Purchase Procedure

Spare Parts

The corporation annually purchases a variety of spare parts as below

  • New tyre sets, tyre retreading material, vehicle spares fro maintenance, repairs and reconditioning, spring leaves, batteries, assemblies etc valuing approximate 650 million.
  • Bus body fabrication and renovation - steel, aluminium, glass, plywood, rexine, etc. - approx. 500 million.

 

Policy

All purchases are made from vehicle manufacturers, original equipment manufacturers, firms on ASRTU rate contract and those reputed firms who are manufacturers and have previously been suppliers but are not on RC.

 

Tyres are purchased at HQ level from reputed manufacturers through limited enquiry. Block board and plywood of required quality not being on RC is purchased through Tender.

 

Some items such as tyre, ERW, steel tubes, seat cushions and back rest are purchased at HQ through tender.

Statistically 58% purchase are from vehicle manufacturers, Original equipment manufacturers and ASRTU RC firms, 42% from tyres & tyre retreading manufacturers.

 

Procedure

A-B-C Classification for items based on consumption quantity and value has been done. In line with the fleet, regions have been authorised for purchases upto Rs. 1.50-Rs. 5.00 lacs per month of A & B Category items. Similarly, for C category items the purchase powers are upto Rs. 0.80-Rs. 3.00 lacs pm. Generally all items are procured and stocked in the Central stores at Lucknow from where they are issued to regions. Committees are created at different level with varying purchase procedures to enable compliance to procedures. Credit rating, apart from prior supplies (performance and timeliness) is the criterion for vendor rating.

 

Fuel and Oil

The corporation purchases around Rs. 2400 million per annum of diesel and various lubricant oils directly from M/S IOC on a 10 days payment credit.

 

Assets

Vehicles

Chassis is purchased on a 45 days credit policy directly from vehicle manufacturers M/s TELCO and M/s Ashok Leyland. Bus body is generally fabricated in -house and in special cases fabrication is got down by leading bus body fabricators, as per specifications on identification through tenders and contract.

 

Other Assets

Minimum purchases are done owing to paucity of funds. All purchases are tender based with purchase power upto Rs.1 lacs vests in the MD and beyond that in the Board.