Guidelines on Managerial Accounting of Fixed Assets in STR

Guidelines on Managerial Accounting of Fixed Assets in STR

1.INTRODUCTION:As per International Accounting Standards-16 (IAS –16), fixed assets are assets whose future economic benefit is probable to flow into the entity and whose cost can be measured reliably. The probable future benefit involves a capacity, singly or in combination with other assets, to contribute directly or indirectly to the future net cash flows of the entity.

The transaction or event, giving rise to the entity’s right to, or control of, the access to the benefit occurs by direct purchase or by inward transfer of the assets from other units. Usually the fixed assets, which have a useful life of less than one year, are not capitalized.

The fixed assets are written off against profits over their anticipated life by charging depreciation expenses (with exception of land). Accumulated depreciation is shown in the face of the balance sheet.

A Fixed Asset Register (FAR) is an accounting method used for recording the major resources of a business. A FAR must be maintained at all cost centers and kept in order to be in compliance with legislation governing corporations, companies etc. It allows a company to keep track of details of each fixed asset, ensuring control and preventing misappropriations of assets.

In BSNL, the fixed assets are items such as land, building, motor vehicles, furniture, and tools, Office equipment, computers, fixtures & fittings, plant & machinery etc. They are also referred to as PPE (Property, Plant and Equipment), which are tangible, purchased for continued and long-term use in earning profit in a business.

2. DEPRECIATION AND ACCUMULATED DEPRECIATIONAssets are tangible and relatively long-lived capital, owned by the business, which could be used economically during its useful life period. The benefits of these assets are available not only in the accounting period in which the cost is incurred, but also over the useful life of the assets which spreads over several accounting periods.

All costs incurred on any asset with limited life, expire during its lifetime and such expired cost is referred to as depreciation. By depreciation, cost of an asset is gradually reduced by allocating a part of it to the expense in each accounting period.

The BSNL has adopted the Written Down Value (WDV) for depreciation of the assets, under which, depreciation at a certain rate is applied to the book value of the asset at the end of each year. The effect is that the amount of depreciation charged every year is an amount less than the previous year. However, cost of an asset is not depreciated further, once it reaches a value 5% of the original cost of acquisition.

The rate of depreciation in regard to different value of asset in BSNL is as given below:Sl.No. Item Rate of Depreciation1 Land Nil2 Building 5.00 %3 Apparatus & Plants 15.33 %

Sl.No. Item Rate of Depreciation4 Motor Vehicles 25.89 %5 Cables 15.33 %6 Lines & Wires 13.91 %7 Installation / Testing Equipments 13.91 %8 Office Machinery & Equipment 13.91 %9 Electrical Fittings & Appliances 13.91 %10 Furniture & Fixtures 18.10 %11 Computer 40.00 %12 Masts & Aerials 13.91 %

The sum of depreciation of an asset to the date is called accumulated or cumulative depreciation. At any point of time, the Net Value of an Asset, which is also termed as Present Value or Book Value of an asset, is obtained as original cost less accumulated depreciation.

3. CONCEPTS OF REVENUE EXPENDITURE:Entire operation and maintenance expenditure incurred in connection with the provision of service and up keep of capital assets in good condition including all types of repairs are treated as Revenue Expenditure.

Expenditure on small tools and minor assets having a useful life of less than a year are charged as Revenue Expenditure. The expenditure involved may be for installations, maintenance or operations and hence the same may be charged in the respective head of accounts.

Expenditure incurred on subsequent additions of electrical installation and fittings, alterations or repairs, for operational buildings, administrative buildings, staff quarters or inspection houses are charged to the Revenue Expenditure.

Expenditure incurred for replacement of parts of the main equipment of an asset just to keep it in running position and not resorted to enhance the revenue earning capacity is considered as ordinary repair and charged to the Revenue Expenditure. Any expenditure towards addition or improvement to an asset having minor nature is also charged to the Revenue Expenditure.

4. CONCEPTS OF CAPITAL EXPENDITURE AND CAPITALIZATION:Various types of assets are being acquired for the conduct of the business. The concept of such Capital Expenditure on various components is given below.

Land: Land is capitalized as and when the possession is acquired for the conduct of the business.

Buildings: When a building is completed, it is capitalized, on getting the management certificate to the effect of completion.

Apparatus & Plants: Expenditure on new acquisition of any apparatus and plants is capitalized on commissioning of the system/ route/ link. In case any asset is partly commissioned/ put into

use, only such part of it is capitalized and the remaining parts of the asset are treated as work-in-progress. On subsequent commissioning of the remaining parts, the same is capitalized. For all capitalization a certificate to the effect that they are commissioned/ put into use are obtained from the management.

Vehicles: Expenditure on new vehicles is capitalized as and when those vehicles are purchased.

Cables: Expenditure on new cables is capitalized as and when the cable are laid, jointed, commissioned and ready for connection to the main system, after getting management certificate to the effect of commissioning/ readiness.

Electrical Installations & Fittings: All electrical installations, fittings and wirings provided at the original construction stage and part of the building are capitalized on completion of the building and on getting the management certificate to the effect of completion. The depreciation is charged as applicable rate.

Furniture, Fittings & Office Equipments: Any new purchase of furniture, fittings and office equipments is capitalized on purchase and put into use of the same.

Other Assets: Expenditure on other assets is capitalized as and when those assets are purchased.

Partition: Any new constructions of partitions exceeding Rs. 2 lakhs is capitalized on completion of the construction of the partition. The new construction of partitions valued up to Rs.2 lakhs is also charged to the capital but fully depreciated during that accounting period.

Concept of Materiality: Expenditure on assets individually costing up to Rs.5000/- is also capitalized but fully depreciated during that accounting period itself as per Companies Act. This is applicable for all categories of assets.

Additions/ Improvements to the Existing Assets: Enlargements and extension of the existing facilities are referred to as additions. Expenditure for the addition of an entirely new unit, plant and machinery is capitalized independently. Any major improvement effected for increasing the efficiency, which enhances the revenue earning capacity is capitalized as value addition.

Internal Transfer of Spare Card/ battery Cells: The internal transfer of battery are not resorted to enhancement of revenue earning capacity, since it involves only maintenance activities for keeping the existing assets to continue to generate the same revenue. Similarly internal rearrangement of card in an existing system is also not treated as asset transfer, since it involves only the rearrangement of facilities already available in that system. However, approval from competent authority needs to be taken for all such internal transfers.

Cenvat : Cenvat Scheme allows credit of Excise duty paid on inputs and capital goods and service TAX paid on input service. Duty paid on input goods used by service providers for providing output service is eligible for Cenvat credit. This credit can be utilized for payment of service TAX on output service. Cenvat credit is available only if there is a provision of taxable output services. Service provider should maintain record of Cenvat credit availed and of credit utilized.

Wherever Cenvat Credit is availed for excise duty or service tax and the particular asset or

expense is capitalized, the asset should be capitalized at the value after deducting the cenvat credit availed or proposed to be availed from the total cost of the asset/expense which is being capitalized.

The following duties/ taxes are available as Cenvat credit: a) Basic Excise duty on indigenous inputs and corresponding CVD on imported goods.b) Education Cess on manufactured excisable goods and CVD equal to education Cess on

imported goods.This credit can be utilized only for payment of education Cess on output service.

c) Service tax on input services paid under section 66 of Finance Act.d) Education Cess paid on service tax. This credit can be utilized only for payment of

education Cess on output service.Replacement of the Whole Asset: Expenditure on replacement of the whole assets, equipments, cables, instruments and rehabilitation work is capitalized on completion of such replacement work.

Replacement of the Part of an Asset: Expenditure for extensive and extra-ordinary replacements of the part of asset resorted to enhance the revenue earning capacity is capitalized after getting a technical evaluation certificate from the management that such replacement has increased the revenue earning capacity.

5. CLASSIFICATION OF ASSETS:5.1 CLASSES AND TYPES OF ASSETS:

In BSNL, the fixed assets are broadly classified into the following classes:

a. Land g. Installation & Testing Equipmentb. Building h. Office Machinery & Equipmentc. Apparatus & Plants i. Electrical Fittings & Appliancesd. Motor Vehicles j. Furniture & Fixturese. Cables k. Computerf. Lines & Wires l. Masts & Aerials

The Above Asset classes are further sub-classified into Types as given below:

Landa. Free Hold Land b. Lease Hold Land

Buildinga. Technical c. Residentialb. Administrative

Apparatus & Plantsa. Battery c. Power Plant

b.AC Units which are operated 24 hrs a day (working in equipment room)

d. Equipment

Motor Vehiclesa. Vehicle

Cablesa. CXL Cable c. Local Cableb. OF Cable d. Submarine Cable

Lines & Wiresa. Lines & Wires

Installation & Testing Equipmenta. Installation Equipment b. Testing Equipment

Office Machinery & Equipmenta. Office Machinery &Equipment

Electrical Fittings & Appliancesa. AC Units( Others) c. Engine Alternatorb. Electrical Appliances

Furniture & Fixturesa. Fixture b. Furniture

Computera. Computer b. Software

Masts & Aerialsa. Antenna c. Wave Guideb. Tower

5.2 ASSETS BASED ON MODE OF ACQUISITION:In BSNL, the assets can be classified in to two groups based on the mode of acquisition caused due to the conversion of a Government Department into Public Sector Company. a. Assets passed on from DOT/ DTS/ DTO to BSNL as on 01-10-2000, the date of formation of BSNL. b. Assets acquired / commissioned after the formation of BSNL ie., after 01-10-2000.

5.3 ASSETS BASED ON GEOGRAPHICAL AREA OF OPERATION:In order to facilitate the submission of the audited accounts of Income & Expenditure for Rural Telephony to DoT with a view to getting the subsidy from USO Fund and reimbursement of license fee, and also for assessing the details of Plan Expenditure under each area separately, the assets of National Long Distance Services are further classified based on the geographical location/ area covered by it as given below: a. General Area b. Rural Area c. Tribal AreaNotes: 1. All fixed assets other than OF cable are classified in to general, rural and tribal based on its geographical location. 2. In case of the OF cable, considering the portion of media used by the territorial Circles for rural telephone services, 20% of the assets in OF cable are taken as assets belonging to rural area. 3. In respect of the remaining 80% OF cable assets, further classification is made on the geographical area covered by the cable for each section.

6. HEAD OF ACCOUNT OF EACH ASSET TYPE: 6.1 ACCOUNT CODES FOR NATIONAL LONG DISTANCE SERVICES (GENERAL):

DETAILSAccount Codes

Fixed Asset

Acumulateddepreciation

Depreciation

LONG DISTANCE SWITCHING SYSTEMS 1050600 1080600 1890600Land 1050601 1080601 1890601Building 1050602 1080602 1890602Apparatus & Plant 1050603 1080603 1890603Motor Vehicles & Launches 1050604 1080604 1890604Cables 1050605 1080605 1890605Lines & Wires 1050606 1080606 1890606Installation Test Equipments 1050608 1080608 1890608Office Machinery & Equipment 1050609 1080609 1890609Electrical Fittings & Appliances 1050610 1080610 1890610Furniture & Fixtures 1050611 1080611 1890611Computer 1050612 1080612 1890612LONG DISTANCE TRANSMISSION-COAXIAL CABLE SYSTEMS

1050700 1080700 1890700

Land 1050701 1080701 1890701Building 1050702 1080702 1890702Apparatus & Plants 1050703 1080703 1890703Motor Vehicles & Launches 1050704 1080704 1890704Cables 1050705 1080705 1890705Lines & Wires 1050706 1080706 1890706Installation & Test Equipments 1050708 1080708 1890708Office Machinery & Equipment 1050709 1080709 1890709Electrical Fittings & Appliances 1050710 1080710 1890710Furniture & Fixtures 1050711 1080711 1890711Computer 1050712 1080712 1890712LONG DISTANCE TRANSMISSION-MICROWAVE RADIO RELAY SYSTEMS

1050900 1080900 1890900

Land 1050901 1080901 1890901Building 1050902 1080902 1890902Apparatus & Plants 1050903 1080903 1890903Motor Vehicles & Launches 1050904 1080904 1890904Cables 1050905 1080905 1890905Lines & Wires 1050906 1080906 1890906Installation & Test Equipments 1050908 1080908 1890908Office Machinery & Equipment 1050909 1080909 1890909


Fixed Asset


Depreciation

Electrical Fittings & Appliances 1050910 1080910 1890910Furniture & Fixtures 1050911 1080911 1890911Computer 1050912 1080912 1890912Masts and Aerials 1050913 1080913 1890913LONG DISTANCE TRANSMISSION-SATELLITE SYSTEMS

1051000 1081000 1891000

Land 1051001 1081001 1891001Building 1051002 1081002 1891002Apparatus & Plants 1051003 1081003 1891003Motor Vehicles & Launches 1051004 1081004 1891004Cables 1051005 1081005 1891005Installation & Test Equipments 1051008 1081008 1891008Office Machinery & Equipment 1051009 1081009 1891009Electrical Fittings & Appliances 1051010 1081010 1891010Furniture & Fixtures 1051011 1081011 1891011Computer 1051012 1081012 1891012Masts and Aerials 1051013 1081013 1891013LONG DISTANCE TRANSMISSION-OPTICAL FIBRE CABLE SYSTEMS

1051100 1081100 1891100

Land 1051101 1081101 1891101Building 1051102 1081102 1891102Apparatus & Plants 1051103 1081103 1891103Motor Vehicles & Launches 1051104 1081104 1891104Cables 1051105 1081105 1891105Submarine Cable 1051116 1081116 1891116Lines & Wires 1051106 1081106 1891106Installation & Test Equipments 1051108 1081108 1891108Office Machinery & Equipment 1051109 1081109 1891109Electrical Fittings & Appliances 1051110 1081110 1891110Furniture & Fixtures 1051111 1081111 1891111Computer 1051112 1081112 1891112Masts and Aerials 1051113 1081113 1891113

6.2 ACCOUNT CODES FOR NATIONAL LONG DISTANCE SERVICES (RURAL):


Fixed Asset


Depreciation

LONG DISTANCE SWITCHING SYSTEMS (RURAL)

1062000 1092000 1902000


Fixed Asset


Depreciation

Land 1062001 1092001 1902001Building 1062002 1092002 1902002Apparatus & Plant 1062003 1092003 1902003Motor vehicles & Launches 1062004 1092004 1902004Cables 1062005 1092005 1902005Lines & Wires 1062006 1092006 1902006Installation Test Equipments 1062008 1092008 1902008Office Machinery & Equipment 1062009 1092009 1902009Electrical fittings & Appliances 1062010 1092010 1902010Furniture & Fixtures 1062011 1092011 1902011Computer 1062012 1092012 1902012LONG DISTANCE TRANSMISSION-COAXIAL CABLE SYSTEMS (RURAL)

1062100 1092100 1902100

Land 1062101 1092101 1902101Building 1062102 1092102 1902102Apparatus & Plant 1062103 1092103 1902103Motor vehicles & Launches 1062104 1092104 1902104Cables 1062105 1092105 1902105Lines & Wires 1062106 1092106 1902106Installation Test Equipments 1062108 1092108 1902108Office Machinery & Equipment 1062109 1092109 1902109Electrical fittings & Appliances 1062110 1092110 1902110Furniture & Fixtures 1062111 1092111 1902111Computer 1062112 1092112 1902112L D TRANSMISSION-M/W RADIO RELAY SYSTEMS (RURAL)

1062300 1092300 1902300

Land 1062301 1092301 1902301Building 1062302 1092302 1902302Apparatus & Plant 1062303 1092303 1902303Motor vehicles & Launches 1062304 1092304 1902304Cables 1062305 1092305 1902305Lines & Wires 1062306 1092306 1902306Installation Test Equipments 1062308 1092308 1902308Office Machinery & Equipment 1062309 1092309 1902309Electrical fittings & Appliances 1062310 1092310 1902310Furniture & Fixtures 1062311 1092311 1902311Computer 1062312 1092312 1902312Masts and Aerials 1062313 1092313 1902313LONG DISTANCE TRANSMISSION-SATELLITE 1062400 1092400 1902400


Fixed Asset


Depreciation

SYSTEMS (RURAL)Land 1062401 1092401 1902401Building 1062402 1092402 1902402Apparatus & Plant 1062403 1092403 1902403Motor vehicles & Launches 1062404 1092404 1902404Cables 1062405 1092405 1902405Installation Test Equipments 1062408 1092408 1902408Office Machinery & Equipment 1062409 1092409 1902409Electrical fittings & Appliances 1062410 1092410 1902410Furniture & Fixtures 1062411 1092411 1902411Computer 1062412 1092412 1902412Masts and Aerials 1062413 1092413 1902413LONG DISTANCE TRANSMISSION-OFC SYSTEMS (RURAL)

1062500 1092500 1902500

Land 1062501 1092501 1902501Building 1062502 1092502 1902502Apparatus & Plant 1062503 1092503 1902503Motor vehicles & Launches 1062504 1092504 1902504Cables 1062505 1092505 1902505Lines & Wires 1062506 1092506 1902506Installation Test Equipments 1062508 1092508 1902508Office Machinery & Equipment 1062509 1092509 1902509Electrical fittings & Appliances 1062510 1092510 1902510Furniture & Fixtures 1062511 1092511 1902511Computer 1062512 1092512 1902512Masts and Aerials 1062513 1092513 1902513

6.3 ACCOUNT CODES FOR NATIONAL LONG DISTANCE SERVICES (TRIBAL):


Fixed Asset


Depreciation

LONG DISTANCE SWITCHING SYSTEMS (TRIBAL)

1062600 1092600 1902600

Land 1062601 1092601 1902601Building 1062602 1092602 1902602Apparatus & Plant 1062603 1092603 1902603Motor vehicles & Launches 1062604 1092604 1902604


Fixed Asset


Depreciation

Cables 1062605 1092605 1902605Lines & Wires 1062606 1092606 1902606Installation Test Equipments 1062608 1092608 1902608Office Machinery & Equipment 1062609 1092609 1902609Electrical fittings & Appliances 1062610 1092610 1902610Furniture & Fixtures 1062611 1092611 1902611Computer 1062612 1092612 1902612LONG DISTANCE TRANSMISSION-COAXIAL CABLE SYSTEMS (TRIBAL)

1062700 1092700 1902700

Land 1062701 1092701 1902701Building 1062702 1092702 1902702Apparatus & Plant 1062703 1092703 1902703Motor vehicles & Launches 1062704 1092704 1902704Cables 1062705 1092705 1902705Lines & Wires 1062706 1092706 1902706Installation Test Equipments 1062708 1092708 1902708Office Machinery & Equipment 1062709 1092709 1902709Electrical fittings & Appliances 1062710 1092710 1902710Furniture & Fixtures 1062711 1092711 1902711Computer 1062712 1092712 1902712L D TRANSMISSION-M/W RADIO RELAY SYSTEMS (TRIBAL)

1062900 1092900 1902900

Land 1062901 1092901 1902901Building 1062902 1092902 1902902Apparatus & Plant 1062903 1092903 1902903Motor vehicles & Launches 1062904 1092904 1902904Cables 1062905 1092905 1902905Lines & Wires 1062906 1092906 1902906Installation Test Equipments 1062908 1092908 1902908Office Machinery & Equipment 1062909 1092909 1902909Electrical fittings & Appliances 1062910 1092910 1902910Furniture & Fixtures 1062911 1092911 1902911Computer 1062912 1092912 1902912Masts and Aerials 1062913 1092913 1902913LONG DISTANCE TRANSMISSION-SATELLITE SYSTEMS (TRIBAL)

1063000 1093000 1903000

Land 1063001 1093001 1903001Building 1063002 1093002 1903002Apparatus & Plant 1063003 1093003 1903003


Fixed Asset


Depreciation

Motor vehicles & Launches 1063004 1093004 1903004Cables 1063005 1093005 1903005Installation Test Equipments 1063008 1093008 1903008Office Machinery & Equipment 1063009 1093009 1903009Electrical fittings & Appliances 1063010 1093010 1903010Furniture & Fixtures 1063011 1093011 1903011Computer 1063012 1093012 1903012Masts and Aerials 1063013 1093013 1903013LONG DISTANCE TRANSMISSION-OFC SYSTEMS (TRIBAL)

1063100 1093100 1903100

Land 1063101 1093101 1903101Building 1063102 1093102 1903102Apparatus & Plant 1063103 1093103 1903103Motor vehicles & Launches 1063104 1093104 1903104Cables 1063105 1093105 1903105Lines & Wires 1063106 1093106 1903106Installation Test Equipments 1063108 1093108 1903108Office Machinery & Equipment 1063109 1093109 1903109Electrical fittings & Appliances 1063110 1093110 1903110Furniture & Fixtures 1063111 1093111 1903111Computer 1063112 1093112 1903112Masts and Aerials 1063113 1093113 1903113

6.4 ACCOUNT CODES FOR INTERNATIONAL LONG DISTANCE SERVICES:


Fixed AssetAcumulateddepreciation

Depreciation

Land 1051201 1081201 1891201Building 1051202 1081202 1891202Apparatus & Plants 1051203 1081203 1891203Motor Vehicles & Launches 1051204 1081204 1891204Cables 1051205 1081205 1891205Submarine Cable 1051216 1081216 1891216Installation & Test Equipments 1051208 1081208 1891208Office Machinery & Equipment 1051209 1081209 1891209Electrical Fittings & Appliances 1051210 1081210 1891210Furniture & Fixtures 1051211 1081211 1891211



Depreciation

Computer 1051212 1081212 1891212Masts and Aerials 1051213 1081213 1891213Satellite Earth Stations 1051214 1081214 1891214

6.5 ACCOUNT CODES FOR ADMINISTRATIVE OFFICES AND STAFF QUARTERS:



Depreciation

ADMINISTRATIVE OFFICES 1051800 1081800 1891800Land 1051801 1081801 1891801Building 1051802 1081802 1891802Apparatus & Plants 1051803 1081803 1891803Motor Vehicles & Launches 1051804 1081804 1891804Office Machinery & Equipment 1051809 1081809 1891809Electrical Fittings & Appliances 1051810 1081810 1891810Furniture & Fixtures 1051811 1081811 1891811Computer 1051812 1081812 1891812STAFF QUARTERS 1051900 1081900 1891900Land 1051901 1081901 1891901Building 1051902 1081902 1891902Electrical Fittings & Appliances 1051910 1081910 1891910Furniture & Fixtures 1051911 1081911 1891911

7. DEFINITION OF ASSETS IN LAND:Land is classified as

a) Free Hold Land: Land coming under a single registration / ownership document is capitalized as a single asset item.

b) Lease Hold Land: 1. The land taken on lease for a long period by paying the entire lease amount at the time of lease agreement itself is capitalized as lease hold land. Such cost of leased hold land is fully amortized during the lease period using straight-line method of depreciation.

2. Whenever annual lease rent payable against lease hold land, the lease hold land will get reflected in fixed assets at ‘NIL’ value. This is only for the purpose of operational control.

8. DEFINITION OF ASSETS IN BUILDING:

Building is classified into:Telecom Technical.Administrative. Residential.

GUIDELINES FOR ASSET ENTRY:

Building: A Building (Telecom, Administrative and Residential) constructed as per an approved Estimate is capitalized as a single asset item, including the original sanitary and water lines, fixtures, fittings and duct constructed along with the building. Further renovation/ modification is capitalized as value addition.The cost of electrical wiring, light, fan and other fittings installed at the original construction stage are capitalized separately under electrical fittings and appliances the depreciation is charged as applicable rate. (As per BSNL CO Circular No.49)

Notes:

1. The cost of the sanitary installations / fittings including the cost of construction of septic tank etc., associated with a building is included in the cost of the building.

2. The cost of the water supply systems and fittings associated with a building is included in the cost of the building.

3. The cost of the duct constructed subsequently is added as a value addition to the building.

4. The cost of the construction of the compound wall, subsequent to the purchase of land is capitalized separately under the building category.

5. The initial expenditure incurred for the setting up of the garden, lawn etc for the face lift of the building are value added to the cost of the building, but further upkeep of garden, lawn etc are booked in maintenance.

6. Maintenance/ repair works carried out further is treated as maintenance expenditure and hence not capitalized. Example: - Repair/Replacement of doors, window panels and repainting etc.

7. The building like Staff Quarters and Independent IQ are coming under Residential Building sub type, which is having a separate rate of depreciation under Income Tax Act.

8. The Independent Stores, Godown and Garage are classified as telecom building sub type.

9. DEFINITION OF ASSETS IN APPARATUS & PLANT:9.1 BATTERY:

A set of cells (including spare cells) is treated as a single unit which is used for the input supply to the equipment. Eg: a set of 24 cells, 2V each as one asset item.

The battery may be classified into the following sub-types:Conventional batteryVRLA battery

Notes:

1. Individual cells are not entered as separate asset items.2. Different sets of batteries (set-A, set-B etc) are to be entered as separate asset

items.3. Other batteries used for Engine Alternator, Vehicle, Fire detection system etc need

not be entered as a separate item as the cost of the battery is already included in the corresponding asset item.

4. Transfer of spare cells is considered as simple diversion and not as Asset transfer.5. The cost of individual cells purchased for replacement of faulty cells is treated as

maintenance expenditure and hence not capitalized.6. The cost of replacement of the whole set of batteries (set-A, set-B etc) is

capitalized on completion of such replacement work.7. The faulty sets of batteries are to be processed for disposal and to be adjusted in

the books of account, taking in consideration of the sale proceeds received.9.2 POWER PLANT:

Power Plant is categorized as:

a) Conventional Power plant: Conventional Power plant including FR, BC, SC and Distribution Rack if any is capitalized as a single asset item.

b) SMPS Power Plant: Each SMPS power plant with modules including Extension Rack if any, is capitalized as single asset item. Number of Modules equipped in the PP is mentioned in Capacity parameter.

c) General Items: The following items are included in this category. DC Voltage Regulator DC Distribution Box DC – DC Converter Dual DC Power Supply Battery Charger Earthing SystemNotes:1. Individual Modules are not capitalized separately.2. Cost of additional Modules purchased for capacity augmentation is capitalized as

value addition.3. The cost of individual Modules purchased for replacement of faulty ones are

treated as maintenance expenditure and hence not capitalized.4. Transfer of individual Modules is considered as simple diversion and not as Asset

transfer5. Modules purchased later for keeping as spares are treated as inventory9.3 AC PLANTS:

The AC plant which are designed to operate 24 hour a day for the maintenance of telecom equipments, systems and servers are capitalized under this category as per BSNL CO Circular No.80. AC Units are further classified into the following sub types:

a) Window AC: Each window AC unit consisting of all the functional units like Timer (if any), Stabilizer, starter switch together is capitalized as a single unit.

b) Split AC: Each Split AC unit consisting of all the functional units like indoor unit, out door unit, Timer Stabilizer, starter switch together is capitalized as a single unit.

c) Package AC: Each Package AC Unit is capitalized as individual item. Cost of the ducting infrastructure is apportioned among the initially installed package AC units and capitalized.

d) Centralized AC: Each AC plant as a whole including all the functional units and ducting infrastructure is capitalized as a single item.

e) Precision AC: Each precision AC unit is capitalized as a single item.

Notes:1. If the AC Timer unit is shared for two or more AC units, the timer is capitalized

along with the first installed AC Unit.2. The AC units used for other purposes like office, customer center etc are not

capitalized under this head.9.4 EQUIPMENT:

Based on Media, Equipment is classified as follows:A) Optical Fibre (OF) MediaB) Coaxial (CXL) MediaC) Microwave (MW) MediaD) Satellite (SAT) Media

9.4.1 OPTICAL FIBRE MEDIA:Equipment in OFS media are technologically classified in to the following categories.

a) Plesio-chronous Digital Hierarchy (PDH) Systemb) Synchronous Digital Hierarchy (SDH) Systemc) Dense Wavelength Division Multiplexing (DWDM) Systemd) Broadbande) General itemsf) Miscellaneous items

a)PDH consists of the following functional asset items:Terminal (TML)Regenerator (REG)Multiplexing (MUX)Pulse Code Modulation (PCM) MUX

b)SDH consists of the following functional asset items:Multiple Add Drop MUX (MADM)Add Drop MUX (ADM) TML REGMUX

c)DWDM consists of the following functional asset items:TML Optical Add Drop MUX (OADM)Optical Line Amplifier (OLA)

d)Broadband: consists of the following functional asset items:DSLAMOCLANRPR

e) General items contains the following asset items:FDFFDMSVFTSSUData ModemEthernet ConverterO-E ConverterClock Driver

f) Miscellaneous items contains the following asset items:Digital Alarm DisplayFire Extinguisher Hygrometer Voltage & current displayRat repellent

GUIDELINES FOR ASSET ENTRY:MADM: Each independent MADM Sub Rack including DDF, if any is capitalized as single asset item. Cost of associated wiring up to FDF on one side and DDF on other side is included along with the cost of the MADM.

ADM - Case (i): ADMs with inbuilt MUXs: Each independent ADM Sub Rack including DDF if any is capitalized as single asset item. Cost of associated wiring up to FDF on one side and DDF on other side is included along with the cost of the ADM.

ADM - Case (ii): ADMs without inbuilt MUXs : ADM and MUX sub racks are capitalized as separate items. Costs of associated wiring up to FDF on one side and MUX on other side are included along with the cost of the ADM.

TML - Case (i): TMLs with inbuilt muxes : Each independent TML (PDH/SDH) Sub Rack including DDF if any, is capitalized as single asset item. Cost of associated wiring up to FDF on one side and DDF on other side is included along with the cost of the TML

TML - Case (ii): TMLs without inbuilt muxes : TML and MUX sub racks are capitalized as separate items. Cost of associated wiring up to FDF on one side and MUX on other side is included along with the cost of the TML.

REG: Each independent REG Sub Rack (PDH/SDH) is capitalized as single asset item. Cost of the Rack is capitalized with the first installed Sub Rack. Cost of associated wiring up to FDF is included along with the cost of the REG.

MUX: Each stand alone MUX Sub Rack including DDF if any, is capitalized as single asset item. Cost of the Rack is capitalized with the first installed MUX Sub Rack. Cost of associated wiring up to DDF is included along with the cost of the MUX.

PCM MUX: Each MUX Sub Rack is capitalized as single asset item. Cost of the Rack is capitalized with the first installed Sub Rack.

DWDM TML: DWDM TML bay as a whole including the extension rack if any is capitalized as a single item. In the case of Back-to-Back TML each TML is to be capitalized separately.

OADM: OADM Rack as a whole is capitalized as a single item.

OLA: OLA Rack as a whole is capitalized as a single item.

Notes:

1. The cost of the main rack is considered as capitalized along with the first installed Sub Rack.

2. Individual cards supplied along with the original equipment are not capitalized separately.

3. Transfer of a card from an existing system to another is considered as simple diversion and not as Asset transfer.

4. Cost of individual cards purchased for capacity augmentation is capitalized separately, independent of the system.

5. The cost of individual cards purchased for replacement of faulty cards is treated as maintenance expenditure and hence not capitalized.

6. Cards purchased later for keeping as maintenance spares are treated as expenditure on inventory.

7. Cost of additional DDFs purchased for capacity augmentation is capitalized as value addition of the asset item to which it is associated. In any Case individual DDFs are not capitalized separately.

8. Cost of pigtails/ patch cords supplied along with the equipment is included in the cost of equipment.

9. Cost of pigtails/ patch cords purchased later is treated as maintenance expenditure.

10. System computers, which are exclusively used for the monitoring of the systems are identified as LCTs including the system specific software and capitalized

under Computers Type of Computer Class.DSLAM:Each DSLAM unit is capitalized individually.

OCLAN: Each OCLAN Equipment is capitalized individually.

RPR: Each RPR Equipment is capitalized individually.

FDF: Each FDF rack with connectors is taken as a single asset item.

FDMS: Each FDMS bay is capitalized as a single item.

VFT Equipment: Each VFT Terminal / Subrack is capitalized as single item.

SSU: SSU as a whole is capitalized as a single item.

Data Modem: Each Data Modem equipment unit is capitalized as a single asset item.

Ethernet Converter: Each stand-alone Ethernet Converter unit is capitalized as a single item.

O-E Converter: Each stand-alone O/E Converter unit is capitalized as a single item.

Clock Driver: Clock diver unit is capitalized as a single item

Miscellaneous items are self explanatory and capitalized individually.

9.4.2 COAXIAL MEDIA:Equipment in CXL media is classified in to the following categories.

a. Analogb. Digitalc. General itemsd. Miscellaneous Items

a) Analog consists of the following functional asset items

TMLREGMUXFG Bay.

b) Digital consists of the following functional asset items

TMLREGMUX

c) General items consists of the following functional asset items

T-MUDistribution Frames

d) Miscellaneous Items consists of the following functional asset items

Alarm Unit

Fire ExtinguisherVoltage / Current display

GUIDELINES FOR ASSET ENTRY:CXL TML: Each Coaxial terminal bay (Analog or Digital) along with units is capitalized as a Single asset item.

CXLREG: Each Coaxial Repeater bay (Analog or Digital) along with units and repeater hut is capitalized as a single asset item.

Analog MUX: Each Analog Coaxial MUX bay viz, CTE, GTE, SGTE, SMGTE along with the units is capitalized as a single asset item.

FG Bay: Each Coaxial FG bay viz, FG, SGCS, MFG along with Units is capitalized as a single asset item.

DIG MUX: Each independent Digital MUX bay viz, 2/8, 8/34,2/34, 34/140 along cards is capitalized as a single asset item.

T-MUX: Each T-MUX sub rack is taken as single item and capitalized.

Distribution Frames: Each Distribution bay like 2W, 4W, 2W/4W access bay, GDF, SGDF are capitalized as individual asset.

Miscellaneous items Miscellaneous items are self explanatory and capitalized individually.

9.4.3 MICROWAVE MEDIA:Equipments in MW media are classified in to the following categories.

a) Analogb) Digitalc) General itemsd) Miscellaneous Items


TMLREGMUXFG Bay.


TMLREGMUX


MARRWIRELESST-MUXDistribution Frames

DehydratorAir Purifier

d) Miscellaneous Items consists of the following functional asset items

Alarm UnitFire ExtinguisherVoltage / Current display

GUIDELINES FOR ASSET ENTRY:TML: Each MW Terminal (Analog or Digital) including Radio bay, Modem bay, Service Channel bay if any, are capitalized together as a single item.

REG: Each Radio Repeater (Analog or Digital) is capitalized as a single item.

Analog MUX: Each Analog Coaxial MUX bay viz, CTE, GTE, SGTE, SMGTE along with the units is capitalized as a single asset item.

FG Bay: Each FG bay viz, FG, SGCS, MFG along with Units is capitalized as a single asset item.

DIG MUX: Each independent Digital MUX bay viz, 2/8, 8/34,2/34, 34/140 STM-1 MUX along with cards is capitalized as a single asset item.

MARR: Each MARR Equipment as a whole is capitalized as a single asset item.

Wireless: Each Wireless Equipment is capitalized individually.

Dehydrator: Each Dehydrator unit is capitalized individually

T- Mux: Each T-MUX sub rack is capitalized individually

Distribution Frames: Each Distribution bay like 2W, 4W, 2W/4W access bay, GDF, SGDF are capitalized as individual asset.


Notes:


2. Transfer of a card/ unit from an existing system to another is considered as simple diversion and not as Asset transfer.




6. Individual DDFs if any, are not capitalized separately. They are capitalized as part

of the MUX to which it is associated.7. If OF Equipment is available; it is capitalized as in the case of the OF media.8. System computers, which are exclusively used for the monitoring of the systems

are identified as LCTs including the system specific software and capitalized under Computers Type of Computer Class.

9.4.4 SATELLITE MEDIA:Equipment in SAT media is classified in to the following categories.

a) Analogb) Digitalc) General itemsd) Miscellaneous Items


LNAHPARF CombinerRF DividerUp ConverterDown ConverterFDM / FMTrans Path SelectorAnalog MUX


IDR ModemVSATHVNETDCMEMUXMCPCDigital MUX


Antenna Control UnitWireless set (HF Transceiver)Echo CancellerT-MUXDehydratorTV MonitorPCM MUX

d) Miscellaneous items consist of the following functional asset items

Alarm Unit

Fire ExtinguisherVoltage / Current displayArtificial LoadDe humidifier

GUIDELINES FOR ASSET ENTRY:LNA: LNA unit is an outdoor unit and it is capitalized along with its change over unit as a single asset item.

HPA: HPA unit is capitalized along with its switch over unit as a single asset item.

RF Combiner: RF Combiner unit along with associated cabling is capitalized as a single asset item.

RF Divider: RF Divider unit along with associated cabling is capitalized as a single asset item.

UP Converter: Up converter is capitalized along with its switch over unit as a single asset item.

Down Converter: Down converter is capitalized along with its switch over unit as a single asset item.

FDM/FM: FDM/FM Equipment including Up/ Down converters is capitalized as a single asset item.

Trans Path Selector: Trans path Selector Bay with units is capitalized as a single item.

Analog MUX: As applicable to Analog Coaxial

IDR Modem: IDR Modem is capitalized along with its switch over unit as a single asset item.

VSAT: Each VSAT Equipment as a whole is capitalized s a single item.

HV Net: Each HV Net equipment as a whole is capitalized as a single item.

DCME: DCME Equipment is capitalized as a single asset item.

MCPC: MCPC System is capitalized as a single asset item

Digital MUX: Each independent Digital MUX bay viz, 2/8, 8/34 & 2/34 along with cards is capitalized as a single asset item.

Antenna Control Unit: ACU (manual/ automatic) is capitalized as a single item.

Wireless set:: Each Wireless Equipment is capitalized individually.

Echo Canceller: Echo Canceller sub rack with cards is capitalized as a Single item.

T-MUX: Each sub rack is capitalized as a single item.

Dehydrator: Each Dehydrator unit is capitalized individually.

TV Monitor usedfor system monitoring is capitalized as a single item.

PCM MUX: As applicable to OFS


Notes:


2. Transfer of a card/ unit from an existing system to another is considered as simple diversion and not as Asset transfer.




6. Individual Echo Canceller cards are not capitalized separately. Transfer of Echo Canceller cards are treated as simple diversion and not as Asset transfer.

7. Individual DDFs if any are not capitalized separately. They are capitalized as part of the MUX to which it is associated.

8. If OF Equipment is available; it is capitalized as in the case of the OF media.9. System computers, which are exclusively used for the monitoring of the systems

are identified as LCTs including the system specific software and capitalized under Computers Type of Computer Class.

10. DEFINITION OF ASSETS IN MOTOR VEHICLESMotor vehicles are classified as follows:

Heavy Commercial VehicleLight Commercial VehicleMuti Utility Vehicle / VanStaff Car / Inspection Car3 WheelersTwo Wheelers

Each vehicle is capitalized as a single item.Notes:

1. The cost of the Audio / video Player, Upholstery modification and AC system are value added to the cost of the vehicle.

2. One time initial Entry Tax paid, if any, is included in the cost of the vehicle.3. Replacement of the Vehicle battery, tyre, tube, repair/ maintenance charges are

treated as maintenance expenditure and not capitalized.

11. DEFINITION OF ASSETS IN CABLES:Cables in BSNL are broadly classified as

a) Coaxial cableb) OF cablec) Local cable.

a) Coaxial Cables are classified into the following categories:

Small TubeLarge Tube

b) OF Cables are classified into the following categories:

OF cable - Unarmored in HDPEOF cable - ArmoredOF cable - ArialSubmarine Cable

c) Local Cables are classified into the following categories:

Ariel CableArmored CableUnarmored Cable

Unarmored cable is further divided into Ducted

Not DuctedGUIDELINES FOR ASSET ENTRY:Coaxial Cable:Coaxial cable (Small Tube / Large Tube) section between two terminals is capitalized as a single asset item.

OF Cable:a. New cable laid in a section between two FDFs (excluding FDF) at the terminal stations including TJB at either ends is capitalized as a single item.

b. Replacement/ relaying of the entire cable in a section are capitalized on commissioning the new cable in that route. The old cable in that route is decommissioned after following the necessary procedures, only if the cable is beyond utilization and no systems are working in that cable.

c. The replacement/ relaying of the cable in a portion of a section for maintenance/ quality improvement is treated as maintenance expenditure.

d. If two or more cable sections are through spliced later on and made as a single route, are treated as separate asset items as it was originally entered in the FAR.

e. If a single cable section is terminated in between, and made into two sections, the asset will remain as a single item as it was originally entered in the FAR.

f. An inter state cable terminated at two stations belonging to different accounting units are apportioned as per the RKM pertaining to the concerned unit, into two sections and capitalized accordingly.

g. In case if the part of the existing cable is to be made over to other accounting units, the existing cable is apportioned and split into different asset items accordingly.

Local Cable: Each local cable route is taken as an individual asset item.

12. DEFINITION OF ASSETS IN LINES & WIRES:(STR is not dealing with such assets at present)

13. DEFINITION OF ASSETS IN INSTALLATION & TESTING EQUIPMENT:Installation & Testing Equipment are classified as

a) Installation Equipmentb) Testing Equipment

a) Installation Equipment: The following sub types of installation Equipment are to be capitalized as individual items.

Drilling Machine Fibre CleaverVariable Attenuator Fibre StripperSplicing Machine Hot Air GunPipe Wrench Wire Wrapping GunTorque Wrench Blow LampOptical Talk set Rodometer

b) Testing Equipment: Each Testing Equipment along with the power pack, if any and the connecting cords is capitalized as a single asset item.The Testing Equipment is classified into the following sub-types.

OTDR PCM Mux TesterOptical Source Transmission Test setSplicing Machine Earth Resistance TesterSDH Analyser 2Mb AnalyserDTA Tone GeneratorMultimeter Level MeterFrequency Counter Spectrum AnalyserDigital Oscilloscope RF Power meterFibre Identifier

14. DEFINITION OF ASSETS IN OFFICE MACHINERY&EQUIPMENT:The Office Machinery & Equipment is classified into the following sub-types.

FAXPhotocopierVacuum CleanerWater Filter

Hot/Cold water DispenserThe above items are capitalized as individual items.15. DEFINITION OF ASSETS IN ELECTRICAL FITTINGS & APPLIANCES:

Electrical Fittings & Appliances are classified as followsa) AC Units other than those operated round the clock.b) Electrical appliancesc) Engine Alternator (As given in BSNL CO Circular No.80)

a) AC Units are further classified into the following sub types:WindowSplitPackageCentralized

b) Electrical Appliances are classified into the following sub-types:Fan: Fan is further classified as

CeilingExhaustTablePedestalWall mountingAir Circulating

Control PanelLightning & Surge Protection DeviceHT BreakerTransformerElectrical liftElectric Motor Single phase

Three phasePump Electrical

DieselPetrolKerosene

RefrigeratorTV SetPublic Addressing SystemUPSInverterStabilizerWater HeaterFire Detection & Alarm System

c) The Engine-Alternator are classified into the following sub-types:Engine AlternatorPortable Generator

GUIDELINES FOR ASSET ENTRY:Window AC: Each window AC unit consisting of all the functional units like Timer (if any), Stabilizer, starter switch together is capitalized as a single unit.

Split AC: Each Split AC unit consisting of all the functional units like indoor unit, out door unit, Timer Stabilizer, starter switch together is capitalized as a single unit.

Fire Detection & Alarm System: Fire Detection & alarm system in a building including sensors, battery, hooter, control panels & alarm display units together are capitalized as a single item. New sensors, control & display panels when added in the existing system, they are to be depreciated on the balance of life of the assets rather than the standard rate. Replacement of faulty sensors, control & display panels, and battery are not capitalized; but treated as maintenance expenditure.

All other Electrical appliances are self explanatory and capitalized individually.

Notes:

1. The cost of electrical wiring, light, fan and other fittings installed at the original construction stage are capitalized separately under electrical fittings and appliances the depreciation is charged as applicable rate. (As per BSNL CO Circular No.49)

2. All repair and maintenance of electrical fittings, wiring etc., in the existing building (administrative, operative and staff quarter) are charged as maintenance expenditure irrespective of the value of such works. (As per BSNL CO Circular No.64)

3. If the AC Timer unit is shared for two or more AC units, the timer is capitalized along with the first installed AC Unit.

4. The cost of Engine Battery purchased for replacement of faulty ones is treated as maintenance expenditure.

5. Hot / cold water dispenser, Vacuum Cleaner are classified as office equipment and not capitalized as Electrical Appliances sub type.

16. DEFINITION OF ASSETS IN FURNITURE & FIXTURES:Furniture & Fixtures are classified as

a) Furnitureb) Fixtures

a) Furniture: Each Furniture item is to be capitalized as a single asset item. Furniture are further classified as

Office furniture Table Chair Almirah

File RackEquipment Room furniture Step Ladder Aluminum Ladder TrolleyComputer furniture/ Table Chair

b) Fixture: Fixtures are classified as follows:

Partitions Room Partition Cubicle False CeilingWorkstationWall mounted cabinets.Fixograph

Note: Partitions are capitalized as single item and the partitions costing less than 2 lakhs are capitalized and fully depreciated in the year of construction itself.

17. DEFINITION OF ASSETS IN COMPUTER:Computers are broadly classified as

a) Computer Terminalsb) Computer Network Elementsc) Computer Accessoriesd) Computer Software

a) Computer Terminals are functionally classified as

PC TerminalsLCTLaptop

b) Computer Network Elements are classified as

ServersSwitchRoutersEthernet Converter

c) Computer Accessories are classified as

PrinterScanner

GUIDELINES FOR ASSET ENTRY:PC Terminals consisting of CPU, Monitor, Keyboard, internal modem and other internally installed accessories including OS and preloaded Software is capitalized as a single item.

LCT: System computers (PC / Laptop), which are exclusively used for the monitoring of the systems, are identified as LCTs including the system specific software and capitalized as a single item.

Accessories: Whenever accessories like CD Rom, CD Writer, NIC, up gradation of software are added, the same are capitalized as value addition to the existing PC.

Servers: Computers used as servers including hubs, if any are capitalized as single item

Switch: Layer-2 switches used for Networking are capitalized as single item.

Ethernet Converters: Each router is capitalized individually.

Printer/ scanner: Each item are capitalized as individual asset.

Software: Computer Software for a computer controlled machine tool that cannot operate without that specific software is an integral part of the related hardware and it is treated a a Fixed Asset. The same applies to the operating system of a computer. Where the software is not an integral part of the related hardware, computer software is treated as separate asset item.

Notes:

1. Hubs are capitalized along with the associated network elements.2. Software assets that are intangible are fully amortized during the license period

(subject to a maximum period of ten years) using straight-line method of depreciation.

18. DEFINITION OF ASSETS IN MASTS & AERIALS:Masts and aerials are classified as

a) Antennab) Towerc) Wave guide

a) Antenna: Each antenna is to be capitalized as a single asset item.The Sub Types are

Mesh AntennaParabolic AntennaDish AntennaDipole Antenna

b) Tower: Each Tower including the cost of Gantry, Tower light, Tower Earthling is to be capitalized as a single asset item.The Sub Types are

Light WeightHeavy WeightSpecial Heavy Weight

Mastc) Wave Guide: Each Wave Guide, from antenna to the terminal equipment including

couplers, if any, is to be capitalized as a single asset item. In case of system with diversity, the wave-guides are capitalized separately.Gantry, which is supporting the wave-guide, is not capitalized along with the wave-guide; but it is capitalized with the tower.The Sub Types of wave guide are

CylindricalEllipticalRectangularSemi Grid Elliptical

19. MAINTENANCE OF FIXED ASSET REGISTERS (FAR):

Fixed Asset Register (FAR) keeps track of the correct value of assets, which allows for computation of depreciation and for tax and insurance purposes. The FAR generates accurate, complete and customized reports that suit the needs of the management. Normally, the fixed assets in a firm are identified using scientific numbering techniques.

In Telecom Regional Circles, DGMM is the independent accounting unit and is the custodian of all assets of a Sub Region, which are used for the operations, maintenance and provisioning of the services. An asset is brought into the FAR as and when it is capitalized. FAR pertaining to the organization is maintained in the centralized server with controlled on-line access to the field units. It is regularly updated and the availability of the asset is ensured periodically by physical verification.

SDE is responsible for the assets pertaining to the geographical or functional jurisdiction assigned to that officer and is responsible for the maintenance of asset and initiating action for updating the FAR pertaining to the jurisdiction of the officer. DE ensures the maintenance and up-dation of asset register pertaining to the jurisdiction of the officer.

20. PHYSICAL VERIFICATION OF ASSET:

The asset of the organization is physically verified annually for ensuring its availability as per the Fixed Asset Register and also for providing the documentary evidence in respect of the availability to the Internal and Statutory Auditors during inspections and verifications. Teams of SDEs lead by a DE carry out the physical verification of asset on a divisional basis in the organization. The verification teams are constituted by the DGMM ensuring that no officer, in the cadre of SDE verifies the asset in his/ her own jurisdiction.

The DE assigned as the team leader coordinates and ensures the completion of the asset verification as per the schedule given by the DGMM. After completing the physical verification by the teams of SDEs, the individual verification reports are submitted by them to the team leader in the given proforma. The team leader then consolidates and submits the verification report of the assigned division, with a certificate of availability of the assets to DGMM. The physical verification report for the Sub Region is compiled at the office of DGMM in consultation with the Accounts Officer and presented to the Internal/ Statutory Auditors for inspections and verifications.

21. TRANSFER OF ASSETS:21.1 TRANSFER OF ASSETS WITHIN THE SUB REGION:

The need for the transfer of Asset from one unit/ division to another unit/ division within the Sub region arises under the following circumstances:• Specific requests for the transfer of Assets from the concerned unit/ division.• Approval/ Decision taken for re-engineering the existing system.

DGMM issues approvals/ orders for the transfer of Assets from one unit/ division to another unit/division within the organization. On obtaining the orders for diversion, the assets are made over to the units/divisions concerned. Based on the transfer memo received from the divisions, necessary changes are incorporated in the asset register.21.2 MAKING OVER OF ASSETS TO OTHER SUB REGION/ CIRCLES:

The need for the making over of Asset by the Sub region to other Sub Region/ Circles of BSNL arises under the circumstances mentioned below:• Specific requests for the transfer of Assets from the Sub Region/Circle. • Re-engineering of a system for better utilization.• Decisions taken in the co-ordination meeting between various units/ Circles.In all the cases of making over of the Assets to other Circles/Sub Regions, CGMM issues re-engineering instructions or orders for diversion of the assets.

On obtaining the orders for diversion of assets, the Transfer Memo of Assets is prepared and the assets are made over to the unit/division concerned under acquaintance and forward the same to DGMM. On receipt of the Transfer Memo of Assets, journal slips are prepared for incorporating into the accounts and the ATD/ ATC is raised for acceptance. The changes are incorporated in the asset register.

In the case of making over of asset to other circle, the ATD is prepared for the Gross Value of the transferred Asset and ATC for the Accumulated Depreciation of the transferred asset up to the date of transfer and forwarded the same to the office of the CGMM for re-transmission to the concerned Circle for acceptance.

In the case of making over of asset to other Sub Region, the ATD is prepared for the Gross Value of the transferred Asset and ATC for the Accumulated Depreciation of the transferred asset up to the previous financial year and forwarded the same to the office of the concerned Sub Region for acceptance.

21.3 TAKING OVER OF ASSETS FROM OTHER SUB REGIONS/ CIRCLES:

For taking over of assets from other Sub Regions/ Circles, CGMM issues re-engineering instructions or orders; whereas on commissioning of new assets, DGMM issues the approvals for taking over of the assets by a Unit/ Division within the Sub Region, from the Project Circles/ Other Circles.

On obtaining the orders for taking over, the asset is taken over by the concerned divisions and a taken over certificate is forwarded to DGMM. Depending up on the transfer of assets from other circle or from other Sub Region, the Advice Transfer of Debit (ATD) /Advice Transfer of Credit (ATC), is received through the office of CGMM or the concerned DGMM against the asset taken

over. The credentials are verified, ATD/ ATC are accepted and the corresponding changes are made in the asset register.

22. DECOMMISSIONING AND DISPOSAL OF ASSETS:22.1 LIVES OF TELECOM ASSETS:

Considering the obsolescence, technical needs and economical aspects, BSNL Corporate Office defines the lives of telecom assets. The lives of assets fixed are the average lives and assets are not discarded as a matter of course on expiry of the prescribed lives but are retained so long as they continue to give efficient service without abnormal maintenance and repair expenditure. The lives of Telecom Assets are as given below:

Sl. No.

Categories of Telecom AssetsLives (in

yrs.)1 Land Permanent

2Telecom Buildings, Administrative Buildings and Residential Buildings 50Water supply and sanitary fittings 25

3

Electrical:Underground cable 30Electrical Wiring, Ceiling Fans, Electric Lifts 20Eng. Alternators up to 50 KVA, Portable Gen. Sets, Electric Pumps, Engine Pumps

10

Three phase Motors, Diesel Generators above 50 KW. 15AC equipment:Central AC Plant 12Package AC Plant 9Window type, Split type 6Table Fans, Pedestal Fans, Air Circulators, Single Phase Motors, Ceiling Fan

8

Refrigerators:Water Cooler, Room Cooler, Desert Cooler, Exhaust fans, Window type, Split type.

6

HT Breaker, Transformer. 164 OF Cable, Armored or unarmored in HDPE pipe 205 Electronic exchanges including electronic telex and TAX 12

6

Transmission Equipments:Coaxial equipments including terminal and repeaters, carrier equipments, VFT equipments, PCM equipments, OF equipments, Multiplexing equipments and data modem equipments

15

Radio Equipments including –WLL, Microwave, UHF, VHF equipments and various equipments for Satellite stations and Wave guides (indoor)

12

WLL, Microwave, UHF, VHF equipments And various equipments for Satellite Stations, Antennas and Wave guides (outdoor).

10

7Towers 40Masts & Aerials 30

8 Testing Apparatus 8

9

Power Plant:Static PP, SMPS PP 15Conventional Batteries up to 200 AH, MF VRLA Batteries up to 200 AH 4Conventional Batteries more than 200 AH, MF VRLA Batteries more than 200 AH

6

10PC terminals, LCT, Printers, Scanners, Fax Machines and other office automation equipments

5

Laptop Computer 6PCs required for higher level of processing (such as TR billing & accounting, customer services, fault repair services and directory enquiry etc.)

5

Computers and peripherals used in application, which can tolerate lower level of processing capability. Servers, Routers and other Misc. Internet Equipments.

5

The criteria for the scrapping of the Motor vehicles are as given below:

Type of Motor Vehicle with BHP/ RAC ratingsPlain area Hilly area

Life Km run Life Km runLight Commercial Vehicles fitted with engine above 75 BHP but below 120 BHP (above 22 HP below 35 HP – RAC).

10 years

2,20,00010 years

2,20,000

Multi-utility Vehicles / Vans fitted with engine less than 75 BHP (less than 22 HP – RAC).

7 years

1,50,0005 years

90,000

All staff Cars / Inspection Cars7 years

1,50,0005 years

90,000

Note: While considering a vehicle for scrapping, the cost incurred for its maintenance also needs to be taken into account. Normally, a vehicle is proposed for scrapping if the maintenance expenditure exceeds more than 50% of the cost of the vehicle.

22.2 SCRAPPING OF OBSOLETE/ LIFE EXPIRED ITEMS:The dead assets and the assets that cannot generate any revenue are de-commissioned, declared as scrap and relieved from the asset and disposed off. Periodical review is needed to identify the assets not in use and that not generating any revenue.

22.2.1 SCRAPPING OF MOTOR VEHICLES:The condition of the vehicle is reviewed and action for scrapping of the vehicle is initiated with the formation of Motor Vehicle Disposal Committee (MVDC) consisting of the following members:

• DGMM : Chairman• DGM Operations of the concerned SSA/ Circle : Member• DE of the concerned Division : Member

• AO, O/o DGMM : MemberDE makes available a certificate regarding the “beyond economical condition of the vehicle”, from an Automobile Engineer of a workshop of the Central/ State Government/ Public Sector Undertaking, nearest of the unit to which the vehicle belongs. The committee physically inspects the vehicle and scrutinizes the records in detail and submits a clear and unequivocal recommendation about the vehicle. Based on the recommendations of the MVDC, the vehicle is scrapped and de-commissioned after obtaining approval from the competent authority. CGM of the Region is the competent authority for scrapping vehicles.

On obtaining the approval, the scrapped vehicle is transferred to the list of decommissioned assets from the date on which it is stopped on road.

22.2.2 SCRAPPING OF EQUIPMENTS/ STORES:The condition of the equipments/ stores is reviewed yearly and action for scrapping is initiated with the formation of scrapping Committee consisting of the following members:

• DGMM : Chairman• DGM Operations of the concerned SSA/ Circle : Member• DE of the concerned Division : Member• AO, O/o DGMM : Member

In respect of buildings, Superintend Engineer (Civil) and in respect of electrical machinery, Superintend Engineer (Electrical) or their nominees are the members of the committee, in lieu of the DGM Operations of the concerned SSA/Circle. The Scrapping Committee verifies the aspects necessitating the scrapping by physically examining the equipments/ stores and scrutinizing records and submits its recommendations on clear and unequivocal terms. Based on the recommendations of the committee, the equipments/ stores are scrapped and de-commissioned after obtaining approval from the competent authority as detailed below.

• DGMM of the Sub Region can approve scrapping of life expired stores and equipments upto Rs. 5 crores of original cost.• GM of the Region can approve scrapping of life expired computers and the life not expired equipments/stores.• CGM of the Region has full powers on the recommendations of scrapping committee.

On obtaining the approval, the scrapped equipments/ stores are transferred to the list of decommissioned assets.

22.3 DISPOSAL OF SCRAPPED/ DECOMMISSIONED ASSETSOn receiving the approval for de-commissioning by the competent authority, the probable sale value is calculated for each item. On getting approval of the probable sale value, the scrapped material can be disposed off using any of the following procedures:

a) The details of the scrapped materials are intimated to M/s. MSTC Ltd, the approved Public Sector agency for disposal. M/s. MSTC Ltd processes the tender and disposes the scrapped items with the concurrence of the competent authority.

b)

An open tender is called by the DE of the concerned Division after obtaining necessary authorization for doing so. The tender is then processed and the scrapped items are then disposed off after obtaining approval from the competent authority.

The sale proceeds received is remitted to the AO of the concerned Sub Region and the disposed asset is removed from the asset register.

23. INVENTORIES AND WORK IN PROGRESS:23.1 INVENTORY:Stores received but not utilized are treated as Inventory. The sources of inventory are local purchase, transfer from other units and return from works.

In BSNL, the Inventory is valued at cost by using the weighted-average method. In weighted-average method, each time when a consignment is received, the cost per unit is recalculated and this average unit cost is used for all transactions till a new consignment is received. The average cost per unit is calculated by summing the cost of material received in the new consignment with cost of material in hand and dividing this sum by the total number of units (both units received together with units in hand).

23.2 WORKS IN PROGRESS:The resources transferred/ issued for installation of projects, but not commissioned are termed as Work-in-Progress and the value of such resources is also kept under work-in-progress.

Once the material in inventory is issued for new installation/ maintenance, the value of those materials may be debited from the Inventory and booked in Work-in-Progress, Capital / Maintenance as the case may be.

23.3 PHYSICAL VERIFICATION:The cost of items in inventory and work-in-progress are monitored and kept at minimum. At the end of every quarter a statement on the details of Inventory and work-in–progress in the division is prepared by the concerned DE and forwarded to the DGMM, which are compiled for all the divisions and incorporated in the accounts of the organization.

Physical verification of Inventories and Work in Progress are carried out annually along with the physical verification of asset. The verification teams are constituted together with that of the Fixed Assets by the DGMM ensuring that no officer, in the cadre of SDE verifies the asset in his/ her own jurisdiction.

23.4 ACCOUNT CODES FOR WORK IN PROGRESS IN NLD SYSTEMS:


General Rural TribalLONG DISTANCE SWITCHING SYSTEMS 1140600 1152000 1152600Land 1140601 1152001 1152601Building 1140602 1152002 1152602Apparatus & Plant 1140603 1152003 1152603Motor Vehicles & Launches 1140604 1152004 1152604Cables 1140605 1152005 1152605Lines & Wires 1140606 1152006 1152606Installation Test Equipments 1140608 1152008 1152608Office Machinery & Equipment 1140609 1152009 1152609Electrical Fittings & Appliances 1140610 1152010 1152610Furniture & Fixtures 1140611 1152011 1152611Computer 1140612 1152012 1152612Overheads (Establishment, Admn.& Depreciation) 1140699 1152099 1152699LONG DISTANCE TRANSMISSION-COAXIAL CABLE SYSTEMS

1140700 1152100 1152700

Land 1140701 1152101 1152701Building 1140702 1152102 1152702Apparatus & Plants 1140703 1152103 1152703Motor Vehicles & Launches 1140704 1152104 1152704Cables 1140705 1152105 1152705Lines & Wires 1140706 1152106 1152706Installation & Test Equipments 1140708 1152108 1152708Office Machinery & Equipment 1140709 1152109 1152709Electrical Fittings & Appliances 1140710 1152110 1152710Furniture & Fixtures 1140711 1152111 1152711Computer 1140712 1152112 1152712Overheads (Establishment, Admn.& Depreciation) 1140799 1152199 1152799LONG DISTANCE TRANSMISSION-MICROWAVE RADIO RELAY SYSTEMS

1140900 1152300 1152900

Land 1140901 1152301 1152901Building 1140902 1152302 1152902Apparatus & Plants 1140903 1152303 1152903Motor Vehicles & Launches 1140904 1152304 1152904Cables 1140905 1152305 1152905Lines & Wires 1140906 1152306 1152906Installation & Test Equipments 1140908 1152308 1152908Office Machinery & Equipment 1140909 1152309 1152909Electrical Fittings & Appliances 1140910 1152310 1152910Furniture & Fixtures 1140911 1152311 1152911Computer 1140912 1152312 1152912


General Rural TribalMasts and Aerials 1140913 1152313 1152913Overheads (Establishment, Admn.& Depreciation) 1140999 1152399 1152999LONG DISTANCE TRANSMISSION-SATELLITE SYSTEMS

1141000 1152400 1153000

Land 1141001 1152401 1153001Building 1141002 1152402 1153002Apparatus & Plants 1141003 1152403 1153003Motor Vehicles & Launches 1141004 1152404 1153004Cables 1141005 1152405 1153005Installation & Test Equipments 1141008 1152408 1153008Office Machinery & Equipment 1141009 1152409 1153009Electrical Fittings & Appliances 1141010 1152410 1153010Furniture & Fixtures 1141011 1152411 1153011Computer 1141012 1152412 1153012Masts and Aerials 1141013 1152413 1153013Overheads (Establishment, Admn.& Depreciation) 1141099 1152499 1153099LONG DISTANCE TRANSMISSION-OPTICAL FIBRE CABLE SYSTEMS

1141100 1152500 1153100

Land 1141101 1152501 1153101Building 1141102 1152502 1153102Apparatus & Plants 1141103 1152503 1153103Motor Vehicles & Launches 1141104 1152504 1153104Cables 1141105 1152505 1153105Lines & Wires 1141106 1152506 1153106Installation & Test Equipments 1141108 1152508 1153108Office Machinery & Equipment 1141109 1152509 1153109Electrical Fittings & Appliances 1141110 1152510 1153110Furniture & Fixtures 1141111 1152511 1153111Computer 1141112 1152512 1153112Masts and Aerials 1141113 1152513 1153113Overheads (Establishment, Admn.& Depreciation) 1141199 1152599 1153199

23.5 ACCOUNT CODES FOR WORK IN PROGRESS IN ILD SYSTEMS:

INTERNATIONAL LONG DISTANCE SYSTEMS (ILD)

1141200

Land 1141201Building 1141202Apparatus & Plants 1141203

Motor Vehicles & Launches 1141204Cables 1141205Installation & Test Equipments 1141208Office Machinery & Equipment 1141209Electrical Fittings & Appliances 1141210Furniture & Fixtures 1141211Computer 1141212Masts and Aerials 1141213Satellite Earth Stations 1141214Overheads (Establishment, Admn.& Depreciation) 1141299

23.6 ACCOUNT CODES FOR WORK IN PROGRESS IN ADMINISTRATIVE OFFICES AND STAFF QUARTERS:

ADMINISTRATIVE OFFICES 1141800Land 1141801Building 1141802Apparatus & Plants 1141803Motor Vehicles & Launches 1141804Office Machinery & Equipment 1141809Electrical Fittings & Appliances 1141810Furniture & Fixtures 1141811Computer 1141812Overheads (Establishment, Admn.& Depreciation) 1141899STAFF QUARTERS 1141900Land 1141901Building 1141902Electrical Fittings & Appliances 1141910Furniture & Fixtures 1141911

Delegation of Financial Powers

Powers Sub Delegated to

Sl.No. Items Power of

C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

1.1 FINANCIAL POWERS

Full powers to run the long Distance telephone system efficiently and to incur expenditure as is within the powers of CGMs of BSNL delegated from time to time to improve the services and run them efficiently. A committee consisting of CGM, IFA and GM of the Circle office will be formed and which will take decision in regard all such mattes. All Financial powers will be exercised in consultation with Circle IFA and the CGM may overrule the advice of Circle IFA for reasons to be recorded in writing and intimated to the Corporate Office.

NIL NIL NIL NIL

1.2 SUB CGM has full Full powers to Full powers to NIL NIL Note.1: SUB -



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

DELEGATION

powers to sub delegate his powers to officers in his office subject to the condition that he is wholly responsible for all the powers exercised by his subordinates i.e. as if CGM has himself exercised these powers. (These powers shall be delegated in consultation with Circle I.F.A and there shall be an annual ceiling on the expenditure to be incurred by the subordinate officers)

sub delegate his financial powers to the officers in his office subject to the condition that he is wholly responsible for all the powers exercised by the subordinate ( as if DGM has himself exercised these powers), these powers shall be delegated in consultation with IFA and ther shall be an annual ceiling on the expenditure to be incurred by subordinate officers vide BSNL 6-2/2002-EB dated 1-5-2002

sub delegate his financial powers to the officers in his office subject to the condition that he is wholly responsible for all the powers exercised by the subordinate (as if GM has himself exerised these powers), these powers shall be delegated in consultation with IFA and there shall be an annual ceiling on the expenditure to be incurred by subordinate officers vide BSNL 6-2/2002-EB dt

DELEGATION:- As per BSNL instruction, Sub-delegation can be done by CGM in consultation with circle IFA only. The subordinate officers to whom the CGM sub-delegates the financial powers can exercise the delegated powers personally, with the concurrence of the IFA only. However, they cannot sub-delegate their financial powers to a lower authority.Note.2: PAYMENT OF BILLS:- Once Approval of GMs/CGM under these powers is accorded, except to the extent provided other wise hereunder, the payment of Bills for expenditure in respect of any such approvals of GMs/CGMs may be approved (in the Pass orders on Bills) by the Gr.A Officer duly enclosing Photocopy of the approvals accorded by the GMs/CGM - signed by the officer as authentication.

1.3

Powers to execute, conduct, defend, compound or abandon any legal proceeding for or against the company and to

FULL POWERS

Rs.50,000/- per annum

Rs.50,000/- per annum NIL NIL

Note.1:- Adequate steps must be taken to ensure non-recurrence of aspects of negligence/dereliction of duty/fraud etc pointed out by the



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

allow for payment or satisfaction of claims or demands by or against the company and to sanction expenses.

courts/tribunals etc.Note.2:- Any media coverage on any such cases must also be brought to the notice of the CGM. Note.3:- Shedule of Fee Payable to Advocates :- This will be specified by BSNL HQs in due course.Note.4:- Before institution of court cases, some factors to be considered are -(i) Reputation of BSNL(ii) Expected cost Vs Benefit (iii) Alternative means of settling dispute within the framework of law and (iv) possible effect on similar other disputes and disputants.

1.4

To assign and execute

agreements/contracts.

FULL POWERS NIL NIL NIL NIL

PROCEDURAL ASPECTS:- All important agreements/contracts must also be got vetted by the respective IFAs or a Finance officer nominated by him apart from legal vetting.STANDARDISED PROFORMA :- Where the Proforma of Agreement/Contract has been standardized in any particular class or classes of cases, either by BSNL HQs or by STR or by the concerned DGM in consultation with his IFA, the IFA may



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

waive future finance vetting of the clauses of such standardised agreement/contract documents and permit their adoption in such specified cases of the same nature by the officers concerned. Nominated BSNL lawyers must be consulted in drafting any significant new clauses or new type of contracts and agreements. Existing formats may be scrutinized carefully for their applicability to BSNL and may be got vetted by the nominated Lawyers in all important cases.

1.5

To give receipts, refund advances, release of payment and other charges for money payable to the company and for the claims and demands of the company.

Full powers Full powers NIL NIL NIL

Full Powers :- Only for sanction of such charges (and not for Physical payment/issue of receipts - which is done by the DDOs or other officers nominated in this behalf)in respect of items of work for which they are delegated with financial powers. All



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

existing instructions of MOF/DOT/DTS/BSNL governing each type of payment will apply

1.6 DONATION AND SUBSCRIPTION

Donations or subscriptions to charitable institutions upto Rs.10,000/-. In each case and subject to annual limit of Rs.1 Lakh.

NIL NIL NIL NIL

1.7CREATION AND ABOLITIION OF

POSTS

May sanction all posts upto Group-B posts subject to the overall ceilings fixed by Headquarters, except i)Civil Wing Posts ii)Posts for which BSNL had not issued any norms.

NIL NIL NIL NIL

Subject to strict observation of rules, orders, instructions and guidelines by DOT/DTS/DTO and BSNL from time to time and availability of funds. To be exercised strictly in consultation with Circle IFA Jt DDG(WS) lr dated 21-01-2002

1.8

ACCEPTANCE OF

ARBITRATION AWARDS

NIL NIL NIL NIL NIL

Rs.3 Lakhs in each case subject to maximum limit of 30 lakhs per annum is delegated only to CGM of Territorial circle & CGMTS Kolkota vide Jt.DDG(WS) lr no.6-4/2003-EB dated 8-10-2003.

1.9OBTAINING OF

ISO CERTIFICATION

Rs.2 Lakh NIL NIL NIL NIL

1.CGMs would be required to process for ISO certification for their units in phased manner considering the



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

importance of the units which require ISO certification, specially for meeting the operation performance parameters as well as TRAI performance parameters. CGMs, should also ensure that proper financial appraisals are carried out for every case of ISO certification. The other conditions laid in the ADG(WSF) lr.no:6-26/2002-EB dated 1-4-2004 are also to be followed strictly.2. Delegation to CGM is sufficient and there may not be any necessity to delegate the powers to Head of SSA and hence the existing delegation will continue vide ADG(W&F), ND Ltr. No.6-12/2002-EB/dated 17-12-2007

2SANCTION OF

SCHEMES/PROJECTS

2.1 PLAN SCHEMES

2.1.1

NEW SCHEMES OTHER THAN RURAL AREA

AND HILLY AREAS

The CGMs will asses the loss making projects in the circles, aggregate the financial implications and then take up withBSNL Hqs for Budget allocation.

The GMs will asses the loss making projects in the SSA, aggregate the financial implications and then take up with Circle Hqs for Budget allocation. They will

The DGMs will asses the loss making projects in the Sub Regions aggregate the financial implications and then take up withCircle Hqs for Budget allocation.

NIL NIL

BSNL Guidelines :- As a Corporate entity loss making projects are generally not to be executed. However, based on the Government directives such projects are to be taken up to the extent of coverage provided by the Financial package



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

They will execute the projectsonly within the budget allocated for such projects after prioritizing the selection of projects for execution, if so necessitated by the budget allocated. No project, however, should be considered beyond 15% loss

execute the projects only within the budget allocated for such projects after prioritizing the selection of projects for execution, if so necessitated by the budget allocated. No project, however, should be considered beyond 15% loss.

They will execute the projects only within the budget allocated for such projects after prioritizing the selection of projects for execution, if so necessitated by the budget allocated. No project, however, should be considered beyond 15% loss.

made available to the Corporation for the purpose. This requires exercising control over the loss making projects, which are to be implemented out of the financial support from the Govt.

2.1.1

NEW SCHEMES IN RURAL

AREAS (LESS THAN 1000

LINES)

The CGMs will assess the loss making projects in the Circles, aggregate the financial implications and then take up with HQs for budget allocation. They will execute the projects only with the Budget allocated for such projects after prioritizing the selection of projects for execution, if so necessitated by the budget allocated. No project,

NIL NIL NIL NIL

BSNL Guidelines :- As a Corporate entity loss making projects are generally not to be executed. However, based on the Government directives such projects are to be taken up to the extent of coverage provided by the Financial package made available to the Corporation for the purpose. This requires exercising control over the loss making projects, which are to be implemented out of the financial support from the Govt. As a Corporate entity loss making projects are generally not to be executed. However, based on the Government



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

however, should be considered beyond 15% loss.

directives such projects are to be taken up to the extent of coverage provided by the Financial package made available to the Corporation for the purpose. This requires exercising control over the loss making projects, which are to be implemented out of the financial support from the Govt.

2.1.2

NEW SCHEMES IN RURAL

AREAS (LESS THAN 1000

LINES)

The CGMs will assess the loss making projects in the Circles, aggregate the financial implications and then take up with HQs for budget allocation. They will execute the projects only with the Budget allocated for such projects after prioritizing the selection of projects for execution, if so necessitated by the budget allocated. No project, however, should be considered beyond 15% loss.

NIL NIL NIL NIL

As a Corporate entity loss making projects are generally not to be executed. However, based on the Government directives such projects are to be taken up to the extent of coverage provided by the Financial package made available to the Corporation for the purpose. This requires exercising control over the loss making projects, which are to be implemented out of the financial support from the Govt.

2.1. UNREMUNERATI The CGM will NIL NIL NIL NIL As a Corporate entity



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

3

VE PROJECTS FOR HILLY

AREAS(NEW SCHEMES)

assess the loss making projects in the circles, aggregate the financial implications and then take up with HQ s for Budget allocation. They will execute the projects only with the Budget allocated for such projects after prioritizing the selection of projects for execution, if so necessitated by the budget allocated. No project, however, should be considered beyond 15% loss.

loss making projects are generally not to be executed. However, based on the Government directives such projects are to be taken up to the extent of coverage provided by the Financial package made available to the Corporation for the purpose. This requires exercising control over the loss making projects, which are to be implemented out of the financial support from the Govt.

2.1.4

REPETITIVE PROJECTS

Rs.15 Crore. Beyond this CTB should have powers upto Rs.25 Crores.

Rs.5 Crores Rs.3 Crores NIL NIL

BSNL HQs Remarks :- To sanction more projects to expand telecom network.

2.1.5

PILOT PROJECTS

(NEW ITEMS)

Full powers subject to the condition that the Pilot Project is allotted to the Circle by Corporate Office.

NIL NIL NIL NIL

Remarks:- All Pilot Projects are to be invariably approved by Corporate office and allotted to individual circles for implementation.

2.2 NON-PLAN SCHEMES



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

2.3 LAND AND BUILDING

2.3.1 LAND

1)Rs.2 Crores from Government or land acquisition or from any PSU or other voluntary organization recognized by Government (2) Rs.1Crore for Private party or agency through negotiations. Power to procure land from private agency will be exercised after following detailed procedure of tendering and open bids etc."

1) Rs.2 Crores from Government or land acquisition or from any PSU or other voluntary organization recognized by Government. (2) Rs.1 Crore for private party or agency through negotiations. Power to procure land from private agency will be exercised after following detailed procedure of tendering and open bids etc.

Rs.20 Lakhs from Govt. Deptts or land acquisition in each case.

NIL NIL

Conditions : 1.The purpose, expected time span for utilization of the land, SOA requirements, and other relevant justification must necessarily be examined on file before procurement process is started. 2. SE(Civil) or an EE(C) nominated by him must certify the suitability of the Land for the purpose. 3. Other existing conditions & procedures will continue to apply

2.3.2

NEW BUILDING (Construction)

Technical Buildings Rs.5 Crores without waiting for over all sanction of project Estimate subject to the guidelines prescribed.Non Technical Building Rs.3 Crores

Technical BuildingsRs.5 Crores. Non Technical Building Rs.1 Crore

Technical BuildingsRs.50 Lakhs Non Technical Building Rs.25 Lakhs in each case

NIL NIL

Conditions : SOA :- GM himself shall approve the SOA also for all Technical Buildings, and associated Administrative offices strictly as per prescribed standards and norms within the powers of his sanction with specific concurrence of his IFA.

2.3.3

ADDITIONS AND ALTERATIONS TO EXISTING

DEPARTEMENTAL BUILDINGS

a)Residential = Rs.1 Lakh in each case.b)Others = Rs.30 Lakhs in each case

a)Residential =Rs.1 Lakh in each case b)Others = 30 Lakhs in each case.

a)Residential =Rs.25,000 in each caseb)Others = 5 Lakhs in each case

a)Residential=Rs.8,000/- in each caseb)Others =Rs.25,000/- in each case

NIL

Conditions : Note:- Each case

means each Building.



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

2.3.4

REPAIRS OF DEPARTMENTA

L BUILDINGSFull powers Full powers Full powers

Rs.25,000/- p.a. per building for non residential Rs.10,000/- p.a. in each case.

Rs.5,000/- p.a per building for non-residential Rs.2,000/- p.a. per qtrs

2.3.5

DISMANTLEMENT OF THE BUILDING

Full powers

Rs.30 Lakhs of book value. Rs.50 Lakhs with the approval of the CGM.

Rs.3 Lakh of book value in each case.

To renovate old buildings quickly to provide better environment to staff

2.3.6

REPAIRS/ADDITIONS TO

RENTED BUILDING BOTH

CIVIL AND ELECTRICAL

ITEMS

(a) For Technical/CSC Recurring- Rs.50,000/- per building per year Non-recurring:- Rs.5 Lakh per building per year. For others(b) Other Buildings :- Recurring Rs.20,000/- per building per year. Non-Recurring:- Rs.50,000/- per building per year.

Recurring Rs.50,000/- per building per year Non recurring Rs.1 Lakh per building per year

Recurring Rs.10,000/- per building per annum Non-recurring Rs.50,000/- per building in a year."

NIL NIL

BSNL HQs Remarks :- To improve the working conditions of staff.

2.3.7

PURCHASE OF OLD BUILDING

Rs.1 Crore per Building inclusive of land cost

Rs.5 Lakhs per buildings inclusive of land cost subject to conditions given in guidelines.

NIL NIL NIL 1.All powers are subject to concurrence of IFA and availability of budget provision.2. The title of the Building should be verified by the Govt.Pleader/Legal Advisor and it should be certified that it is free from all encumbrances.



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

3. The valuation of land and any structure standing on it should be done through the services of Revenue Authorities, Civil wing of BSNL. 4. The price paid through private negotiations should not be higher than that through land Acquisition proceedings. In case the owner is not agreeable to these terms, higher price can be paid only with the prior approval of corporate office. 5. While issuing financial sanction for the purchase of building from private parties through negotiations, it should be certified that condition laid down in sub para(iii) of para 460 of P&T volume II have been fulfilled.6. Case of direct negotiation with the owner, the recommendations of standing negotiation committee as per guidelines contained in DOT No.482/32/78-TPS(BG) dt 6.6.99 should be followed strictly. 7.Consent letter from the owner and 2.5% EMD on estimated cost of property should be obtained. 8. While purchasing rented building for Telephone



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

Exchange/Telegraph Office the following should be considered and kept in view a) whether it is situated on a prime land in a central location b) Cost of landc) Whether sufficient surplus and forming part of property is available to meet future expansion needs of the company d) Condition of the building e) Possibilities of feasible leasing etc.9. The objective should not be to purchase any and every old building. 10. The procedure laid down in paras 460 and 462 of P&T Manual Vol II should be followed also keeping in view land ceiling Act and other Statutory condition. 11. Wherever the powers are sub-delegated by the CGMs to their subordinate officers, they should only be exercised with the concurrence of an appropriate level of Accounts/Finance officer decided by the Circle IFA on receipt of fund allotment.

2.3.8

PURCHASE OF NEW BUILDING/FLOORS THEREOF FOR TECHNICAL

a) Rs.2 Crores from Govt. agencies/PSU.b)Rs.1 Crore

Rs.1 Crore from Govt.Agencies/PSU Rs.50 Lakhs from pvt

NIL NIL NIL Conditions : In all cases of Purchase of Buildings/Floors (Old/New), certificate of suitability of the



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

USE/CSC/OFFICE/STAFF QUARTERS/INSPECTION QUARTERS/GUEST HOUSES

from private parties/ agencies by negotiation subject to conditions/guidelines prescribed by DOT/BSNL.

parties/agencies by negotiations and guidelines prescribed by BSNL.

building and the floors must be obtained from EE(Civil)/SE(Civil). All other guidelines prescribed by DOT /BSNL must also be adhered to. Sr.DDG(BW) will be issuing suitable guidelines in this regard.

2.4 DETAILED ESTIMATES Full powers Full powers Full powers NIL NIL

The procedural aspects regarding sanction of DEs ( for works like Distribution cable laying etc) are to be laid down. DFA (Plg & MM) will examine and discuss the matter further with GM(D) and submit suitable proposal for sanction of such schemes, and for preparation of the necessary asset registers, works registers etc.

3 VEHICLES

3.1 SANCTION/ REPLACEMENT

3.1.1 STAFF CARS

Full powers as per prescribed standards

NIL NIL NIL NIL

3.1.2

OPERATIONAL VEHICLES

Full powers as per existing Rules and standards

Full powers as per existing Rules and standards

NIL NIL NIL

Conditions: Relevant conditions specified by BSNL HQs.

3.2

PURCHASE OF NEW

OPERATIONAL VEHICLES

Full Power NIL NIL NIL NIL

Conditions: Relevant conditions specified by BSNL HQs

3.3 REPAIRS/ ANY MANDATORY

MODIFICATION

Full Power Full Power Full Power *Rs.5,000/- at a time per vehicle limited to Rs.15,000/- p.a.

*Rs.1000/- at a time limited

Conditions :- Subject to all financial and other limits on annual



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

to Rs.5,000/- p.a. per vehicle

maintenance and other guidelines and conditions issued by DOT/BSNL.

3.4 HIRING i)Full powers to hire vehicles upto the permitted percentage of shortage till such time new vehicles are supplied against replacement/ additional requirement. ii) In emergent circumstances like Flood, Natural Calamities, Bandh etc., extra vehicles as deemed necessary by CGM can be hired for official works/ movement of staff. iii) A.C. vehicles can be engaged for organizing conducted tours, for use by visiting foreign delegation/ dignitaries and for transport of entitled categories of officers

i)Full powers to hire vehicles upto the permitted percentage of shortage till such time new vehicles are supplied against replacement/additional requirement. ii)A.C.vehicles can be engaged for organizing conducted tours, for use by visiting foreign delegation/ dignitaries and for transport of entitled categories of officers.

NIL NIL NIL Remarks & Procedures : CGM will approve the total number of vehicles justified for hiring and allocate the number among the GMs - including therin the number required for all technical, accounting and other Units under the charge of each GM. Distribution among the individual Units/officers may be done by the respective GMs under intimation to GM(TS). As per BSNL Directions, pooling of Vehicles needs to be done - to the extent feasible - to achieve optimum usage of the vehicles for the benefit of the company. This must be examined for implementation by each GM in consultation with his IFA periodically - and necessarily before initial distribution of vehicles. Bill Payment :- 1. Approval of hiring by the CGM in consultation with Circle IFA may be taken to convey Administrative approval, financial sanction and allotment of funds.



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

Hence, Bills for hired Vehicles may be passed for payment by the DGMs themselves upto Rs.20,000/- per vehicle per month - in respect of all vehicles under their charge. 2. Cases of Hiring charges exceeding this limit must be submitted for approval to the respective GMs. However, pass orders on Bills may be signed by DGMs in all cases, after approval by GMs. 3. DGMs must assess reasonableness of Journeys in all cases - more specifically in cases where Bill amount is over Rs.15,000/- p.m before approving the same. 4. In respect of Bills of over Rs.20,000/- p.m submitted by DGMs to GMs for approval, a clear certificate that they have specifically examined the reasonableness of the journeys must be recorded by the DGMs and submitted to the GMs for consideration of approval."

4 PURCHASE OF STORES BSNL HQs Note in Delegation letter :- Purchase of Stores will require further scrutiny in view of huge financial

Note:- In view of the clear observation contained in the Note of BSNL HQs, All officers delegated powers under

Stores Purchase Committee:-(1) CGM has constituted a stores Purchase committee under his chairmanship consisting the members of GMM,



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

implications. Also the detailed procedure outlined by the Corporate Office for material management must be followed and procurements be made only after the project estimate has been sanctioned.

all sub paras of paras.4 need to ensure that sufficient Material management procedures as per HQs guidelines exist in all of their Offices and procurement is done only after the relevant estimates are sanctioned.

NMS, Chennai, DGM(OP), GM(TS) Circle IFA - with GMM, NMS, Chennai as the secretary cum coordinator for the SPC - to assess the total requirements of all officers under the CGM for the year, arrange for tendering and other formalities and approval of the competent authority for the L.1 rates and approved tenderers and other procedural formalities - in respect of all items except computers, and those store items that are within the powers of the CGMs.(2) Subsequent Purchases can be made by the individual officers against these tenders only with concurrence of the CGM. " " (3) For Items not falling within the scope of the SPC, the individual officers may themselves make arrangements for procurement as per rules.(4) If any Item falling within the scope of SPC could not be forecast by any officer but is urgently needed - the same may be procured by the DGMs/GMs, with the concurrence of the CGM - duly



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

recording reasons why the item could not be forecast and placed before the SPC.(5) The CGM shall have power to order procurement of any items without reference to SPC, if they consider such procurement urgent. (6) Tenders floated by any SPC or any other officer in the district must contain suitable provisions to enable Purchase/ award of the work trough the tender by ANY OFFICER of Southern Telecom Region ( not restricting to ANY AREA) so that, in case, the rates in such tender are competitive, compared to the tenders of the other areas, the same may be utilized to the advantage of the STR.

4.1

CENTRALISED ITEMS

Full powers to the extent of the quantities authorized by the Head quarters at rates prescribed by Corporate Office/ DGS & D.

Full powers to the extent of the quantities authorized by the Head quarters at rates prescribed by Corporate Office/ DGS&D.

NIL NIL NIL

Conditions: All conditions specified by BSNL HQs will apply.

4.2 DECENTRALISED ITEMS

Full powers for purchase against rate/prices finalized by tenders by the

(a) Full powers for purchase against rate/prices finalized by tenders by the

(a)NIL(b)(i) purchase against rate contract/prices finalized by DGS &

NIL NIL Remarks :- 1. FAX Machine in the list of De-centralized items is the one used intended for telegraph equipment



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

Head of Circle subject to the quantitative limits of materials and Budget allocation for the items prescribed by the BSNL Board and as per the standards

Head of Circle subject to the quantitative limits of materials and Budget allocation for the items prescribed by the BSNL Board and as per the standards (b) (i) purchase against rate contract / prices finalized by DGS & D/ BSNL - Full power (ii) in other casesa) Rs.10 Lakhs from PSU on each occasion b) Rs.4 Lakhs from Non-PSU on each occasion NIL *Rs.10 Lakhs in each case Full powers

D/BSNL - Full power(ii) in other cases a) Rs.10 Lakhs from PSU on each occasion b) Rs.4 Lakhs from Non-PSU on each occasion

etc. The multipurpose Fax cum copiers, FAX modems etc may be procured outside the scope of de-centralised procurement. 2.Wherever products with TEC- approved specifications are available, Purchase is to be made of such products conforming to the TEC specification - in respect of all items to be used in switching and Transmission systems. 3. While reviewing major irregularities pointed out by Audit, DOT HQs has instructed in lr.no.306-4/MMs/Vol-VI dt 19-1-98, has stated that "no new item should be inducted in Telecom network without the specification having been approved by TEC" based on any specifications locally prepared by circles. In respect of 69 items specifically listed as decentralized items for procurement centrally by CGMM. The GM, NMS, Chennai will process the procurement formalities as at present as per rules. The scheme



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

of the high power committee prescribed by BSNL HQs may be adopted for approval of the quantities.

4.3 PROCUREMENT OF SPARES AND COMPUTERS IN ELECTRONIC SWITCHING / TRANSMISSION SYSTEMS BY HEADS OF TELECOM CIRCLE SUBJECT TO RELEASE OF FOREIGN EXCHANGE BY CORPORATE OFFICE.

Full powers as per actual requirements i.e. after ensuring the same is not available in circles.

NIL NIL NIL NIL Note: These powers will be exercised to the strict observance of the following conditions. In respect of newly procured equipment, the requirements to procure short items of spares should arise only three years after the expiry of the warranty period and AMC period if any. For equipments which are to be phased out on completion of their life, Extra caution would be required procuring the spares for them.In last two/three years of the life of such equipments, the procurement of spares should be so balanced on the basis of fault rate analysis so as to last two/three years of the life of such equipments, the procurement of spares should be so balanced on the basis of fault rate analysis so as to avoid built up of the inventory of spares when the equipment is phased out. While procuring the spares, reasonability of the rates would have to



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

be assessed. It would be appropriate price variation formula in Tenders and POs on the basis of which circles may be able to procure the spares. However, in respect of these equipments where itemized price reference of spares items can be linked with current tender, the procurement may be done on that price if it is large.

4.4.A

SPARES FOR OTHER

SWITCHING EQUIPMENTS/

TRANSMISSION EQUIPMENTS

Full powers * Rs.10 Lakhs in each case

* Rs.5 Lakhs in each case NIL NIL

Remarks/Procedure:1. Procurement for Replacement of PCBs and other spares in Switching and Transmission Equipments(indigenous) is to be done subject to the conditions stipulated by DOT HQs/BSNL HQs from time to time. 2. Some of the existing conditions are (i) Requirement of spares should arise only after warranty period and AMC period and after utilization of Life-time spares coming alongwith the equipment as per the P.O conditions(ii) avoidance of un necessary built -up of inventory of spares(iii) reasonableness of prices is to be ensured.



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

4.4.B

B.REPAIRS TO TOOLS/TESTER

S/ INSTRUMENTS

Full powers Full powers *Rs.1 Lakh in each case NIL NIL

4.5PURCHASE WITHOUT

QUOTATION

Rs.15,000/- in each case on the basis of certificate recorded by the competent authority. ( * All the certificates required under Rule 145 and 146 of GFR-2005 shall invariably be furnished before making purchase under the provisions of these rules)

Value in each occasion should not exceed Rs.10,000. Certificate to be recorded by the competent authority. ( * Same as CGM )

Rs.2,500/- in each case

*Rs.2,000/- in each case


Conditions :- As far as possible, purchases may be made in the order of priority 1) Kendriya Bhandar/Co-op.Stores2) Reputed suppliers"

4.6PURCHASE

WITH QUOTATIONS

Rs. 1,00,000/- on each occasion on the recommendation of a duly constituted Local Purchase Committee. ( * same as 4.5)

Above Rs.10,000/- and up to Rs.50,000/- in each case. Certificate to be recorded by the competent authority. (* Same as CGM )




Conditions:- 1. As in cond.1 of item.4.5.

4.7 OTHER ITEMS

4.7.1

OFFICE EQUIPMENTS Full powers Full powers Full powers * Rs.5,000/- p.a.

for mtce only NIL

Conditions : As far as possible, requirement may be forecast and procured thro' the mechanism of Stores purchase committee as indicated in col.4 of item.4.0.

4.7.2

PURCHASE OF COMPUTERS INCLUDES HARDWARE

Rs.10 Crores per annum without any limit for one

Rs.25 Lakhs at a time and Rs.1 Crore p.a. Purchase of

Rs.5 Lakhs at a time subject to annual limit of Rs.20

NIL NIL Remarks & Procedure There is an absolute limit of Rs.10 Crores p.a. on



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

DEVELOPMENT OF SOFTWARE IS ONLY WITH THE APPROVAL OF THE CGMM UPTO Rs.50,000/-. IF IT EXCEEDS Rs.50,000/- THE CONCURRENCE OF THE CGM(IT), PUNE IS REQUIRED

time purchase.

Laptops with the specific approval of the CGMM only.

Lakhs Purchase of Laptops with the specific approval of the CGMM only

CGM's powers under this item. 1.SDE(Tech) under DGM(OP) is nominated as the Nodal officer for watching this annual ceiling limit of Rs.10 Crores p.a.2. To enable him to watch the same, all expenditure on computers (whether less than or more than 10 Lakhs) must be transferred to him by DDOs under acquittance.3. As soon as the booked expenditure reaches a level of say, 8.5 Crores, the SDE(Tech) shall notify the fact to all GMs, DGMs and AO(BGT). All subsequent POs can only be placed by any officer, after obtaining specific fund availability certificate from AO(Budget)."

4.7.3

COMPUTER STATIONARY Full powers Full powers Full powers

*Rs.5,000/- at a time limited to Rs.25,000/- p.a

*Rs.2,500/- at time limited to Rs.15,000/- p.a.

It include the purchase of floppy disks and other computer accessories.

4.7.4

OTHER STATIONARY (Other than Computer stationary)

Full powers Full powers Rs.2 Lakh p.a. *Rs.10,000/- p.a.

*Rs.2,500/- at a

time limited

to Rs.15,000/- p.a.

4.7.5

MAPS BOOKS AND

PUBLICATIONSFull powers Full powers Full powers *Rs.1,000/- at a

time NIL



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

4.7.6

FURNITURE AND

FURNISHINGS

Rs.10 Lakhs per office per annum

Rs.5 Lakhs p.a per office

Rs.1 Lakh per office per annum

*Rs.10,000/- per office p.a NIL

Remarks & Procedure For ensuring the annual ceiling limits on GMs and CGM's Powers etc, the head of each office must nominate a Gr.B officer who shall be responsible to maintain a register of the Furniture and furnishings in the office. For this purpose, every STS and Higher level officers are to be treated as Heads of offices for all officers under their control in the same Building. Group B officers under each STS officer in seperate Buildings away from the STS officer shall maintain the registers in respect of their own offices. The head of office shall ensure that the total value of the furniture and furnishings proposed to be purchased in respect of the office by all officers together does not exceed the CGM's powers of Rs.10 Lakhs p.a. per office.

4.7.7

LIVERIES AND UNIFORMS Full powers Full powers Full powers NIL NIL

Conditions :- Procurement under this item shall be subject to BSNL HQs/Govt guidelines issued periodically.

4.7.8

MEDICINES FOR DISPENSARIES/FIRST AID BOXES/RESERVATION OF BEDS

Full powers. Reservation of beds in all Hospitals as decided by

Reservation of beds in hospitals for all types of illness with the

Full powers. Reservation of beds in hospitals for all types of

NIL NIL



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

IN TB HOSPITAL Company Full powers.

approval of the CGM.

illness with the approval of the CGM.

4.7.9

PURCHASE OF ARCHITECTURAL EQUIPMENTS / DRAUGHTS - MEN'S EQUIPMENTS

Full powers Full powers NIL NIL NIL

4.8

REPAIR AND MTCE OF

COMPUTER PERIPHERALS

Full powers subject to conditions that standing orders and instructions issued on this behalf would be followed strictly.



NIL NIL

Powers subject to strict observations of guidelines fixed by IT cell vide 6-15/2000-Computerisation dated 11-1-2001 of DDG(IT), BSNL Co.office. This is vide 6-4/2002-EB dated 21/2/2003.

5 CONTINGENT EXPENDITURE

5.1 RECURRING Rs.10,000/- in each case





BSNL HQs Remarks :- For

meeting regular petty expenses.

5.2 NON RECURRING

Rs.1,00,000/- in each case


Rs.25,000/- in each case subject to Rs.1.5 Lakhs per annum (see guidelines also)



BSNL HQs Remarks :- For

periodical expenses.

5.3(i)

ADVERTISEMENT CHARGES (For tenders notification for execution of work and procurement of stores only)

Full power

Rs.One Lakh per insertion through Advertising Agent/direct order

Rs. One Lakh per insertion through Advertising Agent/direct order

*Up to Rs.10,000/- per insertion thro DAVP only

NIL

Conditions : Advts should be released thro' Agencies approved by CGM, at the rates approved by CGM.

5.3(ii)

ADVERTISEMENT FOR

MARKETING

Full powers *Rs.2 Lakhs per annum for printing of all types of calendars for marketing purpose.

NIL NIL NIL BSNL order no.6-17/2000-EB dt 5-8-2002. The CGM can exercise full powers within budgetary allocation which they may not further



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

delegate to any officer below the rank of JAG officer. Relevant conditions specified by BSNL HQ s be followed.

5.4

PRINTING AND BINDING OF FORMS, TELEPHONE DIRECTORY AND OTHER DOCUMENTS OF THE COMPANY

Full powers Full powersFull powers for forms and directory

Rs.5,000/- p.a. for other than directory

Rs.250/- in each case subject to 2,500/- p.a. for other than directory

For printing of telephone directory on negative royalty/cost sharing basis, approval of the CGM Telecom is to be obtained vide Jt.DDG(WS) No.6-15/2000-EB(Pt) dt 7-6-2004

5.5 LEGAL CHARGES Full powers Ful powers Full powers NIL NIL

Conditions: Advocate fees etc are subject to rates which will be fixed by BSNL HQs.

5.6

FREIGHT, DEMURRAGE, WHARFAGE CHARGES

Full powers Full powers Full powers *Full powers

*Full for freight and * Rs.500/- at a time for demurrage charges

5.7

GUARDING OF VITAL TELECOM INSTALLATIONS BY ARMED GUARDS

Full powersRs.2 lakhs per

building per annum

Rs.2 lakhs per building per

annumNIL NIL

GM(TS) will determine the number of Guards eligible for each type of Building/Installation etc on a uniform basis for the entire STR from time to time. 2. Payments may be made directly by the DGMs on their own authority for which power will vest in them.

5.8 GUARDING OF Full powers Rs.2 lakhs per Rs.2 lakhs per NIL NIL "GM(TS) will



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

OTHER TELECOM

INSTALLATION ROUND THE CLOCK BY

ARMED GUARDS

building per annum

building per annum

determine the number of Guards eligible for each type of Building/Installation etc on a uniform basis for the entire STR from time to time. 2. After approval of the arrangement by GM(TS), the monthly payments may be made directly by the DGMs on their own authority for which power will vest in them."

5.9

ENGAGING GOVT./ PRIVATE AGENCIES FOR SECURITY OF BOTH VITAL AND OTHER BUILDINGS.

Full powers Full powers Full powers NIL NIL

1.GM(TS) will determine the number of Guards eligible for each type of Building/Installation etc on a uniform basis for the entire STR from time to time.2. After approval of the arrangement by GM(TS), the monthly payments may be made directly by the DGMs on their own authority for which power will vest in them.

5.10

HOUSE KEEPING,

HORTICULTURE AND

CLEANLINES OF TELECOM

BUILDINGS/OFFICES

/INSPECTION QUARTERS

Full powers Full powers Full powers NIL NIL For improving image for the company.

6.0 RENTING OF BUILDINGS

PROCEDURAL ASPECT:1. In respect of renting of all types of



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

Buildings under items 6.1 to 6.5, the procedure of FRAC must be adopted. All other procedural aspects like SOA approval, satisfying as regards ownership etc must be duly observed. The prescribed Norms of SOA must not be exceeded. Any SOA in excess of Norms must invariably be got approved by CGM.

6.1 ADMINISTRATIVE OFFICES

Metro cities : Rs.2.5 lakhs per month per office. A, B-1, B -2 cities : Rs.1.50 lakh per month per office. Other cities : Rs.1 lakh per month per office (Also see guidelines)

Metro Cities:-Rs.2.5lakhs p.m. Per office A, B-1,B-2 Cities Rs.1.5 lakhs per month. Other places:-Rs.1 lakh p.m. per office

Metro cities :- Rs.2 lakhs p.m. per office A, B-1, B-2 Cities Rs.1 lakh per month.Other places :- Rs.50,000/- p.m. per office

NIL NIL

For providing good working environment to staff and earlier tan was no provision for Technical Buildings.

6.2

TECHNICAL BUILDING AND

INSPECTION QUARTERS

Full power including for Holiday Homes/Guest House in addition to technical Buildings & Inspection Quarters.

Full power including for Holiday Homes/Guest House in addition to technical Buildings & Inspection Quarters

Full power including for Holiday Homes/Guest House in addition to technical Buildings & Inspection Quarters

NIL NIL

6.3

To rent floor/floor space including "roof

top" for technical

installation

Full powers as per competitive commercial rate in the area after approval by FRAC

Full powers as per commercial rate in the area

NIL NIL NIL

6.4 RESIDENTIAL Full powers Full powers Full powers NIL NIL Conditions :



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

BUILDING

where accommodation is to be provided as a condition of service.



Procedal Aspects as in item.6.0 apply

6.5 OFFICE -CUM-RESIDENCE

Metro Cities Rs.50,000/- per month Other cities Rs.25,000/- per month

Metro Cities Rs.50,000/- per month Other cities Rs.25,000/- per month

Rs.10,000/- per month in all categories of service

NIL NILConditions : Procedural Aspects as in item.6.0 apply

6.6ENHANCEMENT OF RENT FOR

BUILDING

Full powers after approval by fair rent assessment committee and as per prescribed guidelines



NIL NIL

Conditions : 1. Procedural Aspects as in item. 6.0 apply 2. Disputed cases/Court cases must be referred to CGM."

7.0PAYMENT OF

ADVANCES AND SECURITIES

7.1

Pmt of Advances and Securities for purchase of

stores

Private Supplier: 25% of order value or Rs.1 lakh whichever is less in each case. PSUs :- As per standard conditions of the purchase order or pricing agreements finalized by BSNL or upto a maximum of 30 % of order value in other cases.

Private Supplier: 25% of order value or Rs.1 lakh whichever is less in each case. PSUs :- As per standard conditions of the purchase order or pricing agreements finalized by BSNL or upto a maximum of 30 % of order value in other cases.

Private Supplier : 25% of order value or Rs.50,000/- whichever is less in each case.PSUs:- As per standard conditions of the purchase order or pricing agreements finalized by BSNL or upto a maximum of 30% of order value in other cases.

NIL NIL

Procedural Aspects: The Authority sanctioning the Payment of Advances and securities must ensure maintenance of a register of Advances/security Deposits by the officer passing the relevant final Bills and adjust the advances and securities in the Bills.

7.2 Pmt of Advances and Securities in

respect of Execution of

work by other

Rs.15 lakhs in each case.

Rs.15 lakhs in each case.

Rs.5 lakhs in each case

NIL NIL Procedural Aspects : The Authority sanctioning the payment of advances and



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

Local/public agencies

securities must ensure maintenance of a register of Advances/security Deposits by the officer passing the relevant final Bills and adjust the advances and securities in the Bills.

7.3

PAYMENT IN RESPECT OF

SECURITY DEPOSIT FOR

WATER CONNECTION,

ELECTRIC CONNECTIONS.

Full powers including drainage connection.

Full powers including drainage connection

Full powers including drainage connection.

NIL NIL

Procedural Aspects :(1) The Authority sanctioning the payment of advances and securities must ensure maintenance of a register of advances/security deposits by the officer passing the relevant final bills and adjust the advances and securities in the Bills. (2) When any rented premises are vacated, it shall be the responsibility of the vacating officers in charge of such rented premises to ensure that recovery claims are duly made in respect of such security deposits for the water / electric connections that may have been paid by DOT/BSNL in respect of such rented premises being vacated and ensure their recovery."

7.4PAY AND

ALLOWANCES TO STAFF

Full powers Full powes Full powers NIL NIL



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

7.5LOANS AND

ADVANCES TO STAFF

Full powers

Full powers Motor car advance, computer advance and HBA will continue to be governed by existing delegation - in a centralized manner in the circle office.

Full powers Motor car advance, computer advance and HBA will continue to be governed by existing delegation - in a centralized manner in the circle office.

NIL NIL

7.6

ADHOC PAYMENTS,

ARREARS OF PAY AND OTHER

MISCELLANEOUS PAYMENTS


7.7 ADVANCE PAYMENT FOR PURCHASE OF

VEHICLE

Upto a maimum of 100% of order value

NIL NIL NIL NIL Wherever the DG S & D by implications of their instructions have permitted BSNL to place orders for the items included in their R/R contract as a post-deposit party, no advance payment should be allowed. (ii) In those cases wherever the items to be procured are not in the DGS &D rate contract and the item is approved for purchase by BSNL Corporate office, then 100% advance payment can be allowed to the manufacturer of the said vehicle directly and not to any of their dealers. The proforma invoice so obtained from the manufacturer should not have a lead time of more than one



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

month for delivery of the vehicle to the consignee. In case of default in delivery schedule exceeding one month then the usual interest applicable in such cases for holding money have to be charged on them. Jt.DDG(WS) no.6-5/2002-EB dated 23-4-2002

8.0 RATES & TAXES & COMMISSION

8.1 RATES & TAXES Full powers Full powers Full powers

*Full (assessment to have been approved by DGM)

NIL

8.2

PAYMENT OF BANK

CHARGES, COMMISSION

ETC.

Full powers Full powers Full powers *Full *Full

These powers may be exercised by the DDOs themselves - in accordance with the rules of the BANK. Where outstation chequest are not to be accepted as per rules, such cases may be decided by the AO concerned - whether the excess commission is to be permitted. They should however ensure that such cases are rare.

9.0

HONORARIUM, REWARDS,

AWARDS AND INCENTIVES

9.1 HONORARIUM Rs.5,000/- in each case



NIL NIL Conditions: (i) Subject to rates wherever prescribed by BSNL HQs etc.(ii) Subject to all conditions for grant



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

of Honorarium specified by DOT/BSNL HQs. (iii) To motivate staff for better performance.

9.2 REWARDS/AWARDS

Rs.10,000/- in case of employee of the company and to others


Rs.500/- in case of employee of company

NIL NIL

As per remarks of BSNL HQs, this power is for"eliciting suggestions for improvement of Telecom Service"

9.3PRODUCTIVITY

LINKED INCENTIVES

Full powers NIL NIL NIL NIL

Conditions : Proposals under this item are to be submitted to CGM through GM(F) and must state specifically the "increase in Productivity" proposed to be achieved through such incentive. (ii) To improve productivity

10.0REFUNDS,

REBATES AND COMPENSATION

10.1

REBATE FOR EXCESS

METERING (TELEPHONE AND TELEX)

Rs.1,00,000/- per billing period per connection subject to a maximum of 1.2 lakh for 3 billing periods per connection in a financial year.

Rs.80,000/- per billing period per connection subject to a maximum of Rs.1,00,000/- for 3 billing period in a financial year.

Rs.20,000/- per billing period per connection subject to a maximum of Rs.40,000/- for 3 billing period in a financial year

NIL NIL

Procedural Aspects :- The prescribed procedural aspects as well as the time factor for disposing of EMC complaints prescribed by DOT/BSNL HQs must be kept in mind for disposal of EMCs.

10.2 REFUNDS Full powers Full powers Full powers NIL NIL Procedural Aspects:- (a) The prescribed procedural aspects and (b) Avoidance of delays in disposing of refund claims



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

must be given due importance by the officers to whom the power is delegated.

10.3COMPENSATION

FOR DEATH/INJURY

1) Full powers as per (a) any court award or (b) any statutory legislation. 2) Upto Rs.10,000/- for outside court settlement.

1) Full powers as per (a) any court award or (b) any statutory legislation.2) Upto Rs.10,000/- for outside court settlement."

1) Full powers as per (a) any court award or (b) any statutory legislation.2) Upto Rs.5,000/- for outside court settlement."

NILL NILL

BSNL instructions on this item are - "To settle cases of compensation quickly". Hence, all claims for compensation must be processed and settled in accordance with the Law and BSNL procedures & conditions expeditiously and must not be allowed to be delayed unduly. Procedure prescribed in any statutory Legislation must be adhered to in respect of I(b). In respect of item.2, advice of nominated BSNL Lawyer must invariably be obtained and adhered to.

ADHOC COMPENSATION

DUE TO ELECTROCUTIO

N

Rs.1 lakh for non- departmental persons.

NILL NILL NILL NIL

BSNL instructions on this item are - "To settle cases of compensation quickly". Hence, all claims for compensation must be processed and settled in accordance with the Law and BSNL procedures expeditiously and must not be allowed to be delayed unduly. DOT/BSNL prescribed procedures must be adhered to and legal advice may be obtained wherever needed.



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

10.3.2

COMPENSATION FOR DAMAGE OF PROPERTY



Rs.10,000/- in each case NIL NIL

Conditions : The extent of damage must be assessed by a committee consisting of one DGM, AO and EE(Civil). Other instructions issued by DOT/BSNL and the relevant laws must be adhered to.Legal advice must be taken wherever necessary.

11.0 WRITING OFF LOSSES

11.1WRITE - OFF OF

LOSSES OF CASH



Rs.5,000/- in each case NIL NIL

Cases of Loss exceeding Rs.1,000/- shall be investigated by a committee consisting of the DGM, AO(IFA) and the Unit officer and the committee shall report on the nature, causes, measures of preventing recurrences and responsibility for losses and record their observations on all the 4 aspects. System failures/ weaknesses, if any must be duly reported by the committee with measures to lug the same. In case of recurring losses in any Unit, the DFA shall investigate the causes and report to CGM.

11.2 WRITE- OFF OF LOSSES OF

STORES

Rs.25,000/- in case on fraud/negligence/theft in each case. Rs.1 lakh in other cases

Rs.25,000/- in case on fraud/negligence/theft in each case. Rs.50,000/- in other cases

Rs.10,000/- in case on fraud/negligence/theft in each case. Rs.25,000/- in other cases

Losses of stores must be investigated by a committee consisting of 1 DGM, 1 DE and the AO(IFA). The committee must look



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

like fire, flood, riots and other unforeseen cases of natural calamities in each case.

like fire, flood, riots and other unforeseen cases of natural calamities.

like fire, flood, riots and other unforeseen cases of natural calamities

into the nature, causes and measures to prevent recurrence of such losses and responsibility for the loss and record their observations on all the aspects. System Failures/ weaknesses, if any must be duly reported by the committed with measures to lug the same. The STS level officer under whose charge the loss has occurred shall be responsible to implement the recommendations of the committee and report to the DGM concerned who shall monitor the progress of implementation. All losses of stores exceeding Rs.5,000/- in each case must be reported to VO and Circle IFA immediately.

11.3 WRITE- OFF OF IRRECOVERABL

E REVENUE

Rs.2 lakh in each case.

Rs.1,00,000/- in each case.


NIL NIL BSNL HQs INSTRUCTIONS under this head are "To settle cases expeditiously".Hence, H.P.Cs/L.Bs must identify the causes of delays in settling the cases and arrange for issue of suitable and specific instructions to all the officers responsible for such delays - to prevent recurrence of such delays. Such instructions must form part of the



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

minutes of HPCs and LBs. Only in those cases which are recommended by the duly constituted High Power Committees and Liquidation Boards and recommended by the DFA.

12.0

SCRAPPING OF STORES/EQUIP

MENTS/ VEHICLE

12.1

SCRAPPING OF "LIFE EXPIRED"

STORES/ EQUIPMENT/

VEHICLE

Full powers on the recommendation of the scrapping committee

Full powers on the recommendations of the scrapping committee2. In respect of Vehicles: The report of Scrapping Committee along with the recommendations of GMs may be sent to GM(TS) for obtaining the approval of CGM.3.Scrapping of LIFE EXPIRED Telephone Exchanges, and U/G Cables may be processed by GMs but shall be subject to final approval of DGM(F)/CGM

Upto 5 crores on recommendation of scrapping committee in each case. No powers in respect of vehicle

NIL NIL

Srapping committee shall consist of (a) 2 Technical DGMs and one AO for Telephone Exchanges, (b) 2 Technical DGMs and one AO(IFA) for cables and Vehicles and (c ) 1 Technical DGM, 1 DE and 1 AO for other Assests and stores under items 12.1, 12.2 and 12.3. In respect of U/G cables and Telephone exchanges, the DE(A/T) must also be a member of the committee.

Note:-In respect of buildings, scrapping committee will also include one SE(Civil) or an EE(Civil) nominated by him in addition to the members of the committee at (a) above.

12.2 SCRAPPING OF STORES/EQUIP

MENTS/

Full powers on the recommendati

Full powers on the recommendatio

NIL NIL NIL Scrapping committee shall be as at 12.1 above. The DE(A/T)



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

VEHICLE "BEFORE THEIR

NORMAL EXPIRY OF LIFE

ons of the scrapping committee

ns of the scrapping committee

must also be a member of the committee in case of Non-Life expired U/G cables and Telephone Exchanges. The committee must however look into the need for scrapping of Non-Life expired assets in greater detail and very carefully, to identify the causes which lead to the deterioration in the asset. The Policy guidelines issued by BSNL HQs, if any, from time to time must be carefully consulted and taken into account in respect of Non-life expired assets. The committee report must also examine ways to avoid such quicker deterioration in life of assets.

12.3 SCRAPPING OF "OBSOLETE" STORES/ EQUIPMENTS

Full powres after approval by Scrapping Committee

Full powers based on the recommendations of the scrapping committee

NIL NIL NIL Procedural requirements :- In order to avoid obsolescence of stores/equipments, it is necessary that all stores/equipments procured are put to use immediately and no such stores/ equipments which are likely to become obsolete in near future are procured. GMs/DGMs will arrange to identify the obsolete stores (and those unused stores which are likely to become obsolete if not put to



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

use promptly) in their charge, determine if they can be used in any other Units and transfer the same to such units promptly. If any stores can not be so used and are obsolete, they may initiate the process for their scrapping quickly and obtain approval of CGM for the same. They must examine causes of obsolescence of the assets/stores etc and report on measures to avoid pre-mature scrapping.

12.4

SCRAPPING AND DISPOSAL

OF LIFE EXPIRED

COMPUTER HARDWARE MATERIALS

Full powers subject to strict observance of guidelines fixed by IT Cell

Full powers subject to strict observance of guidelines fixed by IT cell

NIL NIL NIL Scrapping and disposal of life expired computer hardware material is to be done in accordance with the norms issued vide lr no:6-15/200-Computerisation dated 11-1-2001 of DDG(IT), BSNL Co.

13.0DONATIONS/

GRANTING AID ETC.

13.1

CANTEEN/TIFFIN ROOM/ RECREATION

CLUBS

Full powers as per relevant rules/ guidelines

Full powers as per relevant rules/guidelines


Conditions: As per relevant rules/guidelines

13.2 CO-OPERATIVE SOCIETIES

Rs.25,000/- in each case for purchase of furniture etc. as initial one time grant.

Rs.10,000/- in each case for purchase of furniture etc. as initial one time grant.


13.3

INTEREST FREE LOANS TO CO-

OPERATIVE SOCIETIES



Rs.2,000/- in each case NIL NIL To improve staff

welfare

13.4 SPONSORSHIP Full powers NIL NIL NIL NIL To promote



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

OF SPORTS EVENTS

ORGANIZING CULTURAL

EVENTS/SPECIAL FUNCTIONS

FAIRS/EXHIBITIONS/

PARTICIPATION IN FAIRS/

EXHIBITITION/ NATIONAL

CELEBRATIONS

subject to guidelines of marketing policy.

company's image.

14

DEPUTATION OF OFFICIALS FOR

TRAINING WORKSHOP / SEMINAR IN

INDIA

Full powers in consultation with IFA. For computer training deputing officers for various training /seminars/ workshops in India subject to utilization of available departmental facilities.

Rs.2,500/- in each case subject to annual limit of Rs.10,000/- per annum. For computer training full powers subject to Departmental facilities being fully utilized.

Conditions: subject to deptl facilities being fully utilized.

15 REAPPROPRIATION OF FUNDS

Full powers from one abstract to another in respect of the same primary unit.

Full powers for transfer from one abstract to another within the same primary unit.

NIL NIL NIL

16 PROFESSIONAL SERVICES

16.1 NEW ITEMS OF COMPUTERIZAT

ION

Rs.1 lakh in each case

Rs.1 lakh in each case


NIL NIL Conditions : (1) All new items of computerization in respect of finance and Accounts matters will require the in - principle-approval of DGM(F). (2) Before Introduction of any new software in any accounting system,



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

the DGM(F) concerned must nominate a team of 3 officers with knowledge of computers and the work concerned who should test-check the working of the software from all angles for accuracy of the storage of the inputs, the resultant outputs and any other aspects they deem necessary.

16.2

ENGAGING OF CONSULTANTS,

LEGAL ADVISORS,

MARKETING AGENTS,

ADVERTISING AGENTS, UNDER

WRTERS, ARBITRATORS,

AUDITORS, AUCTIONEERS CLEARING AND FORWARDING AGENTS AND ARCHITECTS

>Full powers NIL NIL NIL NIL

BSNL lr no.400-34/2001-Pers.I dt 17-10-01:- CGMs may recommend, if required, to Corporate office Maximum 2 consultants in each circle, for specific Job, but not for day-to-day regular work, for approval of CMD. Full particulars of Name, Designation of retired Person, Pay scale, Last Pay Drawn, Pension fixed, Date of Birth and Full Justification must be enclosed with the proposal.

17.0

ACCEPTANCE OF TENDERS

AND AWARD OF WORK

17.1 AWARD OF WORK TO THE

LOWEST TENDERER.

Rs.3 Crore through open tender



NIL NIL Conditions:- Tenders may be called for only those types of works which are specifically permitted by CGM to be done under the charge of each GM. No tender shall be called without specific prior



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

allocation of funds for the same by the Capital Budget (works) section.

17.2

AWARD OF WORK TO THE

LOWEST TENDERER THROUGH LIMITED

TENDERS

Rs.2,00,000/- open tender system should be adopted in case estimated value exceeds Rs.2,00,000/-

Rs.2,00,000/- in each case NIL NIL NIL

Conditions : Open tender system should be adopted in case estimated value exceeds Rs.2,00,000/- To speed up implementation of works for achieving targets.

17.3

AWARD OF WORK BY

ACCEPTING SINGLE TENDER WHERE A OPEN

TENDRS HAS BEEN CALLED FOR AND ONLY ONE TENDER

WAS RECEIVED.

Rs.1 Crore Rs.1 Crore Rs.25 lakhs

To expedite constructional

activities to achieve the targets.

17.4

AWARD OF WORK BY

ACCEPTANCE OF TENDER

OTHER THAN LOWEST

In case where the lowest tender is not accepted, the reason should be recorded confidentially and prior approval of the authority higher than the one competent to accept the tender should be obtained.



NIL NIL

Tenders should be floated only in the name (Designation) of the officer competent to accept the same and award the work and not in the name of any lower officer.Reasons must be recorded clearly and in sufficient detail to justify the non-acceptance of the Lowest tender and must be based on known facts and not be based on presumptions. The CVC's instructions governing such cases must be born in mind in deciding.

17.5 ACCEPTANCE OF SINGLE TENDER IN

Rs.1 lakh Rs.1 lakh NIL NIL NIL For expediting urgent works.



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

CASE OF LIMITED TENDER

18 MISCELLANEOUS

18.1

PAYMENT OF POSTAL

CHARGES / COURIER CHARGES

Full powers Full powers Full powers *Full powers *Full powers

18.2

LIGHT REFRESHMENT /

LUNCH FOR MEETINGS/

CONFERENCES

(a) For meetings attended by one or more Directors of Board Rs.150/- per head(b) For meetings after office hours or holidays or meetings attended by officers from HQ s/ from other offices. Rs.100/- per head for working lunch and Rs.50/- per head for refreshment. (c) For giving lunch/refreshment in seminars/Workshops organized by Training centre/ Circles. i) Rs.100/- per head for working lunch ii) Rs.50/- per head for refreshment.

(a) For meetings attended by one or more Directors of Board. Rs.150/- per head. (b) For meeting after office hours or holidays or meetings attended by officers from HQ / from other offices. Rs.100/- per head for working lunch and Rs.50/- per head for refreshment.

(a) For important meetings Rs.100/- per head (b) For regular/ routine meetings Rs.15/- per head for refreshment(i)Rs.50/- per head for working lunch(ii) Rs.25/- per head for refreshment.

*Rs.50/- for important meetings and Rs.30/- for regular / routine meetings Rs.15/- per head for refreshment

*Rs.30/- for regular/ routine meetings Rs.15/- per head for refreshment

To cope up the increased market rates. @ Jt.DDG(WS) lr no:6-23/2001-EB dated 13-03-2002.

18.3 MEALS FOR STAFF

Rs.50/- per head for

"Meals : Rs.50/- per

"Rs.50/- per head per meal

*Rs.50/- per head per meal

Rs.50/- per

For staff welfare.



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

RETAINED IN OFFICE IN CASE

OF EMERGENCIES

meals & Rs.25/- per head for break fast.

head per meal. Breakfast: Rs.25/- per head per day"

Breakfast: Rs.25/- per head per day"

Breakfast: Rs.25/- per head per day

head per meal. Break fast : Rs.25/- per head per day

18.4GIFTS TO VISITING

DIGNITARIES

Rs.1,000/- per occasion

*Rs.250/- per occasion

*Rs.250/- per occasion NIL NIL

For improving the image of the company.

18.5 WAIVAL OF EXCESS SOA

Up to 10% excess of prescribed schedule

NIL NIL NIL NIL

Conditions: All cases of excess over SOA but not exceeding 10% as per Norms must be submitted to DGM(F)/CGM. To provide better accommodation to staff

18.6

PAYMENT REINSTATEMENT CHARGES TO

HIGHWAYS, CORPORATION, MUNICIPALITIES, PANCHAYATS

ETC.


To expedite constructional activities to achieve targets.

18.7 INSURANCE OF MOVABLE/

IMMOVABLE ITEMS

Full powers Full powers Full powers NIL NIL Conditions: This is subject to BSNL HQs policy guidelines from time to time in respect of different types of assets, goods etc. At present, the instructions in respect of Assets are - that no outside insurance is necessary for Cash and Other assets. For vehicles, insurance for third Party liability only is prescribed. This is to be done by DGM(A) - under GM(O) -



C.G.MPowers of

G.MPowers of

DGMs Powers of DEs

Powers of

SDEs/ AOs

Remarks

centrally.

18.8

GRANT OF MEDICAL

ADVANCES FOR EMERGENT

CASES IN NON RECOGNIZED HOSPITALS

UNDER BSNL MRS SCHEME AS PER PARA 2.2.2 OF THE

SCHEME

Full powers subject to limitations laid down in BSNL MRS Rules

*Same as CGM(in consultation with his IFA)

NIL NIL NIL

Documents

Guidelines on Managerial Accounting of Fixed Assets in STR