In one of the biggest moves yet to decentralise the hierarchy-driven railways, Union minister Suresh Prabhu has set down new rules which give general managers – the de facto chief executive officers of railway zones – far more powers than they ever had in deciding on tenders related to works as well as purchases for stores.
A statement issued by the ministry said it had been "decided that all cases for acceptance of Works and Stores tenders, which as per extant are to be referred to the Railway Board by Zonal Railways and Production Units, will now be dealt with and finalised by Zonal Railways and Production Units. Full powers have been delegated to General Manages and Director Generals as tender authority in this regard."
Explaining what it meant, a senior official said: "In case of tenders that are non-central in nature – which means it pertains only to a particular zone and not the entire railway network – can be decided by the general manager. For example if WR or CR needs to buy equipment for its suburban rakes, it need not refer the file to the Railway Board."
So far, the maximum amount that a general manager could decide on was Rs 150cr.
Calling it the railways coming of age, another official said: "General managers are technocrats at the level of special secretary to the government of India. They run zones that have employees sometimes in excess of a lakh and area that encompasses one or more states. However, their power to deal with finances was negligible, and that was affecting railway works. It's of no use if even local tenders need to be send all the way to the Railway Board and the minister. In the process, work gets delayed by sometimes as much as three years."
As per the statement (only Railway Board could invite tenders pertaining to stores and works), it has been decided that for tenders up to Rs 500cr, tender committee will consist of executive directors (concerned) of the Railway Board and will be accepted at the level of additional members (concerned) of the Railway Board, who will be the tender accepting authority.
For tenders valued at more than Rs 500cr, the tender committee will be at the additional member level, and tender accepting authority will be the board member concerned.
The new rules eliminate the need for files to go all the way to the railway minister for approval, said officials.
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