Rule 133 of The General Financial Rules 2017 Execution of Works
Original Rule Text
Visual Summary
Ministries can directly execute repair works up to Rs. 60 Lakhs.
Works above Rs. 60 Lakhs or original works assigned to Public Works Organizations.
Works can be awarded to PSUs or other notified government organizations.
Executive Summary
Rule 133 of The General Financial Rules, 2017, outlines the procedures for Ministries and Departments to execute or award works. It provides flexibility for direct execution of repair works up to a certain financial limit (currently Rs. 60 Lakhs) following specific procedures. For larger repair works or original/minor works of any value, Ministries can assign them to Public Works Organisations (PWOs) like CPWD or State PWDs. Alternatively, such works can be awarded to Central or State Public Sector Undertakings (PSUs) or other notified government organizations, ensuring competition based on service charges. Exceptional cases for nomination-based awards to PSUs/organizations are also provided, subject to conditions in Rule 194. Special provisions exist for Scientific Ministries/Departments to assign repair works up to Rs. 5 crore on a nomination basis to specified organizations until March 31, 2025.
In-Depth Analysis of the Rule
Rule 133 of the General Financial Rules, 2017, provides a framework for government entities to manage and execute various types of works, ensuring efficiency and accountability. This rule distinguishes between different categories of works and specifies the appropriate channels for their execution or award.
Breakdown of the Rule:
- Direct Execution of Repair Works: Ministries or Departments have the discretion to directly execute repair works. This is permissible for works estimated to cost up to Rupees Sixty Lakhs, provided they follow the procedures outlined in Rules 139, 159, and 160.
- Assignment to Public Works Organisations (PWOs): For repair works estimated to cost above Rupees Sixty Lakhs, or for original/minor works of any value, Ministries can assign these to various PWOs. These include Central Public Works Department (CPWD), State Public Works Departments, and other Central Government organizations authorized for civil or electrical works (e.g., MES, BRO, or construction wings of specific Ministries like Railways, Defence, Environment & Forests, Information & Broadcasting, Posts, and Space).
- Alternative Award to PSUs/Government Organizations: As an alternative to assigning to PWOs, works (repair works above Rupees Sixty Lakhs and original works of any value) can be awarded to:
- Any Public Sector Undertaking (PSU) established by the Central or State Government for civil or electrical works.
- Any other Central/State Government organization/PSU notified by the Ministry of Housing and Urban Affairs (MoHUA) after assessing their financial strength and technical competence.
For such awards, competition among these entities, primarily on lump sum service charges, must be ensured.
- Nomination Basis (Exceptional Cases): In exceptional circumstances, works under Rule 133(3)(i) and (ii) can be awarded on a nomination basis, subject to the conditions specified in Rule 194. These works must also be awarded based on lump sum service charges.
- Special Provision for Scientific Ministries/Departments: A special provision allows Scientific Ministries/Departments to assign repair works up to Rs. 5 crore on a nomination basis to specified organizations, even in normal cases. This provision is applicable until March 31, 2025, after which it will be reviewed by the Department of Expenditure.
Practical Example:
Imagine the Ministry of Health and Family Welfare needs to renovate several district hospital buildings. If the estimated cost for repairing a single hospital building is Rs. 45 Lakhs, the Ministry can choose to execute this repair work directly using its own departmental resources, strictly adhering to the procedures outlined in Rules 139, 159, and 160. However, if the renovation project for a larger hospital is estimated at Rs. 80 Lakhs, the Ministry would need to either assign this work to a Public Works Organisation like CPWD or a State PWD, or award it to a qualified Central or State PSU specializing in civil works, ensuring competitive bidding on service charges. If it’s a highly specialized repair for a scientific lab, a Scientific Ministry might use the special provision to nominate an expert organization for a Rs. 3 crore repair.
Related Provisions
Rule 133 is closely related to other rules governing works and procurement:
- Rule 139 of The General Financial Rules, 2017 Procedure for Execution of Works: Details the broad procedure for Ministries/Departments to execute works under their own arrangements.
- Rule 159 of The General Financial Rules, 2017 E-Publishing: Mandates the e-publishing of tender enquiries and bid awards, relevant for transparency in awarding works.
- Rule 160 of The General Financial Rules, 2017 E-Procurement: Makes it mandatory for Ministries/Departments to receive all bids through e-procurement portals, which applies to work awards.
- Rule 194 of The General Financial Rules, 2017 Single Source Selection Consultancy by Nomination: Provides conditions for awarding work on a nomination basis in exceptional circumstances, as referenced in Rule 133(3).
Learning Aids
Mnemonics:
- D.A.P.S. (Direct, Assign, PSU, Special): Helps remember the four main ways works can be handled under Rule 133: Direct execution, Assignment to PWOs, PSU/Govt. Org. awards, and Special provisions for Scientific Ministries.
Process Flowchart:
Multiple Choice Questions (MCQs)
1. What is the maximum estimated cost for repair works that a Ministry or Department may directly execute under Rule 133(1) of The General Financial Rules, 2017?
- A) Rupees Ten Lakhs
- B) Rupees Twenty Lakhs
- C) Rupees Sixty Lakhs
- D) Rupees One Crore
Show Answer
Correct Answer: C) Rupees Sixty Lakhs
2. For repair works estimated to cost above Rupees Sixty Lakhs, to which entities may a Ministry or Department assign the work under Rule 133(2) of The General Financial Rules, 2017?
- A) Only private contractors
- B) Public Works Organisations (PWOs) like CPWD or State PWDs
- C) Only Central Government PSUs
- D) International construction firms
Show Answer
Correct Answer: B) Public Works Organisations (PWOs) like CPWD or State PWDs
3. When awarding works to Public Sector Undertakings (PSUs) or other Central/State Government organizations under Rule 133(3) of The General Financial Rules, 2017, what is the essential basis for competition?
- A) Technical expertise only
- B) Lowest total project cost
- C) Lump sum service charges
- D) Fastest completion time
Show Answer
Correct Answer: C) Lump sum service charges
4. Under Rule 133(3) of The General Financial Rules, 2017, in what circumstances can works be awarded on a nomination basis to PSUs or other government organizations?
- A) When the Ministry prefers a specific vendor
- B) In all cases for efficiency
- C) In exceptional cases, subject to conditions in Rule 194
- D) When the work value is below Rupees Ten Lakhs
Show Answer
Correct Answer: C) In exceptional cases, subject to conditions in Rule 194
5. What is the special provision for Scientific Ministries/Departments regarding repair works under Rule 133 of The General Financial Rules, 2017?
- A) They can directly execute works of any value.
- B) They can assign repair works up to Rs. 5 crore on a nomination basis in normal cases.
- C) They are exempt from following Rules 139, 159, and 160.
- D) They must always use competitive bidding for all works.
Show Answer
Correct Answer: B) They can assign repair works up to Rs. 5 crore on a nomination basis in normal cases.
Frequently Asked Questions
What is the financial limit for direct execution of repair works under Rule 133 of The General Financial Rules, 2017?
A Ministry or Department may directly execute repair works estimated to cost up to Rupees Sixty Lakhs, provided they follow the procedures indicated in Rules 139, 159, and 160.
Can a Ministry award original works to a PSU under Rule 133 of The General Financial Rules, 2017?
Yes, Rule 133(3) allows a Ministry or Department to award original works of any value to Public Sector Undertakings (PSUs) set up by the Central or State Government to carry out civil or electrical works, or to other notified Central/State Government organizations/PSUs. This is subject to ensuring competition among such entities based on lump sum service charges.
Are there any special provisions for Scientific Ministries under Rule 133 of The General Financial Rules, 2017?
Yes, Scientific Ministries/Departments have a special provision allowing them to assign repair works estimated to cost up to Rs. 5 crore on a nomination basis to specified organizations, even in normal cases. This provision is applicable until March 31, 2025.
Key Takeaways
- Ministries can directly execute repair works up to Rs. 60 Lakhs, following specified procedures.
- For larger repair works (above Rs. 60 Lakhs) or original/minor works, assignment to Public Works Organisations (PWOs) is an option.
- Alternatively, works can be awarded to Central/State PSUs or other notified government organizations, with competition on service charges.
- Exceptional cases allow for nomination-based awards, subject to Rule 194.
- Scientific Ministries/Departments benefit from a special provision for nomination-based repair work awards up to Rs. 5 crore until March 31, 2025.
Conclusion
Rule 133 of The General Financial Rules, 2017, provides essential guidelines for government entities to manage and execute works efficiently and transparently. By outlining clear procedures for direct execution, assignment to specialized organizations, and competitive bidding, it ensures proper utilization of public funds while allowing for flexibility in specific scenarios, such as the special provisions for Scientific Ministries. Adherence to these rules is crucial for maintaining financial propriety and achieving project objectives in government works.