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Rule 140 - Outsourced Works | KartavyaDesk

GFR 2017

Original Rule Text

Rule 140 For original/minor works and repair works entrusted as per Rule 133(2) or Rule 133(3), the Administrative Approval and Expenditure Sanction shall be accorded and funds allotted by the concerned authority under these rules and in accordance with the Delegation of Financial Power Rules. The Public Works Organisation or the Public Sector Undertaking or any Organisation allotted work shall then execute the work entrusted to it in accordance with the rules and procedures prescribed in that organisation. A Memorandum of Understanding (MoU) may be drawn with Public Works Organisation or the Public Sector Undertaking for proper execution of work.

What This Means

Rule 140 of the General Financial Rules (GFR), 2017, deals with how money is managed for small construction, repair, and maintenance projects. It applies when a government department decides to outsource these tasks to organizations like the Public Works Department (PWD) or a Public Sector Undertaking (PSU), as permitted under Rule 133(2) or 133(3). Basically, it outlines the process for getting approval and allocating funds for these outsourced projects. Think of it as the 'money management' rule for small-scale projects handled by external agencies.

This rule states that the relevant government authority must first give two important approvals: Administrative Approval (confirming the need for the work) and Expenditure Sanction (authorizing the spending of funds). These approvals and the allocation of funds must follow the GFR rules and the Delegation of Financial Power Rules, which specify who has the authority to approve different amounts. Once the PWD, PSU, or other organization receives the funds, they are responsible for carrying out the work according to their own internal rules and procedures. A Memorandum of Understanding (MoU) is often used to clearly define the responsibilities and expectations of both the government department and the organization doing the work, ensuring smooth project execution.

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

Key Points

  • •Applies to original/minor works and repair works outsourced under Rule 133(2) or 133(3).
  • •Administrative Approval and Expenditure Sanction are required from the concerned government authority.
  • •Funding allocation must adhere to GFR and Delegation of Financial Power Rules.
  • •The executing organization (PWD, PSU, etc.) follows its own internal rules and procedures for project execution.
  • •A Memorandum of Understanding (MoU) is recommended for clarity and accountability.

Practical Example

The Department of Rural Development wants to repair a damaged community hall in a village. Instead of handling the repairs directly, they decide to entrust the work to the State Public Works Department (PWD) as per Rule 133(2). The Department estimates the repair cost to be ₹5,00,000. First, the Department's designated authority, following the Delegation of Financial Power Rules, grants Administrative Approval, confirming the necessity of the repairs. Then, they issue Expenditure Sanction, allocating ₹5,00,000 for the project.

The Department then transfers the funds to the PWD. The PWD executes the repair work according to its own established engineering standards and procurement procedures. To ensure clarity, the Department of Rural Development and the PWD sign a Memorandum of Understanding (MoU) outlining the scope of work, timelines, and reporting requirements. This MoU helps to avoid misunderstandings and ensures the project is completed efficiently and effectively.

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

Frequently Asked Questions

What happens if the estimated cost exceeds the sanctioned amount?▼
If the actual cost exceeds the sanctioned amount, a revised estimate needs to be prepared and additional expenditure sanction obtained from the competent authority, following the Delegation of Financial Power Rules.
Is an MoU mandatory for all works entrusted to Public Works Organisations?▼
While not strictly mandatory, Rule 140 recommends drawing up a Memorandum of Understanding (MoU) to ensure proper execution of work and to clearly define the roles and responsibilities of both parties.
What is the significance of Rule 133(2) and 133(3) mentioned in Rule 140?▼
Rule 133(2) and 133(3) outline the conditions under which works can be entrusted to other agencies like Public Works Organisations or Public Sector Undertakings. Rule 140 applies specifically when work is entrusted under these provisions.
Who is the 'concerned authority' mentioned in Rule 140?▼
The 'concerned authority' refers to the specific government official or department that has the power to grant Administrative Approval and Expenditure Sanction for the particular type and value of work, as defined by the Delegation of Financial Power Rules.
Does Rule 140 apply to works executed directly by the government department?▼
No, Rule 140 specifically applies to works that are entrusted to other organizations like PWDs or PSUs, as per Rule 133(2) or 133(3). For works executed directly by the government department, other relevant GFR rules apply.

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

Test Your Knowledge

Question 1 of 3

According to Rule 140 of GFR 2017, which of the following approvals is/are required before entrusting original/minor works to a Public Sector Undertaking (PSU) as per Rule 133(2)?

Related Rules

Rule 271General Financial Rules 2017 (amended July 2024) - Rule 271 - Chapter 10Rule 109General Financial Rules 2017 (amended July 2024) - Rule 109Rule 146General Financial Rules 2017 (amended July 2024) - Rule 146 - Chapter 6Rule 169General Financial Rules 2017 (amended July 2024) - Rule 169 - Chapter 6Rule 215General Financial Rules 2017 (amended July 2024) - Rule 215 - Chapter 6

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