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Para 10.4 - Scrap Disposal | KartavyaDesk

Goods Manual

Original Rule Text

1. Petty Sales: Small value scrap such as wastepaper or industrial sweepings, and so on, up to a value of Rs. 15,000 (Rupees Fifteen thousand) in each case, may be sold directly to the local scrap dealers on a summary quotation basis, 2. LTE Mode: Scraps more than Rupees Fifteen thousand up to Rupees Four Lakh may be sold on a limited tender basis to locally known scrap dealers in the relevant category. 3. eAuction Mode: Sale through the e-auction portal or a tender for disposal or traditional public auction may be resorted to for scrap value above Rupees Four lakh. E-Auction should be the preferred mode for such disposals, using the e-Auction platforms of NIC, MSTC, Indian Railways or any other appropriate portal; 4. Direct Sale: Certain useable machinery/ spare may still be useable by other Ministries/ Departments/ PSEs; these should be disposed off directly to the concerned organisation at book value plus overheads @ 20 (twenty) per cent plus freight @ (7.5 (seven and a half) per cent plus handling charges @12.5 (twelve and a half) per cent. 5. Sales by Submission of Tenders: Disposal may also be done by submitting bids in response to public invitations by Government Departments, PSEs, or private bodies for bids for supplying materials. This method of sale is particularly suitable where it is proposed to dispose of its ‘overstocks’ and surplus stores’ which are in fit-to-use condition. 6. Sale of Security Risk Scrap: Scrap that is a security or safety risk (stamps, negotiable instruments, money value documents, security press items) may be destroyed suitably in an eco-friendly manner in accordance with guidelines of the Central Pollution Control Board (CPCB) or State Pollution Control Board (SPCB) in the presence of a committee after obtaining CA’s approval. The committee should issue a certificate of having destroyed these. Video recording may also be done of such disposal. 7. The following procedures would govern the sale of hazardous waste items in addition to guidelines/notifications issued by the Central Pollution Control Board (CPCB)/ Ministry of Environment, Forest and Climate Change (MoEFCC) from time to time: a) The Batteries (Management & Handling) Rules 2001 or as amended from time to time shall govern the sale of old batteries/lead acid batteries; b) Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 or as amended from time to time, governs the sale of hazardous waste; c) e-Waste (Electronic Waste - Management) Rules, 2016 or as amended from time to time, governs the sale of e-Waste; d) Bidders must submit a notarized copy of the valid registration certificates issued by the State (or Union Territory) Pollution Control Board (SPCB) and produce it at the time of taking delivery of the materials, failing which their bid will be liable for rejection. In the case of lead-acid batteries, used/waste oils, and nonferrous metal wastes, in

What This Means

Para 10.4 of the Manual for Procurement of Goods, 2017, outlines the procedures for selling scrap materials within government organizations. Think of it as the government's way of clearing out old junk and getting some money back. The rule specifies different methods for selling scrap based on its value, ranging from small-value items like wastepaper to more valuable machinery. The goal is to ensure transparency and efficiency in the disposal of government assets that are no longer needed.

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

Key Points

  • Scrap disposal method depends on the scrap's value.
  • Petty sales (up to ₹15,000) can be sold directly to local scrap dealers with summary quotations.
  • Scrap valued between ₹15,000 and ₹4 Lakh can be sold through limited tenders to local scrap dealers.
  • Scrap valued above ₹4 Lakh should be sold through e-auction platforms.
  • Hazardous waste disposal must comply with CPCB/MoEFCC guidelines and relevant rules.

Practical Example

The Department of Agriculture has accumulated a significant amount of scrap metal and old office equipment. After assessment, they find wastepaper worth ₹10,000, scrap metal worth ₹2,50,000, and unusable computers worth ₹5,00,000. According to Para 10.4, the wastepaper can be sold directly to a local scrap dealer after obtaining summary quotations. The scrap metal will be sold through a limited tender process involving local scrap dealers. The unusable computers, valued at ₹5,00,000, must be sold through an e-auction platform like MSTC. The department must also ensure compliance with e-Waste (Electronic Waste - Management) Rules, 2016.

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

Frequently Asked Questions

What is considered 'scrap' under this rule?
Scrap includes wastepaper, industrial sweepings, old machinery, obsolete equipment, and other discarded materials that are no longer useful to the government organization.
What if we have scrap machinery that another government department could use?
Para 10.4 allows for direct sale of usable machinery/spares to other Ministries/Departments/PSEs at book value plus overheads (20%), freight (7.5%), and handling charges (12.5%).
What are the preferred e-auction platforms for scrap disposal?
The rule suggests using e-Auction platforms of NIC, MSTC, Indian Railways, or any other appropriate portal.
What if the scrap poses a security risk?
Scrap that poses a security risk (e.g., stamps, negotiable instruments) must be destroyed in an eco-friendly manner following CPCB/SPCB guidelines, in the presence of a committee, after obtaining CA's approval. Video recording of the disposal is recommended.
What are the rules for hazardous waste disposal?
Hazardous waste disposal must comply with guidelines/notifications issued by the Central Pollution Control Board (CPCB)/ Ministry of Environment, Forest and Climate Change (MoEFCC) and relevant rules like Batteries (Management & Handling) Rules 2001, Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016, and e-Waste (Electronic Waste - Management) Rules, 2016.

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 the Manual for Procurement of Goods, 2017, what is the maximum value of scrap that can be sold directly to local scrap dealers on a summary quotation basis?

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