CLASS DEE POLICIES
1. ECCONOMIC LIFE OF VEH/EQPT/PLANTS IN
BRO
The
economic (Twin Life) of veh /Eqpt/Plants in BRO has been laid down vide G of I
Sectt BRDB letter No 02/236/98/BEA dated 25 May 2004 and BRDG letter No BRDB/02/28/BEA/2010 (PartLife) dated 24 Dec 2012 forwarded to projects vide DGBR letter No
55041/Life/V/E/P/DGBR /124 E4 Tech dated 31 May 2004 and 55041/Life/VEP /89 E4
Tech dated 28 Jan 2013 respectively.
In case of premature downgradaton of Veh/ Eqpt/
plants which have not achieved one of their twin life either in usage or in vintage
for reasons other than neglect and lack of
proper maintenance, C of I cum BOO will be forwarded to HQ DGBR for obtaining
sanction from Sectt BRDB.
Sanction received from Sectt BRDB for such
cases will be treated as final order for finalization of C of I cum BOO and regularisation of loss by CE (P) irrespective of financial power. Technical
confirmation and Adm sanction for these cases will be accorded by DGBR /E4Tech
and DGBR /E3ES respectively.
Authy:
Dte letter No 55014/Policy /DGBR/134/E4 Tech dated 29 Apr 2011 and PCDA (BR)
letter No AT/BR/118/Loss/ Vol-XIX dated 18 Apr 2011.
In case, EME officer is not available in the project and non EME
officer officiating as Dir EME then technical confirmation will signed by OC of
other Work Shop only. (Technical confirmation will only be signed by EME officer
and not by non EME officer who officiating as Dir EME of project.)
Authy: Dte letter No 55014/Policy /DGBR/79/E4 Tech dated 21 Nov
2013.
Every veh/ Eqpt/ Plants should be achieve 60% of laid down life
for base overhaul and after overhaul,40% of laid down life required for class
DEE downgradation.
Authy: Dte letter No 16187/Policy /DGBR/E4 Tech P-80 dated 01 Sep
1983.
Approval for class DEE downgradation for a
veh/ eqpt/ plant which not included in approved class DEE downgradation plan be
obtained from HQ DGBR/ E4 Tech.
Authy:
Dte letter No 55012/DGD/Gen /DGBR/87/E4 Tech 09 May 2014.
75% of laid down life for class DEE downgradation of veh/ eqpt/
plants is treated as PFR.
Authy: Dte letter No 16187/Policy
/DGBR/E4 Tech P-81 dated 09 Sep 1983.
Veh /Eqpt/ Plants have covered more than 75%
of laid down life and failed prematurely will be treated as Fair, Wear and Tear
(FWT) case. Technical confirmation and Adm sanction will accorded by CE
project.
Premature failure due to misuse /neglect case
will dealt as per para 18 of Adm instruction No 2 and loss regularised as per
para 9 of GMI-28.
Authy:
Dte letter No 16037/Policy /DGBR/E4 Tech P- dated 07 Jan 1982.
2. TECHNICAL CONFIRMATION AND ADM SANCTION
In all the accident cases, Cof I cum BOO along with recommendation/ Order
of CE (P) irrespective of depreciated value be forwarded to HQ DGBR for
according Technical confirmation and Adm sanction by DGBR/ E4 Tech and DGBR/ E3ES
respectively.
Authy: Dte letter No 55014/Policy
/DGBR/160/E4 Tech dated 27 Feb 2013.
Premature cases
falling under financial power of CE (P), Technical confirmation will be accorded by Dir
EME (P) and cases falling under financial power of Govt/ DGBR/ ADGBR will be
accorded by HQ DGBR.
Authy:
Dte letter No 16187/Policy /DGBR/E4 Tech dated 17 Jul1987.
All
premature cases not due to misuse/ neglect cases will be treated as Fair, Wear
and Tear (FWT). CFA will be decided accordingly in C of I / LS and Technical
confirmation by Dir EME (P) and Adm sanction by CE (P).
Authy:
Dte letter No 16189/Policy /DGBR/E4 Tech P-93 dated 31 May1984.
C of I cum BOO/ LS in respect of Veh/ Eqpt/ Plants
downgraded prematurely to class DEE in terms of relaxation of usage/ vintage
life be forwarded along with prescribed
format duly filled in duly signed by CE(P) for according Technical
confirmation by DGBR/ E4 tech and Adm sanction by E4 Repairs.
Authy:
Dte letter No 55014/Policy /DGBR/155/E4 Tech dated 14 Dec 2012.
3. CALCULATION OF DEPRECIATED VALUE OF
VEH/EQPT/PLANT & MACHINERY
Depreciated value of class DEE veh/ eqpt/ plants in all cases will be
calculated based on their Kms/ Hrs run (ie: usage) only.
Authy: Dte letter No 55041/A/ Life
VEP/DGBR/71/E4 Tech dated 09 Nov 2004.
Loss in case of premature
downgradation to class DEE, be calculated as under:-
a.
|
Cost
of V/E/P / Book Value.
|
=
|
A
|
||
b.
|
Laid
down life.
|
=
|
X
|
||
c.
|
Achieved
life / Actual life done.
|
=
|
Y
|
||
d.
|
Amount
of Depreciation.
|
=
|
A
x Y
|
=
|
B
|
X
|
|||||
e.
|
Depreciated
value.
|
=
|
A
– B. (Cost of VEP – Amount of depreciation.)
|
||
f.
|
Loss.
|
=
|
Depreciated
value - Residual value.
|
||
Authy:
Dte letter No 16187/Policy / 52/DGBR/E3 ES dated 21 Mar1985.
In all cases of loss of a Veh/Eqpt/Plant
due to accident, depreciated value will be calculated as per the formula. It is
pointed out that Depreciated value under no circumstances will be
taken as less than 20% of the Book Value.
Depreciated value.
|
=
|
Book Value
x Life achieved.
|
Laid down life.
|
Authy: Dte letter No 51601/C of I/Policy /DGBR/78/E3 ES dated 08 Aug1996.
Details
of calculation sheet for depreciation value, residual value and loss for all
FWT cases are as given under:-
1. Procurement
Cost of V/E/P / Book Value.
|
=
|
X.
|
||
2. Estimated/
Laid down life.
|
=
|
Y.
|
||
3. Achieved
life.
|
=
|
Z.
|
||
4. Amount
of Depreciation.
|
=
|
X
x Z
|
=
|
A.
|
Y
|
||||
5. Net
Value.
|
=
|
X
- A
|
=
|
B.
|
6. Assessed
cost of items to be retrieved.
|
=
|
E.
|
||
7. Depreciated
value.
|
=
|
Procurement
cost – ( Amt of depreciation + Assessed cost of items to be retrieved)
|
||
X
– (A + E) = C.
|
||||
8. Residual
value:
|
||||
a) Assessed cost of SA/RA parts recommended not
to be retrieved.
|
=
|
F.
|
||
b) Assessed
cost of UNSV/Scrap items.
|
=
|
G.
|
||
9. Total
residual value. (Auction Value)
|
=
|
F
+ G =
D.
|
||
10. Loss.
|
=
|
Depreciated
value - Residual value.
C
- D =
L.
|
||
Authy: Appendix
‘D’ of Adm Instruction No 2.
4. REGULARISATION OF LS FOR OBSOLETE/ OBSOLESCENCE
VEH/EQPT
Even in case of veh/ eqpt/ plant downgraded to discard
policy, LS is to be prepared and sanction to be asked as per normal procedure
except normal Fair, Wear & Tear. Otherwise C of I as well as LS both are to
be prepared.
Write off loss is
required in case of damage / store is not bodily present.
Authy: Extract of para (2) of page 69/70 of Swamy
compilation of GFR (01 Dec 1992) forwarded vide Dte letter No: 16187/Policy/DGBR/E4
Tech dated 15 May 1986.
Technical confirmation by Dir EME (P) and Adm
sanction will be accorded as per normal procedure as per BR Regulation.
Accident and misuse cases, if any will be
investigated by C of I cum BOO and LS regularised as per normal procedure
in-vogue.
Authy: Dte
letter No: 16187/Policy/DGBR/ E4 Tech 129 dated 17 Feb 1986.
5. DISPOSAL OF MINOR EQPTs
Part ‘B’ minor equipment should be
downgraded by sentence BER by Fd Wksp and produce in quarterly condemnation
board.
Authy: Dte letter No:16161/DGBR/ E4 Tech dated 14 Oct 1980.
6. DISPOSAL OF CLASS DEE SIGNAL/ RADIO SET
a) The class DEE Radio set will be deposit in
and received in salvage section of Base depot/ Store Division along with Adm
sanction.
b) Serviceable components which are of use will
be retrieved and taken on charge under the supervision of BOO and this will be
utilised to meet the requirements of provisioning branch of Store Divisions.
c) Residual components/ store which cannot be
re-utilised in any manner will be deposited to the nearest Army salvage Depot/
Salvage section of COD Agra for further disposal. Military credit notes for the
conveyance of such salvage items will be obtained from receiving depot on
application.
Authy: Dte letter No:13278/DGBR/Sigs-4
dated 15 Feb 1980.
7. WORKING COST OF DAMAGE TO MAJOR ASSY OF
VEH/EQPT/PLANTs
1.
|
When
major assy become BER
|
||||||
a.
|
Cost of assy.
|
=
|
Rs X.
|
||||
b.
|
Estimated life of assy.
|
=
|
L Kms/Hrs.
|
||||
c.
|
Life spent at the time of damage.
|
=
|
L1 Kms/Hrs.
|
||||
d.
|
Amount of depreciation in Rs.
|
=
|
X x L1
|
||||
L
|
|||||||
e.
|
Depreciated value in Rs.
|
=
|
X -
|
X x L1
|
=
|
Z.
|
|
L
|
|||||||
f.
|
Residual value of assy in Rs.
|
=
|
Say R.
|
||||
g.
|
Loss to be regularised in Rs.
|
=
|
Z - R.
|
||||
2.
|
When assy declared as repairable.
|
||||||
a.
|
Cost of spares required for repair.
|
=
|
Rs. X.
|
||||
b.
|
Cost of retrieved spares.
|
=
|
Rs. R. (This will be less than 20% of Rs.
X.)
|
||||
c.
|
Labour charges.
|
=
|
Rs.Y.
|
||||
d.
|
Overhead charges.
|
=
|
8.5 % of Rs. X.
|
||||
e.
|
Cost of damage.
|
=
|
(X+ 0.085X + Y) – R. Say: Rs. Z.
|
||||
Authy: Dte letter No 55014/Policy /DGBR/E4 Tech dated 13/18 Sep 1989, 55014/Policy
/DGBR/146/E4 Tech dated 01Jul 1999 and 55014/Policy /DGBR/20/E4 Tech dated 22
Aug 2005.
8. WORKING OUT LOSS FOR MACT CLAIM ON ACCOUNT
OF ACCIDENT OF VEH/EQPT/PLANT
i.
|
Life
completed & non recoverable from site.
|
Loss of MACT claim = 20% of Capital Cost (ie. Depreciated value.)
|
|
Power = Depreciated value.
|
|
ii.
|
Not
complete life &non recoverable.
|
Loss of MACT claim = Actual depreciated
value. Or 20 % of Capital Cost. (Whichever is higher)
|
|
iii.
|
Not
complete life & Beyond Economical Repair. (BER)
|
Loss of MACT claim = Maximum of the
following be considered:-
|
|
20% of Capital Cost or Actual depreciated
value or Cost of damage/ repair.
|
|
iv.
|
Not
complete life & repairable.
|
Loss of MACT claim = Cost of repair.
|
|
v.
|
Completed
life & to be downgraded to class DEE.
|
Loss of MACT claim = Maximum of following
will be considered:-
|
|
Assessed cost of repair/ damage or loss
amount. (ie. 20% of capital cost minus residual value.)
|
Authy:
Dte letter No 55014/ Policy/ DGBR/ 143/E4 Tech dated 07 Dec 1998.
9. PREMATURE DOWNGRADATION OF V/E/Ps
The remedial measure to be
strictly adhered to avoid recurrence of premature downgradation and timely
appropriate action to be taken for premature downgradation, it considered to
avoid prolonged time delay.
Authy: Dte letter No:
55061/LS/Gen/Policy/DGBR/98/E4 Tech dated 07 Feb 2007.
Projects to given specific reasons
for low utilisation of Veh/ Eqpt/ Plants in usage (if any) and misuse/ neglect
is involved (if any) and check list for documents to be supported with
premature downgradation cases.
Authy:
55012/Pre-DGD/Relax/DGBR/172/E4 Tech dated 16 Jul 2014. ________ 
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