(REVISED FINAL DRAFT)

BOOK OF FINANCIAL POWERS

FOR

GENERATION COMPANIES

March 15, 2010

PREFACE
1. The Book of Financial Powers of WAPDA has been used as an interim arrangement while company was
passing through transitional phase since its incorporation. The Book of Financial Powers has been developed
now to enable the company to operate in a commercial environment and simultaneously empowering the
Management of the Company. The delegation of financial powers has been aligned with the requirements of
the functional responsibilities of officers of the Company.

2. Powers not specifically mentioned in this book of financial powers but which were exercised by various
officers of the Company in respect of projects or activities transferred from WAPDA to the Company shall
continue to be exercised by the corresponding officers of the Company in respect of those projects and
activities upto the extent approved by BOD.

3. The exercise of powers covered by the present delegation will be subject to such detailed rules or
procedures as have already been approved by the Board of Directors or as the Board of Directors may, at
any time, approve.

4. These delegations will be subject to the following general conditions:-

(i) That the powers are not exercised except to promote a program, project or activity approved by a
competent authority of the Company or in its absence by the Competent Authority of WAPDA;

( ii ) That funds exist or are provided for in the sanctioned budget of the Company either on a lump sum
basis or specifically for the project or activity in connection with which the power is exercised;

( iii ) that foreign exchange if involved has been either already made available or its provision exists in the
foreign exchange budget of the Company sanctioned by the Government (Release of cash foreign
exchange against each project and activity will be made by the Company as soon as the allocation
to the Company has been approved and made available by the Government), or arrangements
made from the open market by the Company;

( iv ) That an individual item is not split up into parts merely to enable a part of the whole item to qualify
for a particular sanction;

(v) that the powers delegated to and exercisable by an officer shall also be exercisable by his higher
authorities;

( vi ) that officers working as staff officers and not holding independent charge of an office shall not
exercise powers delegated to officers of their rank in this book unless they are specially authorized
to do so by their respective competent authority in which case consent of the Board of Directors to
their exercising such powers in their respective sphere of duties shall be presumed to have been
given;

( vii ) that the officers working as Plant Managers shall, unless otherwise decided by the Board of
Directors by general or special order, exercise powers in their respective sphere of duties as
delegated to officers of their rank in this book.

5. The monetary limits prescribed are exclusive of all applicable taxes / duties. This book shall be maintained
and kept upto date in respect of all amendments / modifications made therein by the Board of Directors from
time to time. For this purpose, Head of Divisions / Officers shall nominate one of their subordinates to perform
this duty carefully so that correct application and exercise of powers contained in this book can be ensured.

Engr. Tahir Basharat Cheema

Managing Director PEPCO
 (ii)
CONTENTS

SECTION NO. DESCRIPTION PAGE NO.

Preface (ii)

Section-I Powers of Board & Chief Executive Officer 1-3

Section-II Administrative approval & Technical sanction to Works 4

Section-III Administrative approval & Technical Sanction for

Tools and Plants 5

Section-IV Works, store materials, instruments, tools and plants against 6

Limited inquiry and issuance of variation orders

Section-V Local purchase of Stores & Instruments 7

Section-VI Administration of Consulting services 8-9

Section-VII Re-appropriation of funds within the Approved Budget 10

Section-VIII Creation and abolition of posts 11

Section-IX Contingent expenditure 12-14

Section-X Disposal of property 15

Section-XI Payments under Court Orders & other Legal Charges 16

Section-XII Write-off of Losses 17 - 19

Section-XIII Purchases in Hospitals/Dispensaries 20

Section. XIV Advances to Employees 21

Section-XV Fixation of Reserve Stock Limit 22

Section-XVI Miscellaneous Powers 23 - 25

(1)
 SECTION - I
POWERS OF THE BOARD AND CHIEF EXECUTIVE OFFICER

1. Constitution of the Board.

1.1 The ___________ Power Generation Company (GENCO) is a Public Limited Company registered
under the Companies Ordinance 1984. The Company has a Board of Directors (Board) Comprising
of Seven Directors.
1.2 The Company is a corporate body and is entitled to acquire, hold and dispose of property and shall
have perpetual succession and a common seal and shall by the said name sue and be sued.

2. General Powers and Duties of the Board.

2.1 The Board shall prepare for the approval of the Government a comprehensive plan for the
development of the Generation resources of the company.
2.2 The Board shall for the purposes of the NEPRA Act 1997 shall have all the powers of the licensee
and discharge all the obligations of licensee under the said Act:
2.3 The Board may take such measures and exercise such powers as is necessary or expedient for
carrying out of the purposes of NEPRA Act 1997.
2.4 The Board may from time to time employ such officers and officials, or appoint such experts or
consultants as it may consider necessary for the performance of its functions, on such terms and
conditions as it may deem fit.

2.2 Delegation of Powers to Chairman, Member of Board or officers of the Company

The Board may by general or special order delegate to the Chairman or Member of the Board or
officer of the Company, any of its powers, duties or functions subject to such conditions as it may
think fit to impose.

2.3 Company Fund

2.3.1 There shall be a fund to be known as the “Company Fund" vested in the Board, which shall be
utilized by the Board to meet charges in connection with various functions, including the payment of
salaries and other remunerations to the Chairman, Directors, Officers and Officials.

2.3.2 The Company Fund shall consist of:

2.3.2(a) grants made by the Government;

2.3.2(b) loans obtained from the Government, non government agencies, banks etc;
2.3.2(c) sale proceeds of bonds, debentures, commercial papers or other securities issued by the Board.
2.3.2(d) all sums on account of dividends, shares, bonds, debentures, commercial papers, securities or
any other payments received from other companies ;
(Distribution companies, Generation Companies, NTDC, IPPs etc.)
2.3.2(e) loans obtained by the Board with the special or general sanction of the Government;
2.3.2(f) foreign aid and loans obtained from the International Banks/Donors for Re-construction and
Development or otherwise, with the sanction and under the guarantee of and on such terms and
conditions as may be approved by the Government; and
2.3.2(g) all other sums received by the Company.
(2)
2.4 Maintenance of Accounts
The Company shall maintain complete and accurate books of accounts in such form as may be
prescribed and for the fulfillment of the requirements of Companies Ordinance, 1984 and applicable
International Accounting Standards.

3. Powers of the Chief Executive Officer

All powers vested in the Board under Companies Ordinance 1984 and NEPRA Act, 1997 provided
that the following cases shall be referred to the Board for final decision:

3.1 Perspective- and five-year plans for the development and enhancement of Generation Facilities. .
3.2 Processing of PSDP and arrangements for internal and external loans and cash foreign
exchange;
3.3 Annual Budget and Revised Estimates;
3.4 Monitoring of Project Implementation;
3.5 Monitoring of Operational Plans;
3.6 Cases involving departure from the approved Annual Development Program/Operating Budget; in
case of variation in the revenue budget upto 10% variation should be the powers of CEO and more
than 10% would be referred to BOD.
3.7 Cases relating to acceptance of tenders for works where the lowest bid is accepted but the amount
of such bid exceeds rupees Rs.40 Million;
3.8 Cases relating to purchase of stores where the value of such stores exceeds Rs.40 Million.
3.9 Cases relating to disposal of property where the value of such property exceeds Rs. 6.0 Million.
3.10 Cases involving important policy decisions for departure from the established policies.
3.11 The appointment, posting and transfer / removal of Technical Director / Finance / Admn & HR
Director, Chief / Sr. Manager, Manager and officers of equivalent status will be done with the prior
approval of the Board.
3.12 Appeals against order of removal/dismissal of officers of the rank of Manager and above shall be
heard and decided by the Board. Appeals against promotion of such officers will lie with the Board
only where the rules and procedure have been violated.
3.13 The laying down of the procedure for the recruitment of staff and the framing of their service rules
will be considered as question of personnel policy and will require the approval of the Board.
3.14 Processing of upgradation / Rehabilitation/Extension of generation facilities and arrangements for
local and foreign loans.
3.15 Soliciting approval for Cases (if any) involving important policy decisions for departure from the
established policy.
3.16 Soliciting approval for Fuel/Gas Supply Agreements.
3.17 Soliciting approval for Power Sale Agreement with NTDC.
3.18 Approval for creation and Abolition of Posts.
3.19 Preparation of Recruitment Conditions of Service including Disciplinary Power.
3.20 Soliciting approval for Company funds.
3.21 The Plans for privatization or re-structuring of any operational unit of the Company.
3.22 Soliciting approval for Agreements with any Govt. or Non-Govt. Organizations/Departments.

(3)
 SECTION-II
ADMINISTRATIVE APPROVAL AND TECHNICAL SANCTION TO WORKS ,
PURCHASES AND REPAIRS
Nature of Power Competent Authority Monetary Limit
2.1.1 Administrative approval of works, tools (i) BOD Full Powers
and plants, and repairs (ii) Chief Executive Officer Rs. 40.0 Million
(iii) Technical Director Rs. 10.0 Million
(iv) Plant Manager Rs. 4.0 million
2.1.2 Technical Sanction of works, tools and (i) BOD Full Powers
plants, and repairs (ii) Chief Executive Officer Upto Rs.50 Million
(iii) Technical Director Upto Rs.20 Million
(iv) Plant Manager Rs. 10.0 million

2.2.1 Administrative approval of works of (i) Chief Executive Officer Full Powers
repairs to buildings (ordinary and (ii) Technical Director Rs. 1.0 Million
special repairs of residential & non- (iii) Plant Manager Rs. 0.2 Million
residential works.

2.2.2 Technical sanction of works of repairs to (i) Technical Director Full Powers
buildings (ii) Plant Manager Upto Rs. 1.0 Millions

2.2.3 Administrative Approval of Deposit (i) Chief Executive Officer Full Powers
works (ii) Technical Director Rs.4.0 Million
(iii) Plant Manager Rs.2.0 Million

2.2.4 Technical Sanction of Deposit Works (i) Chief Executive Officer Full Powers
(ii) Technical Director Rs.4.0 Million
(iii) Plant Manager Rs.2.0 Million

(4)
SECTION-III
ADMINISTRATIVE APPROVAL & TECHNICAL SANCTION FOR TOOLS AND PLANTS
Nature of Powers Competent Authority Monetary Limits

3.1.1 Administrative approval for Repair & / (i) BOD i. Full Powers
or overhauling of Tools & Plants (ii) Chief Executive Officer ii. Rs. 6.0 Million
including vehicles. (iii) Technical Director. iii.Rs. 2.0 Million
(iv) Plant Manager. iv. Rs. 0.5 Million

3.1.2 Technical sanction to estimates for (i) BOD i. Full Powers

purchase of tools & plants after (ii) Chief Executive Officer ii. Rs. 6.0 Million
obtaining administrative approval of (iii) Technical Director. iii.Rs. 2.0 Million
competent authority. (iv) Plant Manager. iv.Rs. 0.5 Million

3.2.1 Administrative approval for repair and / (i) BOD i. Full Powers
or overhauling of T&P, vehicles and (ii) Chief Executive Officer ii. Rs. 1.0 Million
light machinery. (iii) Technical Director. iii.Rs. 0.5 Million
(iv) Plant Manager. iv.Rs. 50,000/-

3.2.2 Technical sanction to estimates for (i) Chief Executive Officer i. Full powers
repair and / or overhauling of T&P, (ii) Technical Director. ii. Rs. 1.0 million
vehicles and light machinery. (iii) Plant Manager. iii.Rs. 0.5 million

3.3.1 Administrative Approval to local (i) BOD i. Full Powers

manufacturing and / or repair of power (ii) Chief Executive Officer ii. Rs. 3.0 Million
house equipment (iii) Technical Director. iii.Rs. 1.5 Million
(iv) Plant Manager. iv.Rs. 0.3 Million

3.3.2 Technical sanction to estimates for (i) Chief Executive Officer i. Full powers
local manufacturing or repair of Power (ii) Technical Director. ii. Rs. 2.0 million
House Equipments and placing of Work (iii) Plant Manager. iii.Rs. 1.0 million
Order.

(5)
 SECTION-IV
WORKS against tenders, quotations (limited enquiry)
of proprietary items and without calling quotation

Nature of Powers. Competent Authority Monetary Limit

(i) BOD i. Full Powers
Acceptance of tenders for construction, (ii) Chief Executive Officer ii. Rs. 40 Million
4.1.1
maintenance and repair works. (iii) Technical Director. iii. Rs. 20 Million
(iv) Plant Manager. iv. Rs. 2.5 Million

4.1.2 Acceptance of tenders for entering into (i) BOD i. Full Powers
foreign & local contracts for overhauling (ii) Chief Executive Officer ii. Rs. 100 Million
and other works of Power Plant. (iii) Technical Director. iii. Rs. 40 Million

4.1.3 Acceptance of tender for repairs of used (i) BOD i. Full Powers
parts of Power Station of proprietary (ii) Chief Executive Officer ii. Rs. 40 Million
nature such as Turbine Nozzles / (iii) Technical Director. iii. Rs. 20 Million
Buckets, Turbine / Generator Rotors,
HV/LV breakers / motors and other major
power plant equipment.

4.1.4 Award of contract work orders for works (i) Chief Executive Officer Rs. 2 Million in each case.
against limited inquiry in emergent (ii) Technical Director. Rs. 1 Million in each case,
situation. subject to a maximum of
Rs. 10 Million in a year on
all cases.
(iii) Plant Manager. Rs. 0.1 Million in each
case, subject to a
maximum of Rs. 1 Million in
a year on all cases.

4.1.5 Variation / change in original contract / (i) Chief Executive Officer. Upto maximum of 15% of
work orders / purchase orders. the total amount of the
original contract price.

(ii) Technical Director Upto Maximum 10% of

contract price or Rs. 15
Million, which ever is less
for all variation orders.

4.1.6 Placing of work order for repairs and / or (i) Chief Executive Officer i. Rs. 0.2 million
overhauling of tools, plants, vehicles and (ii) Technical Director. ii. Rs. 0.15 million
light machinery without inviting (iii) Plant Manager. iii. Rs. 0.05 million
quotations / tenders.

(6)
4.1.7 Placing of work orders for repairs and / or (i) Chief Executive Officer Full powers
overhauling of Tools and Plants, vehicles (ii) Technical Director. Rs. 1.0 million
and light machinery by calling quotations. (iii) Plant Manager. Rs. 0.5 million

4.1.8 Placing of work orders for local (i) Chief Executive Officer Full powers
manufacturing and / or repair of Power (ii) Technical Director. Rs. 2.0 million
House Equipment by calling quotations. (iii) Plant Manager. Rs. 1.0 million

Note:
1) The powers delegated under Clause-4.1.4 regarding award of contract for work order in emergent situation may only
be implemented under intimation to the next higher authority.

2) In case the price of the materials/equipment is not downward, the repeat order may be placed by the competent
authority on the basis of already accepted rates on the same firm with whom order has already placed upto 50% of
the value of original order or Rs. 2.0 Millions which ever is less during the currency of the work/purchase order or
within a period of six months of the original order.

(7)
SECTION-V
 PURCHASE OF STORES INCLUDING CIVIL CONSTRUCTION /
MAINTENANCE ITEMS, T&P & INSTRUMENTS

Nature of Powers Competent Authority Monetary Limit

5.1.1 Acceptance of tenders for local purchase (i) Board of Directors Full Powers
for annual requirement as well as (ii) Chief Executive Officer Rs.40 Million
immediate incorporation in work. (iii) Tech. Director. Rs.20 Million
(ivii) Plant Manager. Rs. 02 Million

5.1.2 Acceptance of quotations (limited (i) Chief Executive Officer Rs. 1.0 million at a time.
enquiry) for local purchases. (ii) Tech. Director. Rs. 0.5 Million at a time.
(iii) Plant Manager. Rs. 0.3 Million at a time.

5.1.3 Local purchase of stores without calling (i) Chief Executive Officer Rs. 0.3 million at a time.
quotations. (ii) Technical Director. Rs. 0.1 million at a time.
(iii) Plant Manager. Rs. 50,000 at a time.

5.1.4 Local purchase of tyres and tubes for (i) Chief Executive Officer Rs. 100,000 at a time.
immediate use without calling quotations. (ii) Technical Director Rs. 50,000 at a time.
(iii) Plant Manager. Rs. 30,000 at a time.

5.1.5 Acceptance of tenders for procurement of (i) BOD Full Powers

foreign material/spares/equipment. (ii) Chief Executive Officer Rs. 300 Million
(iii) Technical Director Rs.100 Million
5.1.6 Acceptance of tenders for purchase of Chief Executive Officer Full Powers with variation
Furnace Oil, Diesel, other Fuels / of ±25% of original
Lubricants & Chemicals for Power Plants. quantity in each purchase
order..
5.1.7 Acceptance of quotations for purchase of (i) BOD Full Powers
foreign spares/material/equipment from (ii) Chief Executive Officer Rs.40 Million in each
OEM and other manufactures of case.
international depute.

(8)
SECTION-VI
 POWERS FOR ENGAGING CONSULTING ENGINEERS AND
ADMINISTRATION OF CONSULTING SERVICES

Nature of Powers Competent Authority Monetary Limit

6.1 Foreign Consultants

(In association with or without local
consultants).

6.1.1 Short-listing (with or without association (i) Chief Executive Officer. Full Powers
of local consultants).
6.1.2 Acceptance /approval of Financial (ii) B.O.D. Full Powers
proposals exceeding Rs. 2.0 Million.

6.1.3 Acceptance approval of Financial (iii) Chief Executive Officer. Rs. 2 Million.
proposal.
6.1.4 Extension of time in consultancy (iv) Chief Executive Officer. Upto 1/4th of the original
services. Contract period but not
Exceeding one year.
6.1.5 Variation in consultancy cost estimate
(e.1) Within schedule time. (v) Chief Executive Officer. Full Powers
(e.2) For extended period. (vii) Chief Executive Officer Full Powers

6.1.6 Inter adjustment in Man months Chief Executive Officer. Full Powers (provided
between various disciplines and direct- within the agreed total
cost at site office and home office. man-months and value
of costs.

6.1.7 Utilization of approved contingencies Concerned Director. Full Powers.

Provision. Plant Manager

(9)
 Nature of Powers Competent Authority Monetary Limit

6.2 Local Consultants

Local Consultants (In association
with or without other local /foreign
Consultants).

6.2.1 Short-listing. Concerned Director. Full Powers.

6.2.2 Technical Selection of consultants Chief Executive Officer. Full Powers.

6.2.3 Acceptance/approval of cost of B.O.D. Full Powers.
Consultancy services exceeding
Rs. 2.0 Millions.

6.2.4 Acceptance/approval of the cost of Chief Executive Officer. Full Powers.

Consultancy services upto Rs.2.0 Million.

6.2.5 Extension of time in consultancy Chief Executive Officer. Up to 50% of scheduled

Services. Completion time but not
exceeding one year.

6.2.6 Variation in consultancy cost

Estimates:
- Within scheduled completion time. Chief Executive Officer. Full Powers.
- For extended period. B.O.D. Full Powers.

6.2.7 Approval to employ / replace expatriate Chief Executive Officer. Full Powers.
employees of consultants.

6.2.8 Inter adjustment in Man months Chief Executive Officer. Full Powers (provided
between various disciplines and direct within the agreed total
cost at site office and home office man-months and value
of costs.
6.2.9 Approval to employees / replace
employees of consultant staff:
- Within approved rates of contract. Chief Executive Officer. Full Powers.
- at rates in excess of approved Chief Executive Officer. Up to 20% excess.
rates.

6.2.10 Utilization of approved contingency Chief Executive Officer Full Powers.

provision

6.2.11 Special consultants (Foreign/Local) BOD Full Powers.

Approval to engage special consultants
recommended by the Consultants

(10)
SECTION – VII
 RE-APPROPRIATION OF FUNDS WITHIN THE APPROVED BUDGET

Nature of Powers Competent Authority Monetary Limit

7.1 Re-appropriation of funds for (i) Chief Executive Officer Full Powers
Capital Works in the (ii) Technical Director Rs: 1.0 million for re-appropriation of
Sanctioned Budget. funds between various units of
appropriation: sub-head and sub-major
heads.

7.2 Re-appropriation of funds (i) Chief Executive Officer Full Powers for re-appropriation of
relating to other expenditure. (ii) Technical Director funds between various units of
appropriation under the same major
and minor head excepting re-
appropriation between pay of
officers/officials, traveling allowance
and fuel cost.

Note:
*The exercise of Powers under this Section is subject to the following conditions.

i. The amount for which re-appropriation is required does not exceed the monetary limit for which competent
authority is empowered to accord administrative approval.

ii. Re-appropriation, if sanctioned, by Technical Director/HR & Admn. Director and Finance Director, shall
be immediately reported to the Chief Executive Officer and the finance Director concerned.

(11)
 SECTION-VIII

CREATION AND ABOLITION OF POSTS

Nature of Powers Competent Authority Monetary Limit

1. Posts to be created as specifically provided for in the approved budget.

8.1 Creation and abolition of formation B.O.D. Full Powers

with requisite establishment
(officers and subordinates)

8.2.1 Creation of posts of BPS-19 above BOD Full Powers subject to the condition
(Technical and Non Technical) that the posts shall be created on
annual basis only.

8.2.2 Creation of posts of BPS-18 and C.E.O Full Powers subject to the condition
Below (Technical and Non-technical) that the posts shall be created on
annual basis only.

8.3 Abolition of posts no longer required B.O.D. Full Powers

(12)
 SECTION –IX
CONTINGENT EXPENDITURE
Definition:

Contingent expenditure comprises those charges which are incidental to the management of an office “as an office”
and includes the cost of stationery, postage, telegram, furniture, advertisement, office rent, books and periodicals
charges on account of hot and cold weather, contingent establishment, liveries, repairs to furniture, taxi hire on duty
connected with the office and other similar petty charges. This shall also include all those miscellaneous expenses
that are not specifically covered in this book.

Nature of Powers. Competent Authority Monetary limit

9.1.1 Purchase of Stationary articles. (i) Chief Executive Officer Full Powers.
(ii) Tech./FD/A&HR Director. Rs. 20,000 at a time.
(iii) Plant Manager. Rs. 5,000 at a time.

9.1.2 Purchase and repair of drawing and (i) Chief Executive Officer Rs. 300,000 in each case.
surveying instruments, furniture and office (ii) Tech./FD/A&HR Director. Rs. 100,000 in each case.
equipment, personal computers & allied (iii) Plant Manager. Rs. 10,000 in each case.
equipments, multimedia, space heaters,
room coolers / water coolers, air
conditioners, refrigerator and Cooling plant.

9.2 Transport in emergent case when (i) Chief Executive Officer (i) Full Powers as per actual
company transport is not available. expenditure.
(ii) Tech./FD/A&HR Director. (ii) As per actual expenditure
up- to a maximum of
Rs.15,000/- at a time.
(iii) Plant Manager. (iii) As per actual expenditure
upto a maximum of
Rs.6,000/- at a time.
9.3.1 Hiring of residential buildings for (i) Chief Executive Officer Full powers within approved
Officers and subordinates working (ii) Tech./FD/ A&HR Director. ceiling by BOD.
under them.

9.3.2 Hiring of non residential building / lands for (i) Chief Executive Officer Rs. 50,000 per month
official use. (ii) Technical Director. Rs. 25,000 per month.
(iii) Plant Manager. Rs. 10,000 per month.

9.3.3 Hiring of office furniture (i) Chief Executive Officer Rs.50,000 per annum per office
(ii) Tech./FD/ A&HR Director. Rs.25,000 per annum per office
(iii) Plant Manager. Rs.10,000 per annum per office

9.3.4 Hiring of Special Tools & Plants (i) Chief Executive Officer Rs.100,000 per annum per office
(ii) Technical / Admn. & HR Director. Rs.50,000 per annum per office
(iii) Plant(13)
Manager. Rs.25,000 per annum per office
9.4 Electricity, water charges, duties (i) Chief Executive Officer Full Powers.
and taxes. (ii) Tech./FD/ A&HR Director.
(iii) Plant Manager.

9.5.1 Postage telegraph and telephone (i) Technical / Admn. & HR Director. Full powers upto the monetary
charges (ii) Plant Manager. limit prescribed by the BOD.

9.5.2 Sanction of telephone connection / Chief Executive Officer Full powers for both offices and
Mobile Phone / Internet connection. residential telephone connections.

9.6 Purchase of service postage stamps. (i) Chief Executive Officer Full Powers.
(ii) Technical / Finance / Admn. & Full Powers
HR Director.
(iii) Plant Manager. Upto Rs:5,000 at a time.

9.7 Hot and Cold weather charges. (i) Chief Executive Officer Full Powers as per instructions by
(ii) Technical / Finance / Admn. & BOD from time to time.
HR Director.
(iii) Plant Manager.
9.8 Purchase of typewriters, duplicators, (i) Chief Executive Officer Full Powers .
photocopy machine, fax machine (ii) Tech./FD/ A&HR Director. Rs:25,000
(domestic connections) calculators and (iii) Plant Manager. Rs 5,000
bicycles for office use.

9.9 Purchase of Liveries. (i) Chief Executive Officer Full powers subject to the
(ii) Tech./FD/ A&HR Director. standard and scale laid down by
(iii) Plant Manager. the BOD.

9.10 Printing Charges. (i) Chief Executive Officer Full Powers.

(ii) Technical / Finance / Admn. & Rs:30,000.in each case
HR Director.
(iii) Plant Manager. Rs 10,000 in a year

9.11 Copying and translations charges (i) Chief Executive Officer Full Powers
payable on documents obtained from (ii) Tech./FD/ A&HR Director. Full Powers
other offices including charges for photo- (iii) Plant Manager.
stat copies. Upto Rs 10000 in year

Purchase of daily newspapers and (i) Chief Executive Officer Full Powers
9.12 technical periodicals for official use. (ii) Tech./FD/ A&HR Director. Subject to maximum of 2
newspapers and 04 technical
journals
(iii) Plant Manager. Subject to maximum of 2
newspapers and 02 technical
journals

(14)
9.13 Purchase of technical publications, (i) Chief Executive Officer Full Powers
reports specification and maps technical (ii) Concerned Director. Rs: 1,000 of each one
books and such other books as facilitate subject to the maximum of
office business. (iii) Plant Manager. Rs.5000 per month.
Rs: 500 of each one subject to the
maximum of Rs: 2000 per month.

9.14 Purchase of technical and non-technical Chief Executive Officer Full Powers
publications/111books/periodical/
journals/ magazines and other printed
literature as may be recommended by
BOD.
9.15 Expenditure of binding work (i) Chief Executive Officer Full powers
(ii) Concerned Director. Up to maximum of Rs:15,000
per annum
(iii) Plant Manager. Upto to maximum of Rs.6,000
per annum
9.16 Advertisement charges (i) Chief Executive Officer Full powers
(ii) Concerned Director. Rs: 15,000 in each case.
(iii) Plant Manager. Rs. 2000 in each case.

9.17 Charges for remittance of pay and (i) Chief Executive Officer Full powers.
allowances of establishment by money (ii) Concerned Director.
order/bank draft/pay order through (iii) Plant Manager.
courier.
9.18 Purchase of Ferro chemicals Ammonia (i) Chief Executive Officer Full powers.
Liquor, Ammonia Paper and reproduction (ii) Concerned Director. Rs: 50,000 per annum
supplies including toners, ribbons, (iii) Plant Manager.
cartridges for PCs. Rs: 25,000 per annum
9.19 Other contingent expenditure not covered (i) Chief Executive Officer Rs: 50,000 in each case
under specific items (non-recurring). (ii) Concerned Director. Rs: 30,000 in each case
(iii) Plant Manager.
Rs 5,000 in each case
9.20 Appointment of Establishment Chief Executive Officer Full Powers subject to the
Chargeable to Contingencies condition that the pay allowed
does not exceed that
sanctioned for regul; ar
establishment of the same
category and that budget
allocation in lump sum or
otherwise exists thereof under
the subhead “contingencies”
9.21 Purchase of TV Sets (Color / Black & Chief Executive Officer Full Power
White) and Video Cassette Recorder /
Player
 SECTION –X
POWERS FOR DISPOSAL OF PROPERTY
Nature of Powers Competent Authority Monetary Limit
1.Disposal of temporary and unserviceable buildings.
10.1.1 To dismantle and sell temporary (i) BOD Full Powers
unserviceable buildings (ii) Chief Executive officer Rs 6 Million
(iii) Technical / Admn. & HR Director. Rs 1 Million
10.1.2 Lease of land, buildings and (i) BOD Full powers Subject to open
portion therefore belonging to the (ii) Chief Executive officer Rs. 300,000 auction & lease
company (iii) Concerned Director. Rs: 200,000 period granted upto
two (02) years at a
time
10.1.3 Sale of land not required by the (i) BOD Full powers Subject to open
company. (ii) Chief Executive officer Rs 6 Million auction.
(iii) Concerned Director.. Rs 1 Million

2. Disposal of Surplus Buildings

10.2 To sell surplus buildings (i) BOD Full powers
(ii) Chief Executive officer Rs 6 Million
(iii) Technical / Admn. & HR Director. Rs 1 Million
3. Declaration of store materials, instruments, tools and plants, equipment and vehicles including spare parts as surplus unserviceable or
scrap.
10.3 To declare store materials Instrument (i) BOD Full powers
tools and plants and Equipment and (ii) Chief Executive officer Rs:3.0 Million
vehicles including spare parts as (iii) Technical /Admn & HR Director Rs:1.5 Million
surplus unserviceable or scrap. (iv) Plant Manager Rs 0.5 Million
4. Disposal of surplus store Materials, Instruments, tools and plants, equipment and Vehicles including spare parts.
10.4.1 To dispose store materials instrument (i) Chief Executive Officer Full powers
tools and plants and equipment (ii) Technical / Admn. & HR Director Rs: 2 Million
declared as surplus, unserviceable or
scrap by competent authority as in
10.3 above.
10.4.2 To dispose of vehicles declared as (i) Chief Executive
() Officer Full powers
Unserviceable. (ii) Technical Director/Admn. & HR Rs: 1 million
Director.
10.4.3 To sell trees, agricultural produce or (i) Chief Executive Officer Full powers, subject to open
grass growing on company Land, (ii) Technical/ Admn. & HR Director auction and lease period
waste, ash or oils etc. (iii) Plant Manager granted up to two years at a time.
10.4.4 To allow removal of trees in Power (i) Chief Executive Officer Full powers
houses and colonies etc., Causing (ii) Technical/ Admn. & HR Director Full powers
construction or falling under the power (iii) Plant Manager Full Powers
transmission and Distribution lines and
to self such removed/fallen trees
through Auction or private party.

(16)
 SECTION-XI

PAYMENTS UNDER COURT ORDERS

Nature Of Powers Competent Authority Monetary Limit

11.1 Payment under court (i) Chief Executive Officer Full powers
Order or as per decision (ii) Technical / Admn. & HR Director. Rs: 200,000/-
Of advisory board.

11.2 Waiver of internal audit (i) BOD Full powers

Objections and write off (ii) Chief Executive Officer Upto Rs:20,000/ in each case
Irrecoverable amount.

(17)
 SECTION-XII

WRITE-OFF OF LOSSES
General conditions to be observed for write-off

(1) All losses, whether of public money or of stores, shall be subjected to preliminary investigation
by the officer, in whose charge they were, to fix the cause of the loss and the amount involved.

(2) When an investigation into a case of loss due to theft, fraud or neglect discloses a defect of
system and when irrecoverable loss is due to that cause, report shall be made to the BOD
through the usual channels and the Finance Director, with a recommendation for rectifying the
defect.

(3) When the preliminary investigation shows that the loss is not due to theft, fraud or neglect, it will
be written-off by the competent authority, in consultation with the Finance Director, or his
representative. If preliminary investigation shows that the loss is due to theft, fraud or neglect
the case will be immediately submitted to the next higher authority. This authority shall arrange,
within one week of the receipt of case, constitution of an Inquiry Committee to investigate the
reported loss unless the loss involved is of Rs. 15,000 or less, in which case the constitution of
Inquiry Committee may at its discretion, be dispensed with. The Inquiry Committee shall submit
within 30 days its report to the competent authority, who shall in consultation with the Finance
Director or his representative of appropriate status, take action according to the circumstances
of the case.

(A) IF THE PERSONS RESPONSIBLE ARE NOT COMPANY EMPLOYEES

(i) The competent authority may write-off the entire loss for reasons to be recorded in writing.

(ii) The competent authority may allow but cannot compel, the individual or individuals
concerned to make good the loss in whole or in part. If the loss is made good in part, he
may sanction the write-off of the balance for reasons to be recorded in writing.

(iii) The competent authority may lodge a report in writing at the nearest police station, in cases
of serious nature, involving loss of large amounts of public money or of valuable property,
with a copy to the Superintendent of police concerned for prompt investigation and
prosecution of the accused. He may also, with the sanction of the BOD, file a recovery suit
against the person responsible for the loss in a court of law.

(iv) Anyone or more of the above courses of action may, at the discretion of the competent
authority, be taken against the persons responsible.

(B) IF THE PERSONS RESPONSIBLE ARE COMPANY EMPLOYEES

(i) The competent authority may write-off the entire loss for reasons to be recorded in writing.

(18)
 (ii) The competent authority may allow but cannot compel the individual or individuals
concerned to make good the loss in whole or in part. If the loss is made good in part, he
may sanction the write-off of the balance for reasons to be recorded in writing.

(iii) The competent authority may take departmental action against the individuals responsible,
or in cases where such action requires the orders of a higher authority, submit the case for
orders together with his recommendation.

(iv) The competent authority may lodge a report in writing at the nearest police station, in cases
of serious nature, involving loss of large amounts of public money or of valuable property,
with a copy to the Superintendent of police concerned for prompt investigation and
prosecution of the accused. He may also, with the sanction of the BOD, file a recovery suit
against the person responsible for the loss in a court of law.

(v) Anyone or more of the above courses of action may, at the discretion of the competent
authority be taken against the persons responsible.
Notes:
1) Where the reported loss is less than Rs. 250,000/- the matter will be reported directly by the
Plant Manager concerned to Director concerned (such as Technical, Finance HR&A), who will
decide whether in the light of facts of the case or the interest of justice an enquiry should be
conducted through an enquiry officer or enquiry committee. The enquiry committee, if ordered,
shall be constituted as under: -
i. A Grade 18 officer Convener
ii. A Grade 17 officer from Audit & Accounts . Member
iii. A Grade 18 officer conversant with investigation. Member
2) Where the reported loss amounts to Rs. 250,000/- and upto Rs. 2,000,000/- the matter will be
reported by the Director concerned to CEO, who will decide whether in the light of facts of the
case or the interest of justice an enquiry should be conducted through an enquiry officer or
enquiry committee. The enquiry committee, if ordered, shall be constituted as under: -

i. A Grade 19 officer Convener

ii. A Grade 18 officer from Audit & Accounts . Member
iii. A Grade 18 officer conversant with investigation. Member
(3) Where the reported loss amounts to more than Rs.2,000,000/- the matter will be reported by the
CEO to the BOD, who will decide whether in the light of facts of the case or the interest of
justice an enquiry should be conducted through an enquiry officer or enquiry committee. The
enquiry committee, if ordered, shall be constituted as under: -
i. A Grade 20 officer Convener
ii. A Grade 19 officer from Audit & Accounts . Member
iii. A Grade 18 officer conversant with investigation. Member

(4) The Enquiry committee so constituted under notes- 1,2, & 3 above shall have a convener who
will always be, at least one grade higher than the one being enquired into.

(19)
 (5) The enquiry officer, if ordered, shall be at least one grade higher than the officer, being enquired
against. However, in case of enquiry against a grade 20/21 officer, the officer in same grade,
senior to the officer being enquired against, could also be appointed.

Competent Authority Losses not due to Losses due to theft,

theft, fraud or neglect fraud or neglect
i) BOD Full Full Powers Full Powers
ii) CEO Rs. 4.0 Lacs in each case Rs. 1.0 Lac in each case
iii) Technical, HR/Admn, Operation Rs. 1.0 Lac in each case Rs. 25,000/- in each case
Directors & officers of equivalent
status.

iv) Plant Managers Rs. 25,000/- in each case Rs. 10,000/- in each case

6.

To write off losses due to demurrage and (i) BOD Full powers
wharfage charges (ii) Chief Executive Officer Rs: 50,000/- in each case

7.
Powers to remit over payment of pay and (i) BOD Full powers
allowances made to company employees (ii) Chief Executive Officer Rs: 25,000/- in each case
due to oversight or misinterpretation of
rules.

(20)
 SECTION-XIII
PURCHASES IN HOSPITALS / DISPENSARIES

Nature Of Powers Competent Authority Monetary Limit

13.1 Purchase of Medicines Drugs/Dressing for (i) Chief Executive Officer Full Powers
Hospitals/ Dispensaries. (ii) Admn. & HR Director Rs: 2.0 million per Q
(iii) M.S Hospital Rs: 1.0 million per Q

13.2 Purchase of Medical X-Ray dental hospital (i) Chief Executive Officer Full Powers
equipment, surgical instruments laboratory (ii) HR & Admn. Director Rs.1.0 million
chemicals/equipment etc. (iii) M.S Hospital / Sr: Medical Officer 1,00,000 in each case.

13.3 Expenditure on diet provided to M.S Hospital / Sr: Medical Officer Full Powers subject to
hospitalized patients. yardstick approved by BOD.
13.4 Payment of washing charges in hospital M.S Hospital / Sr: Medical Officer Full Powers subject to
yardstick approved by BOD
13.5 Purchase of blood for hospitalized patients M.S Hospital/Sr. Medical Officer Full Powers
in Emergency cases.

13.6 To dispose off X-Ray Waste water. M.S Hospital/Sr. Medical Officer Full Powers

13.7 Purchase of conservancy Items for (i) HR & Admn. Director Full Powers
hospital/ dispensaries. (ii) M.S Hospital Rs:100,000 per annum.

13.8 Purchase of medical gases (i) HR & Admin Director Full Powers
(ii) M.S Hospital / Sr: Medical Officer 10,000 in each case.
13.9 Purchase of hospital dispensary (i) HR & Admn. Director Full Powers
linens/blankets etc. (ii) M.S Hospital / Sr: Medical Officer Rs 20,000 in each case.

13.10 Repair/Maintenance of medical / surgical / (i) HR & Admn. Director Full Powers
Laboratory/X-Ray / dental / hospital / (ii) M.S Hospital / Sr: Medical Officer Rs 20,000 in each case.
dispensaries equipment.

13.11 X-Ray films/chemicals and laboratory (i) Admn. & HR Director Full Powers
chemicals kit/re-agents. (ii) M.S Hospital Rs:20,000 per quarter
13.12 Purchase of mattresses, Pillows etc. (i) Admn. & HR Director Full Powers
(ii) M.S Hospital Rs 20,000 in each case.

(21)
 SECTION-XIV
ADVANCES TO EMPLOYEES

Nature Of Powers Competent Authority Monetary Limit

14.1 Advance for the construction/purchase of (i) Chief Executive Officer Full powers upto Grade-18 and
a house or a plot of land for construction above officers
of a house.
(ii) Admn. & HR Director. Full powers upto Grade-17 Officers

14.2 Advance for the purchase of a Car, Motor (i) Chief Executive Officer Full powers upto Officers in Grade
Cycle/Scooter. 18 &above

(ii) Admn. & HR Director. Full powers upto Grade-17 Officers

14.3 Advance for the purchase of Cycle. (i) Chief Executive Officer Full powers as per Company policy
(ii) Admn. & HR Director. in accordance with relevant rules in
case of and subordinates on whom
they are competent to impose
major penalty under the relevant
rules.

14.4 Traveling & Daily Allowances (i) Chief Executive Officer Full powers subject to the limits
(ii) Admn. & HR Director. fixed in the T.A. rules.

(22)
 SECTION-XV
FIXATION OF RESERVE STOCK LIMIT

Nature Of Powers Competent Authority Monetary Limit

15.1 Fixation of Reserve Stock Limit Chief Executive Officer Full Powers

(23)
 SECTION-XVI
MISCELLANEOUS POWERS

Nature Of Powers Competent Authority Monetary Limit

16.1 Sanction of law charges (i) Chief Executive Officer Full Powers
(ii) Tech. / FD / A&HR Director Full Powers in accordance
with the schedule of fees.

16.2 Serving meals to visiting VIP guests (i) BOD Full Powers
to attend formal ceremonial function/ (ii) Chief Executive Officer Rs: 30,000 in each case.
informal function. (iii) Tech. / FD / A&HR Director. Rs 20,000 in a year

16.3 Expenditure on formal ceremonial (i) Chief Executive Officer Rs: 20,000 in each case.
functions. (ii) Tech. / FD / A&HR Director. Rs.10,000 in each case

16.4 Serving light refreshments to (i) Chief Executive Officer Rs:20,000 in each case.
participants of formal / informal (ii) Tech. / FD / A&HR Director Rs: 10,000 in each case
ceremonial functions / open katchery (iii) Plant Manager
/ visiting delegations. Rs 5,000 in each case

16.5 Serving meals to dignitaries / VIPs (i) Chief Executive Officer Rs: 10,000 in each case.
on occasion other than ceremonial (ii) Tech. / FD / A&HR Director. Rs.5000/- in each
function.

16.6 Distribution of sweets on religious (i) Chief Executive Officer Rs: 5,000 in each case
and national functions to patients, (ii) Tech. / FD / A&HR Director Upto Rs.5000/- in a year
children and other participants of
religious functions.
16.7 Light refreshments to participants of (i) Chief Executive Officer Rs: 4,000 per meeting
Official meetings. (ii) Tech. / FD / A&HR Director Rs: 50 per head upto Rs:2000/-
per meeting

16.8 Serving meals / refreshments to Admn. & HR Director Rs: 50/- per meal / head / day
Departmental labour camped at site
of work on unforeseeable emergency
or break down of serious nature
likely to last for 24 hours or more.

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16.9 Compensation to workmen/under (i) Chief Executive Officer Full powers provided
the Workmen Compensation Act. (ii) Tech. / FD / A&HR Director compensation does not exceed
(iii) Plant Manager the scale laid down in the
Workmen Compensation Act.

16.10 Compensation to any individual Chief Executive Officer Full powers, subject to the advice
under specific law-rules of judgment of Legal Advisor, who will bring to
of court. the notice of the BOD cases
involving expenditure exceeding
Rs:50,000/-

16.11 i) Honoraria & Reward to employees (i) BOD Full Powers

17 & above (ii) Chief Executive Officer Upto Rs: 4,000 in each case

ii) Honoraria & Reward to employees (i) Chief Executive Officer Upto a maximum of Rs:2000/- in
in Basic Pay Scale No: 16 & below. each case and Rupees One (01)
million in a year.
(ii) Tech. / FD / A&HR Director Upto a maximum of Rs:1000/- in
each case and Rs:40,000/- in a
year.

iii) Arbitration Fee. Chief Executive Officer Upto a maximum of Rs:20,000 in

each case subject to a maximum
of Rs:6 million in a financial year in
all cases.

16.12 Reimbursement of medical (i) Chief Executive Officer Full Powers

expenses to employees. (ii) Tech. / FD / A&HR Director Rs. 50,000 in each cases of
hospitalization and Rs:20,000 in
each case in other cases.

16.13. Purchase of petrol motor oil and (i) Chief Executive Officer Full Powers subject to the
lubricant. (ii) Tech. / FD / A&HR Director following conditions and prior
sanction of estimate by the
competent authority.
(i) From Company approved
petrol stations only.
(ii) HR/Admn. Director to
issue list of approved
petrol stations.

16.14 Powers to sanction investigation of (i) Chief Executive Officer Full Powers
time barred claims of company (ii) Tech. / FD / A&HR Director Full Powers in respect of
employees to arrears of pay/ claims less than three years
allowances. old for employees whom they
are competent to appoint.

(25)
16.15 Inter adjustment between shortages Chief Executive Officer Full Powers
and surpluses of same item of
stores.

16.16 Compensation for land acquisition Chief Executive Officer Full Powers subject to approval of
under the land acquisition act 1894. BOD.

16.17 To rent out heavy machinery like Chief Executive Officer Full Powers
Gantry crane, Tower Crane, Mobile
Crane etc., to contractors for the
construction of the projects.

16.18 To advance payment for the (i) Chief Executive Officer Full Powers
expenditure on medical treatment in (ii) Tech. / FD / A&HR Director Rs.20,000/- in each case.
an approve hospital/Institute in
Pakistan to entitled employees in
emergent case duly processed by
the Authorized Medical Board.

16.19 Sports Activities. (i) Chief Executive Officer Rs:15,000 per event & in line with
yard stick fixed by BOD.

(ii) Tech. / FD / A&HR Director Rs: 10,000/- at a time subject to

maximum Rs:50,000/- per annum.

16.20 Repair of P.Cs including related (i) Chief Executive Officer Full Powers
equipments and entering into (ii) Tech. / FD / A&HR Director Rs.20,000/- in each case
maintenance agreements (iii) Plant Manager Rs.10,000/- in each case

(26)