Plant & Machinery-ii

RECEIPT, ERECTION & COMMISSIONING 

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GENERAL EVERY PLANT AND MACHINERY IS A PART OF A CONSOLIDATED PLAN IN DIFFERENT APPLICATION AREAS. ERECTION AND COMMISSIONING OF PLANT AND MACHINERY FOLLOWS A COORDINATED WORK PLAN, FRAMED EARLIER AND PUT INTO ACTION WITH THE RECEIPT OF EQUIPMENT. RECEIPT OF MACHINES: MACHINES ARE EITHER RECEIVED THROUGH RAIL OR ROAD, AS PER CONTRACTUAL CONDITIONS. THEY MAY HAVE BEEN TRANSSHIPPED FROM THE PORT OR SUPPLIERS WORKS. INEXCEPTIONAL CICUMSTANCES DUE TO URGENCY THESE MAY BE AIR LIFTED. ON RECEIPT OF MACHINES, THE PACKAGE CAN BE OPENED IF NO OUTWARD DAMAGE IS OBSERVED. 1

E&C-2

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DEPENDING UPON CONTRACTUAL CONDITION WITH TRANSPORTER THEY ALSO BE INFORMED TO WITNESS THE OPENING . IT IS GOOD PRACTICE THEREFORE THAT INFORMATION ON OPENING SCHEDULE, FOR COSTLY MACHINES, IS GIVEN TO SUPPLIERS. IN CASE OF RAILWAYS, WITH CLEAR RR, OPEN DELIVERY MAY BE ASKED FOR IF THE PACKAGE IS DAMAGED OUTWARDLY. THE CONTENTS OF THE PACKAGE SHOULD BE TELLIED WITH THE PACKING SLIP/PACKING NOTE/COPY OF INVOICE WITH THE PACKAGE. PACKING NOTE/INVOICE SHOULD CONTAIN THE COST OF INDIVIDUAL ITEMS IN THE PACKAGE,FOR CLAIMING RECOVERY IF ANY OF IT IS FOUND LOST 2

E&C-3

OR DAMAGED. A JOINT STATEMENT IS MADE IN CASE ANY DAMAGED IS OBSERVED WITH THE CARRIER’S REPRESENTATIVES AND WITH THE INSURANCE REPRESENTATIVES. ON MAKING A JOINT SIGNED STATEMENT CLAIM IS LODGED WITH RAILWAY/INSURANCE AGENCIES/CARRIER. THE FIRM MAY PURSUE THE MATTER WITH CARRIER AGENCIES TO RECOVER THE LOSS.THEREFORE THE SUPPLIER IS OFTEN CONTRACTED TO EFFECT DOOR DELIVERY AT THE FACTORY.

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E& C-4  

ERECTION: BATTERY LIMITS: THE TECHNICAL SPECIFICATION TO THE TENDER SHOULD SPECIFY THE SUPPLY OF SERVICES AT REQUIRED POINTS.THE QUALITY OF WATER, STEAM AND AIR, PRESSURE AND VOLUME REQUIRED BY THE MACHINE WILL HAVE TO BE SPECIFIED BY THE SUPPLIER. THE POINTS AT,WHICH SUCH OF THE SERVICES ARE REQUIRED, ARE GENERALLY PRE-DECIDED AND THE SUPPLIER IS GENERALLY ADVISED TO FURNISH THESE DETAILS, KNOWN AS BATTERY LIMITS, IN ADVANCE OF THE ACTUAL DELIVERY OF THE EQUIPMENT. THE PURCHASER HAS TO LAY THE NECESSARY POWER AND SERVICES NETWORK IN ADVANCE,TO BE IN READINESS, SO AS TO ADHERE TO THE TIME FRAME 4

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REQUIRED FOR ERECTION AND COMMISSIOINING. SOME OF THE IMPORTANT ASPECTS OF SERVICES AND UTILITIES ARE: CIVIL WORKS GENERAL-PURPOSE MACHINE TOOLS ARE GENERALLY GROUTED ON SHOP FLOORS CONSTRUCTED TO BEAR THE WORKING LOAD OF THE MACHINE. THEY ARE GROUTED ITH THE HELP OF ANCHOR BOLTS. FOR SPECIAL PURPOSE AND HEAVY DUTY PLANT & MACHINERY LIKE PRESSES, HIGH SPEED BLOWERS, COMPRESSORS AND MACHINES REQUIRING VIBRATION FREE FOUNDATION SPECIAL FOUNDATION ARE NECESSARY. THE FOUNDATION SHOULD NOT ONLY BEAR THE WORKING LOAD, BUT DAMPEN THE VIBRATION BEING TRANSMITTED TO NEARBY 5

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MACHINES, WITHOUT AFFECTING THE RIGIDITY OF ITS OWN SUPPORT. THE SUPPLIERS ARE REQUIRED TO FURNISH FOUNDATION DIAGRAM THAT WILL MEET THEIR DESIGN OPERATION CONDITIONS. THE REQUIREMENT SHOULD BE A PART OF THE CONTRACT.TO ENABLE DESIGNING THE FOUNDATION REQUIRED, SOIL TEST REPORTS AT VARIOUS DEPTHS SHOULD BE KEPT READY TO BE FURNISHED TO THE SUPPLIER. WITH THE ESTIMATED DESIGN LOAD, THE SUPPLIER SHOULD BE ABLE TO MAKE A SAFE DESIGN OF THE FOUNDATION DETAILS, AND FURRNISH IT TO THE PURCHASER AS PER THE AGREED SCHEDULE. IN AIR CONDITIONING PLANTS,ENOUGH HEADSPACE IS TO BE LEFT EVEN AFTER LAYING THE DUCTING. THE TRAVERSES AROUND THE 6 EXPLOSIVE BLDG.

E & C-7

DO NOT PERMIT CUTTINGS LATER TO LAY PIPING. IT IS GOOD PRACTICE THERFORE TO INSERT HOLLOW PIPES TO LEAVE AN OPENING FOR THE PURPOSE. POWER SUPPLY THE TYPE OF LOAD AND DIVERSITY ARE IMPORTANT IN DESIGNING ELECTRICALSYYSTEM, PANEL BOARDS. EQUIPMENT WITH HEAVY ELECTRICAL LOAD AT THE END OF THE BUS SHOULD IN GENRAL BE AVOIDED. OVERHEAD OR UNDERGROUND POWER DISTRIBUTION SHOULD BE DECIDED IN ADVANCE. CNC MACHINES ARE TO BE CONNECTED TO PANELS WITH STEADY POWER REQUIREMENT AND PREFERABLY WITH SEPARATE EARTHING TO PREVENT DATA CORRUPTION. 7

E&C8

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WATER SUFFICIENT WATER TO BE PROVIDED BY THE PURCHASER TO CONTRACTOR FOR ERECTION AND COMMISIONING PURPOSE. STEAM IT SHOULD PROVIDE FOR THE PEAK LOADS. THE PIPING SIZE SHOULD LIMIT PRESSURE DROPS, STEAM LINES SHOULD HAVE GOOD SLOPES, LAGGING, STEAM TRAPS AND TO THE EXTENT POSSIBLE LOW PRESSURE PIPING(OUTSIDE IBR) WITHIN THE BUILDING. THE ROAD CROSSING SHOULD HAVE ENOUGH CLEARANCE. AIR CONDITIONING : SINCE THE BUILDINGS HAVE FALSE CEILINGS, THE EQUPMENT WILL HAVE TO BE ERECTED BEFORE THE ROOFING IS DONE. 8

E & C-9

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COMPRESSED AIR IT SHOULD BE FREE OF MOISTURE,OIL AND OF ADEQUATE PRESSURE. THE AIR FILTERS SHOULD BE HOUSED CLOSED TO THE EQUIPMENT. SEPARATE LAYOUT SHOULD BE MADE FOR HIGH PRESSURE DUTY AND LOW PRESSURE LINES. FUEL OIL IT IS OFTEN NECESSARY TO STORE ENOUGH OIL TO RUN BOILERS AND HEATING FURNACES WITHOUT INTERUPTIONS. THEY ARE TO BE STORED IN CONDITIONS RECOMMENDED BY THE OIL CO. ADEQUATE FIRE FIGHTING FACILITIES ARE TO BE PROVIDED.BULK STORAGE SHOULD FOLLOW 9 SAFETY REGULATIONS, ESPECIALLY IN

E & C-10

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MISCELLANEOUS IN CASE INSTRUMENTATION, CABLES AND PIPING REQUIRE A SEPARATE STRUCTURE, IT SHOULD ALSO BE DECIDED IN CONSULTATION WITH SUPPLIER. SAFETY AND POLLUTION CONTROL REQUIREMENT, DRAIN PITS, AND SOMETIMES COOLING TOWERS FOR COOLANT, LOCAL WATER TREATMENT AND REFRIGERANT SYSTEM ETC ARE REQUIRED TO BE SET UP FOR THE MACHINE EXCLUSIVELY. RESPONSIBILITY OF ERECTION UNLESS OTHERWISE SPECIFIED, THE PURCHASER’S LIABILITY IS TO THE EXTENT OF SUPPLY OF LABOUR, TOOLS AND TACKELS AS MUTUALLY AGREED. THE ERECTION IS DONE UNDER 10

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THE SUPERVISION OF SUPPLIER AND HE REMAINS RESPONSIBLE FOR SATISFACTORY ERECTION. THE WIRING AND PIPING WILL BE LABELLED AND IDENTIFIED BY THE SUPPLIER TO FACILITATE EASY IDENTIFICATION DURING ERECTION. OBLIGATIONS OF PURCHASER THE PURCHASER HAS TO OFFER THE FOLLOWING FACILITIES FOR ERECTION AND COMMISSIONING OF THE EQUIPMENT: (i)TO PROVIDE SUITABLE STORAGE SPACE TO ALLSUPPLIES MADE BY THE SUPPLIER. IF THE SUPPLIER HAS EFFECTED THE SUPPLIES AS LAID DOWN IN THE CONRACT, THE TITLE PASSES ON TO THE CONSIGNEE AND THE PURCHASER, IN HIS OWN INTEREST MUST PROVIDE PROPER STORAGE. 11

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(ii) SUPPLY

DIFFERENT UTILITIES FREE OF COST TO THE SUPPLIER. (iii) WORK AREA SHOULD BE ILLUMINATED. (iv) PROVIDE LODGING, ON CHARGEABLE BASIS, TO THE SUPPLIER’S ENGINEERS FOR SUPERVISION OF ERECTION AND COMMISSIONING. (v) SECURITY OF MATERIAL IF WITHIN THE FACTORY PREMISES. (vi) CONSTRUCTION OF VARIOUS FOUNDATIONS AS PER SUPPLIER’S DRAWINGS. (vii) FIRST AID,EMERGENCY MEDICAL ATTENTION IF REQUIRED. 12

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TO PROVIDE ACCESS FOR SUPPLIER’S MATERIAL HANDLING EQUIPMENT AND TRANSPORT FOR EQUIPMENT. (ix) ALLOW THE SUPPLIER’S PERSONNEL TO ENTER THE FACTORY AND WORK AT THE SITE OF ERECTION AND COMMISSIONING AS PER THE SECURITY NORMS. (x) SUPPLY SKILLED WORKMEN, AS AVAILABLE AND AGREED TO, WITH TOOLS AND TACKELS FOR ERECTION AND COMMISSIONING TRIALS. OBLIGATION OF SUPPLIER AS CONTRACTUAL OBLIGATION, THE SUPPLIER HAS TO TENDER THE FOLLOWING SERVICES. (i) FIRM WILL DETAIL COMPETENT PERSONS TO 13

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IDENTIFY SUPPLIES AND ADVISE AND OVERSEE THE ERECTION WORK BEING UNDERTAKEN BY THE PURCHASER. THEY SHOULD ALSO CONFIRM SATISFACTORY COMPLETION. (ii) THEY WILL MAKE AVAILABLE CONSUMABLES,COMMISSIONING SPARES, PERISHABLE FOR TRIAL RUNS, SPECIAL TOOLS AND TACKLES ETC AS AND WHEN NECESSARY TO FACILITATE UNIMPEDED PROGRESS OF ERECTION AND COMMISSIONING. (iii) THE FIRM WILL BE LIABLE FOR THE CONDUCT OF ITS PERSONNEL, AND SHOULD DEPLOY THOSE WHO HAVE NOT PARTICIPATED IN ANTI-NATIONAL ACTIVITIES. (IV) CONTRACTOR’S PERSONNEL SHALL ABIDE BY THE NORMS OF SECURITY. 

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(v) ARRANGE CLEARANCE FROM STATUTORY BODIES LIKE POLLUTION CONTROL BOARDS, ELECTRICITY DEPARTMENTS, EXPLOSIVE CONTROLLERS ETC. (VI) TRAIN PURCHASER’S PERSONNEL TO A REASONABLE COMPETENCE IN HANDLING, OPERATING AND MAINTAINING THE EQUIPMENT. (vii) CONTRACTOR’S PERSONNEL SHALL ABIDE BY THE NORMS OF SECURITY OF THE FACTORY, CONTRACTOR WILL BE LIABLE TO OBTAIN THEIR PVR CLEARED IF SO REQUIRED. (viii) NOTWITHSTANDING STAGEWISE INSPECTIONS BEING DONE BY THE PURCHASER’S REPRESENTATIVE, IT SHALL NOT RELIEV THE CONTRACTOR FROM HIS OBLIGATIONS OF SATISFACTORY ERECTION AND PERFORMANCE TRIALS OR WARRANTY AND GUARANTEE. 15

E & c -16

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MAINTENANCE OF DAILY LOG BOOK: A RECORD OF DAILY/WEEKLY PROGRESS,SCHEDULE OF ERECTION,PLANNING ETC. WILL HAVE TO BE MAINTAINED AND SIGNED BY SUPPLIER’S AND PURCHASER’S REPRESENTATIVES DAILY. THE AUTHORITY TO SIGN DAILY LOG BOOK.ANY EXCESS MATERIAL SUPPLIED, REMAIN UNUSED AFTER DUE ERECTION AND COMMISSIOINING AND DO NOT FORM A PART OF SUPPLIES UNDER THE SUPPLY CONTRACT, REMAIN AS SUPPLIER’S PROPERTY AND SHOULD BE REMOVED WITHIN 3 MONTHS FROM THE FACTORY 16 PREMISES.

E & C-17  

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COMMISSIONING: BEFORE UNDERTAKING COMMISSIONING, THE PURCHASER SHOULD GET SATISFIED THAT THE ERECTION IS COMPLETE. COMMISSIONING OF THE EQUIPMENT WILL BE CARRIED OUT IMMEDIATELY AFTER ERECTION .IT IS THE SUPPLIER’S RESPONSIBILITY TO SATISFACTORILY PROVE TO THE PURCHASER, THE CONFORMANCE TO THE PERFORMANCE PARAMETERS OF THE PLANT DELIVERED.ON SATISFACTION BY THE PURCHASER THAT THE EQUIPMENT HAS BEEN COMPLETELY SUPPLIED AND CONFIRMED BY THE SUPPLIER THAT THEY HAVE BEEN PROPERLY ERECTED ,IT IS FIT TO BE OPERATED/TAKEN OVER BY THE PURCHASER. 17

E & C-18 

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UNLESS OTHERWISE AGREED, THE SUPPLIER REMAINS RESPONSIBLE FOR SUPPLY OF THE EQUIPMENT WITH THE FIRST FILL OF LUBRICANTS,OILS,REFRIGERANTS, COOLANTS ETC.ETC WHICH HOWEVER SHOULD BE MENTIONED IN THE GENERAL CONDITION OF TENDER. THE PURCHASER SHOULD SUPPLY SERVICES FOR OPERATING THE MACHINE AS A PART OF THEIR OWN OBLIGATIONS. THE PURCHASER WILL SUPPLY CONSUMABLES, DURING OPERATION OF THE PLANT, FREE OF COST. ALL RAW MATERIAL AND SERVICES SHOULD BE STICKLY TO THE SPECIFICATIONS TO AVOID CONTROVERSY IN RUNNING THE PLANT OR IN OBTAINING THE 18

E & C-19

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OUTPUTS TO THE ASSURED QUALITY,CAPACITY, PRODUCTION CYCLE AND UTILITIES CONSUMPTION. THE COMMISSIONING WILL INCLUDE : BOTH SUPPLIER AND PURCHASER GET SATISFIED THAT THE ERECTION IS COMPLETE. IT COULD BE A JOINT INSPECTION WITH THE SUPPLIER. CHECK ALL ALLIGNMENTS OF THE EQUIPMENT. MAKE SURE THAT NO FOREIGN MATERIALS IN THE VESSELS,PUMPS ETC.ERECTION MATERIALS LIKE WELDING ROD STUBS MAY REMAIN IN THE EQUIPMENT. CLEAN THE HYDRAULIC TANK WITH CLOTH OR OTHER SUITABLE MATERIAL BEFORE THE OILS ARE FILLED. 19

E & C-20

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MEGGER UP MOTORS FOR INSULATIONBEFORE STARTING TO ENSURE THERE IS NO DETERIORATION IN STORAGE. FILL ALL GEAR BOXES WITH INITIAL FILL. ALSO GREASE ALL THE BEARINGS AND SLIDING SURFACES. RUN THE MACHINE DRY.WATCH THE UNUSAL SOUNDS, VIBRATIONS, HEATING AND OTHER UNUSUAL OCCURRENCES. RECTIFY IF NECESSARY AND RUN AGAIN TO SATISFACTION. SET CONTROLS OF PRESSURE,TEMPERATURES,LEVELS AND OTHER PARAMETERS. RUN THE PLANT IDLE WITHOUT ACTUAL RAW 20 MATERIALS TOENSURE THAT THE INDIVIDUAL

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EQUIPMENTS ARE RUNNING ON LOAD WITHOUT ANY UNUSUAL PHENOMINA. ENSURE THE TEST FACILITIES ARE AVAILABLE TO TEST THE RAW MATERIALS AS WELL AS INTERMEDIATES AND FINAL PRODUCTS. THE PLANT IS NOW READY FOR RUN WITH ACTUAL MATERIALS AND COMPONENTS. AT THIS STAGE A PROTOCOL MAY BE NEEDED THAT THE PLANT IS ERECTED TO THE SATISFACTION, PRELIMNARY RUNS TAKEN AND THE PLANT IS RUNNING NORMAL TO TAKE THE PROCESSING MATERIAL IN TO THE PLANT. TRIAL RUNTHE PLANT IS RUN INITIALLY TO ADJUST ALL PARAMETERS OF OPERATION. WHEN THE 21

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OPERATING CONDITIONS ARE ADJUSTED THE PLANT IS RUN CONTINUOUSLY FOR A PERIOD MUTUALLY AGREED TO, IN THE STEADY CONDITION OF THE PLANT.THE OPERATOR ALSO GET A KNOWLEDGE OF THE PLANT DURING THIS PERIOD. GUARANTEE RUN: AFTER A TRIAL RUN, THE PLANT IS RUN FOR THE PLANT SUPPLIER TO DEMONSTRATE THE PRODUCT, ITS QUALITY,CAPACITY AND CONSUMPTION OF RAW MATERIALS AND UTILITIES. IF THESE ARE SATISFACTORY THE SUPPLIER CAN OFFER TO RUN THE PLANT FOR GUARANTEE RUN. ALL THESE PERIODS OF RUNS WILL HAVE TO BE AGREED IN ADVANCE TAKING INTO ACCOUNT THE AMOUNT OF 22

E & C-23 

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RAW MATERIALS REQUIRED TO BE PROVIDED AND ITS COST,UTILISATION OF THE PRODUCT PRODUCED. ONCE THE GUARANTEE RUN IS TAKEN, THE RESULTS ARE TABULATED TO COMPAREE THE RESULTS WITH THE ASSURED FIGURES AS PER THE SUPPLY ORDER FOR TAKING OVER THE PLANT. TRAINING OF PERSONNEL CAN BE UNDERTAKEN. IT IS ESSENTIAL THAT ALL THE SET PARAMETERS AND SETTING ARE RECORDED FOR FUTURE REFERENCE.IF SUCH RECORDS ARE NOT MAINTAINED ,WHEN A PLANT OPENED FOR MAINTENANCE IT WOULD BE TIME CONSUMING TO GET TO THE ORIGINAL PARAMETERS AND OPERATING CONDITIONS. 23

E & C-24

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THE FINAL ACCEPTANCE TESTS, WILL ALSO INCLUDE ACCURACY TESTS,GENERALLY MEASURED IN TERMS OF PROCESS CAPACITY RATIO. MATERIAL CAN BE REJECTED ,IF MATERIAL NOT FULFIL THE FINAL ACCAEPTANCE TEST. RECTIFICATION BY VENDER: IN THE EVENT OF THE PERFORMANCE FIGURES FALLING SHORT BY MORE THAN 1% IN ANY OF CONTRACTED STIPULATIONS, THE CONTRACTOR SHALL AT HIS OWN COST AND EXPENDITURE CARRY OUT RECTIFICATION,MODIFICATION,REPLACEMENT AND EFFECT ADDITIONAL SUPPLIES TO ACHIEVE THE GURANTEED PERFORMANCE.SUBSEQUENTLY SECOND GUARANTEE RUN WILL BE CARRIED OUT FOR OVER A MONTH TO ACHIEVE THE CONTRACTUAL FIGURES. 24

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THE EQUIPMENT WILL BE CERTIFIED TO HAVE BEEN COMMISSIONED IF IT HAS SATISFACTORILY COMPILED WITH THE PRESCRIBED PERFORMANCE STANDARDS. THE SUPPLIER REMAINS RESPONSIBLE TO SUPPLY FREE OF COST,ALL COMPONENTS, PARTS ETC. DAMAGED/BROKEN DURING THE ERECTION AND COMMISSIONING OF THE EQUIPMENT DONE UNDER OVERALL SUPERVISION OF THE SUPPLIER’S REPRESENTATIVE. THE REPLACEMENT WILL BE CARRIED OUT AT SITE . IN CASE THE FALL IN CAPACITY AND PERFORMANCE FIGURES BE ABOVE 10% THE PURCHASER WILL HAVE THE RIGHT TO REJECT THE PLANT AND PURCHASE IT ALTERNATIVELY AT THE RISK AND COST OF SUPPLIER.ACTION FOR RISK PURCHASE 25

E & C-26   

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ACTION SHOULD BE TAKEN WITHIN SPECIFIED TIME LIMIT OF BREACH OF CONTRACT. Engagement of foreigners for erection and commissioning: IN COURSE OF ERECTION & COMMISSIONING OF PLANT AND MACHINERY, IT BECOMES CONTRACTUALLY OBLIGATOY TO INVITE FOREIGN NATIONALS THE PROPOSAL TO ENGAGE FOREIGNERS INSIDE THE ORDNANCE FACTORY PREMISES IN GUIDED FURTHER BY SECURITY CONSIDERATIONS,FOR WHICH PERMISSION OF OFB/MOD IS REQUIRED. THE DETAILED PROCEEDURE FOR PERMISSIONS TO FOREIGN NATIONALS HAVE BEEN OUTLINED IN MHA 26

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OM NO.25022/58/90/F1DT.29.5.90 FOR DEFENCE CONTRACTS DURATION SHORTER THAN THREE MONTHS HAS BEEN DELEGATED TO MEMBER,OFB. MEMBERS OF OFB MAY ACCORD PERMISSION FOR VISITS BY FOREIGN NATIONALS TO NON-STRATEGIC AREAS IN THE FACTORIES,IN CONNECTION WITH EXPORT EFFORTS.

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E& C-28  

FAILURE TO COMMISSION THE MACHINES NO MACHINE OR EQUIPMENT SHOULD BE ACCEPTED UNLESS PERFORMANCE TESTS AND ACCEPTANCE TESTS ARE CONDUCTED AND MACHINES SATISFY THESE TESTS. IN CASE, ANY EQUIPMENT OR PLANT & MACHINERY FAILS THESE TESTS THE GM MAY KINDLY USE THEIR DISCRETION AND IF THE FAILURE IS TO A MAJOR EXTENT, THE P & M SHOULD BE REJECTED AND REJECTION COMMUNICATED TO ALL CONCERNED.

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PROJECT PLANNING  

  (v) (vi) (vii)

GENERAL: PROJECT PLANNING AND EXECUTION ARE VITAL FUNCTIONS OF OFB. THEY ARE INTENDED TO CREAT OR ARGUMENT PRODUCTION CAPACILITIES OF THE ORGANISATION SCOPE OF PROJECT: THE PROJECT FALL UNDER THREE CATAGORIES: AUGMENTATION OF EXISTING CAPACITIES FOR ARMS,AMMUNITION AND OTHER STORES. MAJOR REHABITATION SCHEMES OF EXISTING PLANT AND MACHINERY/OTHER FACILITIES. SETTING UP CAPACITIES FOR NEW STORES. IT MAY ALSO REQUIRE SETTING UP OF A FACTORY AT GREEN –FIELD SITE. 29

P-P-2 THE BROAD ACTIVITIES INVOLVED IN A PROJECT ARE: (ii)

PREPARATION OF FEASIBILITY REPORT(INCLUDING RAPID ENVOIRONMENT IMPACT ASSESMENT STUDY AND APPROVAL IN PRINCIPLE OF STATE AUTHORITIES INCLUDING SEB’S, PCB FOR SUPPLY OF ELECTRICITY,WATER) AND OBTAINING APPROVAL OF MOD. OFB HAS ISSUED INSTRUCTION THAT THE POWER SUPPLY AUTHORITIES NORMALLY STIPULATES A MINIMUM GUARANTEE PAYMENT AND TARRIF BASED ON MINIMUM DAILY DEMAND(USUALLY 75% OF THE CONTRACT DEMAND)AND PROVIDE A SAFE GUARD FOR REASONABLE RETURN TO THE SUPPLYAUTHORITIES REGARDING THE EXPENSES INCURRED BY THEM IN ARRANGING SUPPLY TO THE FACTORIES. THEREFORE, THE CONCERNED GMS / PROJECT OFFICERS MUST EXERCISE UTMOST CARE 30

PP-3

TO MAKE REALISTIC ASSESMENT OF THE LOAD REQUIREMENT AFTER TAKING INTO ACCOUNT ALL RELEVANT FACTORSI.E. TIME FOR PROCUREMENT OF PLANT AND MACHINERY,PROGRESS OF CIVIL WORKS INCLUDING ACCOMODATION AND FOUNDATION, NECESSITY OF SERVICES, PROSPECTS OF TRAINED MAN POWER AND RAW MATERIALS ETC. TO ARRIVE AT THE PEAK DEMAND TO BE ATTAINED IN A PHASED MANNER. (ii) PREPARATION OF PRELIMINARY PROJECT REPORT (iii)PREPARATION OF DETAILED PROJECT REPORTS AND OBTAINING PROJECT SANCTION. DPR SHALL INCLUDE; (e) DETAILED PROCESS LAY OUT FOR EACH ITEM OF STORE. (b) FINALISATION OF LIST OF PLANT AND MACHINERY WITH ESTIMATED COST AND PROCUREMENT THEREOF 31

PP-4

PREPARATION OF LAYOUT OF SHOPS AND OTHER WORKS REQUIRED AND EXECUTUION OF THE SAME. (iv) PROJECT PLANNING REGARDING OTHER MATTERS RELATED TO PROJECT ESTABLISHMENT I.E. SANCTION FOR STAFF AND OFFERS,BUDGET,SUBMISSION OF PERIODICAL RETURNS, PROCUREMENT OF RAW MATERIALS, ANSWERING AUDIT QUERIES. ©

PREPARATION OF DETAILED PROJECT REPORT: (DPR) THE DETAILED PROJECT REPORT SPELLS OUT IN DETAIL CAPACITY PLANNED, THE REQUIREMENT OF P&M AND CIVIL WORKS REQUIRED FOR EXECUTION OF THE PROJECT. IT AMPIFIES THE PROJECTION MADE IN (PRELIMINARY PROJECT REPORT) AND FEASIBILITY REPORT. IT LISTS OUT THE 32 REQUIREMENT OF OUTLAYS IN REVENUE

PP-5

AND EXTERNAL ASSISTANCE IF ANY. IT MAY ASLO CONTAIN REQUIREMENT FOR ENGAGEMENT OF CONSULTANT ETC. IT CONTAINS PROJ ECT REQUIREMENT OF MAN POWER AND JUSTIFICATION FOR SERVICES, ENERGY AND WATER REQUIREMENTS, NEED FOR INFRASTRUCTURAL REQUIREMENTS ETC.  IN ORDER TO MAKE DPRs UNIFORM,OFB REQUIRES THE FOLLOWING FORMAT TO COMPLIED WITH IN GENERAL: INTRODUCTION: (vi) BACKGROUND LEADING TO SETTING UP OF CAPACITY INDICATING: (vii) VETTED CAPACITY REQUIREMENT FROM MINISTRY 33 OF DEFENCE

PP-6 (i) (ii) (iii)

JUSTIFICATION FOR THE PROJECT WITH REFERENCE TO THE REQUIREMENT THE BASIS OF WHICH THE CAPACITY PARAMETERS HAVE BEEN WORKED OUT (A) TECHNICAL FEASIBILITY FOR SETTING UP SUCH FACILITY EXPLAINING THE TECHNOLOGIES INVOLVED AND OUR COMPETENCE THEROF (b) ECONOMICS OF THE PROPOSAL BASED ON ESTIMATED COST OF PRODUCTION AT PEAK CAPACITY AND IF THE PRODUCTION IS BASED ON STRATEGIC REQUIREMENT,IT MAY ALSO BE SPELT OUT AND © COLLABORATION IF REQUIRED AND THE EXTENT OF COLLABORATION REQUIRED. 34

PP-7

(B) SUMMARY OF PROJECT PROPOSALS AND COST THEREOF: (ii) CAPACITY PARAMETERS DETAILING MONTHLY AND ANNUAL CAPACITIES AND THE NUMBER OF SHIFTS PROPOSED PER DAY; (iii) FINANCIAL HIGHLIGHTS-COST OF PRODUCTION,IRR,PAY BACK PERIOD (iv) SUMMARY OF COST UNDER VARIOUS HEADS OF ACCOUNTS I.E P&M, CIVIL WORKS,SERVICES,RAILWAY WORKS, LAND ACQUISITION ETC. (v) SUMMARY OF DEFERRED REVENUE TO COVER PLANNING,TRAINING PRELIMINARY EXPENSES, REQUIREMENT OF INTERSTATE COMPONENTS FOR PROVING THE MACHINE DURING TRIAL RUNS. ETC. 35

PP-8

( C) ASSUMPTION MADE DURING FORMULATING THE PROJECT TO BE LISTED AS FOLLOWS: (i) EXISTING CAPACITIES,IF ANY,ASSUMED FOR ARRIVING AT THE NET REQUIREMENT S OF CAPITAL ASSESTS; (ii) ASSESMENT OF THE RELIABILITY OF THE COST ESTIMATE DEPENDING UPON THE PROJECT SANCTION TIME FRAME AND THE DATE OF GOVT. SANCTION. (iii) REQUIREMENT OF RAW MATERIAL THROUGH IMPORT AND ITS EXTENT AND (iv) AVAILABILITY OF INDIGENOUS RAW MATERIAL (D) LOCATION OF THE PROJECT WILL REQUIRE TO BE JUSTIFIED IN THE REPORT AS FOLLOWS: (i) BASIS OF CHOICE OF LOCATION EXPLAINING AVAILABILITY OF SKILLED MANPOWER, AVAILABILITY OF EXISTING CAPACITY, PROXIMITY 36 OF RAW MATERIAL, WATER AND POWER ETC.

PP-9

(ii) IF THE PROJECT IS PROPOSED TO BE LOCATED IN AN EXISTING FACTORY A SCHEMATIC LAYOUT SHOULD BE ENCLOSED TO SHOW MOVEMENT OF MATERIAL FROM ONE FACTORY TO ANOTHER.IT WILL GIVE DISTRIBUTION OF WORK LOAD FACTORYWISE. (E) THE EXTENT OF CIVIL WORKS REQUIRED WILL HAVE TO BE ENUMERATED AND EXPLAINED IN THE FOLLOWING SUBHEADS: (i) THE CIVIL WORKS REQUIREMENT FOR PRODUCTION BUILDINGS DEPENDING UPON THE PLINTH AREA REQUIREMENTS, FOUNDATION FOR PLANT AND MACHINERY AND TYPE OF STRUCTURE WILL HAVE TO BE CONTAINED . THE DPR SHOULD ALSO GIVE A LIST OF PLANT AND MACHINERY WITH ASSOCIATED FACILITIES TO JUSTIFY THE PLINTH 37 AREA REQUIREMENTS.

PP-10 (i)

(ii)

CIVIL WORK OF NON PRODUCTIONBUILDINGS, CONSISTING OF STORES, BOTH MAIN AND INTERSTAGE STORES,INSPECTION. INSPECTORATES AND MAINTENANCE BUILDINGS ETC HAS TO BE CONTAINED IN THE DPR. THE MAIN OFFICE AREA, ON THE AUTHORISED SCALES, SHOULD BE ALSO CONTAINED IN THE DPR. THE REQUIREMENT OF SITE OFFICE ALSO SHOULD BE INCLUDED. CIVIL WORKS REQUIRED FOR RESIDENTIAL BLDS. TO COVER THE REQUIREMENTS OF ALLIED ESTABLISHMENT, AS PER AUTHORISED SCALES SHOULD BE MENTIONED IN THE DPR. THE NUMBER OF QUARTERS TO BE BUILT SHOULD BE SUPPORTED BY THE NUBER OF EMPLOYEES 38 ESTIMATED FOR THE FACTORY AND AUTHENTIC

PP-11

ALLIED ESTABLISHMENTS. (iv) AMENITY BUILDINGS TO COVER SHIFT ROOMS, CANTEENS ETC. WITHIN THE FACTORY AND REQUIREMENT OF FACILITIES WITHIN THE ESTATE VIZ. MARKET PLACE, CO-OPERATIVE STORES, HOSPITAL, SCHOOLS RECREATION CLUBS, PLAY GROUNDS, STADIUM ,BUS STOPS, POST OFFICE ETC. WILL HAVE TO BE PLANNED AND CATERED FOR IN THE DPR. (v) THE REQUIREMENTS FOR FIRE FIGHTING FACILITIES WILL HAVE TO BE MET FORM THE CIVIL WORKS AS ASSESED AND APPROVED BY THE FIRE ADVISOR OF M OF D . THIS WILL CONSIST OF STATIC TANKS, FIRE HYDRANTS, MAIN AND SUB FIRE STATIOS, AND THE WATER DISTRIBUTION SYSTEMS, BOTH IN THE FACTORY AND THE 39 COLONY.

PP-12

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(ii)

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THE REQUIREMENTS OF SECURITY, CONSISTING OF SECURITY OFFICES, PERIMETER WALL, ACCOMODATION FOR DSC PLATTONS, AND THEIR OFFICES,SECURITY CHECK POSTS ETC WILL HAVE TO BE ENVISAGED AT THE TIME OF PROJECT PLANNING AND HAVE TO BE CATERED FOR IN THE DPR. THE BASIS OF COST ESTIMATION WILL HAVE TO BE DEFINED IN THE DPR ITSELF. THE COST ESTIMATE RECEIVED FROM MES, NEEDS TO BE ENCLOSED IN THE ESTIMATE, ASSUMPTION MADE IN REGARD TO THE TIME FRAME OF COMPLETION OF THE BUIDINGS NEED TO BE BROUGHT ALONGWITH THE ESCALATION OF COSTS WITH DELAY IN COMPLETION. THE INVESTMENT FOR THE PLANT & 40 MACHINERY

PP-13 (i)

(ii) (iii) (iv)

(v)

THE REQUIREMENTS OF PLANT & MACHINERY ALONGWITH THE SUPPORT DATA,CYCLE TIME,IN CASE OF PRODUCTION MACHINES. THE EXISTING CAPACITY ASSUMED WHILE CALCULATING THE ADDITIONAL REQUIREMENTS. THE BASIS OF ASSUMPTION OF EXISTING CAPACITIES. THE PLANT & MACHINERY UNDER REPLACEMENT WHICH WILL NEED TO BE REINSTATED FOR MEETING THE PROJECT CAPACITIES GIVING THEIR YEAR OF PURCHASE, THEIR YEAR REGISTER NO. ETC. REQUIREMENT OF MAINTENANCE MACHINES TO COVER MECHANICAL,ELECTRICAL, ELECTRONIC,CIVIL INSTRUMENTATION AND SERVICES. 41

PP-14

(vii) REQUIREMENT OF TOOL & GAUGES AND EQUIPMENT. (viii) MECHANICAL HANDLING EQUIPMENT FOR PROJECT EXECUTION AND PRODUCTION. (ix) REQUIREMNT AT THE TIME OF ERECTION & COMMISSION. (iv) COST ESTIMATE IN RE & FE TO BE SUMMARISED, WITH THE BASIS OF ESTIMATION. (v) THE INVENTORIES LIKE STORES RACK AND BIN, FURNITURE FOR OFFICES, PRODUCTION AND OTHER MISC. INVENTORY ITEMS. (vi) A SUMMARY OF COST SEPARATELY FOR PRODUCTION AND MAINTENANCE WITH THE BASIS OF COST ESTIMATE CLEARLY EXPLAINED. THE BASIS OF COST ESTIMATES AND RELIABILITY OF SUCH ESTIMATES. THE FACTOR OF 42

PP-15

TIME FRAME OF COMPLETION SHOULD FIND A MENTION. (xiii) A DETAILED JUSTIFICATION OF IMPORTED PLANT & MACHINERY.IT SHOULD BRING OUT THEIR ABSOLUTE NECESSITY ON THE GROUND OF THEIR NON-AVAILABILITY. WHENEVER APPLICABLE, THE ECONOMICS OF USING IMPORTED MACHINES VIS-ÀVIS INDIGENOUS MACHINES SHOULD BE JUSTIFIED.THE SOURCE OF ORIGIN AND THE EXCHAGE RATES ASSUMED WHILE COMPUTING THE RUPEE VALUE OUGHT TO BE BROUGHT OUT. (G)THE UTILITIES FORM A MAJOR CONSIDERATION WHILE ASSESING THE PROJECT INVESTMENT AND IMPLIMENTATION. THE ASSESMENT OF REQUIREMENT HAS TO BE IN CONSULTATION WITH 43 THE PLANT

PP-16

SUPPLIERS. THE DPR SHOULD CONTAIN RELEVANT DETAILS. (i) THE REQUIREMENTS WILL INCLUDE WATER PROCESS, FIRE FIGHTING AND DRINKING PURPOSES, BULK AND DISTRIBUTED POWER SUPPLY AND THEIR CABLING, COMPRESSED AIR,STEAM, CHILLED WATER,AIR CONDITIONING,RAILWAY LINES,LOADING AND UNLOADING PLATFORMS, TELPHONES AND COMMUNICATION NETWORKS,SEWAGE TREATMENT PLANTS AND EFFLUNT TREATMENT PLANTS CONFORMING TO LOCAL ENVIRONMENTAL CONTROL NORMS, DRAINAGE SYSTEMS ETC. WHICH WILL NEED DETAILED PLANNING. MEASURE TO CONSERVE ENERGYY, WITH ITS COST, SHOULD ALSO FORM A PART OF THE UTILITIES. CONSERVATION IN THE USE OF WATER INCLUDING RECYCLING TO BE 44

PP-17

ESTIMATED COST OF THE UTILITIES AND THE BASIS THEROF. (ii) AVAILABILITY OF POWER AND WATER AND THEIR ARGUMENTATION,CONTRACTS TO BE ENTERED INTO WITH STATE GOVT./SUPPLY AGENCIES. (iii) ROADS, CULVERTS AND BRIDGES ETC. REQUIRED FOR THE PROJECT AREA FOR ENABLING PURPOSES AND FOR THE FACTORY SHOULD BE PLANNED. (H) DEFERRED REVENUE EXPENDITURE CONSTITUTE AN ESSENTIAL PART OF PROJECT EXECUTION. DETAILED ASSESMENT OF THE EXPENDITURE HAS TO BE MADE IN THE DPR. SOME ASPECTS ARE LISTED BELOW: (v) REQUIREMENTS OF TRAINING INCLUDING FOREIGN TRAINING HAVE TO BE FORESEEN AND 45 SPELT OUT. (i)

PP-18

AND COMPLETELY KNOCKED DOWN AND SEMI KNOCKED DOWN ITEMS BOTH INDIGENOUS AND IMPORTED WITH COST ASSESSMENTS. (iii) A SEPARATE ANNEXURE DETAILING THE DEFERRED REVENUE EXPENDITURE NEED TO BE ENCLOSED. (I) PROJECT REPORT SHOULD ALSO GIVE BRIEF OULINE OF THE ENVISAGED TIME FRAME OF COMPLETION . IMPLICATION ON THE COST IN THE CASE OF DELAY MAY ALSO BE BROUGHT OUT. (J) THE ANTICIPATED COST OF CAPITAL AND REVENUE EXPENDITURE WILL HAVE TO BE SHOWN. IT SHOULD ALSO HIGHLIGHT THE PHASING OF CASH FLOW BOTH IN THE FE,RE SEPARATELY 46

PP-19

GIVING THE PHASING OF THE PROJECT. IT SHOULD ALSO PHASE OUT THE FE COMMITMENT YEARWISE. (K) THE MANPOWER REQUIREMENT IS AN ESSENTIAL IN ANY PROJECT REPORT. IT SHOULD BE GIVEN IN THE FOLLOWING FORMATS:(iv) REQUIREMENT OF MANPOWER AT SITE AND IN THE HEAD QUARTERS, DURING THE PLANNING AND EXECUTION STAGES,CATEGORYWISE AND THE PHASIN THEREOF SHOULD BE CONTAINED IN THE REPORT. (v) REQUIREWMENT OF IE’S IN THE PRODUCTION AND PHASING THEROF. (vi) THERE SHOULD BE ADEQUATE JUSTIFICATION IN THE REPORT ITSELF AND NET YEARWISE REQUIREMENT SHOULD BE ANNEXED AS AN 47 ANNEXURE.

PP-20

THE ECONOMICS OF THE PROJECT SHOULD FORM AN INTEGRAL PART OF THE PROJECT REPORT.IT MAY HAVE THE FOLLOWING: (ii) COMPARISON WITH A KNOWN COST FROM OUTSIDE SOURCE,INDIGENOUS OR FOREIGN. (iii) IF THE PROJECT IS REQUUIRED ON STRATEGIC REQUIREMENTS AND THE ECONOMIES ARE OF SECONDARY CONSIDERATIONS, IT SHOULD BE BROUGHT OUT CLEARLY. (iv) IF THE PROJECT IS FOR BALANCING THE CAPACITIES FOR MANUFACTURING END PRODUCTS FOR CIVIL TRADE,COST BENEFIT ANALYSIS,JUSTIFYING INVESTMENT IS ESSENTIAL. (M) THE PROJECT REPORT SHOULD ALSO CONTAIN RECOMMENDATIONS FOR SPEEDY 

48

PP-21

ATION THE PROJECT. IT MAY HAVE THE FOLLOWING: (ii) SPECIAL POWERS, IF ANY, FOR PROCUREMENT OF PLANT AND MACHINERY,CONTRACTS FOR ERECTION AND OTHER SERVICES SHOULD BE DELEGATED TO THE PROJECT IMPLEMENTATION AUTHORITIES. (iii) SPECIAL POWERS FOR CONSTRUCTION AND CIVIL WORKS SHOULD ALSO BE DELEGATED TO THE PROJECT AUTHORITIES. (iv) SANCTION OF OFFICERS AND STAFF ALONG WITH THE GOVT.SANCTION FOR THE PROJECT. (v) REQUIREMENTS OF GO-AHEAD SANCTION FOR THE CIVIL WORKS. (N) THE QUESTIONARE FOR ECONOMIC FINANCE COMMITTEE (EFC), DULY FILLED IN, SHOULD 49

Pp-22  (ii) (iii) (iv)

(v) (vi)

IT HAS BEEN ADVISED THAT : PROJECT COST SHOULD BE WORKED OUT BASED ON THE LATEST AVAILABLE PRICE. THE EXCHANGE RATE ADOPTED SHOULD BE SPELT OUT LIKELY INCREASE IN COST DUE TO PRICE ESCALATION FORMULA DUE TO EXPIRY OF TIME BEFORE PROJECT COMPLETION SHOULD BE INDICATED. A REALISTIC TIME FRAME FOR COMPLETION OF THE PROJECT MAY BE WORKED OUT. THE POTENTIAL AREAS OF DIVERSIFICATION INTO CIVIL TRADE OR EXPORT SHOULD BE IDENTIFID AT THE TIME OF PREPARATION OF 50 DPR AND THIS

PP-23

SHOULD BE TAKEN INTO ACCOUNT AT THE TIME OF ORDERING P& Ms. (vi) THE QUANTUM OF STATUTORY LEVIES LIKE CD, ED SHOULD BE SPECIFIED IN THE DPR. (vii) PERIODIC MID STREAM REVIEWS MAY BE CARRIED OUT TO ENSURE THAT THE FACILITIES CREATED ARE COMMENSURATE WITH THE ACTUAL REQUIREMENTS. 

SUMMARY AS WOULD BE EVIDENT FROM ABOVE, THAT THE PROJECT REPORT IS A FACTUAL BASIS FOR THE INVESTMENT PROJECTED WITH ENVISAGED OUTTURN FOR SETTING UP OF FRESH CAPACITIES. THE REPORT SHOULD BE PREPARED IN PROPER MANNER (TABULAR/GRAPHICAL) AND IT 51

PP-24

MIN OF DEF FOR SETTING UP THE PROJECT. IT SHOULD ALSO CONTAIN CLEARANCE ACCORDED BY OTHER STATUTORY AUTHORITIES LIKE ENVOIRONMENTAL BODIES,STATE ELEC BOARD. ETC. IT SHOULD ALSO ENCLOSE THE DETAILS OF P&M WITH COST, SUPPORT DATA FOR ASSESMENT OF THE REQUIREMENT OF UTILITIES,MANPOWER REQT. ESTIMATED IMPORTATION REQUIREMENTS OF MATERIALS, CASH FLOW YEAR WISE ETC. CPM NETWORK AND KEY PLAN TO FACTORY AND THE TOWNSHIP SHOULD BE MENTIONED. SCHEMATIC FLOW OF MATERIAL FROM ONE FACTORY TO ANOTHER, MEASURE TO COMPLY WITH ANTI POLLUTION NORMS AND STEPS TO CONFIRM TO THE REQUIREMENTS OF ENERGY CONSERVATION 52 SHOULD ALSO BE MENTIONED.

PP-25 



PROVISION OF ANTI-POLLUTION MEASURES: THE COST OF ANTIPOLLUTION MEASURES SHOULD BE TREATED AS INTEGRAL COSTS OF PROJECT BEING FORMULATED. MEASURES TO SAFEGUARD ENVIRONMENT ALSO SHPULD BE TREATED SIMILARLY. SUITABLE MEASURES ARE TO BE PLANNED AND PROVIDED IN PROJECT COSTS AT THE BEGINNING ITSELF. ENERGY CONSERVATION IN NEW PROJECTS: ALL NEW PROJECTS HAVE A CHAPTER ON ENERGY CONSERVATION IN THE PROJECT REPORT ITSELF. IT HAS BEEN ADVISED THAT THE NEW PROJECTS DO NOT CONTRIBUTE TO THE INEFFICIENT USE OF ENERGY. IT MAY ALSO BE APPLIED TO THE EXPANSION OF PROJECTS INVOLVING LARGE 53 INVESTMENTS.

PP-26 



    

PLANT AND MACHINERY AND CIVIL WORKS: ACTIVITIES PERTAINING TO PLANT AND MACHINERYFOR THE PROJECTS, ARE AS FOLLOWS: PREPARATION OF MASTER LIST OF P & M WITH BASIS OF CALCULATION WITH CYCLE TIME ESTIMATED COST INCLUDING BUDGETORY OFFERS. PREPARATION OF DETAILED SPECIFICATIONS OF P & M. ISSUE OF TENDER ENQUIRIES HOLDING OF TEC/TPC AT FY/OFB OBTANINING FINANCIAL CONCURRENCE AND PLACEMENT OF SUPPLY ORDER FOR IMPORTED PLANT & MACHINER, APPROVAL OF COMPETENT FINANCIAL AUTHORITY FOR RELEASE OF FE 54

Pp-27 (i)

(ii)

(iii)

THE SO/CONTRACT SHOULD BE DETAILED. THE ACCEPTANCE CRITERIA,OF MACHINES/PROCESS PLANTS, DETAILS OF COMMISSIONING, BUILDING/FOUNDATION DETAILS,SERVICE REQUIREMENTS,TECHNICAL ASSISTANCE ARE ALL REQUIRED TO BE WELL LAID OUT. FOLLOW UP OF COMMERCIAL ASPECTS OF S.O/CONTRACTS, SO FAR AS PURCHASER’S OBLIGATIONS ARE DULY PERFORMED. LC OPENING AND OBTAINING NECESSARY STATUTORY CLEARANCE IS PURSUID ADEQUATE PREPLANNING AND CONTRACT PLANNING IS DONE TO EFFECT DELIVERY,ERECTION AND COMMISSIONING OF P&M. SOME OF THE IMPORTANT ASPECTS WHICH NEED 55 TO BE EVALUATED/FOLLOWED FOR IMPORT OF

Pp-28 i) ii) iii)

iv)

FROMULATION OF QUALITATIVE AND QUANTITY REQUIREMENTS IN THE SPECIFICATIONS FINANCIAL STANDING/SOUNDNESS AND REPUTATION OF THE SHORT LISTED SUPPLIERS PROVISION OF ADEQUATE SAFE GUARDS IN THE AT/SUPPLY ODERS FOR IVOKING THE SAME IN CASE OF FAILURE OF SUPPLIER OF PLANT AND MACHINERY OR DEFAULT ON HIS PART RESPONSIBILITY OF SYSTEM INTEGRATION SHOULD BE ASSURANCE AND RELIABILITY OF ALL BOUGHT OUT VENDOR ITEMS,LIKE COMPONENTS/SUB ASSEMBLY/SUBSYSTEMS ETC. IS THE GUARANTEED BY THE SAILOR AND APPROPRIATE PROVISION MADE IN THE CONTRACT. 56

PP-29 v) PROVISION OF TRAINING IN USAGE, MAINTENANCE ETC. IN THE CONTRACT. ii) IN CASE OF COMPLEX, PLANTS TO CONSIDER DEPUTING DESIGN REVIEW TEAM COMPRISING RAPES OF USERS, MAINTENANCE, INSPECTION WING AS ALSO STAGE INSPECTION WING AS ALSO STAGE INSPECTION WHERE NECESSARY. iii) THE MODALITIES OF INSPECTION SHOULD BE CLEARLY SET OUT IN THE CONTRACT. iv) PROVISION FOR PREDESPATCH INSPECTION BY THE PURCHASERS INSPECTION TAM. v) SUSTAINED FOLLOW UP AND IMPLEMENTATION OF CONTRACTS. vi) THE INSPECTION TEAM SHOULD BE WELL VERSED IN CARRYING OUT THE PRE-DESPATCH INSPECTION. vii) IF INSPECTION OF IMPORTED PLANT AND MACHINERY IS TO BE DONE ON RECEIPT IN INDIA AVAILABILITY OF SPECIAL TEST EQIPMENTS/SPECIAL TEST INSTRUMENT HAVE TO BE 57

PP-30 

i)

iii) iv) v) vi) vii)

viii)

THE RELATED CIVIL WORKS IN PROJECT EXECUTION INVOLVES FOLLOWING ACTIVITIES:OBTAINING VARIOUS CIVIL WORKS DATA FROM PLANT SUPPLIERS. THE SCHEDULE OF RECEIPT SHOULD BE PREDECIDED. THE DATA WOULD INCLUDE DIMENSION OF MACHINES, WORKING AREA AND THE LAYOUT OF PLANT, ITS AUXILIARIES, FIXTURES, MATERIAL HANDLING EQUIPMENT AND AREA FOR FLOW OF MEN AND COMPONENTS/PROCESSED ITMES. COVERING OF SITING BOARD. APPROVAL OF SITING BOARD BY COMPETENT AUTHORITY. PREPARATION OF AE PART-I AND II BY MES. CONCURRENCE BY FINANCE AND ISSUE OF ADMINISTRATIVE APPROVAL BY COMPETENT AUTHORITY IN ADVANCE OF FORMAL PROJECT SANCTION OR APPROVAL BY CIVIL WORKS, GO AHEAD APPROVAL IS ACCORDED TO COMPRESS TIME SPAN. EXECUTION OF CIVIL WORKS AND ITS FORMAL TAKING OVER BY 58 USER

PP-31 FACTORY viii) WHEREVER CIVIL WORKS ARE EXECUTED BY THE DPARTMENT, THE TECHNICAL SPECIFICATION AND SCOPE OF WORKS ARE FINALISED BY THE FACTORY AND ARE VETTED BY CE(CIVIL) OF BOARD. ix) THE WORKS ARE ESTIMATED COSTWISE AND ARE CONCURRED BY FINANCE. iv) THE WORKS ARE TENDERED IN TWO BID SYSTEM- ASKING FOR TECHNICAL & COMMERCIAL BID SEPARATELY v) ALL CLARIFICATIONS AND DISCUSSIONS ARE HELD TO ENSURE THAT CONFORMITY TO SPECIFICATION, AS WELL AS STATUS AND BUILDING CODES ARE COMPILED WITH. THE COMPETANT FINANCIAL AUTHORITY SHOULD ACCEPT THE TECHNICALLY ACCEPTED OFFERS. vi) THE PRICE BIDS ARE OPENED THEREAFTER AND A RANKING STATEMENT IS MADE, FOR ALL OFFERS WHICH WERE ACCEPTED TECHNICALLY EARLIER. 

59

PP-32 (i)  

(iv) (v)

(vi)

(vii)

THE CONTRACT IS CONCLUDED BY THE COMPETANT AUTHORITY IN CONSULTATION WITH FINANCE. PROJECT MONITORING ; THE PROJECT MONITORING IS DONE WITH RESPECT TO BOTH P & M AND CIVIL WORKS.IT IS DONE FOR BOTH PHYSICAL ACHIEVEMENT AND FOR FINANCIAL PROGRESS. THE BASIS OF PROGRESS MONITORING IS DONE ON THE BASIS OF REPLANNED SCHEDULED EXPRESS AS CPM NETWORKS, THEY ARE PERIODICALLY UPDATED BASED ON ACTUALS. THE ACTIVITIES ARE: PREPARATION OF PERT/CPM NETWORKS. PREPARATION OF PROGRESS REPORTS PERIODICALLY, BOTH FOR PHYSICAL COMPLETION AS WELL AS FOR FINANCIAL EXPENDITURES/CASH FLOWS. COMPRESSING THE ACTIVITIES, REMOVALOF UNWANTED SLACK PERIODS AND EVEN BUNCHING OF PROCUREMENTS SO AS TO STEER TOWARDS TARGETTED DATES OF COMPLETION. PREPARATION OF CASH FLOW BUDGETSFOR THE YEAR, FOR60

PP-33

 COMMITMENT NOTING (FOR FE) (FORECAST ESTIMATE AND ACTUAL EXPENDITURE.THIS MAY BE DONE FOR PERIODS OF ONE EACH FOR THE ENTIRE PROJECT DURATION. iv)THE FUNDS ARE TO BE ARRANGED FOR ANNUAL BUDGET EXPENDITURE AND SLIPPAGES ARE TO BE FORMALLY ANALYSED. v) SINCE DIFFERENT AGENCIES ARE ENVOLVED,COMLETION OF CASH FLOW FROM MULTIPLE SOURCES, INVOLVING DIFFERENT PLANT SUPPLIERS IS AN ESSENTIAL TASK. vi) TAKING CARE OF EXCESS REQUIREMENT OF FUNDS AS WELL AS RESTRICTING SLIPPAGES IN CASH FLOW IS AN ESSENTIAL INGREDIENT 61 TO PROJECT IMPLIMENTATION.

PP-34 



iii) iv)

THE PROGRESS MONITORING CAN BE DONE BY USE OF APPLICATION PACKAGES, WHICH CAN BE RUN EVEN ON PCS. SCHEDULING, AND PLANNING IS DONE EITHER BASED ON SINGLE MACHINE OR A GROUP OF MACHINES. MONTHLY PROGRESS REPORT REGARDING THE PROJECT IS SUBMITTED BY THE FACTORY TO THE CONCERNED PROJECT GROUP AT OFB WITH A COPY TO THE OPERATING DIVN. MONITERING THE PROGRESS,THE FOLLOWING VARIOUS REPORTS ARE SUBMITTED:MONTHLY REPORT FROM FACTORY TO HEAD QUARTERS. PROJECT REVIEW IN DDG NET WORKING AT OFB 62

PP-35 i) ii)



   

MONITORING AT BOARD LEVEL ON QUARTERLY BASIS MONITORING AT MINISTRY LEVEL THROUGH MONTHLY, QUARTERLY AND HALF YEARLY REPORTS. ANNUAL BUDGET PROJECTIONS FOR PROJECTSS FOR PROJECTS (NC) ARE MADE AND REVIEWED AS PER THE FOLLOWING REPORT/SCHEDULE:NAME OF REPORT DUE DATE FORCAST ESTIMATE (FE) 25TH OCT OF PRECEDING YR BUDGET ESTIMATE (BE) 25TH NOV -DOPRELIMINARY REPORT (PR) 25TH AUG OF CURRENT YR PRELIMINARY REVISED EST(PRE 25TH OCT OF –DO 63 –