1. BENEFITS ACCRUED ON IMPLEMENTATION OF E-PROCUREMENT SYSTEM

2. E-Procurement on IR is a part of e-governance initiative of GOI where public services are to be gradually shifted to electronic systems for transparency and effectiveness. PREAMBLE

3. IMPLEMENTATION OF E- PROCUREMENT ON N RLY. PhaseDate of Implementation Details IJuly 05Pilot project implemented using Application Service Provider Model (ASP). M/s HCL was the selected ASP during this phase IIAug 08M/s CRIS set up centralized Data Center using Railways own website i.e. ireps.gov.in IIINov 08In NR 100% e-tendering commenced. 3716 tenders uploaded upto 30.4.09

4. ACTIVITIES COVERED IN E- PROCUREMENT PROCESS Uploading of NIT’s online Uploading of tender documents with digital certificates of railway authorised person Free access for downloading of tender documents from IREPS by vendors using authorised ID and password Online bid submission digitally signed in encrypted form

5. Digital tender opening without presence of vendors Tabulation statement generated automatically Compliance statement generated automatically In due course, as learning gets stabilized, only tabulations will be printed and offers will not be printed. Purchase officers can view the offers electronically. ACTIVITIES COVERED IN E- PROCUREMENT PROCESS

6. BENEFITS OF E-PROCUREMENT

7. TANGIBLE BENEFITS

8. INCREASE IN PRODUCTIVITY SAVING IN TIME Instantaneous generation of tabulation statement. Saving in average time for preparation of tabulation statements Conventional systemEP systemSaving NR23 days1 day 22 days

9. TABULATION STATEMENT TIME Secti on Tender No ItemOpened on Tabulation vetted on Days P05 4005080 429 3 Phase A/c crank23.9.0831.10.0838 P06 4006081 799 MS Round 20mm5.5.0817.5.0812 P08 4008086 513 Signalling cable 30 core 20.8.0822.9.0832 P08 4008086 571 Signalling cable 6 Core 15.9.0817.10.0832 P09 4009080 045 Aluminium paint23.9.0813.10.0820 P19 4019082 483 A-9 Automatic Brake valve 10.6.0816.6.086 Average23.3 SAMPLE CALCULATIONS (in manual tenders)

10. REDUCED PROCUREMENT COST SAVINGS IN OVERHEAD COST FOR SUPPLIERS In manual tendering approximately 50% tenders were personally dropped. Approx. half of them were outstation. No tender dropping in e-tendering Average saving per tender approx. Rs 4826/-.

11. TENDER SUBMISSION COSTS Tender NoNo of offers Location of firms Approx. Travel costs Approx staying costs Emoluments (proportionate) 11030845434Delhi-3, Mum-1 Nil 422/- Nil 500/- 200/- *3 800/- 11010915143Bhopal-1, Delhi- 1, Lko-1 279/- Nil 222/- 500/- Nil 500/- 400/- 200/- 400/- 11010915925Mum-1, Dadra-1, Lko-2, Delhi-1, 422/- 375/- 222/- *2 Nil 500/- 500/- *2 Nil 800/- 400/- *2 200/- 11020959728Delhi-7, Varanasi-1 Nil 306/- Nil 500/- 200/- *7 400/- (in Rs)SAMPLE CALCULATIONS (in manual tenders)

12. TENDER SUBMISSION COSTS Tender NoNo of offers Location of firms Approx. Travel costs Approx staying costs Emoluments (proportionate) 11050932544Chennai-1 Mumbai-1 Vadodara-1 Delhi-1 528/- 422/- 355/- Nil 500/- Nil 1200/- 800/- 200/- 11070910631Kanpur194/-500/-400/- 410809701120Jaipur-2 Delhi-12 Noida-1 Gorakhpur-1 Alwar-1 Vadodara-1 Hyderabad-1 175/-*2 Nil 312/- 140/- 355/- 437/- 500/-*2 Nil 500/- 400/-*2 200/-*12 200*12 400/- 800/- 1200/- SAMPLE CALCULATIONS (in manual tenders) (in Rs)

13. Tender NoNo of offers Location of firms Approx. Travel costs Approx staying costs Emoluments (proportionate) 41070910865Kolkata-4 Mumbai-1 426/-*4 422/- 500/- *4 500/- 800/- *4 800/- 11110935044Kolkata-1 Delhi-1 Jalandhar-1 Ludhiana-1 426/- Nil 165/- 168/- 500/- Nil 500/- 800/- 200/- 400/- AVG/Tender6938/-1444/-2444/- AVERAGE TENDER SUBMISSION COST PER TENDER4826/- TENDER SUBMISSION COSTS SAMPLE CALCULATIONS (in manual tenders) (in Rs) IN RCF AVERAGE SUBMISSION COST PER TENDER IS Rs 9008/- approx

14. REDUCED PROCUREMENT COST SAVINGS FOR SUPPLIERS- TENDER SUBMISSION (Continued) E-Tenders uploaded from 25/8/08- 31.3.09 are 3286 in NR & 714 in RCF Roughly 50% offers in these tenders would have been dropped personally in manual tendering system Approximately Rs 79,29,118/- saving of manpower costs for supplier (in 7 months). Comparative figures for RCF are Rs 32,15,856/- These savings will pass on to Railways

15. REDUCED PROCUREMENT COST SAVINGS FOR SUPPLIERS- TENDER OPENING No vendor presence during e-tender opening For advertised tenders approximately 75% tenders were personally represented in opening of conventional tenders. Approx. half of them were outstation. No personal representation in e-tendering.

16. REDUCED PROCUREMENT COST SAVINGS FOR SUPPLIERS- TENDER OPENING (Continued) 295 nos of advertised tenders opened in NR through e-tendering w.e.f 25.8.2008 to 31.3.2009. (RCF 640 Nos) Roughly 75% offers in these tenders would have been attended personally in manual tendering system Average saving per tender approx. Rs 4826/-. Estimated savings of Rs 10,67,752/- in 7 months. Comparative figures for RCF are Rs 43,23,840/- These savings will pass on to Railways

17. TENDER DESPATCH TIME SAVING OF TENDER DESPATCH TIME IN LIMITED & BULLETIN TENDERS Tender Mode Dispatch Time Receipt by Vendor Total Manual2/3 days5/6 days7-9 days E-tender1 daySame day 1 day SAVING OF 6-8 DAYS

18. SAVINGS ON WEEKLY BULLETIN Each bulletin costed Rs 25/- (cost of booklet). Distribution cost Rs 10/- extra (Postal costs) Approximate no of copies 625 Net Annual savings of Rs 11,37,500/- These savings will pass on to railways REDUCED PROCUREMENT COST

19. REDUCED TECHNICAL SUITABILITY TIME TENDER MODEAVERAGE TIME MANUAL5-10 Days E-TENDER1-5 Days SAVING OF 4 TO 5 DAYS

20. REDUCTION IN ADVERTISEMENT COSTS PeriodTotal advertising expenditure (Rs) Average monthly expenditure (Rs) May08 -Aug 08 (pre ireps period) 1,31,31,47332,82,868 Sept08- March 09 (post ireps period) 1,56,07,88922,29,698 AVERAGE REDUCTION OF Rs 10 Lakhs per month

21. INTANGIBLE BENEFITS

22. INCREASE IN PRODUCTIVITY REDUCTION IN INFRUCTOUS WORK In manual tendering hundreds of envelops were required to be opened, every quotation was machine numbered 2 times. Tenders were examined, circled and signed All this exercise is not required in e- tendering. Preparation and sale of tender documents is totally eliminated.

23. INCREASE IN EFFICIENCY Elimination of manual processes reduces the scope for human errors & inaccuracies. Curtailment in procurement time reduces the level of inventory requirement.

24. TRANSPARENCY E-Procurement helps in the decision- making process by keeping relevant information scientifically organized. E-procurement system increases transparency and probity by keeping a traceable electronic record of transactions online.

25. CONCLUSION E-procurement system, integrated with an online MMIS shall in the long run lead the Indian Railways towards a completely transparent and paperless procurement system.

26. THANK YOU