Discontinuation of LOC System – Procedure for Bulk Purchase

Government of West Bengal
Finance Department
Audit Branch

No. 3391-F(Y) Dated, 28th April, 2015


Finance Department issued order nos. 736-F(Y) dt. 10.2.15, 2705-F(Y) dt. 30.3.15 and 3292-F(Y) dt. 24.4.15 prescribing various procedures related to the new system of drawal of fund for works and forest expenditure consequent upon discontinuance of LOC system wef 1.4.2015 and introduction of new system of fund drawal and its management.

In the meantime some more issues cropped up after discussion with works and Forest departments, which are primarily related to the procedure to be adopted for procurement of materials through Resource Division. The Government examined the issues involved and decided to lay down further guidelines for the purpose.

Therefore, the undersigned is directed to lay down the following further guidelines to deal with the issues involved in providing necessary fund to the Resource division and procurement of materials for stock purpose.

1. Procedure for bulk purchase through Resource Division:

i. For bulk purchase through Resource Division the Works Division, as Sub-allotting authority, shall sub-allot fund to Resource Division through e-Bantan under specific heads of accounts with the instruction to draw the fund from the Treasury/PAO by transfer credit of the amount to the Deposit Account of Resource Division under head ‘8443-00-108-003-07’-Works Deposit.

ii. Resource division will procure the materials within the delegated power of the Executive Engineer in charge of the Resource Division concerned. Otherwise sanction from the competent authority shall be necessary.

iii. On the basis of the allotment order(s) received from the Works Division(s), the Resource Division shall submit a bill in T.R. form no. 43 to the concerned Treasury/PAO for transfer credit of the amount to the Deposit account of Resource Division maintained in the Treasury/PAO u/h ‘8443-00-108-003-07’.

iv. For the final withdrawal of fund the Resource Division shall submit bill under head ‘8443-00-108-003-23’-Payment (i) in T.R. Form No. 26 for payment post- Delivery against Bill, (b) in T.R. 27 for Advance Payment and (c) in T.R. 28 for Adjustment of Advance.

2. Delegation of Financial Power for sanction of Advance for Bulk Purchase:

i. Bulk purchase of Bitumen, Cement and Steel from the manufacturers on payment before delivery, if required, can be done by the Resource Division by drawing advance against Proforma Invoice as per terms of Contract/Agreement, within his delegated power.

In such cases the delegated power will be as follows-

(a) Upto Rs. 5 lakh – Executive Engineer/DFO

(b) > Rs.5 lakh upto Rs. 8 lakh – Superintending Engineer/ CF, CCF

(c) > 8 lakh upto Rs. 50 lakh – Chief Engineer/PCCF

(d) > Rs. 50 Lakh upto Rs. 1 crore – Departmental Secretary

This delegation is made in partial modification of para 17 of FD memo. no. 2705-F(Y) dt. 30.3.15.

3. The procurement will be done only within the delegated power/ sanction from the competent authority.

4. This order is issued in modification of the relevant provisions of FD memo. no. 2705-F(Y) dt. 30.3.15.

Sd/- H.K. Dwivedi
Principal Secretary to the
Government of West Bengal

No. 3391-F dated 28.04.2015, Source

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