
will provide links to the non-NIC e-procurement sites being used at present
by various Ministry/ Departments, CPSEs and autonomous/statutory
bodies.
b. While e-publishing of tender enquiries, corrigenda thereto and details of
contracts awarded thereon, on the Portal, shall be made mandatory in
phased manner w.e.f. 1st January 2012, the comprehensive end-to-end e-
procurement feature would be implemented in phased manner w.e.f. 1st April
2012, for which instructions will be issued separately. In the meantime, Digital
Signature, which is essential at the e-procurement phase, may be obtained
from any Certifying Authority or from NIC which is also a Certifying
Authority, for the concerned officials.
E-Publishing
c. It will be mandatory for all Ministries/Departments of the Central
Government, their attached and subordinate offices, Central Public Sector
Enterprises (CPSEs) and autonomous/ statutory bodies to publish their
tender enquiries, corrigenda thereon and details of bid awards on the CPP
Portal using e-publishing module with effect from the following dated:
c.i Ministries/Departments and their attached and subordinate
offices w.e.f. 1st January 2012;

233
c.ii CPSEs w.e.f. 1st February 2012;
c.iii Autonomous/statutory bodies w.e.f. 1st April, 2012.

d. Individual cases where confidentiality is required, for reasons of

national security or to safeguard legitimate commercial interest of CPSE’s,
would be exempted from the mandatory e-publishing requirement. As far as
Ministries/ Departments are concerned, decisions to exempt any case on the
said grounds should be approved by the Secretary of the
Ministry/Department with the concurrence of the concerned Financial
Advisor. In the case of CPSEs, approval of the Chairman & Managing Director
with the concurrence of Director (Finance) should be obtained in each case
to be exempted. In the case of autonomous bodies/ statutory bodies,
approval of the head of the body with the concurrence of the head of the
Finance function, should be obtained in each such case. Statistical
information on the number of cases in which exemption was granted and the
value of the concerned contract may be intimated on a Quarterly basis to the
Ministry of Finance, Department of Expenditure at the email id cppp-
doe@nic.in.

e. Ministries/Department, CPSEs and autonomous/statutory bodies that

are already publishing their tender enquiries on www.tenders.gov.in and/or on
their respective websites, shall ensue that their tender enquiries are
simultaneously published/mirrored on the CPP Portal also. They may also
ensure that all corrigenda and details of the contract awarded as a result of
the tender enquiry are also published on the CPP Portal.

f. Ministries/Departments, CPSEs and autonomous/statutory bodies that

are already carrying out e-procurement through NIC or their own website or
through any other service provider, shall ensure that details of all their
tender enquiries, related corrigenda and details of contracts awarded
thereon, including those that are issued through e-procurement, are
simultaneously published/ mirrored on the CPP Portal. As stated at (a) above,
they should also ensure that their e-procurement website is linked to the
CPP Portal.

g. The above instructions apply to all Tender Enquiries, Requests for

Proposals, Requests for Expressions of Interest, Notice for pre-
Qualification/Registration or any other notice inviting bids or proposals in
any form, issued on or after the dates indicated at (c) above whether they are
advertised, issued to limited number of parties or to a single party.

h. In the case of procurements made through DGS&D Rate Contracts or

through Kendriya Bhandar/NCCF, only award details need to be published on
the Portal.

i. These instructions would not apply to procurements made in terms of

234
provisions of Rules 145 (Purchase of goods without quotations) or 146
(Purchase of goods by purchase committee) of General Financial Rules – 2005
(or similar provisions relating to procurements by CPSEs, autonomous
bodies).

2. In order to facilitate implementation of aforesaid decisions regarding e-

publishing of tender details, NIC will provide detailed guidelines for using the
e-Publishing module of the CPP Portal. These guidelines will also be
available in the CPP Portal. User IDs and Passwords would have to be
obtained from NIC for accessing the Portal. Details in this regard will
also be available in the CPP Portal.

3. NIC will also provide the following support:

a. NIC will make arrangements for necessary training to the concerned

officials in the use of the CPP Portal for e-publishing. For this purpose,
Ministries/ Departments may contact NIC through email at cppp-nic@nic.in
to work out the details.
b. Detailed guideline for the use of e-Publishing module will be made
available in the CPP Portal and this would also be circulated separately to all
Ministries/ Departments.
c. A demonstration web site, similar to the CPP Portal, would be made
available for training and hands-on practice. The site will also contain
necessary user manuals and presentation materials.

4. Ministries/Departments are requested to take necessary action to

ensure that e-publishing of tender details on the Portal is commenced in terms
of the time lines mentioned in para 2 (c) above. It is also requested that
necessary instructions may be issued in this regard to all attached and
subordinate offices as also to CPSEs, autonomous and statutory bodies
under their administrative control.

-sd
(Suchindra Misra)
OSD (PPC)
011-23092689

To,

Secretaries off all Ministries/Departments

Copy to: FAs of all Ministries/Departments, Ministry of Finance
Copy also to DG (NIC), CGO Complex, New Delhi

235
 No. 10/3/2012-PPC
Ministry of Finance
Department of Expenditure
Public Procurement Cell

North Block, New Delhi.

30th March, 2012

OFFICE MEMORANDUM

Sub:- Implementation of Comprehensive end-to-end e-procurement

Reference is invited to this Department’s O.M. No. 10/1/2011-PPC

dated 30th November, 2011 vide which instructions were issued for
mandatory publication of all tender enquiries, corrigenda thereto and details
of contracts awarded thereon on the Central Public Procurement Portal (CPP
Portal) by all Ministries/Departments their attached and subordinate offices
Central Public Sector Enterprises and autonomous/statutory bodies. These
instructions further envisaged implementation of comprehensive end-to-end
e-procurement, guidelines for which were to be issued subsequently.

2. In pursuance of the above, it has now been decided that

Ministries/Departments of the Central Government, their attached and
subordinate offices may commence e-procurement in respect of all
procurements with estimated value of Rs.10 lakh or more in a phased
manner as per the month-wise schedule given at Annexure-I.

3. In this context, NIC has developed an e-procurement solution which can

be assessed on the link http://eprocure.gov.in. Detailed guidelines on using
the solution on e-procurement will be circulated by NIC separately and the
same will also be available on the CPP Portal. However, the basic requirement
to be met by Ministries/Departments is enclosed as Annexure-II. NIC will
also provide a training schedule, a demo site and hands on training on how to
use their e-procurement solution, details of which will also be made available
on the CPP Portal. Training request may be forwarded to cppp-nic@nic.in.
The proposed training schedule is enclosed as Annexure-III.

4. Ministries/Departments, which are already carrying out e-procurement

through other service providers or have developed e-procurement solutions
in house, may continue to do so, ensuring that.

i. the e-procurement solution meets all the requirements notified by

Department of Information Technology under the “Guidelines for
compliance to Quality requirements of e-procurement Systems”
published on the e-Governance Standards Portal

236
(http://egovstandards.gov.in);
ii. the procurement procedure adopted conforms to the general principles
envisaged under General Financial Rules- 2005 and the CVC guidelines:

iii. Details of all their tender enquiries related corrigenda and details of
contracts awarded thereon through e-procurement are simultaneously
published/ mirrored on the CPP Portal.

5. Ministries/Departments which do not have a large volume of

procurement or carry out procurements required for day to day running of
offices and also have not initiated e-procurement through any other solution
provider may use the e-procurement solution developed by NIC.

6. Ministries/Departments with large volume of procurement other than of

the nature covered in Para 5 above may either use the e-procurement
solution developed by NIC or engage any other service provider following due
process.

7. As already stated, the implementation of e-procurement is to be done in

a phased manner as per the month-wise schedule proposed vide Annexure-I.
In the first month, the Ministry/Department should commence e-
procurement in the Ministry/Department itself and thereafter cover all
attached and subordinate offices within a period of six months.
Ministries/Departments should draw up a time frame for implementing e-
procurement in their attached and subordinate units/offices and issue
necessary instructions so as to ensure complete implementation in all
units/offices within the prescribed timelines.

8. Ministries/Departments which are already doing some e-procurement or

which are considering implementation of e-procurement have been included
in the first two months in the proposed month-wise schedule. These
Ministries/Departments should also ensure that all attached and
subordinate offices under them commence e-procurement within a period of
six months from the commencement of e-procurement in the
Ministry/Department.

9. The Nodal Officers appointed by various Ministries/ Departments

during the implementation of mandatory e-publishing of tender enquiries on
the CPP Portal will oversee all aspects of implementation of e-procurement as
well Ministries/Departments which face any difficulty in following the
proposed month wise schedule may send their requests for alternate slots to
email id ppc-exp@nic.in

10. Ministries/Departments may also tie up with NIC for training and
support where e-procurement solution developed by NIC is adopted so that
timely commencement of e-procurement is ensured. In this regard, request

237
for training and support may be sent to cppp-nic@nic.in.

11. These instructions will not apply to procurements made by Ministries/

Departments through DGS&D rate contracts or through Kendriya Bhandar
and NCCF. However, as stated in para 1(h) of this Department’s O.M. dated
30th November 2011, award details in such cases are to be published
mandatorily on the CPP Portal under the e-publishing module./

12. Although, all cases above Rs. 10 lakh are to be covered by e-

procurement, however in individual cases where national security and
strategic considerations demand confidentiality, Ministries/Departments may
exempt such cases after seeking approval of the Secretary of the
Ministry/Departments with the concurrence of their Internal Financial
Advisers. Statistical information on the number of cases in which exemption
was granted and the value of the concerned contract may be intimated on a
Quarterly basis to the Ministry of Finance, Department of Expenditure at the
email id ppc-exp@nic.in.

13. Ministries/Departments are requested to take necessary action to

ensure that e-procurement is commenced in terms of the time lines
mentioned in para 7 above.

-sd-
(Yashashri Shukla)
Director (PCC)
011-23093457
To,

Secretaries of all Ministries/Departments

Copy to
FAs of all Ministries/Departments

Copy also to DG (NIC), CGO Complex, New Delhi.

238
 Annexure-I
Proposed schedule for implementation of e-procurement in Ministries/
Departments

Month from Name of the Ministry / Time by which all

which e- Department attached and
procurement is subordinate offices
to commence shall have
commenced e-
procurement
July 2012 Department of Revenue December 2012
Department of Land Resources
Ministry of Mines
Ministry of Coal
Ministry of Corporate Affairs
Ministry of Culture
Department of Science and
Technology Department of
Fertilizers
Department of Consumer Affairs
Department of Heavy Industries

239
 Annexure-II
The basic requirements to be met by Ministries/Departments for
implementation of e-procurement solution provided by NIC are:

Nodal Officer’s responsibilities for e-Procurement

A. Requirement of Digital Signature Certificate (DSC)
• Valid email ID & Digital Signature Certificate (DSC) is required for all
authorised users in a Ministry/Department to carry out e-Procurement.
• Digital Signature Certificate (DSC) obtained for concerned officials for e-
publishing can be used for e-procurement as well.
• The DSCs can be obtained by Ministries/Departments directly from any
of the Certifying Authorities (CA). NIC is also one of the CA and provides DSCs
to the Government officials.
• The instructions to obtain a DSC, DSC Request Form fee structure, and
payment details are available at http://nicca.nic.in and in the FAQ section of
the CPP Portal.
• Issuance of DSC to private bidders – Since NIC offers DSC only for
Government officials, bidders need to obtain DSC from other Certifying
Authorities such as TCS/SIFY/nCode etc.

B. Identification and creation of users.

Nodal Officer of all Ministries/Department will have the responsibility for
identifying and creating the user accounts for e-procurement roles such as
Bid Openers and Bid Evaluators in addition to Tender Creators and Tender
Publishers created earlier for e-publishing.

240
 ANNEXURE-XIII-C

Organisational structure of the Zone

Commissionerate under the Zone
S. Name of Name of each Nodal Officer Divisions
No. Zone Commissionerate nominated in the under the
with address Commissionerate Commissione
rate with
postal
address/cont
act no. &
Email-id
Name of Contact
Nodal no. &
Officer Email-id

241
 ANNEXURE-XIV-A

F.No. 900/33/Admn./e-procurement/HRD/2015
Directorate General of Human Resource Development
Customs and Central Excise
Plot No.C-4, West Wing,
Ground Floor, IRCON Building, Saket
New Delhi-110017.

Dated: 11th September,2017

To,
All Budgetary Authorities,
CBEC.

Sub: Procurement using Government e-Marketplace (GeM) – reg.

As you may be aware, Government e-Marketplace (GeM) is the project of

DGS&D launched with the technical support of Ministry of Electronics and
Information Technology (MeitY). Government e-Marketplace is a digital portal
for purchase of goods/services as per rates accepted by DGS & Dwhere
earlier such purchases were made offline on DGS&D rate contracts. DGHRD
has acted as an enabler and has provided training sessions on GeM to
several field formations.

2. As per GFR2017(Rule 149),the procurement of Goods and Services by

Ministries or Departments is mandatory for all Goods or Services available
on GeM for all government buyers. Hence, all purchasing entities in all the
Departments are to start using GeM for direct on-line purchases as under:

I. Up to Rs.50,000/- through any of the available suppliers on the GeM,

II. Above Rs.50,000/- and up to Rs.30,00,000/- through the GeM Seller having
lowest price amongst the available sellers, of at least three different manufacturers,
on GeM meeting the requisite quality, specification and delivery period.

(For further details, kindly refer to Chapter 6GFR,2017 and/or the

instructions available on dg-dgsnd@gov.in.and& at gem.gov.in.

3. While in many formations across the country, the GeM portal is already
being used for procurement of goods and services, however, many formations
are yet to enrol/register on the GEM portal. Out of 388 HoDs, only 48 HoDs
have started utilising GEM uptil date. Therefore there is an urgent need to
start using GeM immediately.

4. Secondly, as per the information received from the Ministry of Commerce,

it is learnt that there is a gap between orders already received by the Govt.

242
buyers (Consignee) and the CRAC*(Consignee’s Receipt & Acceptance
Certificate) which is to be generated online. Further, the gap in payments
made for the receipts vis-à-vis the total orders placed is also huge. This
might have happened because the consignee formation after placing the
order on GeM, proceeded to complete the transaction offline and therefore
did not update the details on the GeM platform. Out of total 76 formations
pertaining to MoF (in the attached statement) 48 pertain to CBEC wherein
the CRAC certificates have been generated only for 89.57% of the
transactions. Therefore, either the payments are due in those cases or the
transactions have not been completed online.

* CRAC (Consignee’s Receipt & Acceptance Certificate) is the Certificate

which the Consignee will issue on-line digitally/e-signed within 10 days of
date of receipt indicated in Provisional Receipt Certificate (PRC),after
verification of quality/quantity and satisfactory installation of machinery and
equipment wherever necessary. The CRAC would clearly indicate the Order
quantity, rejected quantity (if any, with reasons for rejection including
shortages/damaged/unaccepted quality), quantity accepted and cleared for
payment. However, if the consignee does not issue CRAC within 10 days,
on11thday from the date of receipt indicated in PRC, GeM System/Portal
would auto generate unsigned CRAC which shall be taken as deemed
acceptance for payments in lieu of the requirement of digitally/e-signed CRAC.
This will be made available on GeM to the Buyer/ Seller and also the
concerned DDO (if applicable) and PAO/Paying Authority. The GeM portal
would generate a unique serial number for CRAC relating to concerned DDO (if
applicable) &PAO/Paying Authority.

5. In this scenario, all CBEC formations are advised as follows:

a. To issue the CRAC for orders where goods have been physically received
and reduce / bridge the Gap.
b. To release the payments to vendors where ever such payments are
pending after generation of CRAC.
c. To complete the details of all historical offline transactions on GeM (for
all such orders placed on GeM platform) where the field formations
proceeded to complete the transactions offline but are yet to
update/complete the transaction on GeM online. (As per list attached)

6. While DGHRD shall continue to organise onsite trainings for the field
formations throughout the year, a detailed PPT on the procedures of GeM
shall be placed on the CBEC & DGHRD websites for ready reference of the
CBEC formations. For further details, Chapter 6 of GFR, 2017 may also be
consulted along with the instructions available on the dg-
dgsnd@gov.in.&gem.gov.in websites.

243
7. Meanwhile, all the HoDs in the Commissionerates/Directorates under
CBEC may kindly provide the following information to EMC, DGHRD:

i. Whether they have registered on the GeM platform so far or not?

ii. If so, the details of orders placed by the formation through GeM for
procurement of goods and services uptil date.
iii. Action taken on the points listed in Para 5 above.

8. It is requested that the above information may be conveyed to EMC,

DGHRD by return fax latest by 14th September, 2017.

From FY 2017-18, the procurement of Goods and Services by all formations

of CBEC (including Directorates)is mandatory for Goods or Services available
on GeM and not by traditional methods of issuing tenders. However e-
procurement may be done wherever items are not yet available on GeM.

244
 ANNEXURE-XIV-B

What is GeM?
Based on recommendations of Group of Secretaries made
to Hon’ble Prime Minister, the Government decided that
GeM SPV will create a one stop Government e-
Marketplace (GeM) to facilitate online procurement of
common use Goods & Services required by various
Government Departments / Organizations / PSUs. GeM
aims to enhance transparency, efficiency and speed in
public procurement. It provides the tools of e-bidding,
reverse e-auction and demand aggregation to facilitate
the government users achieve the best value for their
money.

The purchases through GeM by Government users have

been authorized and made mandatory by Ministry of
Finance by adding a new Rule No. 149 in the General
Financial Rules, 2017.

About GeM
 Formally launched on 9thAugust, 2016.
 DGS&D hosts an online dynamic, self-sustaining and user-friendly Government e-
Marketplace (GeM) for common use Goods and Services.
 Developed by DGS&D (Deptt. of Commerce)
 Technical support of NeGD (Meity)
 Integrated with PFMS & State Bank Multi-Option Payment system (SBMOPS)
 All O.M.s available on websites: www.finmin.nic.in  Departments  Expenditure 
Procurement Policy Division
 The Cabinet had in April 2017 approved creation of GeM Special Purpose Vehicle (SPV),
which will replace DGS&D, nodal purchase organisation of the central government.
 The DGS&D shall be wound up and will cease its functions by 31st
March 2018.

245
 General Financial Rules 2017
DGS&D with technical support of NeGD (MeitY) has developed the GeM portal for
procurement of Products & Services. The purchases through GeM by Government users have
also been authorized by Ministry of Finance by adding a new Rule No. 149 in the General
Financial Rules, 2017.

Rule 149: Government e-Market place (GeM)

DGS&D or any other agency authorized by the Government will host an online Government
e-Marketplace (GeM) for common use Goods and Services.

Adequate publicity will be ensured including periodic advertisement of the items to be

procured through GeM for the prospective suppliers.
The Procurement of Goods and Services by Ministries or Departments will be mandatory for
Goods or Services available on GeM.
The credentials of suppliers on GeM shall be certified by DGS&D.
The procuring authorities will certify the reasonability of rates.

i. Up to Rs.50,000/- through any of the available suppliers on the GeM, meeting the requisite
quality, specification and delivery period.
ii. Above Rs.50,000/- and up to Rs.30,00,000/- through the GeM Seller having lowest price
amongst the available sellers, of at least three different manufacturers, on GeM, meeting
the requisite quality, specification and delivery period. The tools for online bidding and
online reverse auction available on GeM can be used by the Buyer if decided by the
competent authority.
iii. Above Rs.30,00,000/- through the supplier having lowest price meeting the requisite
quality, specification and delivery period after mandatorily obtaining bids, using online
bidding or reverse auction tool provided on GeM.

246
Workflow and Timelines
Competent Authority

Primary User Secondary User

Organization Registration Secondary User Registration

Fill the required fields to Buyer Consignee

register the organization
with GeM. PAO DDO

Buyer CONSIGNEE
• Select Product Seller Confirmation
and Delivery of Goods • Receive & i spectio of Goods
• Select ode of Procurement (DP/L1/Bidding/RA)
Delivery Period • Right to Reject Order with-in 10 Days
• Upload sca ed Fi a cial Approval Within 15 days • CRAC Generation
• Generate Contract order

Bill to be drafted by Buyer

Process payment Bill to PAO

Post payment confirmation
• DDO – Through PFMS Seller will confirm order
• PAO – Through SBI MOPS/Offline mode Payment Processed
closure

Procurement Options

Many
For amounts
suppliers &
Less than
for high
INR.50,000/-
value

Direct Reverse
Purchase Auction

L1 Bidding
For amounts
Greater than 2-tier bid
INR.50,000/- system –
and Less Technical &
than INR.30 Financial
Lakhs

247
How to purchase using GeM
Search Product Get Financial and
Place Order after getting
Buyer Login Select among various Administrative Approval
approval
options available (Sanction Order)

Items will be dispatched

Order has been placed
and delivered by seller. Fill the necessary details (Block
now. Product will be
Accept the order after Budget & upload sanction order)
shown in order list
inspection.

Process order & e-verify

Go to Payments.
Consignee Receipt
Create Bill & Save
Acceptance Certificate
Draft Bill.
(CRAC)

Dispatch and Delivery

 On dispatch/delivery of Goods and/or Services, the Seller/Supplier shall prepare an

electronic Invoice, digitally/e-signed, on GeM portal and shall submit the same on-line
to the Buyer.

 The GeM portal will send an SMS/e-mail alert to the Buyer on submission of Invoice.

 This Invoice will contain mode of dispatch of goods, dispatched/delivered quantity with
date and all-inclusive price based on digitally/e-signed Contract/Supply Order/Purchase
Order data.

 In case Services are procured, the required data as per Contract/Supply Order/Purchase
Order may be incorporated in the Invoice.

248
 Consignee’s Receipt & Acceptance
Certificate (CRAC)
 The Buyer/Consignee receives the Goods/Services and issues an online Provisional Receipt
Certificate (PRC), within 48 hours, mentioning the date of Receipt.
 From the date of receipt mentioned in PRC, the period of ten (10) days for Consignee s/Buyer s
right of rejection and return policy would be applicable.
 After assessment of quality and quantity or satisfactory installation of machinery and
equipment, the Consignee will issue online digitally/e-signed Consignee's Receipt &
Acceptance Certificate (CRAC) within 10 days of date of receipt indicated in PRC.
 The CRAC will indicate the Order quantity accepted and cleared for payment or rejected
quantity with reasons for rejection.
 However, if the consignee does not issue CRAC within 10 days, on 11th day from the date of
receipt indicated in PRC, GeM System/Portal would auto -generate for the corresponding
quantity and shall be taken as deemed acceptance for payments.
 This will be made available on GeM to the Buyer/Seller/DDO/ PAO/Paying Authority and
generate a unique serial number for CRAC to the concerned DDO & PAO/Paying Authority.

 For Payment through PFMS requiring DDO functionality:

 After generation of CRAC, the Buyer shall prepare Payment advice' on GeM Portal,
indicating any contractual deductions such as penalties for violation of Service Level
Agreement (as applicable)/Liquidated Damages for delayed supplies etc.
 GeM portal will to compute the net amount payable for the accepted quantity after factoring
in the contractual deduction(s) and generate claims for payments digitally/e-signed by the
Buyer.
 This claim for payment shall be made available to the DDO on GeM Portal and the requisite
data will also be pushed online in the PFMS.
 DDO will log into PFMS and generate the Bill against the said claims and forward the same
to the PAO/Paying Authority for payment, after deducting any statuary deductions including
TDS as applicable.
 The DDO shall also be responsible for issuing TDS certificate (as per Income Tax Act, 1961
amended from time to time) to the Seller after release of the payment to the Seller/Supplier.

249
Online Pre-Checking of Documents
 PAO/Paying Authority debits the Government account, releasing the corresponding payment
to be credited into the bank account of the Seller/Supplier.
 The payment shall be credited to the Seller/Supplier's account within 24 hours by the Bank.
 SMS alerts shall be sent to the Seller and Buyer after the payment is authorized by
PAO/Paying Authority and after confirmation of the payment by the Bank.
 The payment authorization & payment confirmation details shall be shared by PFMS/on the
GeM portal.
 The PAO/Paying Authority and DDO shall comply with the provisions of General Financial
Rules for budget implementation.
 In case of return of Bill, PAO/Paying Authority should provide the needful corrections to all
queries/discrepancies/reasons for rejections online to the DDO/Buyer in one go with the
approval of the competent authority.

250
 ANNEXURE-XV
No. F.26/ 4/2016.PPD
Government of India
Ministry of Finance
Department of Expenditure
Procurement Policy Division
516, Lok Nayak Bhawan,
New Delhi Dated 20th September, 2016.

OFFICE MEMORANDUM

Subject: Procedures for payments to Sellers Suppliers in

Government e- Marketplace (GeM)- reg.

Ref.: OM No. F.26/4/2016.PPO dated 26th 2016 on above subject.

In supersession of the above referred OM dated 26.05.2016 and

pursuant to Rule No. 141-A of GFR 2005, the following procedures are
prescribed for making payments to the Sellers / Suppliers in GeM which
shall be complied and adhered to by all concerned.

2. The Government Buyer i.e. the concerned Programmee Division or

administrative Unit in a Ministry/Department will place the Contract/Supply
Order/ Purchase Order online after taking prior approval of the Competent
Authority for procuring a particular Good or Service. Inter-alia, the
Contract/ Supply Order/Purchase Order form will also contain the following
fields including fields required for payment related process:

a. Administrative approval of the Competent Authority indicating

the designation of the approving authority,
b. Approval of Competent Financial Authority indicating
designation of the officer;
c. Whether IFD concurrence required? (Yes/No)
d. If yes, then IFD Diary No.& Date
e. Budget Head of Account and Year, Major/Minor/Sub-
head/Detailed Head/Object Head as in Detailed Demands for Grants.
f. Budget availability as on date (Yes/No)
g. Amount (Contract Value)): Rs.. ... . (Budget to be blocked)
h. If expenditure is committed for more than a year, the year-wise details
- (portal should generate a Liability Register for recording multi-year
payment commitments. the format for which is prescribed in Rule 53 of
the GFR)
3. When these fields are duly captured, the Buyer will be in a position to
place the Order online. The GeM portal will generate a Sanction Order and
251
the Contract Agreement/Supply Order/Purchase Order which will be
digitally/e-signed by the Buyer. These documents duly digitally/e-signed
by the Buyer will be made available online to the concerned DDO
(applicable in PFMS), PAO (applicable in PFMS), Paying Authority
(applicable in Payment System of Railways/Defence/Posts/Others
including PSUs, Municipalities, Educational Institutions, Autonomous
Institution, State Government, etc) and Seller/ Supplier. The DDO and
PAO/Paying Authority shall have access to the Contract Agreement/Supply
Order/Purchase Order online in order to ensure that the Bill is generated at
the stage of payment in accordance with the contractual provisions.

4. The GeM portal will send the Sanction Order details to PFMS/Payment
System of Railways/ Defence/Posts/Others (Others mean 'various
Government Bodies including PSUs, Municipalities, Educational
Institutions, Autonomous Institution, State Government, etc)
5. On issue of Sanction order and placing the Contract/Supply
Order/Purchase Order, the amount required from the relevant Budget Head
gets blocked in the PFMS/ Budget Accounting System of Railways/
Defence/Posts/Others.
6. Should it be necessary to amend the Contract, such
Contract/Supply Order / Purchase Order with due approval of the
Competent Authority and acceptance of the Seller/Supplier shall be
made available to the Supplier/DDO/PAO/Paying Authority on the GeM
portal.

7. Similarly, in the event of complete / partial cancellation of the

Contract/Supply Order/Purchase Order the information would be made
available to the Seller/Supplier, DDO and PAO/Paying Authority on the
GeM portal. In that event, funds so blocked earlier would be released to the
extent of cancelled amount.

8. The Programme Division/Administrative Unit in the

Ministries/Departments shall periodically review the blocked budget to
ensure that funds are utilized within the same financial year.

9. The performance security (if any) under Rule 158 of General

Financial Rule 2005, would be obtained from the Seller/Supplier as per
Contract/Supply Order/Purchase Order, and their details would be reflected
an the GeM portal by the Buyer.
10. On dispatch/delivery of Goods and/or Services, the Seller/Supplier
shall prepare an electronic Invoice. digitally/e-signed, on GeM portal and
shall submit the same on-line to the Buyer. Gem portal will send an SMS/
email alert to the Buyer, on submission of Invoice. This Invoice will contain
mode of dispatch of goods, dispatched/delivered quantity with date and all
inclusive price claimed based on digitally/e-signed Contract/Supply
Order/Purchase Order data. In case Services are procured, the required data

252
as per Contract/Supply Order/Purchase Order may be incorporated in the
Invoice.
11. The Buyer/consignee receives the Goods/Services and issues an online
Provisional Receipt Certificate (PRC), within 48 hours, on 'said to contain
basis' on the GeM portal with his/her digital signature, mentioning the
date of Receipt (From this date of receipt mentioned in PRC, the period of
ten (10) days for consignee’s/buyer’s right of rejection and return policy
would be applicable).

12. After verification including assessment of quality and quantity and

satisfactory installation of machinery and equipment wherever necessary,
the Consignee will issue on-line digitally/e-signed Consignee's Receipt &
Acceptance Certificate (CRAC) within 10 days of date of receipt indicated in
PRC. The CRAC would clearly indicate the Order quantity, rejected quantity
(if any, with reasons for rejection including shortages/damaged/ unaccepted
quality), quantity accepted and cleared for payment. However, if the
consignee does not issue CRAC within 10 days, on 11th day from the date of
receipt indicated in PRC, GeM System/Portal would auto generate unsigned
CRAC which, backed with digitally/e-signed PRC for the corresponding
quantity shall be taken as deemed acceptance for payments in lieu of the
requirement of digitally/e-signed CRAC. This will be made available on GeM
to the Buyer/ Seller and also the concerned DDO (if applicable) and
PAO/Paying Authority. The GeM portal would generate a unique serial
number for CRAC relating to concerned DDO (if applicable) & PAO/Paying
Authority, so that the payments are made serial in J.

13. After generation of CRAC, the Buyer shall prepare ‘Payment advice’ on
GeM Portal, as under:

(A) For Payment through PFMS requiring DDO functionality: After

generation of CRAC, the Buyer shall prepare ‘Payment advice' on GeM
Portal, indicating any contractual deductions such as penalties for
violation of Service Level Agreement (as applicable)/Liquidated Damages
for delayed supplies etc. which will be used by GeM portal to compute
the net amount payable for the accepted quantity after factoring in the
contractual deduction(s) and generate claims for payments digitally/e-
signed by the Buyer. This claim for payment shall be made available to
the DDO on GeM Portal and the requisite data will also be pushed online
in the PFMS. DDO will log into PFMS and generate the Bill against the
said claims and forward the same to the PAO/Paying Authority for
payment, after deducting any statuary deductions including TDS as
applicable. The DDO shall also be responsible for issuing TDS certificate
(as per Income Tax Act, 1961 amended from time to time) to the Seller
after release of the payment to the Seller/Supplier.

(B) For Payment through Payment Systems other than PFMS, not
requiring DDO functionality:

253
After generation of CRAC, the Buyer shall prepare 'Payment advice’ on GeM
Portal, indicating any contractual deductions such as penalties for violation
of Service Level Agreement (as applicable)/ Liquidated Damages for
delayed supplies and also statuary deductions including TDS as applicable.
The same will be used by GeM portal to compute the net amount payable for
the accepted quantity and generate claims for payments digitally/e-signed by
the Buyer. This claim for payment shall be made available to the
PAO/Paying Authority on GeM Portal for payment, after deducting any
statuary deductions including TDS as applicable.

In case the Buying organisation allows direct online payment through the
payment gateway integrated with Bank(s) available on GeM Portal, the
concerned PAO/Paying Authority shall log into the GeM Portal to process
and advice for release of online payment to the Seller /Supplier through the
available payment gateway. However, in case the PAO/Paying Authority
operates through its own online Payment System, the requisite data will be
pushed online in the Payment System of the Buying organisation.
PAO/Paying Authority shall log into the Payment System to process the
payment advice for release of online payment to the Seller /Supplier. The
Buyer shall also be responsible for issuing TDS certificate.

14. After online pre-check of all relevant documents, PAO/Paying Authority

shah debit the Government account, releasing the corresponding payment
through PFMS/the Payment System of Railways/Defence/Posts/Others to
be credited into the bank account of the Seller/Supplier. The payment so
released shall be credited to the Seller/Suppler's account within 24 hours
(excluding public holidays), by the Bank. SMS alerts shall be sent to the
Seller and Buyer after the payment is authorized by PAO/Paying Authority
and also after the confirmation of the payment by the Bank. The payment
authorization as well as payment confirmation details shall be shared by
PFMS /Payment System of Railways/ Defence/Posts/Others on the GeM
portal. The PAO/Paying Authority and DDO shall comply with the provisions
of General Financial Rules for budget implementation.
(b) In case of return of Bill, if necessary by PAO/Paying Authority, it should
be made online with all queries/discrepancies/reasons for rejections
indicated in one go with the approval of competent authority, to the
DDO/Buyer for the needful corrections at their end.

15. In terms of the provisions of the Information Technology Act 2000 as

amended from time to time, digitally/e-signed online documents generated
on GeM shall be treated at par with ink-signed documents for release of
payment to the Seller/Supplier and no ink signed paper/documents shall be
demanded/insisted

16. It is obligatory for payments to be made without any delay for purchases
made on GeM. In no case should it take longer than the prescribed timelines.

254
The timelines after Consignee Receipt and Acceptance Certificate (CRAC)
issued on-line and digitally/e-signed by consignee, will be two (2) working
days for Buyer, one (1) working day for concerned DDO and two (2)
working days for concerned PAO/Paying Authority for triggering payment
through PFMS/the Payment System of Railways/Defence /Posts /Others
and Banks for crediting to the supplier's account. In case of return of Bills by
PAO/Paying authority, the discrepancies should be addressed by concerned
Buyer/DDO within one working day and thereafter on re- submission of Bill
the PAO / Paying Authority should also not take more than one (1) working
day for triggering payment to the supplier/seller. Any matter needing a
resolution will be escalated to the next higher level in each agency (Buyer,
DDO and PAO/Paying Authority) where the matter should be resolved
within 24 hours. In the entire process, time taken for payment should not
exceed ten (10) days including holidays.

17. GeM System/Portal would also have on-line provisions for generating
supplementary Invoice(s) for claim/refund of statutory changes in Duties
and taxes, if any, as above. A provision for all types of refunds/claims should
be available on-line through PFMS /the Payment System of
Railways/Defence/Posts/Others.
18. The multi-year liabilities so created as referred to in Para 2(h) above
shall be reviewed regularly by the Programme Division/Administrative unit
in consultation with the Financial Adviser. The consolidated information
on the total committed liabilities, year wise, shall be submitted by the
Financial Adviser to the Budget Division, Department of Economic Affairs,
Ministry of Finance for suitably reflecting in the Budget Estimates for the
relevant financial year and in the Medium Term Expenditure Framework
(MTEF).

19. The above procedures and time lines shall be strictly adhered by the
Ministries/Departments.

20. This issues with the approval of Secretary (Expenditure).

Under Secretary to the Govt. Of India

Tel:-24621305
To,
All the Secretaries and Financial Advisers to Government of India

Copy to:
1. CGA, CGDA, FC/ Railway Board- for information and necessary action.
2. Secretary/Department of Public Enterprises with a request to issue
appropriate instructions to Public Sector Undertakings in this regard.
Internal circulation: AS (PF-I), JS(FA), JS (Pers.) and JS (PF-II).

255
 ANNEXURE-XVI

BE. Allocation "Swachhta" (2018-19)

(Rs. in Thousands)
GST Customs
S.No. Budgetary Authority B.E. Allocation S.No. Budgetary Authority B.E. Allocation
1 PCCGST, Ahmedabad 7990 1 CCC, Ahmedabad 5000
2 PCCGST, Bengaluru 11000 2 CCC, Bangalore 2300
3 CCGST, Bhopal 11000 3 CC (P), Bhubneshwar 500
4 CCGST, Bhubaneshwar 5000 4 CCC, Chennai 10000
5 CCGST, Chandigarh 7000 5 CCC(P), Trichy 3100
6 PCCGST, Chennai 20000 6 CC, Cochin 2500
7 CCGST, Thiruvanthaputam 6200 7 CC(P), Cochin 1500
8 PCCGST, Delhi 9000 8 CCC, Delhi 8000
9 CCGST, Panchkula 7100 9 CCC(P),Delhi 5800
10 CCGST, Hyderabad 9000 10 CC, Goa 1800
11 CCGST, Jaipur 8000 11 CC, Hyderabad 500
12 PCCGST, Kolkata 14000 12 CC, Indore 300
13 PCCGST, Lucknow 8000 13 CCC, Kolkata 7000
14 CCGST, Meerut 9000 14 CCC, Mumbai-I 10000
15 PCCGST, Mumbai 18000 15 CCC, Mumbai-II 6000
16 CCGST, Nagpur 7000 16 CCC, Mumbai-III 5000
17 CCGST, Ranchi 8000 17 CC, Nagpur 300
18 CCGST, Pune 6000 18 CC, Noida 500
19 CCGST, Guwahati 6200 19 CCC(P), Patna 5500
20 CCGST, Vadodara 10000 20 CC, Pune 2500
21 CCGST, Visakhapatnam 4200 21 CC(P), Shillong 2000
22 DG, ARM 10000 22 CC, Visakhapatnam 2000
23 DG, Tax Payer Service 1800 23 CC(P), Vijaywada 2200
24 DG, GST, Delhi 1000 24 DGEP 500
25 Pr.CCA (Central Excise), Delhi 2000 25 CRCL 2800
DG, Performance
26 1700 26 PAO-Customs 400
Management
Commissioner, Directorate Commissioner,
27 650 27 500
of Legal Affairs Logistics
28 DG, HRD 3000 28 DG, DRI 17000
29 DG, Audit 1460 29 DG, Valuation 600
30 DG, Safeguards 500 30 PADG, DIC 1500
31 CDR, CESTAT 4000
32 DG, Systems 3000
33 Commr. Data Management 350
34 DG, NACIN 20000
35 DG, Vigilance 3000
36 DG, GSTI 10000
Commissioner, Settlement
37 1500
Commission
38 Pr, CCA, Directorate 20
Total 255670 Total 107600

256
 ANNEXURE-XVII A

No. 12(l)/E.II(A)/201 6
Government of India
Ministry of Finance
Department of Expenditure

New Delhi. the 7th October. 2016

OFFICE MEMORANDUM

Subject: Grant of advances - Seventh Pay Commission

recommendations- Amendment to Rules 21(5) of
Compendium of Rules on Advances to
Government Servants.

The undersigned is directed to say that in pursuance of the decision

taken by the Government on the Seventh Pay Commission's
recommendations relating to advances, the existing provisions of
Compendium of Rules on Advances - 21(5) relating to Personal Computer
Advance are amended as per the amendments attached.

2. These orders will take effect from the date of issue of this O.M. The
cases where the advances have already been sanctioned need not be
reopened.

3. The other interest bearing advances relating to Motor Car Advance and
Motorcycle /Scooter / Moped Advance will stand discontinued.

4. In so far as persons serving in Indian Audit and Accounts Department

are concerned, these orders issue in consultation with the Comptroller and
Auditor General of India.

5. All the Ministries/Departments are requested to bring the amendments

to the notice of all its attached and subordinate offices for their information.

Hindi version of this O.M. is enclosed.

-Sd-
(Pankaj Hazarika)
Director, E.II(A)
To

All the Ministries/Departments of the Government of India. etc.

Copy (with usual number of spare copies) forwarded to C&AG, UPSC, etc. as
per standard endorsement list.

257
 AMENDMENTS TO COMPENDIUM OF RULES ON ADVANCES TO
GOVERNMENT SERVANTS, 2005

CONDITIONS OF GRANT OF COMPUTER ADVANCE:

Rule 21(5)

Advance Quantum Eligibility Criteria

Personal Computer Rs.50,000 or actual All government

Advance price of PC, whichever is employees
lower.

(ii) The Computer advance will be allowed maximum five times-in the entire
service.

258
 ANNEXURE-XVII B
No. 12(1 )IE.II(A)/2016
Government of India
Ministry of Finance
Department of Expenditure

New Delhi. the 7th October, 2016

OFFICE MEMORANDUM

Subject: Grant of advances - Seventh Pay Commission

recommendations- Amendment to Rules of
Compendium of Rules on Advances to
Government Servants.

The undersigned is directed to say that in pursuance of the decision

taken by the Government on the Seventh Pay Commission's
recommendations relating to advances, all the interest free advances stand
discontinued as per attached annexure, with the exception that the interest
free Advances for Medical Treatment, Travelling Allowance for family of
deceased, Travelling Allowance on tour or transfer and Leave Travel
Concession shall be retained.

2. In addition, the advance for training in Hindi through Correspondence

Course, which is not mentioned in the Compendium of Rules on Advances to
Government Servants, also stands abolished in pursuance of the decision of
Government on 7th CPC recommendation.

3. These orders will take effect from the date of issue of this O.M. The
cases where the advances have already been sanctioned need not be
reopened.

4. In so far as persons serving in Indian Audit and Accounts Department

are concerned, these orders issue in consultation with the Comptroller and
Auditor General of India.

5. All the Ministries/Departments are requested to bring the amendments

to the notice of all its attached and subordinate offices for their information.

Hindi version of this O.M. is enclosed.

-Sd-
(Pankaj Hazarika)
Director E.II(A)
To
All the Ministries/Departments of the Government of India, etc.
Copy (with usual number of spare copies) forwarded to C&AG, UPSC, etc. as
per standard endorsement list.

259
 AMENDMENT TO COMPENDIUM OF RULES ON ADVANCES TO
GOVERNMENT SERVANTS, 2005.

Sl.No Name of Advance Gol Decision on 7'h CPC

recommendations

1. Bicycle Advance Abolished

2. Warm Clothing Advance Abolished
3. Advance of Pay on Transfer Abolished
4. Festival Advance Abolished
5. Natural Calamity Advance Abolished
6. Advance of Leave Salary Abolished
7. Advance for Law Suits Abolished

260
 ANNEXURE-XVII C

F.No.119051/1/2017-E.IV
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, the 2nd August 2017

OFFICE MEMORANDUM

Subject: Implementation of the recommendations of the Seventh

Central Pay Commission-Dress Allowance.

Consequent upon the decisions taken by the government on the

recommendations of the Seventh Central Pay Commission, in supersession
of the existing orders relating to Uniform related Allowances viz. Clothing
Allowance, Initial Equipment Allowance, Robe Allowance, Robe Maintenance
Allowance, Shoe Allowance, Uniform Allowance and Washing Allowance
which have been subsumed in a single Dress Allowance, the President is
pleased to decide the rates of Dress Allowance in r/o the following categories
of Central Government employees as under:

S.No. Category of employee Rate per annum

(in Rs.)
1. Special Protection Group (SPG) Operational 2,800/-
Special Protection Group (SPG) Non-operational 21,225/-
2. Officers of Army/IAF/Navy/CAPFs/CPOs 20,000/-
RPF/RPSF/IPS/Coast Guard.
3. MNS Officers, officers f DAN/IPS/ACP of Delhi 15,000/-
Police/other Union Territories
4. Executive staff of Customs, Central Excise and 10,000/-
narcotics Department (both in summer and
summer-cum-winter), Indian Corporate Law
Service (ICLS) Officers, legal officers in NIA,
bureau of Immigration Personal (in Mumbai,
Chennai, Delhi, Amritsar, Kolkata and all check
points of bureau of Immigration) PBORs of
Defence Services/CAPFs/RPF/Police Forces of
Union Territories and Indian Coast, Gurad,
Station Masters of Indian Railways.
5. Other categories of staff who were supplied 5,000/-
Uniforms and are required to wear them
reqularly like Trackmen, Running staff of Indian
Railways, Staff Car Drivers, MTS, Canteen Staff
of Non-Statutory Departmental Canteens, etc.
6. Nurses 1800/- per month

261
2. Allowances related to maintenance, washing of Uniform are subsumed
in Dress Allowance and will not be payable separately.
3. Further categories of staff who were earlier being provided Uniforms,
will henceforth not be provided with uniforms.
4. The amount of Dress Allowance shall be credited to the salary of
employees directly once a year in the month of July.
5. This allowance covers only the basic uniform of the employees. Any
special clothing like that provided at Siachen glacier or inside submarine or
fluorescent clothing provided to trackmen of Indian Railways or to ID
personnel posted at high altitudes will continue to be provided by the
concerned Ministry as per existing norms.
6. Outfit Allowance, paid to Indian Foreign Service officers and employees
will continue to be provided as before, is enhanced by 50%.
7. The rates of Dress Allowance will go up by 25% each time Dearness
Allowance rises by 50%.
8. These orders shall take effect from 01st July, 2017.
9. Separate orders will be issued by Ministry of Defence, Ministry of Home
Affairs, Ministry of Railways Ministry of Health & Family Welfare of
Corroborate Affairs, Ministry of External Affairs, Department of Revenue,
Department of Personnel & Training and Cabinet Secretariat in respect of
employees of these Ministries/Departments.
10. In so far as the persons serving in the Indian Audit & Accounts
Department are concerned, these orders issue in consultation with the
Comptroller & Auditor General of India.

Hindi version is attached.

To,

All Ministries and Departments of the Govt. of Indian etc. as per standard
distribution list.
Copy to: C&AG and U.P.S.C., etc. as per standard endorsement list.

262
 ANNEXURE-XVII D

F.No.C 30013/158/03 Ad IV A
Government of India
Ministry of Finance
Department of Revenue

New Delhi, the 16th June, 04

To

All Chief Commissioner/DG under CBEC

Subject: Reimbursement in respect of Newspapers supplied to

Officers at their residences- instructions - reg.

Sir,

I am directed to say that mater of the reimbursement in respect of

Newspapers supplied to officers at their residences has been considered in
consultation with the Integrated Finance Unit of the Ministry and it has been
decided that the various categories of officers in Customs and Central Excise
Commissionerates and Directorates may be allowed reimbursement of bills
in respect of newspapers purchased by them at their residence, as indicated
below:

SL No. Level of Officer Maximum No. of

Indian Newspapers
1 Chief Commissioner/DG 3 (three)
2 Commissioner 2 (two)
3 Addl. Commissioner/Joint Commissioner/ 1 (one)
Dy. Commissioner/ Asstt. Commissioner,
Superintendent & equivalent grade.

2. The officers would have the option to purchase the Indian Newspapers
of their choice. No foreign Newspapers as also Magazines (Whether Indian
foreign) will be allowed- The reimbursement in respect of the Newspapers
may be made by the budgetary authorities on production of pre-receipted the
paid-up Bills/ Cash Memos by the concerned officers. The officers will move
the option to either return the old newspapers to the office or to make a
deduction from the reimbursement bill @ 15%, for retaining the newspapers
with them. However, no additional funds will be provided for meeting and
additional expenditure on providing the facility of newspapers to the officers.

3. This issues with the concurrence of Integrated Finance Unit of this

Department vide their Dy No 577/04 IFU III dated 2.1 5.04.

263
4. It is further requested that the existing practices (s) and the scale (s) of
provision of newspapers, etc to the officers, in your charges/region, may be
stopped, and the aforesaid instructions may be implemented, uniformly
forthwith.
Yours faithfully,

(INDIRA MURTHY)
UNDER SECRETARY TO THE GOVT. OF INDIA

Copy to:
1. Chair-man CBEC/Member CBEC
2. All Joint Secretaries/Directors/Deputy Secy./Under Secy.
3. Pr. CCA (C&CE) New Delhi
4. All Zonal Accounts Officer CBEC
5. IFU III
6. Dir. (Ad.III)
7. Sanction Folder

(INDIRA MURTHY)
UNDER SECRETARY TO THE GOVT. OF INDIA

264
 No.7(14)/C&V/2006
Government of India Ministry of Finance
Department of Expenditure
Dated April 10th 2007
OFFICE MEMORANDUM

Sub: Facility of Telephone (landline and/or mobile connection) at

the residence in respect of entitled categories of Government
employees.

The undersigned is directed to refer to the Departments O.M. of even no.

dated 14,11.2006, on the subject mentioned above and to state that
clarification have been sought by various Ministries/Departments about
certain issues relating with the implementation of the aforesaid O.M. like the
number of connections qualifying for reimbursement, whether the taxes
applicable were to be paid for by the officer or office whether the entitlement
of the residential telephone is to be regulated by this O.M. etc.

2. The queries/doubts raised by various quarters have been duly

examined and the following clarifications are issued:

S. Queries Clarifications
No.
1 How will the reimbursable amount The total expenditure on one or
be calculated if an officer is provided all of the stated facilities
with landline, mobile phone and should not exceed the ceiling
facility by the Office/Deptt. and the amount applicable in the case
amount of the bills relating to each of the officer. No separate
facility exceeds the prescribed ceiling has been provided in
ceiling. respect of the stated facilities
individually.
2 Is Rs.400/- to be reduced on account Officers of DS and above level
of broadband facility be applicable in are required to subscribe to
those cases also where-the Broadband facility and in its
broadband facility have not been absence Rs.400/- shall be
provided by the 'Office/ Department deducted/reduced from the
and the Officers have got installed ceiling amount. However no
broadband facility on personal individual/ separate ceiling
landline telephones on their own. has been fixed in respect of the
three facilities covered by the
overall ceiling.
3 What will be the reimbursable The entire amount shall be
amount if the Officers provided reimbursable if expenditure
landline telephone facility at the ceiling is observed. Even
residence on functional basis by way Officers to whom telephone
of taking over their personal landline facility has been provided on
telephones have got provided functional basis can use

265
 broadband facility on their own and mobile phone/broadband
the amount of telephone bill facility.
furnished is within the prescribed
ceiling.
4 Whether private Service provider are Yes
to be allowed in the case of landline
telephones also and the office/
Department can provide a telephone
connection of private service provider.
5 Whether STD and/or broadband The stated facilities can be
facilities can be made available by the provide however, expenditure
Office/Department on residential incurred, if any, on providing
telephone of those officers also who the same shall be borne by the
have been provided official telephone concerned Official in this case.
facilities at their residences on
functional basis.
6 Whether Officers of the rank of Yes
Director/Deputy Secretary or below
provided with the facility of residential
telephone cane avail mobile or
broadband facility also within the
ceiling fixed for each rank.
7 Whether the facility of STD is Yes
permitted to officers below the rank of
Joint Secretary on residential
telephone as per the O.M.
8 Whether the ceiling envisaged will Yes, regarding the non-entitled
also apply in case of official officers the maximum
connections (both landline andreimbursable amount shall be
mobile) provided to officers (both restricted to Rs. 800/- p.m. (as
entitled and non-entitled) onat Sl. No.5 of O.M.) unless a
functional grounds, the payment of higher rate of reimbursement
which is made by the Government. has specially been provided for
originally.
9 Whether an officer who has Yes, subject to production of
been provided residential landline proper bills/receipts in respect
connection by the Office and also of the facility acquired
uses his own mobile connection personally/privately.
apart from the Official phone would
be entitled for re-imbursement if the
total usage of official connection plus
his own mobile is less than the
ceiling fixed.
10 What is the effective date from which 14.11.2006 i.e., the date of
the limits laid down on the ceiling issue of the earlier
amounts are to be observed. comprehensive O.M. is the
effective date for this purpose.

266
11 Whether the residential telephone Yes, if they are entitled for
facilities to personal staff of Minister residential telephone facility.
will also be governed by the above
quoted instructions.
12 Whether all Officers below the rank Yes
of Deputy Secretary i.e. Group A and
Group 'B' gazetted and non-
gazetted officials, who have been
allowed residential telephone facility
by the Department under the 25%
restriction instructions can also
claim reimbursement of their mobile
phone bill subject to overall ceiling of
Rs. 800/- p.m.
13 Whether re-imbursement can be Yes
made to those Officers who are
using pre-paid mobile connections
and submit re-charge coupons only
instead of any proper bills/receipts
etc.
14 Whether re-imbursement is to be Yes
allowed only in such cases where
the mobile/telephone connection is
in the name of the Officer.
15 Whether the instant O.M. shall apply Yes. A certificate be obtained
on those cases where husband and from the Officer submitting the
wife are sharing the same bill that the other Officer
residential telephone and both are (husband/wife) shall not claim
entitled officers as per this O.M. In the re-imbursement in respect
this case whether re-imbursement of of the same bill.
the total amount (upto combined
ceiling amount) can be made if either
the husband or wife submits the
combined bills of landline/ mobile
/ broadband facility being used by
both.
16 Whether the Officials, otherwise Yes, the reimbursable amount
non- entitled, who have been in such cases shall be
allowed the facility of residential/ restricted to Rs.800/- i.e. at par
mobile phone on functional basis with categories at SLNo.5 in
like Parliament Assistants and others the O.M.
are also covered by the present O.M.

17 Whether the O.M envisages payment The applicable taxes on the

of taxes on the expenditure expenditure incurred upto the
incurred on landline/ mobile phone/ ceiling amount shall be paid

267
 broadband facility by the Officer for/reimbursed by the Office.
concerned or the Department. Expenditure incurred if any in
excess of ceiling amount shall
be paid for by the Officer
concerned along with taxes on
the same.
18 Whether Officers equivalent in rank Yes, subject to the condition
to Additional Secretary/ Joint that such an Officer is entitled
Secretary/ Director/Deputy Secretary for the residential telephone
the Government of India are also facility.
entitled for mobile to connection and
broadband connection on their
19 Whether the broadband In case the telephone has
installation charges/initiation charges been provided by the Deptt,
etc, being charged by the service the installation charges for the
providers for providing this facility same shall be borne by the
are reimbursable by the Department Deptt.. However in case of
or has to be borne personal telephone, the said
charges shall be borne by the
individual.
20 Whether the broadband and Yes
telephone call charges are to be
restricted on only one landline
connection.
21 Whether the reimbursement will be Re-imbursement shall be
restricted to one landline and/or restricted to one landline
one mobile connection to each and/or one mobile connection
Officer or reimbursement can be only.
made for multiple connections.
22 Whether the amount of Rs.400/- Yes.
reimbursable on the broadband
facility also include (a) mobile
internet connection (b)internet
dial up facility (c)through cable
operators (d) service providers
providing broadband facility without
any landline or mobile connection.
23 Whether 'reimbursement' means that No. The term 'reimbursement
the officer concerned has to first pay in the context of the referred
the bill and then claim the amount O.M. means that the payment
paid from office. for expenditure incurred on the
indicated telecom facilities
shall be restricted to the ceiling
amount. It does not seek
discontinuation of the practice
of office making payment to
service providers on receipt of

268
 bills.
24 Whether the entitlement of an officer No. The O.M. shall not be
to the facility of residential telephone referred to for the purpose of
is to be decided as per this O.M. deciding/determining an
officers entitlement to the
residential telephone facility.
25 How will the entitlement of an officer In cases such as this,
who is drawing pay in an intervening the ceiling on expenditure
pay scale( higher to pay scale of one applicable to an officer shall
of the categories identified in the be as provided for in respect of
O.M. but lower than the pay scale of the category drawing pay in
next such category) i.e. officers the lower scale. Thus the
drawing pay in scales higher than the entitlement of an officer
pay scale of Director but lower than drawing pay in an scale
the pay scale of Joint Secy. in the intervening between that of
GOI or other such cases are to be Director and Joint secy. shall
regulated. be at par with that of DS/Dir,
26 Can the officers covered in the O.M. No.
dtd 14..11.2006 also avail facilities
like ISD on Ian dune, mobile E- mail
devices, etc.
27 Whether in those cases where an Yes
officer has subscribed to broadband
facility at his residence though not
on a telephone in his name but in the
name of one of his family members,
full reimbursement (upto the
ceiling amount) can be permitted
on the landline/mobile connections
in his name.

3. All Ministries/Departments may implement the contents of O.M. dated

14/11/2006 read with the aforesaid clarifications. It is reiterated that no
additional funds shall be provided for this purpose and concerned
ministries/departments/organisations will have to meet all the expenditure
on this account within the existing budget for Office Expenses - Telephones.

(Manish Kumar)
Deputy Secretary to the Govt of India
To,
All Ministries/Departments of Govt. of India

269
 No. 24(5)/E.Coord/201 2
Government of India, Ministry of Finance
Department of Expenditure

New Delhi dated the 11th May, 2012

OFFICE MEMORANDUM

Subject:- Internet facility through data card-reg.

References are being received from various Ministries/Departments seeking

clarification/relaxation for internet facility through Data Card. The matter has
been reviewed and it has been decided to allow use of data card for internet
purposes subject to the following conditions;-

(i) No Data-Card (Hardware etc) would he provided by the office and

only reimbursement for data use, through data card, will be allowed
on submission of bill.

(ii) The User has the liberty to choose any operator/plan beneficial to them.

(iii) Re-imbursement would be allowed for one data card connection only.

(iv) There would be no separate ceiling for the internet through data card and the
reimbursement will Be allowed to the entitled officer according to the
ceiling/guidelines/clarification laid down vide this Department's OMs No.
7(14)/C&V/2006 dated November 14th 2006, dated April 14th, 2007 and dated
July 9th, 2007. As such, the maximum monthly reimbursable amount, towards
charges on residential telephone/mobile phone/broadband/data card use (for
internet purposes), to a category of a officer will be as under:-
Ceiling Amount (in
Rank/Designation
Rs.)
Secretary to the Government of India and equivalent rank 2800
Additional Secretary to the Government of India and
2500
equivalent rank
Joint Secretary to the Govt. of India and equivalent rank 2000
Director and Deputy Secretary to the Government of India
1 500
and equivalent rank
Below the rank of Deputy Secretary to the Government of
India (restricted to 25% of Group A' Officers below the rank 800
of Deputy Secretary)

Director (E. Coord.)

Tel. No.23093257
1. All Ministries/Departments of Government of India
2. All Financial Advisers

270
 ANNEXURE-XVII E
No. 2/5/2017E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, 7th July, 2017.

OFFICE MEMORANDUM

Subject:- Implementation of recommendations of the Seventh

Central Pay Commission relating to grant of House
Rent Allowance (HRA) to Central Government
employees.

Consequent upon the decision taken by the Government on the

recommendations of the Seventh Central Pay Commission, the President is
pleased to decide that, in modification of this Ministry's O.M. No.2(37)-
E.11(B)/64 dated 27,11.1965 as amended from time to time, O.M.
No.2(13)12008-EU(S) dated 29.08.2008 and O.M. No.2/5/2014-E.11(B)
dated 21.07.2015, the admissibility of House Rent Allowance (HRA) shall be
as under-

Classification of Cities/Towns Rate of House Rent Allowance per

month as a percentage of Basic Pay
only
X 24%
Y 16%
Z 8%

2. The rates of HRA will not be less than Rs.5400/-, 3600/- & 1800/-at X,
Y & Z class cities respectively.

3. The rates of HRA will be revised to 27% 18% &9% for X, Y & Z class
cities respectively when Dearness Allowance (DA) crosses 25% and further
revised to 30%, 20% & 10% when DA crosses 50%.

4. The term "basic pay" in the reviled pay structure means the pay drawn
in the prescribed pay levels in the Pay Matrix and does not include Non-
Practising Allowance (NPA), Military Service Pay (MSP), etc, or any other type
of pay like special pay, etc.

5. The list of cities classified as 'X', 'V and 'Z vide DoE's O.M.
No.2/5/2014-E1I(S) dated 21.07.2015, for the purpose of grant of House
Rent Allowance is enclosed as Annexure to these orders.

6. Special orders on continuance of HRA at Delhi ("X' class city) rates to

Central Government employees posted at Faridabad, Ghaziabad, NOIDA and
Gurgaon, at Jalandhar ("Y" class city) rates to Jalandhar Cantt., at "Y' class

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city rates to Shillong, Goa & Port Blair and HRA at par with Chandigarh ("V'
class city) to Panchkula, S.A.S. Nagar (Mohali) which have been allowed to
continue vide Para '4' of this Ministry's OM. No.2/5/2014-E1I(S) dated
21.07.2015 and O.M. No. 2/2/2016-E1I(S) dated 03.02.2017, shall continue
till further orders.

7. All other conditions governing grant of HRA under existing orders, shall
continue to apply.

8. These orders shall be effective from 1st July, 2017,

9. The orders will apply to all civilian employees of the Central Government.
The orders will also be applicable to the civilian employees paid from the
Defence Services Estimates. In respect of Armed Forces personnel and
Railway employees, separate orders will be issued by the Ministry of Defence
and the Ministry of Railways, respectively.

10. In so far as the persons serving in the Indian Audit and Accounts
Department are concerned, these orders issue in consultation with the
Comptroller & Auditor General of India.

Hindi version is attached.

To

All Ministries and Departments of the Govt. Of India etc. as per standard
distribution list. Copy to: C&AG and U.P.S.C., etc. as per standard
endorsement list.

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 ANNEXURE
To O.M. No.2/512017-E.lI(B) dated 07.07.2017.
LIST OF CITIES/TOWNS CLASSIFIED FOR GRANT OF
HOUSE RENT ALLOWANCE TO CENTRAL GOVERNMENT EMPLOYEES

SI. STATES/ UNION CITIES CLASSIFIED CITIES CLASSIFIED AS

No. TERRITORIES AS "X" "Y"
ANDAMAN& NICOBAR
1 - -
ISLANDS
Vijayawada (UA), Warangal
(UA), Greater
ANDHRA PRADESH/
2 Hyderabad (UA)Visakhapatnam (M.Corpn),
TELANGANA
Guntur (UA), N e l l o r e
(UA)

3 ARUNACHAL PRADESH - -
4 ASSAM - Guwahati (UA)
5 BIHAR - Patna (UA)
6 CHANDIGARH - Chandigarh (UA)
Durg-Bhiiai Nagar (UA),
7 CHHATTISGARH -
Raipur (UA)
DADRA&NAGAR -
8 -
HAVELI
9 DAMAN&DIU - -
10 DELHI Delhi (UA) -
11 GOA - -
Rajkot(UA), Jamnagar(UA),
12 GUJARAT Ahmadabad (UA) Bhavnagar (UA), Vadodara
(UA), Surat (UA)

Faridabad*(M.Corpn.),
13 HARYANA
Gurgaon (UA)
14 HIMACHAL PRADESH - -
15 JAMMU & KASHMIR -Srinagar (UA), Jammu (UA)
Jamshedpur (UA), Dhanbad
16 JHARKHAND -(UA), Ranchi (UA), Bokaro
Steel City (UA)

Belgaum (UA), Hubli-

KARNATAKA Bengalore/ Dharwad (M.Corpn.),
17
Bengaluru Mangalore (UA),Mysore
(UA), Gulbarga (UA)

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 Kozhikode (UA), Kochi (UA),
Thiruvanathapuram (UA),
18 KERALA -Thrissur (UA), Malappurarn
(UA),Kannur(UA),Koflam(UA
)
19 LAKSHADWEEP - -
Gwalior (UA), Indore (UA),
20 MADHYA PRADESH -Bhopal (UA), Jabalpur (UA),
Ujjain (M. Corpn.)
Amravati (M.Corpn,),
Nagpur (UA), Aurangabad
(UA), Nashik (UA),
Bhiwandi (UA), Solapur
Greater Mumbai(M.Corpn.), Kolhapur (UA),
21 MAHARASHTRA
(UA), Pune (UA)Vasai-Virar City (M.
Corpn.), Malegaon (UA),
Nanded-Waghala (M. Sangh
(UA)Corpn.),

22 MANIPUR - -
23 MEGHALAYA - -
24 MIZORAM - -

25 NAGALAND - -
- Cuttack (UA),
26 ODISHA Bhubaneswar (UA),
Raurkela (UA)
PUDUCHERRY - Puducherry/Pondicherry
27
(PONDICHERRY) (UA)
- Amritsar (UA), Jalandhar
28 PUNJAB
(UA), Ludhiana (M. Coprn.)
-
Bikaner (M.Corpn.), Jaipur
29 RAJASTI-JAN (M.Corpn.), Jodhpur (UA),
Kota (M.Corpn.), Ajmer (UA)

30 SIKKIM - -

Salem (UA), Tiruppur (UA),

Coimbatore (UA),
31 TAMIL NADU Chennai (UA)
Tiruchirappalli Madurai
(UA), Erode (UA)

32 TRIPURA - -

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 Moradabad (M.Corpn.),
Meerut (UA),
Ghaziabad'(UA),
Aligarh(UA), Agra (UA),
Bareilly (UA), Lucknow
33 UTTAR PRADESH - (UA), Kanpur (UA),
Allahabad (UA), Gorakhpur
(UA), Varanasi (UA),
Saharanpur (M.Corpn.),
Noida* (CT), Firozabad
(NPP), Jhansi (UA)

34 UTTARAKHAND - Dehradun (UA)

Asansol (UA), Siliguri (UA),

35 WEST BENGAL Kolkata (UA)
Dugapur (UA)

* Only for the purpose of extending HRA on the basis of dependency. NOTE

The remaining cities/towns in various States/UTs which are not covered by

classification as "X" or "Y", are classified as "Z" for the purpose of HRA.

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