Para 8.17 — This paragraph lays out the special procedure for

8.17 SPECIAL PROCEDURE FOR SETTLEMENT OF TRANSACTIONS RELATING TO NATIONAL HIGHWAYS.

8.17.1 The following revised procedure has been laid down in connection with the reimbursement of claims to State Govts. /UT Govts. for maintenance of National Highways by them on agency basis:

(i) State Public Works Divisions will plan and carry out maintenance and repairs work of National Highways in public interest (as per the procedure of PWD manual) in consultation with the Regional Office (RO) of Ministry of Road Transport & Highways (MoRTH).

(ii) The expenditure incurred in this process will be deducted from the State balances, and subsequently, expenditure is included in the monthly compiled accounts which are sent to the State AG.

(iii) On receipt of monthly compiled account from the Divisions, the AG will initially adjust the expenditure in the State Section of his books. The applicable head of account being “8658- Suspense Accounts-PAO Suspense-items adjustable by Pay and Accounts Officer (NH), MoRTH.

(iv) Post consolidation, the AG will generate a monthly statement detailing expenditures and any associated receipts on National Highways. This statement, along with all related schedules, vouchers, and supporting documents, will be forwarded to the RO of the MoRTH, who holds the concurrent role of DDO for review of claims, facilitating the claim for reimbursement.

(v) Upon receiving the monthly statement of receipts and expenditures on National Highways from the AG, the RO of MoRTH acting in its capacity as the DDO, will carry out necessary checks. Once approved, the RO will issue a sanction, which is then sent to the Pay and Accounts Officer (NH) of MoRTH. Following this, the Pay and Accounts Officer (NH) will conduct pre-check and proceed with payment through PFMS.

(vi) The amounts outstanding in the Suspense Head 8658 in the books of AG will be cleared on receipt of online payment from the Pay and Accounts Officer (NH) of MoRTH.

(Office of Pr.CCA, MoRTH letter No Pr.AO/RTHS/AG Claims/2023-24/1906 dated 19.6.2023)

8.17.2 DIRECT PAYMENT PROCEDURE FOR EXECUTION OF NATIONAL HIGHWAY WORKS I. DIRECT PAYMENT PROCEDURE

(a). The C&AG has accorded approval for the implementation of Direct Payment Procedure (DPP) in all the States vide letter No. 422-AC-I/SP-I/23-2001 dated 9.10.2003. The DPP has accordingly been implemented in all the states w.e.f. 1.4.2004. The State PWD will continue to execute various schemes of Central Government on National Highways as entrusted to them and

passing through their respective states will continue to be treated as agent to Central Government and will also continue to be responsible for contractual liability.

(b). Under this procedure, the Regional Officer (National Highways), M/o Road Transport & Highways will be the Drawing and Disbursing Officer for all payments and receipts relating to National Highways. The Supervising Engineer (Executing Engineer or Asstt. Engineer) will seek payment from the RPAO (NH) through the Regional Officer (NH). The Supervising Engineer will submit claims of contractors or of their own department, if some work has been undertaken departmentally, duly verified and certified to the Regional Officer (NH) for payment instead of going through State Treasury and State AG. The Regional Officer (NH) in turn, after applying necessary checks as prescribed in the preceding paras, pass on the bills to the Regional Pay and Accounts Officer (National Highways) for processing and making payment through authorised mode. If some claims are deficient in any respect, the same will be returned to the Supervising Engineer through the RO for doing the needful. On compliance of the observations raised by RPAO (NH) the Supervising Engineer will re-submit the claim for payments through RO (NH). The RPAO(NH) will provide the payment details to Regional Officer (NH). Supervisor will ensure proper acknowledgement of payment released to the contractors/parties/individuals. The division will maintain deposit Register, while Executive Engineer will make the entries while making payment of refund of Security Deposit. It will be certified by Executive Engineer that necessary entries in this regard have been made in the register. The above arrangement will be continued till the Security Records are incorporated into PFMS Portal. The RPAO(NH) will account for the Deposits on account of EMD/Securities etc. as prescribed in the

Note (3) below MH-‘8443-Civil Deposits’ of LMMHA.

(c) In the New Direct Payment system, all receipts pertaining to National Highways will also be deposited with the RPAO (NH) through authorised mode and RPAO (NH) will issue a receipt for this purpose.

The following items will form part of National Highways Receipts: 1. Sale proceeds of Tender Documents;

2. Sale proceeds of empty bitumen drums and cement bags; 3. Road cutting charges; 4. Sale proceeds of forest products; 5. Receipts from Telecommunication Department; and 6. Misc. receipts.

(d). The State PW Divisions will continue to maintain the same records for submission of bills to RPAO (NH) as is being done in the reimbursement procedure. (As prescribed in CPWD Manual Vol. II, CPWD Code, and CPWA Code etc.). They will also continue to submit the claims of the contractors in the prescribed format.

(e). Under this procedure the Regional Officer (National Highways) has been declared as the Drawing & Disbursing Officer to arrange payments to State PWDs for incurring expenditure on National Highways. All Supervising officers/Executive Engineers/Project Directors of State PWD will submit the claims of contractors/department to the Regional Officer (NH), M/o Road Transport & Highways in the applicable bill forms for seeking payment from RPAO. The powers to amend the procedure for payment, accounting and change or addition in formats, modifications if any, in the responsibilities of the Regional Officers, RPAO (NH) and State PW Divisions will rest with Ministry of Road Transport & Highways and the same will be done with the approval of CGA and

C&AG. The clarification on any point in the said procedure will be given by the Principal Accounts Office (NH) (coordination section), Pr.CCA Ministry of RTH, New Delhi. This will be binding on all ROs and RPAOs (NH) and State PW Divisions.

II. RESPONSIBILITIES OF REGIONAL OFFICERS (NH) MINISTRY OF ROAD TRANSPORT & HIGHWAYS

(a) In the procedure of Direct Payment, the Regional Officers will execute and perform the duties of DDO as prescribed in CPWA Code/Receipts & Payment Rules/GFR/CAM and relevant rules prescribed by GOI as is applicable. He will receive the bills in duplicate from the Divisions for arranging Payments to contractors/divisions. After applying the prescribed checks as detailed below, he will sign the bill in the capacity of DDO and send it to the RPAO (NH) for processing and releasing payment through authorised mode. RO will maintain a Bill Register in the prescribed proforma. RO should enter the bill details in the Bill Register and enter the bill No. & date on right hand corner on the first page of the Bill. He will also record the classification on the Bill. Before sending the bill to RPAO, RO should make the entry of the bill in Job Register/ Expenditure Control Register.

(b) RO will also be responsible to countersign the certificates received with the bill from PWD Divisions, and on receipt of the cheques/ DD from the RPAO office, RO should enter the number of cheque/DD in the Bill Register. He will also enter these cheques/DD details in the cheque Delivered Register to be maintained in the prescribed format. RO should watch for proper acknowledgement from the party and ensure to get the stamped receipt from the payee, and it will be his responsibility to issue proper TDS Certificates to the concerned parties as well as to concerned Govt. agencies.

(c) R.O. will ensure that all bills are in prescribed formats and the supervising Engineer has exercised all checks as required under rules and recorded relevant certificates required of him. He will also be responsible to ensure compliance on the observations made on bills returned by the RPAO (NH), and ensure that Division conducts the reconciliation of expenditure with the figures/records being maintained in RPAO (NH). RO will also depute an official and reconcile the figures with RPAO on a monthly basis. In case of discrepancy if any, they will be settled on month-to-month basis.

The following checks are to be applied by the R.O. while examining the bills received from PWD (NH)

That the Expenditure relates to National Highway Work; Division1. 2. That the bill is in prescribed printed form & supported with all necessary documents; 3. That the expenditure is for a sanctioned job; 4. That the expenditure is covered with proper financial sanction and has technical & Administrative approval of the M/o Road Transport & Highways, New Delhi; 5. That all the recoveries have been made as per rule; 6. That the necessary entries have been made in the Measurement Book; 7. The rates are as per agreement; 8. That the necessary certificates prescribed by the DG Road, M/o Road Transport & Highways, New Delhi are attached with the bill; and 9. That the expenditure is within the budget allotment.

RESPONSIBILITIES OF RPAO’S IN THE DIRECT PAYMENT PROCEDURE

(a) On receipt of bills from Divisions duly verified and certified by the Regional Officer, the RPAO will process all the bills with reference to the sanctioned Budget allocations and other financial and administrative sanctions, duly reviewed by the competent authority. He/she will see that vouchers, invoices, schedules etc in prescribed formats duly support bills, and that it is complete in all respects. He/she will also see that all statements wherever necessary are attached with the bill and duly signed and as prescribed in departmental codes (CPWD-Manual, CPWA Code). After completing all checks as required under GFRs, Receipts and Payment Rules CTRs, CPWD Manual Vol. II, CPW Account Code, Delegation of Financial Powers and Civil Accounts Manual etc, he/she will pass the bill and make necessary entries of expenditure in relevant registers. He/she will then make the payment through authorised mode and share the payment details with ROs (NH). Till the State AGs come on the E-Receipt mode cheques relating to Agency Charges will contain all necessary details of the bill. Various recoveries to be remitted to the State will be paid through cheque by Pay and Accounts Officer and cheque will be sent to Supervising Engineer of PWD through RO.

(b) Thereafter, RPAO (NH) will compile the accounts of these payments and book the expenditure against the relevant head of Account and send consolidated Accounts to Headquarters. He/she will also ensure that the expenditure does not exceed budget grant, approved estimates and that the expenditure pertains to National Highways. RPAO (NH) will also account for all receipts received from Divisions on account of sale of tender forms, forest produce, empty drums and bags, road cutting charges and Telecom department charges etc and account them against relevant receipt heads.

(c) RPAO (NH) will return all such claims that are deficient of supporting documents, copy of sanction, sanctioned estimates, or not submitted in prescribed format to the RO, for getting the deficiencies rectified through the State PW Division. He will also assist the Supervising Engineer in reconciliation of expenditure figures with that being maintained in his office. RPAO will maintain the following registers for payment and accounts:

1. Job-wise/Expenditure Control Register; 2. Payment Register – Form CAM 9; 3. Compilation Register – Form CAM 33; and 4. E-payment/Cheque Delivered Register.

RPAO (NH) will also maintain all other registers as being maintained now in the reimbursement procedure, namely:

A. Sanctions of Contracts; and B. Register of Order of Special Recoveries. Income Tax including Surcharge, if any, deducted at source will be booked to the final head of account by RPAO in his books. Separate advice stating amount, category of payment and UTR will be prepared by RPAO for Sales Tax, (Surcharge, if any), Royalty or any other tax/duty/levy due to State Government and it will be sent through Supervising Engineer of State PWD through R.O. These e-advices will be issued on daily basis by Pay and Accounts Officer along with a schedule showing details of amounts deducted from the bills.

IV Accounting of Agency Charges (a). The payment for agency charges for executing the work of National Highways will be sent by RPAO directly to the State AG for credit to the accounts of the State Government on daily basis along with schedule showing the details of the bills. The Supervising Engineer will also send a monthly statement of Bills and Payments received from RPAO (NH) to the State AG so as to enable him to calculate the amount of the agency charges due to the State, and endorse a copy of the statement to the concerned PAO. The Supervising Engineer will be required to reconcile the details of expenditure being booked in his office with that in the RO on month-tomonth basis. This reconciliation work should not be postponed. If there is any discrepancy between the two sets of figures, Division will depute an official to reconcile the same with the RPAO (NH).

(b). The Supervising Engineer will ensure that all claims are duly supported by proper sanction of Ministry of Road Transport & Highways, and that there exists an approved and sanctioned estimate of the project for which bills are being submitted to RPAO (NH) for payment. He/she will also ensure that budget allocation for the financial year is available and the charge is rightly debited to the National Highways. He will exercise all checks as prescribed in this system and as required of him under CPWD Manual II, CPWD Account Code, other Departmental Regulations, Delegation of financial power, etc. He will also append all Certificates with the bill as prescribed in this system. He will be responsible for factually correct and timely submission of bills to RPAO (NH) through the Regional Officer. He will be accountable to the Drawing & Disbursing Officer for all payments and receipts.

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• 1States maintain National Highways on agency basis for the Central Government
• 2State PWD divisions plan work in consultation with MoRTH Regional Offices
• 3States initially bear the cost and claim reimbursement from the Centre
• 4Claims are verified by MoRTH before reimbursement through PAO
• 5Expenditure is classified under specific National Highway accounting heads

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.