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S&S(21(4)/RL/SL/99                                                                                                Dated: 24.12.1999

CIRCULAR

Subject :             CONTROL OF TRANSIT AND STORAGE LOSSES AND REGULARISATION OF LOSSES WITHIN PRESCRIBED TIME SCHEDULE-A SYSTEM APPROACH TO TRANSPARENCY AND ACCOUNTABILITY.

Your kind attention is invited to the circular of even number dated 6.11.1998 on the above subject wherein the detailed procedure for control of transit losses, its documentation, regularisation and fixing up of accountability within a prescribed time schedule has been envisaged.

2. Now, it has also been decided to formulate a revised procedure for control of storage losses, its documentation, regularisation and fixing up of accountability within a prescribed time schedule, accoredingly, the new procedure to be followed is as under:-

3.           PROCRUEMENT AND RECEIPT OF STOCKS:

              It is to be ensured that at the time of procurement and receipt of the stocks, the quality check is done at the depot before stacking. all stacks are made with proper STACK PLAN in the units and the Stack Cards affixed on each stack with all details of stacks therein with initials of the Unit Incharge and the Technical Assistant with their names in capital letters.

4.           MOISTURE CONTENTS-DOCUMENTATION THEREOF: Storage losses of food-grains are mainly due to the following factors:-

              i.            Loss of moisture

              ii.           Insect infestation and sliding down of stocks

              iii.          Fungus infestation and deterioration of stocks.

              iv.          Bird trouble

              v.           Rodents.

              vi.          Bleedings spillage of grain from gunny bags for inadequate stitches/weak textures.

              vii.         Period of storage.

5.           It has been observed that although the moisture content is a major factor for storage loss, yet, it is not being properly checked and recorded at the time of each occasion of receipt/issue of stocks as well as during its storage. therefore, it is necessary to determine and document the moisture contents with accountability of the concerned officials in the following manners:-

i)            At the time of procurement! purchase! acceptance and receipt of stocks, moisture content should be checked and recorded in the concerned records by the Technical Assistant/Asstt. Manager (QC) in the presence of custodian of the stocks.

ii)           During fortnightly inspections, the Technical Assistant will 1st the moisture percentage of each stack and record it on the stack card, stackwise register and in the Inspection Register.

iii.          Necessary entries regarding moisture content of each stack will be made in the Stackwise Register in the following manner under the signatures of the concerned Technical Asstt. and custodian of stack duly verified by AM(QC) AM(D)

iv.           The moisture content sho1d be determined for each stack on fortnightly basis even when no issues have been made from a partic1ar stack as it would indicate the trend of the behaviour of moisture, during the period of storage.

v.            Asstt. Manager (QC and Deputy Manager (QC) during their monthly inspections will test check the moisture contents of the stocks inspected by them and record in the stack card and in their monthly inspection reports.

6.           The Technical Asstt! Asstt. Manager(QC) concerned int he Depot will report every fortnight to the concerne dDistrict Manager, certifying, that the moisture content of allt he stacks has been tested and recorded in the Stack Card! concerned Registers int he Depot and bring out any abnormal variations! observations for the specific intervention of district Manager! Deputy Manager (QC).

7.           STACK DISCIPLINE:

              It has also been observed that a stack is not killed in full for significant periods and the baby/part stacks are left over even after issue of major quantity of bags from that particular stack and further receipt of stocks subsequently are stack don such baby/part stacks. This practice should be avoided. It is, therefore, reiterated that the stacks should be killed in full once the issues have been started from a stack and the unit Incharge would not repeat would not go to the next stack till such time as the earlier part stack is completely liquidated. In case, there are sufficient operational reasons to the contrary in exceptional circumstances, the reasons would be recorded in writing by the AMD(D)/AM(QC) jointly in the concerned stack register which is not completely liquidated failing which responsibility would be fixed on the defaulters. In all such cases, a report should be sent to the Distt. Manager fortnightly for ex-post- facto approval or for follow up action, as the case may be.

8.           All stacks in the Unit have to be serially numbered for the entire godown complex. For example, in a Unit of 5,000 MT, there can be generally 36 (thirty six) stacks which have to be serially numbered from l(one) to 36 (thirty six) .Similarly for the second unit of 5,000 MT, serial number from 37 to 72 would be assigned to the stacks and so on for each stack in other compartments/ units. Based on the Stack Plan, further receipt and issue of stocks is to be closely monitored and numbered for each unit by the Depot Manager/AM(D).

9.           In order to avoid mixing of rice sweepings with wheat sweepings, efforts have to be made that the wheat and rice are stacked exclusively in separate units or compartments. Similarly, in case of Railway siding godown, where the sidings are more than two, it would be considered that godown units falling on one line exclusively reserved for one commodity. This arrangement would not only expedite the release of wagons but also minimize the storage losses due to longer retention of the stack of one commodity which may get blocked due to stacking of other commodity around it preventing its movement.

10.         Depot Incharge/ Asst. Manager (Depot)/Asst. Manager (QC) would keep "Stack / plan" to be operated on daily basis for all operations in the depot and ensure that the STACK DISCIPLINE in receipt and issue of stocks is strictly adhered to in the depots by all concerned officials without exception.

11.         CAP STORAGE:

              For CAP storage, the top of the stack shall be built to form a dome in the shape of inverted 'U' so that the rain water should not accumulate on its top. To further minimize the damage due to rains, birds, high temperature and condensation, layer of bags filled with paddy husk/ bhusa should be provided on the top layers of all the stacks of food grains. Each stack shall be covered with polytechnic cover to protect the stocks from rain, sun, dew, birds etc. To avoid blowing of the cover, the outlets in the polythene covers shall be kept open. The polythene covers mounted on the stacks should be properly lashed by nylon ropes of 6 (six) mm thickness, only vertically, to prevent the damage to the covers due to high velocity winds, rains, dust storms etc. Stack Planning is to be done so that peripheral stacks act as wind barkers and minimize wind action on the stacks in the interior rows. Proper maintenance of the stocks in the CAP would be the joint responsibility of the QC and the depot officials and the supervisory officers would be directly accountable for any lapse in this regard.

12.         Storage loss/gain so arrived at in all the stacks in the depot during the month should be reflected in the 'MONTHLY STOCK ACCOUNT' to be submitted to the District Office. A revised format of the prescribed statement NO.19.5.1(Pt.I) is enclosed at Annexure III.

13.         DOCUMENTATION OF STORAGE LOSS:

              The storage loss statement for each completely liquidated stack during a month would be prepared in the prescribed proforma "Form No.29.10" by the Asstt. Manager (Depot)/Asstt. Manager (QC) for each month and sent to the District Manager latest by seventh day of the following month alongwith investigation reports/ justifications, if any, of the Depot Manager or Asstt. Manager (QC) of the cases showing abnormal storage loss in a particular stack. Form No.29.10 is enclosed for ready reference as Annexure I. Whenever such statement is not received by the end of the following month at the latest, the defaulting officials would be proceeded against for dereliction of duty.

14.         PROCEDURE FOR REGULARISATION OF STORAGE LOSS:

i) The competent authority i.e. Asstt. Manager (Depot)/District Manager/Sr. Regional/Zonal Manager to regularise the storage loss as per the delegated authority (Annexure II) would scrutinise each case which is sent by their subordinate authority and regularise the loss by recording the requisite certificates on the statements as per existing instructions. The competent authority shall write off the storage losses, if justifiable, within its delegated authority within 10(ten) days of the receipt of the cases from its subordinate authority.

ii) If the competent authority is not convinced about reasonableness and justification of losses, he would get the cases investigated and take a view for initiating disciplinary action against the delinquent officials found prima facie responsible for such losses and thereafter write off the losses which are within its delegated authority in terms of five point certificate or send the cases to the next higher authority where the shortages exceed its delegated powers in   respect of percentage or for taking disciplinary action against the delinquent officials found prima facie responsible in the investigation report. The above action is to be taken by each competent authority within two months of the receipt of the cases by them from their subordinate authorities.

iii) In cases where storage losses have been written off by the competent authorities pending finalisation of disciplinary action against the delinquent officials, the disciplinary proceedings in such cases should be completed within a period of four months for minor penalty and eight months for major penalty from the date of the write off of the losses by them.

15. Time schedule for regularization of storage shortages are/or taking disciplinary action is as under:

16.         The Sr. Regional Managers should review with the District Managers the cases of abnormal storage losses which are reported from the depots in their monthly meetings and take all corrective measures to ensure that the storage losses are minimized including taking disciplinary action wherever such losses are deliberative or manipulative with a view to causing loss to the Corporation.

17.         It is to be ensured that the regularisation of storage losses which have occurred during the period of a depot Incharge/ Asst. Manager (Depot) or District Manager must be attended to by them and all statements got prepared, investigations carried out and disciplinary actions initiated wherever necessary and other cases sent to the next higher authority so that nothing remains pending before their relief from the present place of duty. A Special Report may be sent to the next higher authority in this regard on each case of storage loss pending with them.

18.         In all pending cases, as on the date of issue of these instructions, necessary investigations, fixing of responsibility and initiation of disciplinary proceedings should be completed in the light of the instructions/ orders in force at the relevant time wherever warranted within a period of six months from the date of issue of these instructions. Wherever records are not traceable or accountability could not be fixed due to superannuation/ death/ repatriation of the officers/ officials found prima facie responsible for such losses, the competent authorities tow rite off of such losses, the competent authorities to write off of such losses satisfy themselves on the merit of   and give a certificate that the records are not avai1ab1e/ traceable inspite of concerted efforts made by such authorities and there is no other alternative left except to regu1arise these losses and such competent authorities would take a conscious decision accordingly.

19.         It would be the responsibility of the concerned supervisory officers i.e. Asstt. Managers and above to ensure that the procedure and time period specified for each activity for documentations, regularization, fixing up accountability etc. for the storage loss or strictly adhered to and performance of supervisory officers is suitably reflected in their Annual Assessment Reports.

20.         The District Managers/ Sr. Regional Managers would also ensure that for the documentation of storage shortages, all prescribed proforma are got printed with serial number on each proforma and the books containing these proforma be issued to the Depot Manager under acknowledgement who is to account for these documents to his successor in the event of transfer.

21.         These instructions would supersede the existing instructions to the extent of procedure to be followed in recording of moisture contents, documenting the storage losses, time schedule for regularisation and accountability thereof as mentioned in the above paras.

22.         These instructions will come into force with immediate effect.

This issues with the concurrence of Finance and apprvoa1 of the Managing Director.

(R.K. SEEWAL)

MANAGER (S&C/STOCKS)

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