Lok Sabha Question No. 1681 (UNSTARRED), answered on 2019-02-13
Subject: Scrap Management
Ministry: RAILWAYS
Asked by: RAM TAHAL CHOUDHARY, LAXMI NARAYAN YADAV

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.1681 TO BE ANSWERED ON 13.02.2019

## SCRAP MANAGEMENT

- +1681. SHRI RAM TAHAL CHOUDHARY: SHRI LAXMI NARAYAN YADAV:

Will the Minister of RAILWAYS be please to state:

- (a) the location-wise and quantum-wise details of railway scrap lying at present;
- (b) the rules of scrap management in the Railways;
- (c) whether the said rules are not being followed; and
- (d) if  so,  the  reaction  of  the  Government  thereto  along  with  the remedial steps taken in this regard?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF RAILWAYS

(SHRI RAJEN GOHAIN)

- (a) to (d) A Statement is laid on the Table of the House.

*****

STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF UNSTARRED QUESTION NO.1681 BY SHRI RAM TAHAL CHOUDHARY AND  SHRI  LAXMI  NARAYAN  YADAV  TO  BE  ANSWERED  IN  LOK SABHA ON 13.02.2019 REGARDING SCRAP MANAGEMENT

## (a)  Information  regarding  location-wise  and  quantum-wise  railways scrap lying as on 31.01.2019 is as under:-

| Zonal Railway    | Division/Depot   |   Quantity of Scrap Lying (in MT) |
|------------------|------------------|-----------------------------------|
| Central Railway  | Mumbai           |                              7126 |
|                  | Pune             |                              1784 |
|                  | Bhusaval         |                              3133 |
|                  | Nagpur           |                              1580 |
|                  | Solapur          |                               171 |
|                  | Parel Workshop   |                               200 |
|                  | Matunga Workshop |                               150 |
|                  | Total            |                             14144 |
| Eastern Railway  | Howrah           |                              6050 |
|                  | Asansol          |                              5078 |
|                  | Malda            |                              1080 |
|                  | Sealdah          |                              1285 |
|                  | Total            |                             13493 |
| Northern Railway | Alambagh Depot   |                              1231 |
|                  | Jagadhari        |                              1274 |
|                  | Sakurbasti Depot |                               705 |
|                  | Luknow           |                              4996 |
|                  | Umbala           |                              3207 |
|                  | Firozpur         |                              1963 |
|                  | Moradabad        |                              6617 |

Contd…2/-

Contd…3/-

| Railway                    | Division/Depot          |   Quantity of Scrap Lying (in MT) |
|----------------------------|-------------------------|-----------------------------------|
| Northern Railway           | Delhi                   |                              5262 |
|                            | Total                   |                             25255 |
| North Eastern Railway      | Varanasi                |                              1195 |
|                            | Luknow                  |                              4477 |
|                            | Izatnagar               |                              1409 |
|                            | Gorakhpur Depot         |                               732 |
|                            | Izatnagar Depot         |                               279 |
|                            | Total                   |                              8092 |
| Northeast Frontier Railway | Digrugarh Workshop      |                                87 |
|                            | New Bongaigaon Workshop |                               694 |
|                            | PNO Depot               |                               180 |
|                            | New Jalpaigudi Depot    |                               362 |
|                            | Katihar                 |                              2082 |
|                            | Alipurdwar              |                              1025 |
|                            | Rangia                  |                               868 |
|                            | Lumbding                |                               650 |
|                            | Tinsukhia               |                               694 |
|                            | Total                   |                              6642 |
| Southern Railway           | Chennai                 |                              5848 |
|                            | Salem                   |                              1081 |
|                            | Tirupati                |                              2088 |
|                            | Madurai                 |                              1110 |
|                            | Trivendrum              |                              4373 |
|                            | Palghat                 |                              5167 |
|                            | Perambur Depot          |                              1031 |
|                            | Golden Rock Depot       |                               469 |

Contd…4/-

| Railway               | Division/Depot     | Quantity of Scrap Lying (in MT)   |
|-----------------------|--------------------|-----------------------------------|
| Southern Railway      | Total              | 21167                             |
| South Central Railway | Secunderabad       | 1100                              |
|                       | Hyderbad           | 477                               |
|                       | Vijaywada          | 647                               |
|                       | Guntur             | 323                               |
|                       | Guntakal           | 1126                              |
|                       | Nanded             | 3003                              |
|                       | Rayanpadu Depot    | 844                               |
|                       | Tirupati Depot     | 904                               |
|                       | Lalaguda Depot     | 676                               |
|                       | Total              | 9100                              |
| South Eastern Railway | Adra Chakradharpur | 1972 6607                         |
|                       |                    | 2884                              |
|                       | Kharagpur          |                                   |
|                       | Ranchi             | 89                                |
|                       | Total              | 11552                             |
| Western Railway       | Mumbai             | 4520                              |
|                       | Ahmedabad          | 1538                              |
|                       | Dahod Depot        | 7600                              |
|                       | Mahalaxmi Depot    | 5000                              |
|                       | Sabarmati Depot    | 3800                              |
|                       | Pratapnagar Depot  | 3461                              |
|                       | Total              | 25919                             |
| East Central Railway  | Samastipur Depot   | 1500                              |
|                       | Dhanbad            | 3500                              |
|                       | Danapur            | 2000                              |
|                       | Mugalsarai         | 1500                              |
|                       | Samastipur Depot   | 500                               |

Contd…5/-

| Railway                    | Division/Depot    |   Quantity of Scrap Lying (in MT) |
|----------------------------|-------------------|-----------------------------------|
|                            | Total             |                              9000 |
| East Coast Railway         | Khurda Road       |                              3411 |
|                            | Sambalpur         |                              1020 |
|                            | Waltair           |                              2085 |
|                            | Mancheswar Depot  |                               566 |
|                            | Total             |                              7082 |
| North Central Railway      | Jhansi            |                              3654 |
|                            | Allahabad         |                              5334 |
|                            | Agra              |                              5434 |
|                            | Total             |                             14422 |
| North Western Railway      | Jaipur            |                              1100 |
|                            | Bikaner           |                              1775 |
|                            | Ajmer             |                              3245 |
|                            | Total             |                              6120 |
| South East Central Railway | Bilaspur          |                              1200 |
|                            | Nagpur            |                               310 |
|                            | Raipur            |                                75 |
|                            | Raipur Workshop   |                               910 |
|                            | Total             |                              2495 |
| South Western Railway      | Hubli             |                              1271 |
|                            | Bengaluru         |                              3734 |
|                            | Mysuru            |                               410 |
|                            | Hubli Depot       |                               926 |
|                            | Ashokapuram Depot |                               747 |
|                            | Total             |                              7088 |
| West Central Railway       | Jabalpur          |                              3244 |
|                            | Bhopal            |                               672 |
|                            | Kota              |                              1157 |

| Railway                         | Division/Depot   | Quantity of Scrap Lying (in MT)   |
|---------------------------------|------------------|-----------------------------------|
| West Central Railway            | Bhopal Workshop  | 174                               |
|                                 | Kota Workshop    | 1705                              |
|                                 | Total            | 6952                              |
| Metro Railway                   | Noapara Depot    | 244                               |
| Production Units                |                  |                                   |
| Chittaranjan Locomotive Works   | Chittaranjan     | 119                               |
| Diesel Locomotive Works         | Varanasi         | 502                               |
| Integral Coach Factory          | Perambur         | 1837                              |
| Rail Coach Factory              | Kapurthala       | 825                               |
| Rail Wheel Factory              | Bangalore        | 613                               |
| Diesel Loco Modernisation Works | Patiala          | 1905                              |
| Modern Coach Factory            | Raebareli        | 436                               |

- (b) Scrap  is  sold  through  e-auction  in  Railways.    Following  are  the rules of scrap management through e-auction in the Railways:-
1.  Inspection  of  material:  Purchasers  are  advised  to  inspect  the material prior to bidding.
2. Condition of lots: The lots are sold on 'as is where is basis' and no guarantee is given for size, measurement, quantity, quality, etc. The eAuction sale is strictly on the assumption that bidders have inspected the items. No Complaint/claim by the purchasers is entertained in this regard.

3.  Entry  fee  to  the  e-Auction  web  site:  Every  purchaser  has  to  get registered on the website www.ireps.gov.in for e-Auction. The purchaser is required to submit one time registration fee of ₹ 10,000/as  entry  fee  in  central  account  either  through  payment  gateway  or manual payment as prescribed in Para 8. The centralised registration permits the bidder to participate in all e-Auctions, over entire Indian Railway,  available  on  the  site  www.ireps.gov.in.  The  registration  fee can  be  refunded  to  the  bidders  on  request  if  they  desire  not  to participate  in  future  e-Auctions.  However,  such  bidders,  on  request, can participate in e-Auctions by re-registering afresh by depositing the requisite registration fee again.

4. Purchase Account: A valid user registered with e-Auction portal can bid  in  the  e-Auction  on  site  www.ireps.gov.in  after  depositing  any amount in his 'Purchase Account' and can submit bids up to 10 times of  the  amount  as  available  in  his  'Purchase  Account'  on  real  time basis. This account is updated on real time after each transaction. If a bidder is awarded a lot, appropriate Earnest Money Deposit (EMD) for

the  same is deducted from the amount deposited. On the request of the bidder, the balance deposit amount is automatically released.

5. Bid Acceptance: After the pre-defined auction closing date/time, no bid  is  accepted  by  the  system  and  all  bids  received  are  frozen.  The pre-defined closing time is auto extended if any bidder submits the bid in the last pre-determined interval time, so that other bidders get time to bid accordingly. The system accepts/rejects the highest bid as per reserve price fed into the system prior to the start of the e-Auction.

6. Earnest Money Deposit (EMD) amount is 10% of accepted bid value. EMD  is  automatically  deducted  from  'Purchaser  Account'  of  the successful bidder.

7. Payment of Balance Sale Value and Delivery time:

7.1  For  Permanent  Way  Scrap  and  other  line  lots:  Successful  bidder can  submit  the  balance  sale  value  through  payment  gateway  or through manual mode as mentioned in Para 8. Delivery order is issued only after realization of the balance sale value.

|   S.No. | Sale value of lot                     | Free time allowed for payment of balance sale value reckoned from the date of acceptance of bid   | Free time allowed for delivery reckoned from the date of acceptance of bid   |   Number of instalment permissible for payment |
|---------|---------------------------------------|---------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------|
|       1 | Upto & including ₹ 03 lakhs           | 10 days                                                                                           |                                                                              |                                              1 |
|       2 | Exceeding ₹ 3 lakh and upto ₹ 5 lakh  | 15 days                                                                                           | 50 days                                                                      |                                              1 |
|       3 | Exceeding ₹ 5 lakh and upto ₹ 15 lakh | 15 days                                                                                           |                                                                              |                                              2 |
|       4 | Exceeding ₹ 15 lakh                   | 15 days                                                                                           |                                                                              |                                              3 |

## 7.2 For Depot Scrap:

Contd…9/-

|   S.No. | Sale value of lot                     | Free time allowed for payment of balance sale value reckoned from the date of acceptance of bid   | Free time allowed for delivery reckoned from the date of acceptance of bid   |   Number of instalment permissible for payment |
|---------|---------------------------------------|---------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------|
|       1 | Upto & including ₹ 03 lakhs           | 10 days                                                                                           | 40 days                                                                      |                                              1 |
|       2 | Exceeding ₹ 3 lakh and upto ₹ 5 lakh  | 15 days                                                                                           | 40 days                                                                      |                                              1 |
|       3 | Exceeding ₹ 5 lakh and upto ₹ 15 lakh | 15 days                                                                                           | 40 days                                                                      |                                              2 |

|   S.No. | Sale value of lot   | Free time allowed for payment of balance sale value reckoned from the date of acceptance of bid   | Free time allowed for delivery reckoned from the date of acceptance of bid   |   Number of instalment permissible for payment |
|---------|---------------------|---------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------|
|       4 | Exceeding ₹ 15 lakh | 15 days                                                                                           | 40 days                                                                      |                                              3 |

8.  Manual  Payment:  Payment  in  manual  mode  can  also  made  as  per current  rules.  Proof  of  submission  of  registration  money  can  be submitted  in  any  depot  where  E-Auction  is  conducted.  Proof  of payment  of  Balance  Sale  value  needs  to  be  submitted  in  the  depot from whom delivery is to taken.
9. Interest Rate: The rate of interest charged on delayed payment shall be 7% (Seven percent) above the base rate of State Bank of India, as prevailing on the day of auction or the day of the payment being made by the bidder, whichever is higher.
10.  Extension  of  time  for  balance  payment:  Free  time  allowed  for payment of balance sale is indicated in para 7.1 and para 7.2.

However, time for payment of balance sale value with interest can be extended by Railway upto 40 days for Permanent Way scrap and other line lots, and upto 35 days for depots lots from the date of acceptance of bid in exceptional circumstance on written request of the purchaser. The Earnest Money Deposit shall be forfeited, if the balance sale value is not deposited by the purchaser within the said period of 40/35 days.

11. Maximum period of delivery: Free delivery period shall be maximum 50/40  days  from  the  date  of  bid  acceptance  as  indicated  in  Para  7. However  Railway  administration  in  deserving  cases  may  extend  the delivery  period  by  15  days  over  and  above  the  prescribed  period  of 50/40 days.

12. GST: GST shall be applicable as per existing rules.

13.  Sale  of  Hazardous  waste/Scrap  Batteries/Electronic  waste:  Scrap lots  comprising  of  hazardous  waste  are  sold  keeping  in  view  the extant  guidelines  of  the  Ministry  of  Environment  and  Forest  as contained the Hazardous Wastes (Management, Handling and Trans

Contd…12/Boundary Movement) Rules, 2008 and Second Amendment Rules, 2009, as amended from time to time. Lots of scrap batteries are sold as per the  extent  guidelines  of  the  Ministry  of  Environment  and  Forest  as contained  in  Batteries  (Management  and  Handling)  Rules,  2001,  as amended from time to time. Lots comprising of scrap E-waste are sold as per the extant guidelines of the Ministry of Environment and Forest as  contained  in  e-Waste  (Management  and  Handling)  Rules,  2011  as amended  from  time  to  time.  Prospective  bidders  of  such  lots  of hazardous  waste/scrap  Batteries/  e-waste  must  be  in  possession  of requisite registration, valid on the date of e-Auction and on the date of delivery, as recycler/pre-processor issued by the Ministry of Environment and Forest or by the Central Pollution Control Board as the case may be. The successful bidder, whose bid is accepted by the Railway administration, is required to produce original valid document of such registration at the time of taking delivery of material. In case of  failure,  the  Railway  administration  cancels  the  sale  and  reserves the right to forfeit the earnest money deposit. Certificate is required from the bidder regarding the total waste purchased and processed for

the  current  financial  year  (till  the  time  of  auction)  to  assess  the validity.  Registration  certificate  cum  pass  book  for  recycling  of  the hazardous  waste  is  to  be  brought  at  the  time  of  delivery  to  make necessary verification and entry. The above conditions are updated as per the latest directives of the Ministry of Environment and Forest and the CPCB at the time of e-auction/delivery.

14.  Reclaimable  items:  (a)  Reclaimable  items  included  in  the  sale delivery are to be defaced by the purchaser before taking delivery. (b) Unless otherwise specified, any non-ferrous items found in the lot are to be returned to Railway.

15.  Income  Tax  -  Tax  Collection  at  Source:  Income  tax,  surcharge, cess  etc.  if  any,  at  prevailing  rate,  are  to  be  paid  at  the  time  of remittance of Balance Sale Value.  Purchasers desirous of exemption of income tax from deduction/payment or lower tax rates on purchase of  scrap  used  as  input  for  manufacturing  process  are  required  to submit  Form  27C  from  the  Income  Tax  department  at  the  time  of delivery as per extant policy.

-:13:-

16. Rejected lots: All rejected/unsold lots can be tried in subsequent eAuctions.

17. Reopening of unsold lots: There is no re-opening of any unsold lot in the same e-Auction.

(c)   The rules are being followed all over Indian Railways.

(d)   Does not arise.

*****