Discontinuation of Engaging Central PSU for State Govt. Works

Government of West Bengal
Finance Department
Audit Branch

No. 479-F(Y) Dated 28th January, 2016


A new provision was inserted namely Rule 47D in WBFR vide FD notification no. 5400-F(Y) dt. 25.6.12 to facilitate execution of works through agencies enumerated in Annexure- C & D under the said rule. Annexure-C includes state PSUs and Annexure-D Central PSUs. The intention of the Government was to enable the non-works departments to execute the works which could not be undertaken by Works Departments of the Government on priority basis, through these agencies against an agency fee which is fixed at a maximum of 8.5 per cent depending upon the nature of the works.

Although it has been stipulated in Rule 47D that the works estimate should be based on the PWD SOR for works within the state, it has been seen that in many cases, the estimates are prepared on SOR not necessarily of PWD but also of CPWD especially in those cases where execution of works is done through the central PSUs. Besides, most of these central PSU’s invite tender for execution of the work through their own portal instead of the state Government e-tender portal and the participants in the e-tender are mostly those who are already registered with the respective Central PSU’s. This contravenes the state Government order issued vide notification no. 6932-F(Y) dt. 29.8.13 which enjoined procurement valued at and above Rs. 5 lakh through e-tender using its portal https://wbtenders.gov.in. wef 1.10.13. Besides, the State Government has reviewed this procedure of execution of works through agencies against the agency fee which is calculated on the estimated cost based on the SOR of CPWD and decided to take steps to discontinue the system of engaging Central PSU’s as state agency for works execution under Rule 47D.

Therefore, the undersigned is directed to delete Annexuns-D under Rule 47D of WBFR to discontinue the system of engaging the central PSU’s enumerated in the said Annexure as agency for execution of works of the State Government and organisations funded by the State Government. However, Central PSU’s may participate in the state Government tenders, and execute works if selected through the e-tender process as applicable to the State Government.

This order will come into effect immediately. Contract, MOU which has already been executed by any state Government office/organisation with any central PSU in terms of Rule 47D need not be revisited.

Necessary amendment will be made in WBFR in due course.

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

No. 479-F dated 28.01.2016, Source

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