ABSTRACT 

Roads and Bridges - New works - Avoidance of delay  in execution - To carry out Investigation before preparation of estimates for new works - Rs.2 crores sanctioned for Investigation charges under New Service Scheme - Orders - Issued.

Highways (HN.1) Department

G.O.Ms.No.174
Dated 20-9-2002

Read the following:

1. 1)     G.O.Ms.No.152, Highways Department, dated 7.9.2000.
2. 2)     Government Lr.No.968 / HN.1 / 2001 / 3, Highways Department, dated 22.6.2001.
3. 3)     From the Chief Engineer (General), Highways Department, Lr.No.64641 / VS3 / 98, dated 31.10.2001.
4. 4)     From the Accountant General, Letter No.DC / IV/I / 132, dated 22.5.2002.

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In the G.O. first read above the Government have created  a Revolving Fund with an initial capital of Rs. 5 crores to meet the expenditure initially on the investigation charges for new works.  The Government have also  indicated the head of accounts for the operation of the Revolving Fund.

2. In his letter third read above the Chief Engineer (General), Highways Department,  has stated that  the expenditure could not be booked under any of the head of accounts already indicated.

3. As   the accounting procedure for the operation of Revolving Fund, appears to be cumbersome, the Finance Department has suggested to provide required provision annually  towards  investigation charges for Highways Projects under the relevant service head of accounts instead of meeting the expenditure  from the Revolving Fund which is constituted  for the said purpose.

4. The Accountant General has been consulted in this regard.  In the letter fourth read above, the Accountant General  has stated that  it is seen that the Revolving Fund for investigation charges has not been created as of now.  However  Government have also decided not to resort to the procedure  of constitution of the Revolving Fund for meeting investigation charges.  In view of this, the suggestion  to provide suitable amount in the Budget itself towards investigation expenditure seems to be in order.  Normally the procedure should be to incur the expenditure relating to such investigation against the  appropriate minor head and later  transferring the portion of the expenditure  on the approved projects to the project sub head by deduct entry under the original standard head.  However taking into account the possibility of certain projects not materializing,  it would be better to classify the investigation  charges under the sub major  head 80 General  under the minor head 004 Research and Development initially, to be transferred  to the proper final project head as mentioned above.  In case the project not materializing, the investigation expenses would remain under original Research head itself.  In such cases, there is no warrant for the operation of the detailed head write off, since it is not a case of loss.  Investigation charges are a genuine item of expenditure.  Hence action may be taken to open the suitable head with proper provision as mentioned above.

5. The Government after careful examination accord sanction for a sum of  Rs.2 crores (Rupees two crores only) initially for  investigation/estimation purposes, for new works.

6. The amount sanctioned in para 5 above shall be debited to a new Sub-head of account to be opened under Demand No.20 as detailed below:-

"5054. Capital Outlay on Roads and Bridges - 80. General - 004. Research and Development - I. Non-plan. AA. Investigation/Estimation of Project work under Roads and Bridges - 16 Major Works" (DPC 5054 80 004 AA 1609).

7. The Government also  direct that the accounting procedure as suggested by Accountant General at para 4 above, shall be followed for operation of the above sanctioned investigation charges.

8. The Chief Engineer (Gl), Highways Department, will be the estimating, controlling and reconciling authority  and he may apportion  the provision based  on the projects/requirements  for investigation purposes to various implementing agencies under Highways Department.  He is also requested to instruct all the implementing agencies to charge the expenditure incurred towards investigation, estimation etc. from the projects concerned for which Administrative sanctions are issued without fail as first expenditure by proper adjustment.  He is further directed to monitor for proper adjustments periodically and a periodical report shall be sent to the Government in Highways Department and Finance Department.  The charges received in this connection shall be credited to the following head of account:-

"5054. Capital Outlay on Roads and Bridges - 80. General - 004. Research and Development - I. Non plan - AB. Deduct - Receipts on Capital account - 77. Deduct - Recoveries - 3. Other recoveries". (DPC 5054 80 004 AB 7736).

9. The Pay and Accounts Officer/Treasury Officer are requested to open the above new Sub head of account in their accounts.

10. The expenditure sanctioned in para 5 above is an item of "New Service".  The approval of Legislature will be obtained in due course.  Pending approval of the Legislature, the expenditure will be initially met by sanction of an advance from the Contingency Fund.  The Chief Engineer(General), Highways Department is requested to send necessary proposals to Government in Finance(BG.I) Department in the prescribed Form along with a copy of this order for sanction of an advance from Contingency Fund.  He is also requested to send a draft explanatory note indicating the total cost of the scheme, the amount that would be required for implementation during the financial year etc. to Government in Finance (BG.I) Department for inclusion of the above expenditure in the Supplementary Estimate 2002-2003 for bringing to the notice of the Legislature in due course.

11. This order issues with the concurrence of Finance Department vide its U.O.No.290 / DS (B) / 2002-1, dated 19.9.2002 and the additional sanction Ledger No.551. 

(BY ORDER OF THE GOVERNOR)

A.NAGARAJAN,
SECRETARY TO GOVERNMENT

To

The Chief Engineer(Gl), Highways Department,Chennai-5.

All other Chief Engineers of Highways Department.

The Accountant General, Chennai-18/35.

The Project Director, Tamil Nadu Road Sector Project, Chennai-25.

All Sections in Highways Department, Chennai-9.

Copy to: The Secretary to Hon'ble Chief Minister, Chennai-9.

The Senior Personal Assistant to Minister (Finance),  Chennai-9.

The Senior Personal Assistant to Minister (Public Works, Prohibition  & Excise), Chennai-9.

The Finance (PWI/BG.I/BG.II) Department, Chennai-9.

sf/sc

 //Forwarded/by Order//

SECTION OFFICER