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Sunday, 18 October 2015

Class DEE Policies




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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