CONTENTS - Central Public Works Department

240 SECTION 37
Clause, and what the quantum of compensation payable, if any, should be. The indentor/
consignee will also be advised of the position. Simultaneously, arrangements will be made for
independent inspection of the stores in an unfinished state of supply, with a view to ascertain
the correct position of the supply of stores contracted for and the reasonableness or otherwise
of the compensation claimed by the contractor. After the Purchase Officer, in consultation with
Associated Finance, is satisfied that the amount of compensation claimed by the contractor is
reasonable, the indenting officer will be addressed, explaining the issue involved and the amount
of compensation that may have to be paid to the contractor, and asked whether he wants the
contract to be cancelled and is prepared to bear the compensation. If the indenting officer still
desires cancellation and is prepared to bear compensation, the cancellation/reduction will be
effected by the DGS&D with the approval of the Head of the Organisation/Ministry.
(iv) In all cases involving financial repercussions, the Associated Finance will be consulted at
every stage right upto the payment of compensation.
37.12 Delay in supplies
In case supplies are delayed beyond the period stipulated by the indentor, it would not be necessary
for the DGS&D to have the availability of funds re-certified from the indentor, and so long as the indent is
not cancelled they shall assume that funds are being provided from time to time to cover the cost of
stores. They will, however, keep the indentor informed of the prospects of supply from time to time to
enable the indentor to carry forward the funds accordingly.
37.13 Inspection of stores ordered through DGS&D
In case of supplies ordered against DGS&D rate contracts or indented through them, inspection of the
supplies received is to be made by the respective Inspection Wing of that Department. The Inspection
Wing’s certificates are furnished by the supplier to the consignee, who after having recorded the required
certificates about receipt of the goods in good condition, sends specific number of copies back to them
and to the Controller/Deputy Controller of Accounts (Supply) as indicated by them.
37.14 Purchase of plant and machinery
(1) When indenting for plant and machinery etc., the indenting departments should take a decision as
to the quantity of spares to be purchased along with the main equipment, and also to place an
indent for them on the DGS&D. The indenting officer should also specify whether any of the
following guarantees is required to be obtained from the supplier of the equipments:
(i) A guarantee from the supplier of the equipment that he will supply spare parts if and when
required on an agreed basis for an agreed period. The agreed basis should be an agreed
discount on the published catalogue prices.
(ii) A warranty to the effect that before going out of production for the spare parts, he will give
adequate advance to the purchaser of the equipment so that the latter may order the balance
of the life time requirements in one lot.
(iii) If possible, a warranty to the effect that the supplier of the original equipment will make available
the blue prints of drawings etc. of the spares if and when required in connection with the main
equipment.
(2) In the indent for spare parts, reference to the number and date of the contract for the main equipment
and any guarantee/warranty incorporated therein should be quoted by the indenting officers.
(3) The indenting department should endeavour to adopt Indian Standard Specifications wherever
available, and where such specifications are not available, they should permit relaxation in
indigenous production, which should be consistent with the requirement of safety, security and
end use of the stores.
(4) Machinery and equipment which is not indigenously manufactured, or for manufacture of which
certain parts are required to be imported from abroad, are arranged against specific quota of
foreign exchange for the purpose from “Soft Currency” or “Hard Currency” countries.