Tuesday 24 November 2020

Railway contract management goes end-to-end digital

- Posted on 05 March 2018

New Delhi, March 5 (IANS) Indian Railways will now digitise the submission of bills by vendors for payment and issue of inspection certificates by inspecting agencies with the aim of achieving complete digitisation of its contract management.

Besides, the state-run transporter has introduced the letter of credit (LC) mode of payment as an option in supply/works contracts to improve transparency and the ease of doing business.
“It has been decided that all tenders for supply/works having an estimated value of Rs 10 lakhs (over $15,000) and above shall include in tender conditions an option for the contractors to take payment from railways through LC arrangements,” said a senior Railway Ministry official.
It would cost 0.15 per cent of the LC to the contractors.
Indian Railways has already undertaken steps for digitisation of its entire supply chain in a bid to adopt end-to-end paperless working in contract management by eliminating human intervention.
“Now, one does not have to come to the Railways office for submission of bills and getting inspection certificates,” said the official, adding: “Bill approval status can be tracked online.”
The system includes digitisation of processes like bill submission, inspection, dispatches, receipt, bill passing and bill payments, and warrantee monitoring.
With 100 per cent e-tenders and e-auctions already assimilated into the system, the Railways is further planning to build on these initiatives to achieve seamless flow of materials, finances and information.
The Indian Railways has a vast supply chain to maintain, sustain and build its huge asset base, to run the system, and to provide transportation services.
The Railways’ supply chain has a large number of stakeholders and involves huge recurring expenditure of about Rs 50,000 crore annually. This supply chain generates large volumes of business and employment upstream and hence is critical in the Railways’ functioning.
Currently, the Railways has about 52,000 suppliers registered with a huge transaction order of rolling stock, track items, maintenance spares and other such items.
The supply chain digitisation would encompass integration of information flows, physical flows, and financial flows between railways and its supply chain partners. It involves completely digitising the internal business processes of material supply chain and seamlessly integrating processes controlled by different stakeholders digitally to achieve a completely integrated, paperless and digitised supply chain.
(Arun Kumar Das is a senior Delhi-based freelance journalist. He can be contacted at [email protected])
–IANS
arundas/vm/tb

Read more

Punjabupdate is the free media platform established with a view to uphold what the fourth estate stands for without making any tall claims. Our practice so far has been to be non-conformist rather than flowing with the tide. We know this is not the easy path but then it has always been so. It is credibility and independence that are dear to us and epitomise our core values. We will question what is wrong and espouse what we feel is the right cause, at the same time fully conscious that both are relative terms but we will go by the interpretations are rooted in the collective consciousness of the people. At the same time, we will not stake any claim to be moralists as that can the most difficult test to pass and we admit it.
Copyright 2020 © punjabupdate.com