STAT TTT TISTATE STARTOT eres ptene ot r.asrarnasircin case vtaws site aererf aera) ‘DT! Fax :91-11-25099507 / 25003514 National Highways Authority of India (Ministy of Road Transport and Highways) ‘ah-s wt 6, Saet-10, weer, 7 ferett-110075, G5 & 6, Sector-10, Dwarka, New Delhi-110075 Office Order Ref : NHAI/GM (Fin)/Exp/ 01. Date: 21/01/2019 ‘Sub: Timelines for issuance of Sanction Letter and process for Expenditure Management, In continuation of the Circular no NHAI/GM(Fin.)/SL/O1 dated 09/01/2019 (as enclosed], the following timelines and processes, need to be followed with immediate effect. Various expenditures are needed to be capped to the limits approved as per the sanction letter. The projects have been classified in four categories and different timelines for different projects have been indicated for implementation of this control mechanism. These are as follows i) New Projects: A project in which no expenditure has been incurred till date: The sanction letter as per the circular needed to be issued immediately. ii) Project under pre Construction activities (Before award of project: A preliminary sanction letter to be issued by 31 January 2019 and a final sanction letter would be issued before Civil Construction Expenses can take place. Under Construction Projects: The sanction letter is to be issued before 31 March 2019. In cases of additional Expenditure like CoS, O&M, Bonus, Arbitration etc, the sanction letter need to issued in case of new project, before any expenditure incurred. In order to ensure that the time line is adhered to, the following need to be adhered with any deviation. a) No expenditure is allowed with immediate effect for the projects falling under category of i) and iv), without issuance of formal sanction letter b) No expenditure (including CALA accounts limits) be allowed for the projects falling under category ii) above, w.ef. 01/02/2019, without issuance of formal sanction letter. ¢]_ Remaining all project related expenditures will not be allowed we 01/04/2019, without issuance of formal sanction letter. For the process of making expenditure after the head wise budget is approved and formal sanction letter issued, before making the payment under any head, the project division need to get the expenditure cleared by the Finance Division at HQ to ensure the expenditure control. Any project related payment can be done only after the go ahead of the Finance Division ( limited to the expenditure management only}, to be approved by officer not less than CGM (Finance). In order to get this done, the Concerned Division at Head Quarter needs to send the proposal to finance Division, after ensuring that all the required approvals and compliances required for payment of the bill are in place. On the proposal for payment by Concerned Division at HO, the Finance Division will check the adequacy of the budget in place and will also record the instant payment under its respective head and then the Finance Division will record its go ahead on the proposal. After this the status of approval for expenditure obtained is to be clearly indicated on the payment vouchers and in the fund requisition letters sent to the fund management division at HQ.The proposal forwarded to Finance Division for approval of expenditure, should invariably contain the information as under. a) Total expenditure approved for the project and for the current year. b] Approved Expenditure head wise break up for the project and for the current year. ©) Total expenditure already done, head wise for the project tll date and during the current year. ‘The HQ (Finance) Division, after comparing the budget allocation of the project and the expenditure head, will provide the go ahead to make the payment and then after the payment is to be done following all the processes and policy as applicable. Rajesh Sharma Chief General Manager (Finance) To, Al CGMs, NHAI HQ. & ROS All GMs/DGMs/Managers/Dy Managers, NHAI HQ, All PDs All DDOs All Finance Personnel Copy to: PPS to Chairman PPS to All Members & CVO OSD to Chairman Librarian Hindi DivisionTTA TTR OT gous rmae or nzserevon fee sib, rant sere foe Fax 91-4-2500350 ) National Highways Authority of india 4 (Ministry of Road Transport and Highways) 5 wi 6, Taet-10, area, aE eveti-110075 6, Sactor-10, Dwarka, Naw Delhi-119075 ircular Ae at Ref : NHAI/GM (Fin,)/SL/01 Dated : 09.01.2019 Sub: Issue of Sanction letter by the Project Division for each of the Project to incur expenditure with in the budgetary allocation -reg. (A) Introduction:- As per the Minutes of the Meeting held under the Chairmanship of Chairman, NHAI on 29” Nov."18 : “After appraisal of the project, a sanction letter will be issued in specified format by each division after obtaining concurrence of the Finance Division. Finance Division will provide unique number for each of the project. This unique number will be followed for all the transaction related to the project”. For compliance of the above directions, the following are to be implemented, (B) Methodology = (1) Classification of Projects - Based on the expenditure incurred till now, Projects are divided into following categories i. New Projects - A project on which no expenditure is incurred tilt naw. ii, Projects under Pre-Construction Activities (Before Award of the Project) - A project where pre-construction activities are going on and civil works have not been awarded. iif. Projects which are awarded - Under construction Projects iv. Projects in which O&M expenditures is required (Completed Projects). (2) Draft Sanction letter Project Division shall submit draft Sanction letter proposal to Finance Division depending upon the type of the project. The Draft Sanction letter must contain the details of approval of the Competent Authority and other details as enumerated in Annexure-I. (3) Codification of the Projects - Finance Division shall generate the unique Project code for that project, concur/approve the draft Sanction letter by indicating the Unique Project code. The approved Sanction letter would form the authorisation to incur the expenditure and send it to Project Division. (4) Sanction letter - Upon receiving of the concurrence of draft Sanction letter along with project code from Finance Division, Project Division shall issue Sanction letter for the project to incur expenditure within the approved budgetary allocation, The same shall be communicated to all the concerned.«c (5) Payments can be made only after a formal Sanction letter is issued. The Sanction letter and the Project code must be quoted in all the transactions/documents including payment vouchers, Implementation timetines - Project Division shall ensure issue of Sanction letters by following the process as mentioned at Para-(B) (Methodotogy) depending upon the type of the Project as indicated below: i, New Prajects - The Sanction tetter shall be issued immediately before any expenditure is incurred fi, Projects under Pre-Construction Activities - A preliminary Sanction letter would be submitted for pre-construction activities expenditure by 31 January, 2019. The final Sanction letter for incurring Civil expenditure shall be issued before Civil Construction expenditure can take place, iii, Under Construction Projects - The Sanction letters would be issued before 31% March, 2019. No expenditure shall be incurred without the Sanction letter from 1* April, 2019 onwards. iv. In case of additional Expenditure of Project i.e. CoS, O&M, Bonus, Arbitration etc. Project Division shall submit a fresh draft Sanction letter as in the case of New Project before any expenditure is incurred. This circular shall come in to force with immediate effect. \wapas Sibanarayan Nayak CGM (FA) This issues with the approval of Member (Finance). To AILCGMs, NHAI HQs & ROS All GMs/DGMs/Mgrs. /Dy. Mgrs. NHAI HQ AlL PD's . All DDOs All Finance Personnel Copy to :- PPS to Chairman PPS to All Members & CVO 50 to Chairman Librarian Hindi DivisionAnnexure - Draft Sanction ter Ref. No. NHAI/Project Code/Sl. No Dated : 1. Name of the Project 2. Sl. No. of the Sanction letter (for this project} 3. Classification of the Project {Expressways, etc.) 4. Details of the Project as per OM dated 30" Nov., 2018 issued by MORT&H, a, Programme Name b. Component Name c. Name of the Cortidor f& Code d. SL. No. of the Project 5. Length of the Project 6. Name of the RO 7. Name of the PIU 8. Mode of Execution 9. Head wise Cost Details as given below fs. in Cr la | Anproved | ag |_Year wise commitment | . ot | Awarded |” t | No. Head of Expenditure wrerceen | eat! (Wear Year| Yow | Yo | | ‘ ss 1 | and acquisition t ra 2 | ety siting I Others & Pre-Consinicti Teint Work 4a, | Change of Scope (Cos 5 __IE/Supervision Consultan 6 GrantivGr) Paymen : one Payment (AM Pj rntity Payment. (Anmulty sects) i | [9 TSemi-annuity GAN Project) “10 [ Maintenance F “11 [Bonus/O8M, arbitration ete, Name of the approving Authority (CA) Signature of the Project Division Project Code assigned by Finance Division ature of the Finance Division