Deposit Works And Departmental Charges

Deposit Works

And

 Departmental Charges

Ø  Source: 18^th chapter of Engineering Code

 

Ø  Definition – The works which are executed by Railways for other Govtdepts, private firms or individuals.  So the cost is met from non-railway sources.

 

Ø  In simple, the works, the cost is met from other than railway funds are called as Deposit works.

 

Ø  Examples of Deposit Works  

 

1)    Level Crossing required by the canal dept 10 years after the opening of line

2)    culvert required by the Irrigation dept or a private individual

3)    Electric/telephone wires required to be laid by Electric supply co or Telephone company over or under Railway line.

 

Ø  The concerned Dept/private firm/individual should approach the Railways for work executed duly furnish a rough sketch of the work & other relevant particulars.

 

Ø  If agreed to execute such Deposit works by Railways:-

 

1.   Other Govt Depts – should accept the charges leviable to meet the cost of plans and estimates of the required works.

 

2.   Private parties – should deposit the charges leviable to meet the cost of plans and estimates of the required works with the Railways.  However such charges (cost of plans & estimates) should be adjusted against the Departmental Charges, in case, the proposed works are subsequently carried out.

 

Ø  After obtaining the acceptance or cost of the plans and estimates has been deposited with the Railways, the detailed plans & estimates of the required works should be prepared and got accepted by the applicants.

 

Ø  As and when excess is anticipated, the same should be intimated to the concerned parties and got acceptance/deposit the excess charges as the case may be. 

 

Departmental Charges : These charges should be levied to cover the cost of tools & plant and of establishment supervision.  These charges levied at 12.5% on the total cost of the Deposit work (wages & material) include the cost of land.

 

Ø  Booking of expenditure: The amount deposited by the private parties should be credited to the “Deposit Misc” and the expenditure incurred on the said Deposit works should be charged/debited to the same Head “Deposit Misc”.

 

Ø  A separate register of Works should be maintained for all Deposit works in a Division.  Separate account should be kept for each Deposit work in that Register.  The postings in this Register should be totaled up and reconciled with the General Books monthly.  In case of works undertaken for other govt depts., suitable remarks as to the amounts adjusted monthly should be given in the register.  In case of private parties, the amount should be reconciled with the “Deposit Misc” head monthly and a certificate of reconciliation recorded in the register.

 

Ø  As and when anticipate the expenditure exceeds sanctioned estimate or sanctioned allotment of deposit made, the Executive Engineer should prepare the Revised Estimate and got sanctioned by the competent authority.

 

Ø  Completion:  on the completion, an intimation of the date of completion should be sent to the Accounts officer. Completion report in Form E1706 should be prepared showing the variations of actual expenditure with the sanctioned estimate and furnished to the party for whom the work was executed. Unexpended balance lying at the credit of “Deposit Misc” should be refunded to the party.

 

Ø  Model of “Deposit Misc” Suspense head. The balance of this Head always Credit balance.

 

Deposit Misc A/c

Debit			Credit
Date	Particulars	Amt(Rs)	Date	Particulars	Amt(Rs)
10.01.2017	Works executed	80,000	01.01.2017	Cash deposited for executing the work	1,00,000
31.01.2017	Refund of unexpended amount	20,000
	Total	1,00,000	Total		1,00,000

Maintenance: All Deposit works in Railway premises should be maintained by the Railway administration at the cost of parties who applied for them.  Such maintenance charges should be recovered as follows.

(1) either a fixed percentage of the works, the rate being fixed by the General Manager.

(2) or actual expenditure (including departmental charges).

Ø  The Accounts Officer is responsible for recovery of Maintenance & other charges.

Deposit Works – SPV (Special Purpose Vehicle) having Govt participation

Ø  20 % of the estimated cost to be deposited initially, if the work is Rs. 3 Lakhs or more.

Ø  It is treated as Revolving Fund.  Replenished from time to time at a frequence of 2 weeks/monthly/quarterly intervals.

Ø  Replenishment through Letter of Credit also allowed. The Period should be at least one year after the completion of works.

 

Departmental Charges:

Ø  Source: 1137E

Ø  Rate: 12.5 % on the cost of Deposit Work (Wages & Material and cost of land, if any)

Ø  In case any other Dept levied Departmental charges are more than 12.5 %, the same is charged on reciprocal basis.

Ø  To cover the cost of tools & plant and the establishment supervision.

Ø  These charges should be levied to cover the cost of tools & plant and of establishment supervision.  These charges levied at 12.5% on the total cost of the Deposit work (wages & material) include the cost of land.

Ø  The above rules do not apply to works of ROB/RUB in replacement of existing manned LC Gates taken up on BOT (Build, Operate & Transfer) basis.

Remission of Departmental Charges (1138 E)

Ø  The GM may, at his discretion, waive wholly or partially, provided that

 

1.   The Railway gains some advantage, not necessarily financial, by such remission.,

2.   The reasons for such remission are recorded in each case

3.   Concurrence of PFA

4.   Non incurrence of extra charges on account of tools & plants and establishment supervision does not in itself constitute sufficient justification for such remission.

 

Ø  In case of Assisted or Private sidings:

 

1.   When a portion of the work is permitted to be executed by parties, partial remission of departmental charges may be allowed.

2.   Up to Rs. 10 Lakhs.

3.   If the parties apply for further remission (beyond Rs. 10 Lakhs), a reference should be made to the Railway Board

 

#####