Delegation of Financial Powers to Member (PSB) and Heads of Circles (HoC) i/r/o contracts pertaining to conveyance of mails through road including RTN routes
Empowering Postal Departments: Delegation of Financial Powers for Mail Conveyance Contracts
Subject:Delegation of Financial Powers to the concerned Member (PSB) and Heads of Circles (HoC) in respect of contracts pertaining to conveyance of mails through road including RTN routes — regarding
In a recent Office Memorandum dated May 21st, 2024, the Ministry of Communications, Department of Posts, has announced a significant delegation of financial powers concerning contracts related to mail conveyance through road, including Return to Network (RTN) routes. This delegation, aimed at streamlining administrative processes and enhancing efficiency, entails revisions to existing financial thresholds for decision-making authorities within the postal hierarchy.
Here's a breakdown of the key points outlined in the memorandum:
1. Increased Financial Powers:
- The financial powers under Rule 12(2) of the Delegation of Financial Power Rules, 2024 have been extended to the concerned Member (PSB) and Heads of Circles.
- The existing financial limits have been revised upwards:
- Concerned Member (PSB): Up to Rs. 10 Crores per contract (previously Rs. 6 Crores).
- Head of Circle: Up to Rs. 6 Crores per annum in each case contract (previously Rs. 3 Crores).
- These revisions aim to provide greater autonomy and flexibility to decision-makers in managing mail conveyance contracts effectively.
2. Specific Allocations for Circles:
- Distinctions have been made based on the geographical coverage of postal circles:
- For 7 Circles (Delhi, Karnataka, Maharashtra, Tamil Nadu, Uttar Pradesh, Telangana, & West Bengal), the Head of Circle can approve contracts up to Rs. 6 Crores per annum in each case contract.
- For 4 Circles (Andhra Pradesh, Gujarat, Madhya Pradesh, & Kerala), the Head of Circle can approve contracts up to Rs. 6 Crores per annum in each case contract.
- For other Circles, the approval limit remains at Rs. 3 Crores per annum in each case contract.
- These allocations reflect the varying operational demands and volumes across different regions.
3. Total Value Consideration:
- In cases where contracts extend over a period of time, the total value over the entire duration of the contract shall be considered for determining the applicable financial limit.
4. Compliance and Consultation:
- The exercising of these delegated financial powers must adhere to the conditions outlined in the Delegation of Financial Power Rules, General Financial Rules (GFRs), guidelines of the Central Vigilance Commission (CVC), and instructions issued by the Ministry of Finance (MoF).
- Concerned Members (PSB) and Heads of Circles are required to consult with the respective Integrated Financial Advisors (IFAs) to ensure compliance and prudent financial management.
This delegation of financial powers underscores the government's commitment to enhancing operational efficiency and accountability within the postal departments. By empowering decision-makers at various levels, the postal sector is better equipped to meet the evolving demands of mail conveyance services across the country.
For further details and clarifications, concerned stakeholders are encouraged to refer to the official memorandum and relevant guidelines.
