VIGILANCE MAGAZINE

MARG DARSHAN
V_gmo_m `mo{VJ_`m

Promoting Good Governance in HAL

Vol X, Issue No. 2, October, 2013

HAL Vigilance is
ISO 9001:2008 Certified

INDEX
Chairman Message

03

CVO's Desk

04

Message from CVC

06

Good Governance in:

- ERP in Finance

07

- Human Resource Management

14

- Facilities Management

21

- Production Planning &

Material Management

34

Release of CDA Rules Booklet

39

National Vigilance
Excellence Award

40

Vigilance Innovation Award

41

Bi-Annual Conference

42

Good Governance in:

Vigilance Department has been re-certified as

ISO compliant with effect from 23rd July 2013
for a period of three years. M/s URS New Delhi
has conducted re-certification audit process
during June 2013 and on successful completion
of the same, the above certification has been
issued. The earlier certificate was valid up to
22nd July 2013.
The Vigilance Department has an established
and documented Quality Management System.
Quality Manual Volume I and II defines the
department's quality policy and quality
objectives.

- Computer Consumables
Management

45

Champion Complex

52

Vigilance Star

53

Vigilance Awareness Sessions

54

Workshop on Disciplinary
Proceedings

55

Good Governance in:

- Stores Management

56

- Hospital Management

62

- Procurement Systems

69

CVC Updates

76

Chairmans Message

Dear Colleagues,
It gives me great pleasure to note that the Vigilance Department has devoted this
edition of Marg Darshan to Promoting Good Governance in HAL". The Central
Vigilance Commission has been promoting Transparency, Fairness, Equity and
encouraging competitiveness as well as Leveraging of Technology in all areas of
functioning of the Government and its organisations. Technology brings in efficiency
as well as transparency and therefore needs to be assimilated and integrated into all
aspects of our decision making. By making all activities (especially those related to
procurement, payments, outsourcing and recruitment etc., that are vulnerable to
unethical practices) available on an open platform to all the stakeholders, the
likelihood of abuse is greatly reduced. Decision makers will be empowered to take
quick decisions, as good governance measures through technology abled solution
would aid prudence and clarity of purpose.
We have an obligation towards our stakeholders to provide them the necessary
information regarding tender notification, status of tenders, placement of orders,
status of products delivered and payments etc., all these are possible when we fully
embrace technology. ERP and IFS system will need to be implemented fully.
Recruitment, Hiring of Consultants, Allotment of Accommodation, Deployment of
assets of the company is required to be done in a transparent manner which
technology can ensure. This will reduce complaints and raise the morale for higher
production and performance.
I compliment Shri Anurag Sahay, IRS, CVO, and his team for this initiative.
Jai Hind

Dr. R K Tyagi

CVO's Desk

Fellow Officers & Workmen,

I am delighted to write the foreword for the latest issue of Marg Darshan.
The Central Vigilance Commission has brought the concept of good governance onto centre
stage of public discourse in India today. The Vigilance theme for the year 2013-14,
commencing with the Vigilance Awareness Week on 28th Oct 2013 is Promoting Good
Governance-Positive Contribution of Vigilance. In its various communications, the
Commission has stressed on enhancement of transparency, accountability, competition and
leveraging technology to reduce corruption in public institutions.
The term 'governance' traditionally has been used in the context of a company's board of
directors. A definition of governance, in the context of corporations is the allocation of
power among the board, management and shareholders. But today the term is used also to
encompass an array of actions taken by the management in running a company, from the
senior levels down throughout the management ranks. In this sense, governance agenda
addresses the problems of efficiency, development, capacity, accountability and legitimacy.
Governance agenda in large corporations today combine the practical effectiveness with
ethical values.
In keeping with the theme of this year's Vigilance Awareness Week, the present issue of Marg
Darshan is devoted to Promoting Good Governance in HAL. In this edition, we have
carefully selected some of the key areas of our functioning, examined the current practices
and suggested practical, specific and definite measures to promote good governance. Many
of the solutions suggested are technology assisted, and we believe that, if implemented,
these measures will not only enhance transparency but also increase our efficiency. The
contributors to this issue are all Vigilance functionaries of HAL with years of practical
experience. The recommendations have been framed after detailed discussions both with
the officers of the departments concerned as well as within Team Vigilance. The endeavour
has been to suggest systemic changes. We in Vigilance Department strongly believe that no
amount of punitive interventions will result in a lasting change. We need to introduce good
governance measures, imbibe the global best practices, and also leverage technology to
have a transformational impact. In its message for the Vigilance Awareness Week, the
Commission has succinctly noted:
The Commission as the apex integrity institution has therefore, been advocating
transparency, fairness, equity and encouraging competitiveness as well as leveraging of
technology in all areas of functioning of the Government and its organizations.
Promoting good governance is, therefore, the focus of the vigilance awareness campaign
this year. Vigilance administration can contribute effectively in this regard by sensitizing
the people at large as well as public servants in the organization during the year e.g.
4

(i)

if procurement is handled electronically, the savings achieved since introduction of

e-procurement,

(ii)

if enterprise wide computerisation has been done, the outcomes thereof,

(iii)

systemic changes introduced etc.

In line with the thinking of the Commission, recommendations for good governance has been
made in the following areas :
(i)

Human Resources

(v)

Computer consumables

(ii)

Finance

(vi)

Facilities Management

(iii)

Procurement

(vii)

Hospital Management

(iv)

Stores

(viii)

Production Planning

Team Vigilance sincerely hopes that the Senior Management of HAL would find the
recommendations a step in the direction of good governance, and worthy of implementation.
The last six months for HAL Vigilance Department have been truly motivational. The
indigenously developed program OLIV (Online Vigilance Clearance System) has been awarded
Vigilance Innovation Award 2013 by the Vigilance Study Circle, Kolkata Chapter. Officers
will appreciate that with the introduction of OLIV, we have been able to considerably reduce
the cycle time of issue of clearances, and also made the process efficient as well as
environment friendly. I am also delighted to inform you that one of our investigations have
been awarded Excellence in Investigation Award by Vigilance Study Circle, Hyderabad. In
this investigation, the vigilance officers painstakingly collected clinching evidence by going
through the user audit log of the ERP system.
We have also implemented good governance measures within the Vigilance Department.
Some such measures include our own MIS system called the VIMS(Vigilance Information
Management System), a Knowledge Management Portal for Vigilance professionals,
introduction of a unique four part report for co-monitoring of disciplinary proceedings with
Corporate HR, Online Performance Appraisal System for Vigilance Officers and conduct of
various awareness programs and several Vigilance Publications. As you know, Vigilance
Department, HAL is one of the few vigilance formations in the country to have its own ISO
9001-2008 certification. This certification has recently been extended upto the year 2016.
I must take this opportunity to acknowledge to the guiding spirit of our Chairman
Dr. R.K. Tyagi, who has lent his unqualified support to all our initiatives. My thanks are also
due to all the Directors and senior management who have facilitated our various preventive
vigilance programs. In our recently concluded conference, the Vigilance Officers had the
unique privilege of interacting with our Chairman Dr. R.K. Tyagi, Shri K. Naresh Babu,
Managing Director (Bangalore Complex), Shri T. Suvarna Raju, Director (D&D) and
Shri V.M. Chamola, Director (HR).
With this complete support and encouragement of the top management, I am confident that
our Company will be in a position to introduce several good governance measures outlined in
this issue during the course of the year.
Please accept my greetings and felicitations for the festive season ahead.
(Anurag Sahay, IRS)

Good Governance: ERP in Finance

K T Venkatesh

In the backdrop of the likely disinvestment and stricter reporting schedules and norms on the
publishing of financing data with respect to the financial results of the Company, the need for
introduction of good governance measures through automation is immediate. The processes,
which are being carried out manually in the Company at present need to be undertaken
through the present IFS-ERP or other suitable software, which can be plugged into IFS-ERP.
Automation through ERP and other plug-in software to ERP would ensure reporting the results
of the company in time, provide transparency leading to better communication and
standardize the processes across the various divisions. It would also help in establishment of
internal controls through the technology, reduction in the lead times of various processes
through improved resource utilization and maintenance of records in soft fashion for a long
time for necessary retrieval/audit at a later date. Further, effective utilization of the ERP
helps company to plan the manpower & other resource requirements and considerably
reduce the ever increasing pressure on the costs and bottom lines of the company.
Present System of ERP in Finance
IFS was selected as an ERP for HAL from a host of ERPs available in the market based on the
requirements and cost to the company during the years 2003 and 2004. The IFS-ERP which is
being used at HAL is 2004 Version. The IFS-ERP at HAL is decentralized and client server
based. The workflow in finance is as given below:

FLOW CHART OF DATA IN FINANCE AND RELATED STAKE HOLDERS

STAKE HOLDERS
Government of India
Ministry of Defence
Tax Authorities
Local Administration
Cutomers
Vendors
Oversight Agencies
Employees

Good Governance recommendations for ERP Finance module

The following table provides the activities which are being carried out manually
(either partly or in full) or with the help of other software which need to be integrated with
the IFS.
Sl
No

Section

Activities

Bills Payable

Monitoring of LCs / BGs / EMDs/ SDs, manual offsetting of

the advances & liabilities, and E-payments.

Payroll

Recording of Attendance/ Settlement of TA/DA bills

Costing

Generation of Cost Ledger, Computation of MHR on a

dynamic mode, Amortization of DRE/SDC/Intangibles (like
License Fees, Documentation, Computer Software), Incentive
System, Project wise profitability.

Material Accounts Differentiation among recurring tools and non-recurring

tools, ATF & Oil, pricing of Fabricated Parts being Purchased,
Weighted average rate Part-wise instead of Project-wise &
Part-wise, etc.,

Book Keeping

Generation of Balance sheet, P&L account, Schedules.

Procurements &
other Note sheet
approvals.

File Tracking and Process approval mechanisms. Budget

Monitoring through IFS-ERP in case of procurements and also
in case of other expenditure heads.

Bills Receivables

Invoice generation (including differential claim on

finalization of FPQ during the subsequent years) and
monitoring of sales, advances, & debtors.

PF Management

Employee wise accounts of PF balances are arrived

at through the internal software generated which needs to
integrate with IFS-ERP. Further, the deployment of funds
is also a manual process.

Beyond what has been provided by the IFS-ERP, divisions have developed their own specific
additional improvements built into the ERP. Some such instances are mentioned as under:
a)

Engine Division has developed the budget monitoring for the project & non-project
procurements & module for the standard MRO processes with the assistance of
IFS teams.

b)

Overhaul Division has developed the billing process for sales with the help of IT team.
These developments can be adopted by other divisions for their improvements.

Suggested measures for Good Governance

Bills Payable
Monitoring of Bank Guarantees (including Performance Bank Guarantees): IFS provides
the screens for inputting the data into the system. The process of intimation to Finance
department about receipt of Bank Guarantees from/by other departments, checking with
the banks about their authenticity, monitoring and intimation of the expiry dates to the

concerned departments for necessary advice and action there on, may be automated to
eliminate the manual monitoring and manual intimations thereby saving time and avoidable
errors/mistakes.
Monitoring of EMDs: Automation of the process of intimation of receipt of EMDs by the
Division, tracking of handing over of the EMDs to finance department by concerned
departments, recording of the encashment of the same in the IFS-ERP, intimation to finance
department to return value of these EMDs to unsuccessful bidders within the allotted time on
finalization of the successful bidder reduces the time and efforts of the division in manual
monitoring, avoidable errors/mistakes thereof and return of EMDs in time.
Monitoring of Security Deposits: Automation of the process of intimation of receipt of
Security Deposits by the division, tracking of handing over of the security deposits to the
finance department by concerned departments, recording of the encashment of the same in
the IFS-ERP (in case of DDs), adjustment of the value of security deposits towards the
settlement of the bills on intimation of successful work completion, and also necessary
intimation for action of forfeiture of the same by concerned departments in case of noncompletion of the work/completion of the work not to the satisfaction of HAL may be
recorded in the system.
Offset of advances and liabilities: Presently offsetting of the advances and liabilities are
being carried out manually. This routine exercise is tedious and time-consuming. This
exercise need to be automated and needs to be undertaken on a continuous basis instead of
frequent intervals. An offsetting program is required to be generated to give instant results
and accurate results. This allows the accurate balances of advances and liabilities to be
shown at all points of time.
E-Payments: Presently payments are made by providing the necessary data to the banks.
The exercise involves the collection of data in a soft format from the ERP system on the
payments made for the day/week and the same is provided to the banks for payments to the
accounts of the vendors/suppliers/employees either through NEFT/RTGS (SBI/RBI-Cheque is
provided to SBI for the total amount being debited). This activity of providing the data is
extremely time-consuming for the Bills payable personnel. Good governance measures
require a system to be developed for payment to the vendors directly through a gateway
provided by the ERP. The system so developed need to have adequate built in checks and
balances. Presently, IFS-ERP does not support this facility. Version 8 of the IFS-ERP provides
the required facility in this regard.
Receipt of goods vis--vis the payments made: Presently, Receiving Reports are being
generated though IFS-ERP in all the divisions which have implemented ERP. A waybill
document is generated in the IFS-ERP by the receiving stores with details like the quantity
received, physical dimensions of the packing received, weight of the package among other
details. Further to this way bill, Receiving Report is generated by the receiving stores with
reference to the way bill already generated containing particulars with respect to the PO
quantity and quantity received, quantity inspected, quantity accepted, quantity rejected
among other details. The receiving inspection will provide the acceptance for the quantity
accepted and quantity rejected as per the various quality documents submitted by the
vendor after conformance of the same with the physical goods received. After the
9

acceptance, the goods are moved physically to the holding stores where the goods are
inventoried and issued to the production. Accounting of the inventory into the inventory
schedule and item wise Pricing of the goods by the finance department takes place at this
stage. Pass words are allotted to each of the authorized officers/employees responsible for
preparation of the Receiving Report, acceptance of the goods, pricing of the Receiving
Reports, accounting of the goods at the holding stores. This process ensure that the internal
control system is in place with respect to the receipt and accounting of the goods. However,
in practice in some divisions, payments are made only on receipt of the signed Receiving
Reports at the Finance department. Insistence on the signed Receiving Reports defeats the
very purpose of the automation of internal controls systems put in place by the ERP. It
inevitably leads to delay in the making of the payments and vendor discontentment on
account of this delay. Good governance measures require payments to be made based on the
system generated Receiving Reports to avoid such delays.
ERP also helps in monitoring the time delays in finalization of Receiving Reports. An exception
report needs to be generated and provided to the concerned authorities (HOD of IMM, HOD of
Planning, GM of the division) to facilitate the monitoring of the Receiving Reports and delays,
if any, beyond 15 days to be supported with the reasons for such delay and the actions
required for early finalization (Corporate Office vide Circular No. HAL/CD/617/2007/955
dated 24th August 2007). This effectively addresses the delay in the payments and delay in
production for want of goods.
Pay Rolls
Recording of Attendance and Settlement of TA/DA Claims: Presently, attendance is being
recorded in separate software which carries out all the necessary attendance calculations
with respect to the number of days present, shortage hours, OSP, leave availed and provides
the attendance details along with the CL/VL balances to the IFS-ERP for further processing.
Leave applications are being fed manually. IFS-ERP does provide the Attendance
management system along with the facility to record Punch card details. Leave rules and
other OT rules need to be defined for the purpose of automation instead of using the separate
software to record the attendance details in the IFS-ERP itself. Further, a separate payroll
package has been developed by the IFS team namely Employee Self Service which can be
plugged into the IFS-ERP and the data can be transferred to the IFS. This package has facility
of on-line applications for TA/DA claims, leave, loans (contingency, scooter loans etc.,),
leave encashment, etc., and also the approval process for the applications of the employees.
The rules governing these facilities needs to be hot-coded into the ESS Software. This
eliminates the manual working from the payroll side and the data will be directly available in
the IFS-ERP.
Costing
Presently, Cost ledger is not in dynamic mode. Dynamic cost-ledger requires the collection of
cost (material, labor (hours and MHR), SDC, DRE and other costs) on a continuous basis. The
labor hours bookings for various jobs are available after the incentive for employees is
generated which has an average time lag of 45 days. Presently the MHR is not dynamic as this
requires mapping of expenditure/income and the labor hours on a continuous basis which is
being done periodically at present. Further, the project wise, unit wise amortization of the
10

DRE, SDC & other costs needs to be separately fed along with the linking of the sale units
generated for the particular period. By automation of these processes to suit the divisional
requirements a cost ledger can be made dynamic keeping the Accounting Standards 2 (AS2)
requirements in mind. This eliminates the manual workings/interventions for arriving at the
MHR, cost of sales, aids in retention of WIP with respect to the physical work in progress at
the various shops. These manual workings are consuming considerable time in compilation
of WIP, cost of sales, MHR workings. Version 8 of the IFS provides these facilities for
automation. However, HAL also needs to streamline the processes with respect to the
Incentive system to make this dynamic cost ledger possible. Further, Cost records needs to
be maintained and audited by a cost auditor from the year 13-14 mandatorily. The
automation would necessarily aid HAL in compliance to the Cost Audit Rules issued by the
Ministry of Corporate affairs in this regard.
Bills receivable
Presently invoice generation for the receipt of advances as per the FPQ/Manufacturing
Contracts, stage wise advance receipts against manufacturing contracts and final settlement
of bills as per the FPQ provisions/Manufacturing contracts are being made manually.
Advances received and adjustment of advances against debtors is also being carried out
manually through IFS-ERP. Similarly, sales set up is done manually. The sales set up/invoice
generation through ERP requires generation of the Quality Documents through ERP along with
the rules of the FPQ year wise approved sales price per unit for each kind of activity, advance
receipts for Mfg/ROH/Spares, drawal of X-listcases (high value items which are consumed
based on the condition of the item during the repair and overhaul activity), drawal of cases
exceeding Rs.10,000/-, drawals for modifications beyond the agreed list of modifications,
etc.,} to be built into the ERP for invoice generation. The approved price catalogues for
various years of deliveries also needs to be part of the ERP. The automation of these activities
aids in setting up of sales on a dynamic/continuous basis and monitoring of the advances/
debtors on a continuous basis eliminating the considerable time and resources of the finance
department. IFS-ERP (2004 version partially and version 8 in full) supports these activities
which needs to be explored by formation of specialist teams.
Procurements and budget monitoring
Procurements: Considerable time and resources (manpower) of the divisions / Complexes /
Corporate Office are spent in the Planning related to the Procurements and its various
sub-processes. Presently, the process is largely manual or partially automated. There is an
urgent need to automate fully the whole process to have greater level of transparency and
recording of the data in the ERP for future retrieval. For procurements through MPRs, the
present IFS-ERP has a provision to have as many authorization levels as required which
captures the approval dates. The simple requirement is to define the Delegation of Power
(DoP) rules of the company and synchronization of the IFS-ERP with e-procurement model of
HAL into the IFS-ERP. Additionally, there is a need to further improve this feature through
which associated queries and replies can be tracked. Good governance requires new facility
to be provided for complete tracking of the files including queries and replies. The complete
automation of procurement system will hasten the process of providing approvals and
considerably reduce the time involved in the processes. Further, it will truly help HAL in
becoming a paperless office with respect to the procurements, with complete automation of
the process of approvals right from MPR stage to the final approval of PO within the IFS-ERP
11

by all the levels of the hierarchy as per DoP.

Budget Monitoring: Budget monitoring at the MPR stage / PO Stage is definitely possible in
the IFS-ERP system (Engine Division has adopted this module). It is required to link the likely
commitments as per the Performance Budget/Capital Budget. Further, monitoring of the
expenditure heads also is possible (Note sheet approvals) and requires the various
expenditure heads of the Performance Budget (RE/BE) along with the values needs to be
linked to the IFS-ERP module.
Book Keeping
Presently, Balance sheet/Profit and Loss account/Schedules (accounts) in all divisions are
prepared from the Trial Balance generated from the IFS-ERP. Divisions link trial balance to
the grouping schedules and the trial balance provided by the Corporate Office. This linking is
also done manually in an excel work sheet. To automate this process, IFS has a report
generator facility. Linking of the various accounts of the Divisional Trial Balances to the
Corporate Trial Balance can be done through this report generator facility. The automation of
the process would help in preparation of the accounts of the Division on a dynamic/
continuous basis which is the need of the hour instead of periodical preparation of the
accounts. Further, it helps in meeting the statutory requirements as and when changes occur
(Schedule 6 for instance) and can provide a standard mechanism across all divisions to
standardize the accounts.
Provident Fund
Presently, PF Trust carries out following functions apart from liaisoning with the RPFC for
submission of returns and inspection of the PF accounts:
a) Preparation/Certification of the Accounts of the PF Trust.
b) Maintenance of the sub-ledger containing the PF balances of each individual employee
with respect to the employer/employee contributions, interest accumulation on the
respective portion of the employer/employee contributions, loans provided to the
individual employees and recoveries of the refundable loans granted to the individual
employees.
c) Deployment of funds after taking necessary approvals of the other members of the trust.
Activities (a) & (b) are carried out through the software generated by Aircraft division
IT department. Activity (C) is carried out manually by the PF Trust Member/Secretary.
Good governance necessitates integration and automation of all the 3 activities listed above.
Recommendations
Main objective and challenge to any business enterprise is to manage accurately and track
the financial position of the Enterprise. This requires an effective enterprise (ERP) to
automate the operations (financial as well non-financial) to have accurate results in a
shortest possible time to meet the varied expectations of the stakeholders of an enterprise.
It should act as support system to provide sufficient information to the line managers, middle
level managers, Top Management and Board of Directors. Keeping this objective in mind,
Company can upgrade the IFS 2004 to Version 2008 which is web-based (windows OS related
issues does not hamper IFS Usage), supports centralized implementation across the company,
standardization in various works areas across the company, allows customized fields to
12

capture data as per the business requirements, supports project-wise accounting, leading to
project wise profitability etc., and the most important advantages being the leveraging of
the internal knowledge built up over the last 9 years of the implementation in HAL.
Alternatively, the existing ERP can be supplemented with the various plug-in software which
can help in achieving the results.
To conclude, the implementation of Good governance measures in Finance requires a
great deal of concerted action on the part of Management. In the wake of the likely
disinvestment of HAL in near future, immediate up gradation of our ERP system and
comprehensive implementation of all its various processes is the crying need of the hour.
(Shri. K.T. Venkatesh, is an ICWA and Master of Business Administration (Finance). He has worked in manufacturing
companies like M/s.BHEL and M/s. Dynamatic Technologies Limited. He joined HAL in 1995 as Finance Officer. He has a vast
& rich experience of 20 years in Systems Audit and various areas of Finance. Presently he is working as Chief Manager
(Vigilance) at ARDC Division).

V2 - A Compendium

Dr. R K Tyagi, Chairman (HAL) and Shri Anurag Sahay IRS, CVO
releasing "V2 - A Compendium" on 26th September 2013

"V2 - A Compendium" has been released during Bi-annual Vigilance Officers

Conference -2013. V2, our fortnightly Vigilance bulletin, has completed 3 years
of publication with its 72nd edition. The book contains all the V2s from Vol-1 to
Vol-72 released till now. The book has been released as per the direction of the
Chairman for handy reference by the officers.

13

Good Governance:
Human Resource Management

Mani Bhushan

We aspire to become a global player (preferably among top ten) in the ever-changing and
fiercely competitive aerospace industry and to achieve eagerly sought after self-reliance in
design, development and manufacture of Aircrafts, Helicopters and Spacecrafts. The
cherished mission statement goal to become technologically advanced and globally
competitive company, calls for innovation, the key and the single most important driver for
growth in the Peter Duckers Knowledge Society. This knowledge economy puts premium
on the management of the knowledge based assets rather than the tangible assets. Quoting
Dr. R. A. Mashelkar, the twenty first century will be the century of knowledge, indeed the
century of mind where innovation will be the key for the production as well as processing of
knowledge. Needless to mention here that the sole depository of the mind is human being
and therefore the human asset becomes the predominant and the most important asset of
any organisation.
Technology is an enabler of Business and so is Human Resources. Good governance requires
seamless integration of these two enablers as the only way forward which in turn, will act as
catalyst for leveraging each other. To have Knowledge workers is sine qua non for any business
organisation to manage and deploy technology in effective way. These knowledge workers, in
turn needs to be managed effectively which calls for the responsibility of HR function.
Technology and HR both enhance and complement each other i.e. technology can be used to
enhance effectiveness of HR and HR, in turn, will help in adopting and managing change
which technology department will bring in. Companies thrive on and even get limited by the
technology at its disposal.
The Areas
Good governance through leveraging technology in HR domain is associated in following areas
1. Talent Acquisition
2. Performance Management and Competencies
3. Career and Succession Planning
4. Communication
5. Employee Self Service
6. Knowledge Management Identifying, Educating and grooming future executives
Talent Acquisition
E-recruitment is the area where our company needs to implement good governance
measures. Apart from recruitment through our companys own website, the possibility to
host the requirement on other sites e.g.monster.com, jobsahead.com, naukri.com etc can
also be explored.
14

No doubt, it may be possible that the process, in

beginning, may be plagued with flooding with low-quality
bio-data. However the same can be solved by the
technology itself i.e. in filtering the applicants with tools
available in the market. Further in case of middle and
senior management grades (in case of lateral entries) the
method of video conference can be adopted to have video
based interview of the prospective employees and only
short listed employees will be met in person.
The Graduate Aptitude Test in Engineering (GATE) is conducted on all India basis jointly by
IISc and IITs on behalf of the Ministry of Human Resource Development. GATE, primarily is to
test the comprehensive understanding of various undergraduate subjects in engineering and
Technology. The GATE Score (which started in 1986) was used primarily for admissions to
various PG Programmes. However once the GATE introduced aptitude Test in 2010, it
attracted PSUs to take GATE score to filter the candidates for recruitment instead of
conducting their an aptitude test / written test to select engineering graduate and
management trainees, in their companies.
Today more than a dozen leading PSUs (IOC being the pioneer in the process) are considering
GATE score thus to avoid several stages of recruitment process like processing application,
issuance of admit cards conducting examination (either of them or by external agency)
publishing results etc.
There is therefore no reason for HAL not to consider adopting GATE score to shortlist the
candidates for its recruitment. Adopting this (i.e. GATE score) will not only relieve the
company from mammoth task (both in time & cost) of conducting tests for lakhs of candidates
(The selection rate is less than 1%) but at the same time will have the opportunity to recruit
most competent candidate from clear and widely known competition. Needless to mention,
the company will be able to ward off complaints of favouritism / malpractice which normally
comes stapled when separate recruitment / tests are conducted.
Performance management
Managing the human capital effectively is the key to
achieve the organizational goal. To achieve its desired
objective, it requires the collective effort of all
individuals and department to drive the company. An
effective Human Resource Management system,
therefore is needed to ensure that their systems process
and strategies becomes the foundation for achieving the
effective use of their valuable human capital asset. to remain competitive and increase
their profitability.
The human resource professionals need to have accurate and up-to-date information about
their workforce (both officers and employees). It is therefore become imperative that their
employees have direct access to critical corporate data and bench marks, which can be
15

accessed anytime, from anywhere. This web complaint, scalable easily maintainable and
cost effective Human Resource Management System will go in long way to empower managers
and executives on the strategic business initiatives and encourage employees to monitor
their own project/job/program via an easy-to-use self service learning environment.
Another important aspect in excellent performance management is of maintenance and
preparation of Annual Performance and Appraisal Reports (hitherto known as Annual
Confidential Report or - ACRs or PARs in HAL parlance). Honorable Supreme Court of India, in
its historic pronouncement in the case of Dev Dutt vs. Union of India developed the principle
of natural justice by holding that fairness and transparency in public administration requires
that all entries (Whether poor, fair, average, good or very good) in the Annual Confidential
Report of a public servant must be communicated to him within a reasonable period so that
he can make a representation for its up-gradation. This position would be correct legal
parties even though there may be no Rule / G.O requiring communications of the entry or
even if there is a Rule / G.O. prohibiting it, because the principle of non arbitration in state
action as envisaged by article 14 of the Constitution. Article 14 will override all rules or
government orders. The apex court had earlier observed in the case of State of UP vs Yamuna
Shankar Misra (1997) that the object of writing the confidential report and making entries in
them is to give an opportunity to a public servant to improve his performance.
This position was adopted by GOI vide its memorandum no 21011/1/2005- Estt. (A) (Pt. II) DT
14.05.2009 and further upheld by honourable Supreme Court in Sukhdev Singh vs. Union of
India.
The above requirement of transparency can be further strengthened by having a system in
place where by on due date the proposal of initiating Authority will automatically give a
flag/signal to Reporting Authority about the PAR. It is also worthwhile to consider linking the
payment of PRP with completing the task of disposing the responsibility of IA/RA.
Moreover the appraisal needs to be holistic which calls for implementation of 360 degree
appraisal format. Though HAL launched this format way back in 2009, it is still to be
implemented in real sense. No doubt the concept is path breaking and as such requires
reasonable executive will to use it in career development. The 360-degree feedback and
performance appraisals get at different outcomes, and both 360-degree feedback and
traditional performance appraisals should be used in evaluating overall performance
Manpower Management:
At present the ERP system in vogue in HAL does not include
complete module for Personnel Management System which
warrants immediate inclusion. A robust manpower management
system provides mechanisms for the employment, retention,
support and development of personnel. The system will take care
of compete profile of employee in following key areas.
Employing

- Job description, Establishment controls, Recruitment procedures,

Personnel records and data base, Distribution of personnel, Utilization of
support staff
16

Retaining

- Career structures, Promotion procedures, Living and working conditions

Pay and incentives

Supporting

Supervision, Communication and consultation, Collective representation,

Continuing education (updating of skills), Logistic support

Developing

- Performance appraisal, Continuing education (new skills)

Having module on Personnel Management system on ERP will mean having personal file online
and the concerned agency can access the detail (like details of joining, transfers, job
rotations, qualification, extra qualifications made after employment, leave, appreciation
/advice letters received, present and permanent addresses etc) in real time
Manpower Management also calls for elaborate and transparent job rotation and transfer
policy of the company. It should not seem to be pick and choose method but systematic in
approach in the sense that the official concerned must be aware what is in offing and he
should not think it as a bolt from the blue. The policy must be in the public domain of the
officers fraternity. No doubt there may be different procedure and time frame for different
categories of officers namely direct / indirect / designers etc. In the present scenario it does
happen that an officer joining a Division can superannuate from that Division itself. Needless
to mention that an efficient and effective transfer policy will only help in to enable planned
movement of officers from one job/Division to another to meet operational and/or
administrative requirement of the organisation from time to time but at the same time it will
enable employees acquire multi-dimensional knowledge and skills for self development, to
shoulder higher supervisory and managerial responsibilities through a structured exposure to
diversified geographic and operational environments.
The IFS-ERP which is in vogue in HAL does not have complete Manpower Management System
module which leaves this important area still in manual mode.
Knowledge management:
In the competitive environment where speed is the name of game
technology driven knowledge management constantly provide a strategic
advantage and greater employee satisfaction. It requires to be ensured
that executives can disseminate both business and strategic objectives as
well as routine business practices, which will help in not only making
them more productive but in turn more effective in cultivating their
direct reports. As a natural corollary, the high performers that contribute to the company
success can be encouraged and emulated.
According to one study, the followings top three non compensation related programmes
which high performers say attract and retain.
1.

Opportunity for advancement 79%

2.

Job Redesign 69%

3.

Learning new skills in current Job 65%

In the words of V.M. Clark, Knowledge is the only instrument of production that is not subject
to diminishing returns. Implementing the above stated programmes will create an
17

energized, enthusiastic and educated work force and will help in retaining highly qualified
work force we need to remember.
New employees are very expensive
Current employees are very valuable
Satisfied employee are very forgiving
Employee respects more strongly to how you treat them than anything else.
Various Operation Manuals (Personnel, Accounts, Stores, etc) are already in vintage form
which needs immediate updation so as to avoid referring to various circulars/ guidelines
issued from time to time. Updation of these Manuals will itself address much of the issues
raised by oversight agencies like audit and vigilance.
Communication
In a digital society, technology in communication has
become a foregone conclusion. For greater overall
business benefits, the HR Management system requires,
interalia, the followings :i)

An efficient transaction processing for the

workforce which will have storage, evaluation,
collection and collation of information from the functional areas such as salary,
increments, performance management, attendance particulars etc.

ii)

For the communication of companys culture, policies and procedure, there should be a
control point. The system will help to ensure compliance, sensitivity, training etc
which are necessary to help employees to align to the company goals and ensure that
the desired expectations are instantly set as well as met.

iii)

There is also need for (and the systems should certain) the comparison of benchmark
among the peers (in work force) for both departmental and company vide metrics.
The process will serve not only as a motivational tool but at the same time it will enable
the executives in supervisory cadre to demonstrate their overall effectiveness in the
system.

iv)

The participation of all the parties concerned with the workflow of the system is
needed. For example when an officer (or for that matter an employee) is responsible
for a part of workflow, such as Disciplinary Action process, the workflow system must
ensure that all relevant Circulars, Notification, Rules and relevant papers are
generated and provided depending upon role and responsibility of officers(i.e. the
Enquiry Officer, the Presenting Officer, the Charged Officer).

Employee Self-service
In order to reduce casts across the company, the effective way is by making information
available easily to employees. These can be no denying that each employee has certain
information needs which happen to be and becomes the starting point for several processes
like life event changes (birth, adoption, marriage or death) or other requests like leave
maternity etc. System must support that by keying in a secure and password protected
employee self service portal, an employee can conveniently see, review and change their
personal information. Enroll in benefits or receive information about himself and the
18

company. Needless to mention here that by this methodology it not only

expedites the information gathering process, but more importantly, it
provides in the HR Department valuable free time which they can focus on
more strategic and important activities. This can be moved a step
further by converting them into a functional module that can be used to
collect and disseminate information via-a-web page rather than a paper based system.
As a bonus, it will improve employee satisfaction. Plethora of small activities, such as
travel bookings, travel rules information, travel bills, leave rules administration, perk
administration which were hitherto, used to be carried out by employee through HR. As a
practice the user employee is expected to interface with HR. The same requires to be
implemented online. One can request for travel related booking online, fill his TA. Bills
apply for leave, log time sheet and see his perks value disbursed on the system. Similarly
when a joining letter of a new employee is system generated. It will be printed only when all
the mandatory fields of information are enforced into the system. Same with transfer order
which will come out only after all the formalities (like dues, pending issues, clearance from
different departments) are incorporated in the system. People are comfortable with uniform
process and structures. So it is the organizations responsibility to provide them.
Succession Planning
One of foremost responsibility of the HR happens to have the right
people for the right Jobs at the right time. In order to prepare the
organization for anticipated organizational growth, The
homegrown and paper based succession planning that companies
relied in past is no larger meeting the needs of todays workforce and it calls for upgrading
and redefining the initiative to ensure that the process will benefit both the individual and
overall strategy of the Company.
The critical drivers for implementing Succession Planning include,
1. Improving the Companys bench strength in key positions.
2. Identify high potential early and devise strategy to retain them.
In order to address the issue it calls for strategic actions from the company looking for
technology that includes.
1. Collection of employee data including career history and skills.
2. Automated corporate wide succession plan based on data.
3. Analysis of risks, preparedness and succession scenarios.
4. Accurate development plans to enhance employee skills on an ongoing basic.
5. Skills assessment testing.
We should not forget employees need feedback. Whether positive or negative we all like to
know how we are performing. Consistently providing evaluations and rating employees can
create a full circle of communication. Leveraging technology can enable organization to
have access to records and understand past performance trends to prepare for future
advancements.
Our Company came out with a scheme on Succession Planning / Career Development, which
is yet to be operationalised in spirit.
19

Epilogue
It is said that you cannot do todays job with yesterdays method and be in business tomorrow.
The advent of technology has changed the way we learn, impacted the way we communicate
and collaborate. Plethora of tools like wikis, blogs, social networks, webcasts, webconferencing, online course libraries, podcast etc have enabled the workforce to share
knowledge. HR can use these tools for training and continual learning outside the training
academy.
Further there is an initiative of one to one learning which enables employees to learn how
and when they want to (anytime, anywhere) with the help of wireless devices like smart
phones, laptop or e-book reader through customized and tailored to individual training need,
speed and style. Furthermore, this will also help them to integrate with each other to support
learning and development to maximize the effectiveness of the learning.
Twitter and Facebook, the free networking tools have acted like catalyst for information
sharing that keeps people connected with one another on platform that everyone wants to be
part of learning and development programmes can utilize these networks to link course
participants before and after a training event to share knowledge and ideas regarding the
course trainer and trainees provide link to articles, webinars and on the job examples before
during and after the training event.
The HR can also explore to have their blog which will allow author to share opinion,
reflections and discuss topics in the form of online journals learning and development
programmes can incorporate blogs to provide supplemental course information and updates
on course materials.
HR is one function, which affects each and every official in an organisation. The HR is the first
to meet the new recruit and it is they who will be with employees at the time of separation.
The impression what they create in the first meeting with employees has the profound and
lasting impact. Without any doubt we can say that no corporate governance policy has a
chance of success without human resource policies which harmonise with the corporate
policies of the whole organisation. A threat to governance is a disconnect between the aims
of the organisation, and the objectives of the employees.
The world is running with breathtaking pace and is becoming more robust and in the words of
Thomas Friedman, flatter where the connecting point is only the technology. Integration of
HR with Technology therefore, will not only increase the HR effectiveness, but will ultimately
make HR more meaningful. Leveraging Technology is only method to transform the HR from
'cost centre' to 'strategic profit centre'. Morale and motivation depends on the ethical
practices and healthy working environment the organisation provides to employees. It is for
the HR professionals to introspect whether their actions fall in line with the good value
system. Therefore there is the need of creation of equal and respectful workplace, where
rules are adhered to uniformly, where there are clear lines of communication, and where
employees empower themselves to share the corporate aims.
(Presently Mani Bhushan is working as DGM (Vigilance) at Bangalore Complex. He is a law graduate having 12 years of
experience in HAL, apart from 12 years stint in Bank & Bar ).
20

Good Governance: Facilities Management

Renjith R

The very logic behind providing welfare schemes like residential quarters, medical Benefits,
recreation facilities, guest house accommodation, Township Maintenance etc is to create
efficient, healthy, loyal and satisfied labour force for the organization. The purpose of
providing such facilities is to make their work life better, to raise their standard of living, to
keep the morale and motivation of the employees high so as to retain them for longer
duration in an Organization.
Hindustan Aeronautics Limited (HAL) has a manual process for allotment of residential
quarters, Maintenance of Township, Guest House Management etc . The article is to outline
the strength ,weakness, functionality , requirements and thereby to firm up and fine-tune
the requirements and prepare a detailed specification for designing and developing the
Quarter Allotment Information Management System (Q-AIMS) , Township and Guest House
Management System. Through which HAL could introduce a SMART - Simple, moral,
accountable, responsible and transparent governance in the above areas since the use of
technology and innovative models can be of great help to the end users as well as a great
value to our organization.
Good Governance in Quarter Allotment System
Overview of the existing Quarter allotment system
Companywide HAL have approximately 17,510 residential Quarters across all the divisions
for various grades of Officers and Employees. Major chunk of Quarters are located within the
Township of HAL and few Quarters are located outside the Township. These Quarters are
classified by type of the accommodation as FA and G Type, FB and GBJ Type, FC Type, FD Type,
SOQ, etc. While FA and G Type Quarters are meant for the occupancy by Workmen of all
Grades / Scales 1 - 10, rest all other Quarters are meant to be occupied by Officers depending
upon their Grade. FB and GBJ Type Quarters are meant for Officers in Grade I III, FC Type
Quarters are meant for Officers in Grade IV V, Officers in Grade VI VIII can occupy FD Type
Quarters and SOQ is meant for Officers in Grade IX & X only.
Following is an overview of the residential quarters of HAL:
SL No.

Division / Location

Total No of Quarters

1
2
3
4
5
6
7
8

Korwa
Kanpur
Lucknow
Koraput
Barrackpur
Hyderabad
Nasik
Bangalore

1669
365
1400
4645
Nil
1331
4400
3700

Total

17510

21

All Quarter Allotments are done by the Township Department of respective divisions.
Currently Township Department manages all allotments, wait-list, vacant list and other
pertinent information related with Quarter Allotment manually.
Present System:
To apply for the Quarter all employees including Officers and Workmen are required to
collect the Application Form from the Township Department and submit the same after
getting co-ordination from their respective HR Department. Township Department on receipt
of Application Form duly coordinated and authenticated by respective HR Department of the
Quarter Aspirant for the details furnished gives an acknowledgement by way of writing date
of receipt on the copy of submitted Application Form. Applications are received for New
allotment or for change of Quarters by the existing occupants. Aspirants' Application Forms
with inscribed date of receipt are kept in the safe custody. As a Quarter falls vacant, Township
Department creates a Seniority queue from the aspirant list based upon following rules:
i)

Allotment to the extent of 5 % of Quarters are made under discretionary power by House
Allotment Committee including reservation for SC / ST, aspirants for medical /
functional / essential needs. These allotments are done Out of Turn.

ii)

Seniority is based upon date of Appointment of the employee. However, Change of

Quarter request gets the preference over Fresh requests.

iii)

As and when the Quarters falls vacant a Seniority Queue is created from the available
Wait-list. Seniority is based upon date of Application by the officers. However, Change
of Quarter request gets the preference over Fresh requests.

iv)

Aspirants are informed by issuing provisional Allotment letter (hard copy) to the
aspirant through respective HR Department to give their consent to occupy the allotted
Quarter within seven days.

v)

Aspirants with allotted Quarters respond with acceptance or rejection of the offer to
Township department. In the event of non-receipt of response within seven days it is
treated as rejection of the offer and the next in the queue becomes eligible for the
allotment. Same process continues till acceptance of occupation is received for all
vacant Quarters.

Observations
i)

Maintaining Wait-List and evolving a seniority queue for different categories of

aspirants and types of Quarters manually is very tedious and cumbersome.

ii)

Tracking vacant quarters, occupied quarters, residents and aspirants etc. is very
demanding and it is much more challenging to forecast the availability of vacant
Quarters of employees attaining superannuating.

iii)

Visibility of transparency in allotment of Quarters is desirable and has scope for

substantial improvement.

22

iv)

There is no centralized repository of all information related to Quarter Allotment where

one can know the status of Quarter Bookings and Allotments. Retrieving data for
allotments made Out of Turn, Reserved Category etc. is a tiring effort.

v)

Well-defined communication mechanism can ease in addressing and mitigating

aspirant's queries.

vi)

Non availability of most current and updated Employee database with FM Division
including Township Department for inter-division transfers.

Recommendations for Good Governance

A need is felt to leverage technology and make the system efficient as well as transparent. In
view of the in-house IT process, an indigenously developed software on the existing platform
of Local Area Network (LAN) with the company could be availed of for the implementation of
the IT enabled Quarter allotment. Updated Masters are the most essential pre-requisite for
establishment of automation through software application. Hence the endeavor of
automation of Quarter allotment begins with the collection and collation of the data pertains
to employees and various types of quarters:
i)

Employee details of both Officers and Workmen regarding their name, employee ID,
grade, email ID, designation, gender, appointment details etc. have to be captured
with the provision to update the same for Transfers, Promotions and Resignation etc.

ii)

Classifying and grouping of the quarters according to the category, site , location,
Building, Floor etc.

iii)

The collected data of the quarters have to be categorized by demand against the
Quarter Eligibility by Employee Grade.

Suggested Features of the IT enabled Quarter Allotment System:

An IT enabled quarter allotment system would provide a single window for HAL, to manage
complete workflow of Quarter Allotment process from submission of Application for Quarter
to issuance of Authority Slip for the possession of Quarter across its stakeholders involved in
the Quarter Allotment process. The centralized Quarter Allotment and Information System
will also provide visibility, access and most importantly transparency to the central database
to all its stakeholders through LAN/Intranet.
i)

Data Mapping: Complete list of all permanent employees including Officers and
Workmen of HAL as per the organization structure will be captured in the system. Also
captured will be the properties of HAL including Residential Quarters and Office
structures. Database for Quarters will also be populated with existing occupants.

ii)

User Login: Each and every Employee (Officers and Workmen) automatically becomes a
User of the system as their details are mapped in the Q-AIMS with their Employee ID.

iii)

Quarter Eligibility: On logging Q-AIMS an aspiring Employee can view the types of
Quarter that he / she is eligible for allotment on availability and having qualified based
upon applicable rules of Seniority.
23

iv)

Online Application: All eligible applicants can directly apply online for Quarters as a
Fresh Applicant or Change of Quarter through the Q-AIMS. All requisite data related to
his / her employment will be available on the web page. Application for Quarter can be
either for New Booking or Quarter Change. On booking Q-AIMS will auto-generate
a running Registration Number unique for each application. Booking status will be
available in Q-AIMS for each user. Post online approval by the related HR Department,
Applicants can take a print-out of the application form.

v)

Application Approval: On submission of application, the concerned HR Department

will receive a mail on this regard. HR Department can Approve / Reject the application
online after verifying the employment details as available on Q-AIMS against the
records maintained internally

vi)

Wait-List Generation: Wait-list queues will be auto-generated by Q-AIMS for different

allotment categories based upon applicable rules of seniority available to the Township
Department.

vii) Quarter Availability: As and when the Quarters fall vacant it will be listed in Q-AIMS and
will be available for allotment.
viii) Short listing of Application: Through Q-AIMS, Township Department will be able to
short list the eligible applicants based upon Company policies. Provisional allocation of
Quarters will be of two types classified as Normal Allocation and Out of Turn
Allocation depending upon Types of Quarters. Necessary intimation will be sent via
LAN mail and SMS to short listed applicants seeking their response to the offer:
ix)

Quarter Preference: All short listed applicants will be able to respond with their order
of Quarter preference by punching in their Quarter preference in Q-AIMS itself within
stipulated time.

x)

Quarter Allocation: Based upon the response received from the eligible applicants who
have been communicated to respond with their order of preference within stipulated
time, Township Department will be able to allocate the Quarters based upon applicable
seniority rule. Necessary intimation will be sent to eligible applicants and their
respective HR Dept. to occupy the Quarter within a defined time frame. Further the
booking status will be available in Q-AIMS for each user.

xi)

Quarter Allotment: On handing over the keys of the Quarter, Township Department will
print the Quarter Allotment Order after capturing the Date of Occupancy. Each
Quarter Allotment Order will have a unique Quarter Allotment Number and will be
signed off.

xii) Quarter Vacation: All necessary information for the Quarters due to be vacated by the
virtue of retirement of the Resident Employees will be available in advance to Township
Department.

24

Out of Turn: Township Department will be able to allocate the 5% on Out of Turn basis by
clicking Out of Turn button. On clicking this button a new web page will open where
Township Department will key in the entitled employee's Quarter registration Number and
assign reasons and approval reference from the competent authority for Out of Turn
allocation. The reasons will be available in the drop down bar.
Reports & MIS: Following reports will be available in PDF exportable format
i)

Quarter Occupancy

ii)

Vacant Quarters

iii)

Wait-list Report

Mobile Phone enabled information: SMS will be sent to the registered mobile phones of the
applicants regarding the confirmation of registration , Quarter registration number , and
finally regarding the allotment.
Language: The information on the webpage should be available in Hindi, Kannada and English
languages.
Conclusion: The Human interface in the Quarter allotment system would be totally
eliminated. Good governance through IT enabled processes would bring in transparency as
well as accountability, and make the process extremely efficient.
Leveraging Technology in Township Maintenance
Imagine a township that has clean, wide and congestion free roads, tree lined avenues, lots
of greenery, uninterrupted power supply and clean tap water that is safe to drink. In HAL
township, that is an everyday reality, thanks to the Maintenance Departments of HAL. The
respective maintenance department manages the company's water, power, sewage, roads,
solid waste management and integrated township maintenance. With a limited manpower,
resources & keeping paper based records the maintenance of townships consumes countless
hours and can result in data errors and omissions. In addition to saving time and reducing
paper work for the department, the application of technology will also ensure record
keeping, reporting requirement while improving efficiency.
Present System
Majority of the service request are raised by the residents by submitting filled-in complaint
forms manually at the township office or sometimes over telephone. The township officials
will the register the complaint in the respective ledger and give acknowledgement with
ledger number which is also the priority number. The maintenance people attend the
complaint by categorizing the nature of complaints.
At present the complaints are solved within 2-3 days. Once the work is completed the
residents will acknowledge the work completion certificate. Neither the feed back system
nor the details of the assigned worker is available to the complainant. No structured time is
maintained for the completion of work. The daily report of the work attended are made

25

manually. Once the complaint is registered the residents are left in the dark with uncertainty
regarding the status of their complaint hence repeated follow up is required from the side of
the complainant.
Thus the need for application of technology is inevitable in the following areas for improving
the service and transparency in township maintenance:
Automated Township Complaint Management System:
Present System: The township residents and other users are physically visiting the
concerned maintenance departments and filing the complaints manually. The present
systems of complaint lodging is time consuming and always carry the uncertainty As stated
there are 17510 quarters spread across the different townships of HAL at various stations all
over India. Managing the complaints of the above quarters is a Herculean task for HAL
maintenance department.
Suggestion for good governance: The automated complaint registering and issuing of work
order through Complaint Management System for prioritizing, performing and recording all
maintenance and repair requests for all HAL buildings and township is the necessity of the
hour. The Complaints management software could record, resolve and respond to customer
complaints, requests as well as facilitate any other feedback within a short duration of
time. Paperless, transparent and hassle free environment could be given to our township
residents.
Except in an emergency, the online work order system shall include the following information
for a request for work before work begins:
a.

The name of the person & Date making the request;

b.

The appropriate approval and date

c.

The location of work requested;

d.

The priority level (for example, urgent, high, average, low);

e.

The scheduled date(s) of service;

f.

A projection of the Trade, materials and supplies needed for the work;

h.

The name of the employee(s) working on the order.

i.

Feed Back from the end user and rating of the Service.

Water Management: When you conserve water, you conserve life.

Bangalore water supply and sewerage Board (BWS&SB) is generating 1450 Million Litre daily
drinking water from the Cauvery water scheme and it is losing approximately 30 % of the
above water through transmission which is one of the highest in the country.
The requirement of water for HAL Bangalore, on average, is 6600 Kilo Litre per day for its use
in townships and factory. This requirement is met from the supply of 6000 Kilo litre per day
from BWS&SB and our own generation through Borewells in HAL estate . HAL is paying Rs 134
Lakhs per month towards BWS&SB water bill. The loss of water through transmission & other
way is approximately 10-15 % in HAL.

26

The above figures emphasize the need for technology to minimize the wastage of water in
HAL and the following technology could be
1.

Conduct water audit to identify the areas for improvement for the conservation.

2.

Implement modern distribution management viz Replacement of age old /corroded

pipe lines, Overhead tanks, effective pumps etc.

3.

Timer based daily water supply in staggered hours.

4.

Use only ISI /Star rated fixtures to minimize water loss / high consumption.

5.

Implement Supervisory Control and Data Acquisition (SCADA) for achieving good water
management.

6.

Fix online water meter , pressure meter to determine water/ pressure loss.

7.

Adopt RWH for use and improve ground water.

8.

Improve quality of recycled water by adding sewage treatment plant in townships and
use recycled water for non-potable use.

9.

Fix automatic switch /level controller for elevated reservoir /water sump to prevent
water loss through overflow.

10. Establish 24 7 consumer care centre with toll free number.

Rainwater Harvesting (RWH)
Since HAL is a gigantic organization with vast number of buildings , adopting Rainwater
Harvesting through the water collected from the roof catchments is easily available for use
in potable and non-potable purposes. Since rainwater is collected using existing structures,
i.e., the roof, rainwater harvesting has few negative environmental impacts. Rainwater
Harvesting could help the organization to be an independent water supply during regional
water restrictions and to be a supplement in the main supply. It saves money on utility bills
and better for landscape, plants and gardens because it is not chlorinated.
Since 2007 the Bangalore based divisions like LCA-LSP, Helicopter, CMD, Aircraft, Overhaul,
Aerospace, Medical and Health , Aero engine and some residential quarters are installed with
RWH facility.
Purpose:
1)

The water collected through the RWH is directly diverted to aquifer for the ground
water recharging.

2)

Certain quantity of water is collected in the sump for non-potable uses like gardening.

Outcome: The approximate one time investment for the above RWH facility is Rs 100 Lakhs
and more than 1 million litres of water per year is collected from the Bangalore based RWH
facility.
Solid Waste Management
The above said 17,510 residential quarters of HAL pile up tons of solid waste per year. This
waste itself is a source of energy for HAL , if it is converted into Bio-gas. Residential colonies
could be installed with Organic Waste Converters to convert kitchen and other organic wastes
into garden manure. Besides it saves crores of rupees spending on the contracts for
27

collection and transportation of solid wastes from the townships.

In 2012 Facility Management Division of Bangalore complex has initiated the above as a pilot
project under sustainable development by commissioning 02 units of Bio-Gas plants with
1000 & 500 Kg /day each and 1 ton capacity each of 2 Organic Waste Converters. Till the end
of August 2013 the above 02 Bio gas plants processed 62 MT waste and generated 2140 M
(Cubic Meter) Bio-Gas which is equivalent to 85 Nos of Domestic LPG cylinder of 14.5 Kg
each. The Bio-Gas thus generated was utilized for the cooking purpose in the mess of
security personnel.
With the above 2 Organic Waste Converters(OWC) between January and August 2013, 26
tons of segregated organic waste were processed and 4.3 tons of manure were utilized in the
HAL landscapes.
Future Plans
The Bio-Gas could be used as a major source of power hence the capacity of Bio-Gas plants is
planned to be increased so as it could be used for generating electric power for the street
lights and DG sets.
Good Governance and Energy Conservation
LED Technology
The estate area including factory, township and welfare organizations of HAL is spread
across 2500 acres(Approx). Currently the common areas are illuminated by using 150W/
250W HPSV or MH street light fittings. Approximate power consumption of these fittings is
180W & 280W respectively including choke losses. Monthly HAL Bangalore is paying
approximately Rs 4.5 Crore against the electricity bill. Besides the above fittings are also
emitting Co2 which is green house gas.
Since the sources of energy are depleting every day the consumption of energy has to be
reduced in all fronts. Using the LED technology around 50% power can be reduced without
much sacrifice on the output of light.
For example 150 HPSV /MH street light fitting can be replaced with 70W to 80W LED fittings
and 250W HPSV/MH fittings can be replaced with 125W to 150W LED fittings. Similarly, office
areas where 36W fluorescent tubes can be replaced with 18W LED retrofit LED tube available
with different brands. Also, where ever 2X36W CFL recessed mounted fittings can be
replaced with 36W LED fittings. The above figure demonstrates that approximate 50% of
power consumption can be reduced by adopting LED lighting.
Recently conducted Energy Audit reveals that if LED lights and other energy saving electrical
equipment are adopted in FMD and Airport Service Centre the estimated conservation of
energy and cost saving will be as follows:
Estimated Annual energy Savings
885359 KWh
4325 KVA

Estimated Annual Cost Savings with LED lighting

Rs 61.70 lakhs

28

Occupancy sensor
Occupancy sensors are simple devices that are found in many lighting systems. The sensor is
capable of identifying when a particular space within a building is occupied, and adjusts the
lighting, heating and cooling, and other appliances accordingly.
There are two common forms of use associated with an occupancy sensor. One is a means of
lowering utility costs. When no one is currently occupying a given area of the building, the
sensors note this and will turn off unnecessary lights as well as adjust temperature controls
slightly. This helps to minimize the use of electricity during those periods when the space is
not in active use. As someone enters the space, the occupancy motion sensor recognizes the
movement and automatically brings up the lights and adjusts the climate control equipment,
allowing the individual to be comfortable while in the room.
The above technology could be used in the offices / shop areas which are occupied 2 to
3hours in shift time or in offices where officers are moving to different areas for inspection
& meetings.
Solar Energy
Solar energy is one of the biggest natural resource of India. Solar power is clean energy with
little environmental impact, and does not release air pollutants or noise while it is being
generated. The distance between the point where the energy is generated and consumed is
short and therefore keeps power loss minimal during supply. With few moving parts in its
system it has no mechanical corrosion and long life. Above all, it benefits from an infinite
source of energy.
The colony street lighting and the electric water heaters installed at the HAL Hospital could
be replaced with the Solar Based power for reducing the consumption of the traditional
source of energy. By adopting the Solar Based Power at HAL hospital for the water heaters
itself the estimated annual energy savings will be 82,800 KWh which amounts to an
estimated annual cost saving of RS 4.55 Lakhs.
CNG for Vehicles
HAL Bangalore is having 850 (approximate) vehicles including 2 wheelers. At present we are
procuring 24,000 litres of diesel and 16000 liters of petrol per month for the above vehicles.
Thus HAL spends approximately Rs 3.5 Crore per year for the procurement of fuel for
vehicles.
CNG(compressed natural gas) is a very viable alternative to traditional fuels particularly for
use in the automobiles. Being low in pollutants, high in calorific value and heat yield,
economical and available in abundance globally, CNG is the perfect alternative for the most.
Advantages
1)

CNG costs about a third of the cost of Petrol in terms of calorific value resulting in
substantial saving in fuel cost. Any investment made on the CNG kit is paid back within a
short period.

29

2)

Secondly, CNG is environment friendly as it reduces vehicular exhaust emissions

significantly.

3)

Also, theres a 100 per cent Income Tax Depreciation that Corporate Organizations and
firms can claim on the CNG Conversion Kit as this is a pollution controlling equipment

Contract Management Software

Visibility, monitoring, and compliance are key in managing contracts more efficiently.
Without insight such as this, it is difficult to manage contractual risk. HAL is dealing with
many hundreds of small and big contracts pertaining to production and service works. Like
any other mammoth organization, for HAL too it is a Herculean task to keep track the
progress and status of different Contracts engaged with many number of third parties.
Hence an enterprise-class, web-based solution that is highly robust and scalable utilizing
advanced technologies is required to assist in a broad range of business/service related
contracts of HAL.
Advantages
Reduce Contract Cycle Time
Contract Lifecycle Management assist in eliminating common bottlenecks spanning the
contract creation, negotiation, approval, and renewal/termination processes. The direct
result from eliminating these potential bottlenecks is faster contract execution within your
organization.
Enhance Employee Productivity
Now more than ever, organizations and their employees are expected to do more with less.
These stresses on productivity often lead to unwanted or unintentional shortcuts and
omissions. The Contract Management Software doesnt just automate common contract
management workflow processes, it has the ability to streamline processes by eliminating
steps altogether.
For example, the required steps to send a contract for financial approval could be based on
criteria such as the contract value and type of contract. Depending on the information
provided, tasks and information would be automatically routed to the necessary business
people, rather than a person needing to intervene and review the contract to determine its
next steps.
Real-Time Risk Visibility
HAL have contracts scattered across varies divisions or in departmental systems, often
locked in filing cabinets or hidden on individual employee hard drives. With such timesensitive data and information scattered and decentralized, the risks and potential business
losses increase exponentially. All the stake holders of the contract process or any other
departmental entities will have with instant access to every contract or agreement through
a central, unified contract repository.

30

Sustain Profitable Agreements

Contract Management Software offers real-time visibility on any and all existing committals
and agreements. This real-time visibility provides a competitive advantage in negotiating
new agreement terms and in consolidating committals and agreements with the best terms.
Timely Contractual Obligations and Key Milestones
Traditional filing approaches taken by organizations all to regularly leave key contracts and
information forgotten in massive stacks or cabinets, with important obligations missed.
With the workflow capabilities it can be ensured that the employees actually follow
through on important items and reach critical milestones. With the templates for
escalations, sequenced processes as well as tandem processes it can be ensured each of the
companys obligations and milestones are met in that manner deemed necessary.
Guest House Management In HAL
Atithi Devo Bhavah
HAL has 19 Production Units and 10 Research & Design Centres spread across in 8 locations in
India. Since the Corporate Office is situated in Bangalore, being the 'Indraprastha' of HAL,
thousands of officers working at the out line divisions are bound to visit Bangalore for
various official reasons, similarly hundreds of officers are duty bound to visit the above said
different divisions on job rotation, transfer temporary duty etc. To serve the purpose of
accommodation of the above officers HAL has following facility at its various locations
operating on 'no profit no loss' basis:
SL No.

Division / Location

Total No of Guest House Rooms

Korwa

58

Kanpur

20

Lucknow

30

Koraput

30

Barrackpore

06

Hyderabad

13

Nasik

26

Corporate Office

03

Bangalore

22

10

Chennai

04

11

Mumbai

10

12

Delhi

17

13

Vishakhapatnam

07

Total

246

31

Even though the above accommodation facility is inadequate when we compare with the
mammoth congregation of HAL officers , bringing in transparency, efficiency and
accountability would give comfort, peace and satisfaction

to our fellow officers turned

'Guests' in their planning , journey and stay at various locations of HAL.

Present system
Currently the requests for the Guest House rooms are communicated through LAN mails or
over phone by the end user. The conformation regarding the booking of rooms or the non
availability of the rooms are communicated back to the applicants through the above said
communications. The communication regarding the non availability of rooms will be treated
by the officers as NoC for further arrangement of booking at the HAL approved hotels
according to the company prescribed eligibility criteria.
Drawback
Uncertainty for the officers of out line divisions in planning their journey and
accommodation at

their destination. Complete procedure of booking the rooms being

manually done. Lack of transparency and accountability in the reservation of rooms and at
times, under utilization of the available facility which cause financial burden on the
exchequer of the company through the claims on Hotel Accomodation.
Suggestion for good governance
Guest House Reservation Management System
LAN based software could be developed for the management and reservation of the Guest
house. The real time room booking system offers an assortment of features as follows:
i)

Easy room management system

ii)

Booking of rooms from any location

iii)

Keeps database of reservations well organized with 24/7 monitoring

iv)

Confirmed room bookings

Users
All the officers of the HAL could be enrolled as user with their PB number. The registered
users will get a login ID and system generated password which can be further customized by
the user.
Booking & Cancellation
An officer could be able to log on and make reservations directly from a LAN connected
computer and check their room availability. While booking the rooms, the reference of the

32

note sheet approval or movement order reference should be entered in the specific
authentication template. Once the room reservation is confirmed the same could be able to
print. When the officer reach the Guest to occupy the rooms a copy of the reference
regarding the authentication which entered during the reservation should be submitted at
the reception for allotment of the room.
Similarly cancellation of the booked rooms could also be done by the user with proper reason
and authentication reference to avoid off-key booking and blocking of rooms.
NoC
If the rooms are not available, a system generated certificate regarding the Non-availability
of rooms will be available for the user which could be used as NoC by the officers for further
arrangement of accommodation as per the company policy.
Booking status
Information regarding the vacant rooms as well as the prospective date of vacancy will be
displayed on the site. Users could view their application status and plan their itinerary
accordingly.
Advantage/Benefits
i)

Maximum utilization of the available rooms in the Guest house and thus saving
expenditure occurring as Hotel rents.

ii) Alleviating the uncertainty in the planning and booking of rooms for the officers on move.
iii) Bringing in more transparency, accountability and appropriateness in the reservation of
rooms.
iv) To ensure that the officers have an enjoyable and hassle free stay at their destination
Conclusion
A review of the facilities Management set up in HAL reveals that their is tremendous scope for
introducing good governance measures through leveraging of technology. Effective
implementation of good governance measures through induction of technology would
provide transparency and transformational change. It can be a strategic tool to prevent
corruption by plugging loop holes. It is high time that we brought technology centre-stage in
the fight against corruption and also to bring in the Employee welfare measures more
transparent to increase the productivity of organization and promote healthy industrial
relations.
(Renjith R is Masters in Business Administration. He started his career as a Sub-Inspector in CISF. He joined HAL Security
Department in 2006. In 2010 he was selected in Vigilance Department. Presently he is working as Deputy Manager
(Vigilance) at FM Division).
33

Good Governance: Production Planning

& Material Management

S K Chaurasia

In any organization production planning and materials management are interrelated key
entities which regulate and confirm the forward movement of an organizational goal. Both
production planning and material management are interlinked with an essential object
called the business processes.
The business processes are not frozen for any industry at large; instead these have to be
customized just like a design chain. Business process of a manufacturing company like HAL
would seeks to streamline and integrate operations, processes and information flows to
synergize production activity. In this regard to bring uniformity across HAL and anticipate the
benefits that come with ERP, customization of package as per the rules which are frozen in
form of Stores Manual, Methods (MSD), Purchase Manual and Finance Policy is just a head
start. It is therefore equally essential to adopt emerging methodologies included in ERP
package rather than redefining processes within. ERP is thus a mirror image of the major
business process of an organization.

In ERP, these business processes are realized as integrated computer based application by
modeling traditional management functions to facilitate flow of information used to manage
internal and external resources including material. HAL being mammoth in size and
encircling diverse operations the following are the impediments observed:
i) Materials and manufacturing are dealing with inconsistent levels of raw materials and
finished products.
ii) Change/Amendments are not made timely leading to inaccurate forecast.
iii) Inadequate information from other divisions.
iv) Obsolescence of parts and its management.
v) Liaisoning with Licensor / Collaborator for latest developments and implementation.
34

IFS-ERP project was introduced with a vision to integrate various modules accessing a
common database for substantially reducing inventory, decreasing delivery cycle times,
reducing operational costs and improving manpower productivity.
To achieve the vision the task now needs to be allotted to the end user of various groups to
perform their roles. Roles are a way of grouping users together according to what parts of the
system they are allowed to work with, this call for requirement of an administrator. More are
the roles created, even though small, would make a person accountable for the veracity of
inputs. The administrator needs to wear many hats, in addition to system administration he
needs to provide an information security framework. IT Security Policy 2012 of HAL is a step
towards dealing threats in a proactive and timely manner. The Security Policy should
maintain a fine balance between information availability and confidentiality. If the integrity
of the information is above board and the information is confidential, but it is not available to
authorized users, it is of no use. It is viewed practically in HAL that there are very fewer roles
defined by ERP administrators leading to open information for non related users. Even though
information security is not a part of the business process but still carries much weight age for
everyday event.
ERP is a tool which connects to real time data and transactions in many ways as defined. For
example if a particular shop representative wants to get a particular tool issued through
material requisition in ERP there can be many layers of checks before a request number is
allotted:
a) it can directly allot a number after filling minimum possible details apart from part
number, and now it depends upon the store keeper to check if it can be issued to the shop
representative or not;
b) The system itself checks whether the tool can be issued as per the tools authorised based
on SOP documents for the designated shop floor and then allot a request number else
prompt using a dialogue box ;
c) Moreover it can even check whether the representative making the demand actually
belongs to the particular shop location. Therefore it depends upon the level of basic data
grouped together for getting more reliable information. It is required that sufficient
background effort and training is imparted so that it is not required to make essential
data (to be entered) as redundant for operational ease. In some HAL divisions it is
observed that various departments use manual issue vouchers and the store keeper in
turn creates a corresponding ERP entry.
Reliability of information in Production planning and material management modules in ERP
also depends upon defining the basic data. It is therefore required to maintain the integrity
of these inputs as these are neither created nor changed frequently. Furthermore outcome
due to a change in these parameters may not be recovered easily due to real time changes. Ex
Unit code of an inventory part or bank details of a vendor.
Production Planning (Manufacturing)
In IFS manufacturing process starts from creation of an inventory part (i.e. Part No and Part
description). These details are used by IMM and Manufacturing jointly. Internal Product
35

structures are defined. Part and products are then scaled together using structures which
define the utilization of part with respect to modules in terms of quantity. Routing tables are
created for every product which clearly defines the kind of operation and work centre
allotted. Documents/drawings can be added to the product structures at this stage. A shop
order is an electronic document that authorizes the manufacture of a specified part when a
shop order number is entered; the system creates material requirements and schedules
operations. The system retrieves operations and structures according to the part,
alternative, and serial number that are entered
It is observed that the user department cannot trace the inventory lot/batch issued through
Shop Order because the raw material or parts have been issued manually but not updated in
IFS. It further leads to non accountability and no responsibility fixing.
To recover from the slip mentioned above in some case the user department is at given an
option to delete one or more lines from the product structure in manual reservations made
before creation of a shop order because the part no of the particular structure is not
available in the inventory pick-list. It is to be noted that since ERP is using a common
database every deletion in such case would result in a non reliable data and would affect the
accountability of other modules including finance.
ERP in HAL is not generating alerts or visual alarms for locating low inventory levels or Part
which cannot be manufactured due to non availability of work centre. In case of AOGs time is
of utmost priority, it is pertinent to mention that lack of visual controls sometimes lead to
delay in induction of a repair unit at CAT-D stores because of which Shop is uninformed of its
arrival. Production/ROH being the prime objective, key identifiers are necessary and these
are to be identified in consultation with the end users as it would be different for every
department.

FLOW CHART SHOWING THE PRODUCTION CYCLE IN IFS-ERP

36

Timely updating of records would play the role of a catalyst in effective utilization of
production module ex. Closing of MRB in time for rejection would help in timely issue of new
article (effective in case of high value low stock inventory parts) and thus maintain regular
availability as the production items are diverted to cater the requirement in repair.
Additionally it would help in initiating the process of procurement at the initial stage and
accurate estimation of rejection rate of the component.
The ERP activity in production module is thread based where different departments have to
carry out their respective tasks even after store crediting of a unit/module like marketing,
finance etc. Absence of even one activity halts the process of induction of a module when the
same unit arrives for repair and cannot be introduced in production line (because as per ERP
the unit was never dispatched).
Material Management
Material requisition is created in ERP for a Part No. with requisitioned quantity, wanted
Receipt Date, Tentative Delivery Date, Supplier or the Vendor Code. In case a vendor is not
registered it is done at this stage. The system itself picks the last purchase details for the
requested part no and is displayed in the requisition sheet. Price justification is also prepared
through ERP based on previous entry. Tender entry is made containing fields like the tender
number, bid receiving date, bid closing date, bid opening date, submission date, part
number, part description for which the tender is raised. Post tender the entries of the
received bids are made specifying bid opening date After this, when the bids are closed for
selecting the supplier; a comparative statement as can be seen. After the Bid Received stage
the L1 vendor is finalized either through IFS or manual. Purchase Order is created and
Authorized with price/currency, supplier part description (The description of the material if
it is different from the Standard Description in the field).
Accepting the fact the task is sensitive it is necessary for the ERP administrator to make sure
that the right of deletion of entries is not allowed to any user in these modules. ERP in HAL
doesn't facilitate authorization for creation of a Vendor code, MPR, selection of a vendor for
Tender Enquiry, Entering of bids. The authorization process as per the DOP and Purchase
Manual are carried out in manual mode and later the end status is entered.
Technical Bids are not evaluated in HAL ERP system, it is to be carried out manually . In some
case Comparative statements are not prepared in IFS because there are no option to enter
miscellaneous charges unlike the e-procurement excel feature in HAL portal. In such cases
standalone purchase orders are created which does not have previous tender enquiry
reference. There is no method to load advance payments made to the supplier in
Comparative Statement of Prices.
Arriving at the Lowest bidder is to be done in a fair transparent and equitable manner, to
achieve these it is required that options for loading shipping, insurance, warranty, advance
payment, taxation (more than one) etc are to introduced in the form of formulae which
adhere to the various instructions released from time to time. In ERP, Finance is brought in
picture only after a purchase order is released, it needs to be reviewed for making a provision
that Purchase department should report the bids received to finance for entering the
37

exchange rates and loading factor. In its absence purchase officers have to carry out the same
conversions at their end.
It is observed that Material Purchase Request in IFS is generated by Planning Dept or
Outsourcing Department based on request of the user department. It is recommended that
the user department/ requisitioner is trained to generate the request on their own. It would
help him to track further progress of purchase and draw estimated dates as per the order.

Effective utilization of ERP can firstly be obtained through firm commitment from all levels
of management. It is true that ERP brings in a big cultural change. To develop further it is
required to adopt technology such as bar code entry system. E-Procurement is already in
flow and now its integration with ERP is unavoidable to avoid human intervention. There is a
need to implement authorization levels into IFS as per the relevant manuals and it must be
updated as the manuals are updated, a compliance report from IT Team and End users must
be received to this effect. IFS-ERP gives no customer focus, the customers must be provided
a tool for submitting web based feedback mechanism which can be updated in MRO modules.
Divisions have translated ERP reports into web based query system, these have helped the
users to obtain information even-though they are not familiar with ERP modules.
Conclusion
ERP is not merely computerization of every activity it is actually using information for
business operation and decision making. An ERP implementation done right, can build the
foundation for future growth, and translate into improved productivity, cost savings, and a
much better bottom line. The steering committee of ERP in HAL have a larger role to play not
just for ensuring smooth functioning and extent of ERP system being implemented but to
resolve issues. In order to reap the full benefits of ERP learning is necessary, and importantly
the end users can not be kept at a distance especially in the Go Live stage.
(Sandeep Kumar Chaurasia is a B-Tech. He joined HAL as Asst. Engineer (Elec.) in 2006 at Hyderabad. He was selected in
Vigilance Department in the year 2010. Presently he is posted as Vigilance Officer at AURDC Division Nasik).

38

An Updated Booklet on HAL CDA Rules

Compiled by the Vigilance Department

A Booklet on HAL CDA Rules 1984 and its amendments were updated upto 30th
September 2013 by Vigilance Department as a part of preventive vigilance
initiative. This booklet was released by Directors and CVO on 10-10-2013 at
3rd Key Executive Meeting held at Bangalore

39

National Vigilance Excellence Award, 2013

Maj (Retd.) Srihari and Shri Pradeep Kumar receiving the award
from Shri R Sri Kumar, Vigilance Commissioner, CVC

The investigation conducted by Helicopter Complex has been

awarded the National Vigilance Excellence Award 2013.
The Award was presented by Shri R Sri Kumar, Vigilance
Commissioner, CVC at a function held at Hyderabad on 6th July
2013.
The Investigating team, Shri Pradeep Kumar, Chief Manager
(Vigilance) and Maj (Retd.) Srihari, Chief Manager (Vigilance)
engaged in a painstaking investigation. Unique feature of this
investigation was gathering evidence through verification of user
audit logs in the ERP system to conclusively establish the fraud.

40

Vigilance Innovation Award, 2013

Lt. Col. (Retd) D. Banerjee, Shri Anil Kumar and Shri Raja Dasgupta
receiving the award from Shri Sri Kumar, Vigilance Commissioner, CVC

OLIV is an Online Vigilance Clearance Program conceived

designed and executed by Vigilance Department, HAL.
A completely in-house effort, OLIV handles vigilance databases
and integrates with the HR portal of the Company to issue
vigilance clearance in respect of over 34,000 employees of the
Company.
OLIV has been awarded Vigilance Innovation Award 2013 by Shri
R Sri Kumar, Vigilance Commissioner, CVC at a function held at
Kolkatta on 19th August, 2013.

41

Bi-Annual Conference of Vigilance Officers - Bangalore

September 24-27, 2013

Shri R K Dutta IPS, Addl. Director (CBI) New Delhi

addressing during Bi-Annual Vigilance Officers Conference

Shri Anurag Sahay, CVO making a presentation to

Dr. R.K. Tyagi, Chairman, HAL during the conference

CVO handing over a memento to

Shri Kamal Pant IPS, ACP (Law & Order) Bangalore.

Shri Kamal Pant IPS, ACP (Law & Order) Bangalore delivering a
talk on ''Preventive Vigilance: A must for Sustainable Business:.

Ms. Vismita Tej, IRS, CVO-CCL during her session on

"Leveraging of Technology in lowering corruption"

Shri T Suvarna Raju Director (D&D)

sharing his experience with Team Vigilance.

42

Bi-Annual Conference of Vigilance Officers - Bangalore

September 24-27, 2013

CVO welcoming Shri V M Chamola, Director (HR)

to address the Vigilance Officers Conference.

Shri K Naresh Babu, MD (BC) addressing the officers

during the Workshop on disciplinary proceedings

Workshop on disciplinary proceedings on 24th Sept 2013

Shri A.K.Handa, Chairman (CIGVA) & Shri P.K.Gopinath, Vice-Chairman (CIGVA)

conducting one day Work shop on 24th Sept 2013

Officers participating in a mock enquiry on

Disciplinary Enquiry Proceedings during Work Shop.

Senior officers attending one day workshop on

Disciplinary Proceedings organized by Vigilance Department.

43

Bi-Annual Conference of Vigilance Officers - Bangalore

September 24-27, 2013

Lt.Col. (Retd.) Pradeep Khare, DGM (V) Tech. Welcoming the dignitaries
on the dias during VIGEYE-GPMS workshop

CVO inaugurating VIGEYE - GPMS

at Nehru Auditorium, Corporate Office.

Senior Officers present during the VIGEYE-GPMS workshop

Shri R K Sharma TE, CVC addressing the gathering at

Nehru Auditorium

Shri Atul Garg IT, CVC explaining the modalities of project

VIJEYE-GPMS

Shri R Sri Kumar VC, CVC interacting with Shri Sudhakaran Nair, AGM (Fin)
through Skype during workshop on VIGEYE-GPMS.

44

Good Governance: Computer Consumables

Management

Lt. Col. (Retd.) P L N Sarma

Computer-a device which has given a whole new dimension to the human life. Ever since
Charles Babbage (Known as Father of computers) invented computers, its development
never had a pause. The whole world is dependent on computers, without which, the world
will go back hundreds of years. But to avail this facility, we need to invest in its consumables.
So let us first understand about consumables.
According to the 1913 edition of Websters Dictionary, Consumables are goods that are
capable of being consumed; that may be destroyed, dissipated, wasted, or spent.
Consumables are products that consumers buy recurrently, i.e., items which get used up
or discarded. This study of computer consumables covers Ink (original, remanufactured and
compatible), Toner cartridges (original and remanufactured) and Data media storage
products - CDs, DVDs and memory sticks CD/DVD storage.
Consumable goods are usually excluded from warranty policies, as it is considered that
covering them would excessively increase the cost of the premium.
What are the consumables associated with a computer?

Screen wipes,
Ink cartridges
Lesser Jet Cartridges
Refill kits,
Speakers and headsets,
Mouse pad,
Floppy diskettes
CD/DVD discs,
Printer paper
Labels,
Software CDs,
DMP Ribbons
DMP Cartridges
Printer Legs
OPC Drum
Toner Powder
Green Toner for laser printers
Printer Heads

45

Methodology of procurement adopted throughout

the Divisions: Usually the system prevalent in the
Mig
Divisions is that the user department forwards
Accessories
Complex
Complex
8954905
requisition (MPR/MRP) to IT Dept. Consolidating the
12529349
list of items received from different users IT
Helicopter Complex
3625100
department forwards the same to Purchase Dept. As
per the list enquiries are floated and tenders are
Design Complex
Bangalore
5024893
called for. On receipt of tenders technical evaluation
Complex
is carried out by IT Dept and Order is placed with L1
11731213
Vendor. Average annual expenditure including all
Divisions of HAL it would be 4.5 to 5 Crores. Complex
wise expenditure reflected at right side in the form of
diagram. In all the divisions the process is carried out through Limited Tendering and even in
some of the Division consumables are procured occasionally through other means like:(a)

Proprietary based procurement.

(b)

Petty Purchase/Cash purchase.

(c)

Through agreement with particular Distributor under valued customer offer.

Observations
(a)

No uniformity in procurement of computer consumables across company.

(b)

Lack of optimum utilisation of printing resources.

(c)

No Printing Policy is existing.

(d)

No emphasis on conservation of paper.

(e)

Recurring costs exceeding the printer costs.

(f)

Lack of integrated procurement at highest possible level for a competitive price.

Good governance recommendations in Procurement and Management of Computer

Consumables.
Stages of procurement and management of Computer Consumables items. It is divided into
the following sub-sections:
I.

Ordering and Procurement

II. Storage and Stock Control

III. Disposal of e-waste
Ordering & Procurement
Estimating and calculating requirements
When we have decided what computer consumables we need, we then need to calculate or
estimate what quantities of each of these items is required. It is important to order the right
quantities. Ordering too little (under stocking) will affect our day to day office work.
Ordering too much (overstocking) will result in a buildup of stock and wastage, for example

46

of items that are not used before their expiry date or that become spoiled if unused for too
long, as well as tying up valuable funds unnecessarily.
The amount we order will depend on factors that we can anticipate, such as how much stock
is normally used, how many items normally consumed, specific demands, how often we
place an order, and the storage capacity. We may also need to order a limited quantity of
extra stocks of some items for contingency.
Order Quantity based upon Lead time & Stock Level/Reverse Stock
AMC (Avg Monthly Consumption)

= Total quantities issued in the time period/

No. of months in the time period

Reserve stock

= 1 month if lead time is 2 months

Minimum stock level

= Reserve level + Stock used during lead time

Order quantity

= Time between orders x AMC

Maximum stock level

= Reserve level + Order quantity

If the above method is too difficult, a simpler method is to calculate the quantity to be
ordered by adding the annual amount required to the annual reserve stock and then
adjusting the total to the supply period.
Ordering Guidelines
Running out of supplies is a serious problem, and having an oversupply is a waste of money
and space. The Maximum and Minimum (Max/Min) system is a common system for keeping
the right amount of supplies and to make sure that we never run out of stock. There are
several variations of the Max/Min system and there are also different ways of calculating the
maximum, minimum, and order quantity. In some systems, we have to make orders
according to a regular schedule, for example once a year or periodically. In others, we are
able to order supplies as and when we need to. Use the following to help us to decide
whether or not to place an order:
(a)

If we place orders on a regular basis, order additional supplies if the stock balance is
equal to, or less than, or even greater than the minimum stock level.

(b)

If we order supplies as and when we need them, check the stock balance of each item
and order enough to take quantities up to the maximum stock level. This is sometimes
called a topping up system. Remember that some items are used every day need
frequent reordering to keep stock at adequate levels.

(c)

If the stock balance frequently falls below the minimum stock level, because
consumption has increased, we need to revise the minimum and maximum stock levels.
(If demand has increased unexpectedly or for no obvious reason, report this to our
supervisor.) Review minimum and maximum stock levels regularly, because
consumption patterns and lead times for items change. If we do not review these stock
levels, we may run short of fast-moving items and/or overstock slow-moving items.

47

(d)

If the stock balance reaches the equivalent of 1 months consumption, we need to place
an order. As a general rule, the stock balance should not fall below 1 months supply or
exceed 2 months supply at any time.

Storage and Stock Control

(a)

Organise the stock into different sections for different categories of consumables
items.

(b)

Divide supplies into regular use and reserve stock, placing the reserve stock on the same
shelves behind the regular use stock. Keep a reserve stock of instruments that are used
frequently.

(c)

Rotate stock according to the expiry date using the SLFO (Shortest Life First Out) and
FIFO (First In First Out) rules. Put items that have the latest expiry date at the back and
items with the earliest expiry date at the front. Use the FIFO rule for items without an
expiry date and mark these with the date of receipt.

Practical tips for stock storage and record keeping

i)

Assign responsibility for stock control and the store room and develop written
procedures.

ii)

Keep the store room tidy and well organised. An organised store saves time when
ordering or locating items and prevents stock from getting lost.

iii)

Avoid wastage by rotating stock according to expiry dates and FIFO.

iv)

Make sure store records are completed regularly.

v)

Keep stock cards in the storeroom. This enables the person responsible for stock control
to update the cards after every transaction (ordering, receiving and issuing stock).
Write each transaction on a separate line, even if there is more than one transaction on
the same day.

vi)

Record any stock outs on stock cards and report these to supervisor.

vii) Store stock cards together in a box or keep each card with the stock in the correct place
on the shelves.
viii) Keep and file old cards.
ix)

Carry out random checks to ensure that record cards are being updated regularly and
accurately.

Disposal of e-Waste
e-waste means
As per Ministry of Environment & Forest Notification dtd 12.05.2011, e-Waste means wastes
electrical & electronics equipments, wholes or in part or rejects from their manufacturing

48

and repair process, which are intended to be discarded. These include items such as
computers, cellular phones, stereos, refrigerators, and air conditioners, other consumer
durables, etc.
Toxic Constitutes in e-Wastes
COMPONENTS

CONSTITUENTS

Printed circuit boards

Cathode ray tubes (CRTs)
Switches & flat screen monitors
Computer batteries
Capacitors and transformers
Printed circuit boards, plastic
Cable insulation/coating

Lead & cadmium

Lead oxide & Cadmium
Mercury
Cadmium
Poly Chlorinated Bi-phenyls (PCB)
Brominates Flame Retardant casings cable
Poly Vinyl Chloride (PVC)

Govt of India initiatives:

Various legislations cover different aspects of e-waste
i)

The hazardous waste (management and handling) rules, 1998 as amended in 2008
for Toxic content registration mandatory for recyclers.

ii)

Municipal Solid Waste Management & Handling Rules for non-Toxic content.

iii)

Basel convention for regulating Trans boundary movement.

iv)

Foreign Trade policy restricts import of second-hand computers and does not
permit import of e-waste

v)

Guidelines by Central Pollution Control Board ( 2008)

The guidelines notified in April 2008 - basic guidance document identifying and
recognizing fundamental principles:
i)

Producer Responsibility

ii)

RoHS (Restriction on Hazardous Substances)

iii)

Best practices

iv)

Insight into technologies for various levels of recycling

The guidelines explicitly mention the need for a separate legislation for implementing
Producer Responsibility.
Environment Protection Act provides for separate regulations for waste with distinct
characteristics - Biomedical Wastes (M&H) Rules- 1998, lead acid batteries, the
Batteries (M&H) Rules- 2001 etc.
As per Para 6 of Ministry of Environment & Forest Notification dtd 12.05.2011
responsibilities of consumer or bulk consumer has been defined. Details are as under:
a)

Consumers or Bulk consumers of electrical and electronics equipments listed in

schedule I shall ensure that e-waste generated by them is channelized to authorized
collection centre (s) or registered dismantler(s) or recycler(s) or is returned to the
pick-up or take back services provided by the producers, and

49

b)

Bulk consumers shall maintain records of e-waste generated by them in form 2 and
make such records available for scrutiny by the State Pollution Control or the Pollution
Control Committee concerned.

c)

They also have to maintain records of e-wastes generated by them and make such
records available with State Pollution Control Boards or the Pollution Control
Committees.

Procedures in vogue in HAL are

1.

All defective HDDs make/serial No. are manually entered in a register kept at
computer section and the entry is verified in the presence of representative from
security and computer dept.

2.

The defective HDDs are then kept in a small container and locked.

3.

The containers with the defective HDD are then taken to the crusher and the HDD are
crushed one by one under the supervision of personnel from security department.

4.

The periodicity of the above is done after sufficient defective HDD have been
accumulated or 6 months whichever is earlier.

Leveraging technology to reduce consumption of computer consumables

i)

Digitize the documents and have them in a common store. Provide access to the people
concerned to share documents.

ii)

Provide unique document IDs to documents digitally stored. In internal note sheets and
reports, instead of enclosing these documents, only the document IDs need to be
provided to avoid physically enclosing these documents.

iii)

Extensive use LAN / WAN to transmit messages and documents and provide solution to
backup messages for long-term preservation to avoid printing unless it is unavoidable.

iv)

Circulars and messages circulated through LAN/WAN need to be in digitally signed PDF
format and print option for the file should be disabled.

v)

Collection of data on annual consumption of computer consumables for each

department / each official and to monitor high consumption to avoid wastages.
Development of IT solution to monitor consumption of consumables all by
departmental heads / section heads / individual official concerned.

vi)

Withdrawal of printers and providing scanners for all departments / sections to

maintain e-library of documents all sections / departments.

vii) Restriction on printing of bids received through e-tendering / e-mode. To share and
forward the documents only in e-mode through LAN / WAN for technical and
commercial evaluation. This will not only reduce computer consumables, paper but
also save precious office space for storage of bid documents.
viii) Avoidance of printing of pay-slips / PF statements / Income tax statements. Instead
need to be provided through LAN / WAN. To achieve this, all officials are to be provided
with LAN / WAN ID and access.
ix)

Use of software to share soft documents instead of printed document

x)

Have a web application for all the official transactions that is secured mode of
transaction.
50

xi)

Have modern technological devices (TABs) as alternatives during meetings to reduce

carbon effect.

Recommendations
General
i)

IT based solution for receipt and issue of IT consumables

ii) IT based solution for estimation of requirement based on deployed assets in each
category / model, based on past consumption etc.
iii) Online status availability of stock, provision for reorder level, information on nonmoving / slow moving inventory
iv) Provision for submission of online request by user dept
v) Online status of life expiry of IT consumables.
Specific
i)

Procurement to be in uniformed throughout the company either under Most Valued

Customer or Rate Contract basis considering the volume of procurement.

ii) Printing devices should be controlled and wherever possible central printers should
be encouraged instead of individual printers. Record of soft copy of Number of
prints taken out of a printer to be made available for future estimations and to
control the pilferage.
iii) Printing Policy to be drafted and ensure strict compliance through IT Security.
iv) To conserve paper comply with suggested e-methods as mentioned under
leveraging technology.
v)

Purchase of Printers to be coordinated at highest level especially with regard to

their make, capacity, and cost considering already existing models.

vi) Integrate the Procurement requirements for a better price.

Conclusion: Lastly, with the combination of both external measures (like rate contract,
procurement under Most Valued Customer (MVC) Category, centralized procurement etc)
and internal measures (like proper accounting and issue, centralized printing, using draft
mode on printers, minimum use of colour printers, use of digitized documents rather hard
copy etc) to be applied equally to achieve good governance in procurement of computer
consumables. Though the organization may regulate the procurement of computer
consumables to minimize the pilferage and wastage however it is difficult to eradicate the
misuse unless each individual user is committed for the purpose. Therefore, each employee
should have the inspiration and commitment to follow the rules and regulations in both
letter and spirit in each and every sphere for the overall growth of the organization.
(Lt.Col. (Retd) P L N Sarma joined HAL in 2012 at MRO Division after serving in various appointments in the
Indian Army. Presently he is working as Senior Manager (V) at AD, Hyderabad).

51

Champion Complex 2012-13

Chairman handing over Vigilance Rolling Shield for Champion Complex 2012-13
to MIG Complex, Nasik. Vigilance Team-MIG from left to right are
Shri Amal Kumar, VO-AOD, Shri MS Chauhan, CM-Vig, Shri CK Manjunath, SM-Vig,
Shri SK Chaurasia, VO-AURDC & Shri A Navaneeth, VO-AMD along with CVO

Vigilance Department has introduced the Annual

Rolling Trophy for the Champion Complex. The
concept has been to bring in a healthy
competition and also to develop a sense of
belonging and unity amongst the Vigilance
officers within the Complex. The Trophy has been
introduced last year. This award covers the period
from 01 Apr 2012 to 31 Mar 2013. The parameters
for deciding the Rolling Trophy are as follows:
a)

Leadership and Supervision exhibited by the

HOD Complex

b)

Innovative ideas and practices

c)

Quality of Preventive Vigilance tasks

d)

Quality of Action Plan tasks

e)

Quality of Investigation including cases

developed through sources

f)

Direct Savings achieved

g)

Time bound completion of Tasks

h)

Quality of Reports

Based on above parameters, MIG Complex has

been adjudged as Champion complex during
2012-13.

52

Vigilance Star

Dr. R K Tyagi, Chairman and Shri Anurag Sahay IRS, CVO

handing over the Vigilance Star Trophy and Certificate to Shri Pradeep Kumar, CM (V) HC

Shri Pradeep Kumar presently Chief Manager (Vigilance) joined HAL as Manager
(Vigilance) at Bangalore Complex in the year 2001 and was promoted to
Sr. Manager (Vigilance) in 2007. Subsequently he was transferred to Helicopter
Complex in April 2011. During his tenure in the Bangalore Complex he liaised
with CBI in sensitive anti-corruption investigations, developed cases of
Disproportionate Assets and cases of Abuse of Official position by Officials of
HAL at various levels. Presently he is working as Complex Head of Vigilance,
Helicopter Complex.
He started his career with Customs and Central Excise Department in Mumbai.
Later he was sent on Deputation to the Central Bureau of Investigation (CBI).
On promotion he worked in CBI as Deputy Supdt. of Police in Mumbai.
He was associated with investigations into several sensitive cases like the
Harshad Mehta Scam of 1992, Mumbai Bomb blast of 1993, Corruption cases
against Senior Officers of the Central Government including a red handed trap
of a Joint Secretary Level Officer.

53

Vigilance Awareness Sessions

Shri Ajay Chhabra, SM (V) holding

Vigilance Awareness Session at Kanpur Division

Shri C K Manjunath SM (V) Koraput addressing the audience

on common irregularities during procurement.

Shri Baliar Singh, Manager (V) conducting an awareness session

at Overhaul Division

Shri Joby Joseph, Vigilance Officer taking an awareness session

at Foundry and Forge Division

Shri Yogesh Kumar, VO (ASD) conducting an awraeness session

on Vigilance Information Management System.

Shri Padam Nav Jha, Vigilance Officer conducting

an awareness session at Korwa Division

54

One Day Workshop on Disciplinary Proceedings held on

September 24, 2013 at Bangalore Complex.

Shri Anurag Sahay IRS CVO, Shri K Naresh Babu , MD (BC), Shri A.K.Handa, Chairman (CIGVA) and Shri P.K.Gopinath, Vice-Chairman (CIGVA)
inaugurating the One Day Workshop on Disciplinary Proceedings.

One-day workshop on disciplinary proceedings was conducted by CIGVA (Centre for Integrity
Governance and Training on Vigilance Administration), New Delhi for senior officers on September
24, 2013 at Bangalore Complex. During the Workshops, detailed procedure for conduct of
proceedings were covered and a mock enquiry proceedings was also held.

Shri A.K.Handa, addressing the officers during the Workshop

Shri P K Gopinath, elaborating the stages in Disciplinary Proceedings

55

Good Governance: Stores Management

R V Rao

Stores, is a global word and no manufacturing organization, business entity dealing with
goods, commodities, Government controlled stock yards, can be imagined without Stores
Management.
Stores Management, is a part of the overall function of materials management. In order to
understand the function of the former, it is desirable to have a clear understanding of what
materials management stands for. Beginning with the term management is important to
examine its definition and objectives. Management is the specific purpose of planning,
controlling and implementing.
The term Store, Storehouse, or Warehouse refer to a building or room or place where
materials are kept. Objectives and Responsibilities of the Store function Store in an
organization is primarily intended to assist in the production of goods or services and no
industrial unit of Public Undertaking of any significant size can be efficiently managed
without it.
The major responsibilities of the Stores are identified as following:
i)

Identification of all materials.

ii)

Receipt of incoming goods

iii)

Inspection of all receipts

iv)

Storage and preservation

v)

Material handling

vi)

Packing

vii) Issue and dispatch

viii) Maintenance and stock record
ix)

Stock accounting

x)

Inventory control

xi)

Stock taking.

In the similar lines the functioning of the Stores Department, in Engine Division (BC), has
come up on par with any of the stores, which can be imagined in any of the significant size or
in a larger Aircraft manufacturing industry.
Present system
In stores, role of Receiving Cell is important and hence the scope study is limited to Receiving
Function of the stores. Receiving Cell performs all logistics operations from Customs
clearance to stocking items in holding stores. Receiving Cell generates materials' Receiving
Reports (RR) for all incoming items/components in the division.

56

Items/components purchased from foreign vendors,

are handed over by vendors to our freight forwarder i.e.
M/s. Balmer Lawrie or its agent for shipment. These
items/ components once received in Indian Customs are
further cleared by company appointed Customs
Clearing Agent. Customs Clearing Agent forwards the
documents related to the consignment arrived to stores
department i.e. Receiving Cell prior to clearance as
intimation. Receiving Cell on then allots Air Parcel (AP)
number for each consignment on receipt of intimation Information Flow Chart (Present)
from Customs Clearing Agent.
In stores, Receiving Cell opens the consignment and counts the received quantity for
items/components received against divisional Purchase Orders (PO). On quantity
confirmation, Receiving Cell offers the items/components for inspection to Quality
Department. After clearance from Quality Department, the Finance Department makes the
charges approval for the items. Finally the items/components are located in Holding Stores.
Observations
i)

No real time check on communication of PO release

as well as items/components delivery schedule
information to Freight Forwarder

ii)

It is time consuming to trace consignments which

are not accompanied with proper documents

iii)

Cases of mismatch where physically receipts are not

in line with invoice received, takes a longer time for
resolution

iv)

The consignment details are updated only for the received items/components at stores
and not for the items/components which are in-transit (i.e. items/components for
which vendor/freight forwarder intimates in advance)

v)

Tracking of consignments by staff at the stores takes longer a time as airway bill details
such as House Airway Bill (HAWB), Master Airway Bill (MAWB) are manually entered in AP
registers

vi)

System for timely approvals/submissions of Duty Exemption Certificates (DECs) is not

available

vii) No real time check on consignments pending for RR generation

Good Governance recommendations
New PO releases and their delivery schedule details to be intimated to our freight forwarder
at the time of PO release for ensuring timely delivery.

57

Entering/Accessing consignment details in IFS and

reflecting in BIS portal
An option to enter consignments' airway bill details such
as MAWB, HAWB & flight arrival details to be created in
IFS with reference to PO's for received consignments as
well as in-transit consignments based on the advance
intimation from vendor/freight forwarder. Further AP
details to be assigned automatically by the system on
Improvement in System Information
receipt of consignment arrival confirmation i.e. Flight
Flow Chart (Proposal)
Arrival Date from Customs Clearing Agent instead of
assigning manually and the same is required to be reflected in BIS portal. The AP details to be
recorded for invoiced/received items/components against their respective POs.
Consignment Arrival Status Details information display in BIS portal is shown as below:

PO NO

PO DATE

DELIVERY DUE DATE

VENDOR NAME

ORIGIN

MAWB (MASTER AIRWAY BILL)

HAWB (HOUSE AIRWAY BILL)

FLAG

CONCERNED CUSTOMS
CLEARING AGENT

NO OF DAYS IN CUSTOMS

AIR PARCEL NO

FLIGHT ARRIVAL ON

BILL OF LADING DATE

BILL OF LADING NO

FLIGHT DATE

FLIGHT NO

YEAR

CATEGORY

PROJECT

CONSIGNMENT ARRIVAL STATUS DETAILS

* Expected Arrival Date

Note The statistics for Column A to R to be extracted from IFS, however the data for column
I to R to be filled by the division in coordination with key stakeholders i.e. Vendor, Fright
forwarder and Customs Clearing agent.
Advantages
i)

Real time availability of information on consignments due for Customs clearance

ii)

Traceability of consignments and transparency will improve

iii)

Check on Customs Clearing Agents' performance will be more efficient

iv)

Supply Chain will be further streamlined

v)

Check on vendors consignments will become easier and frequent in route encountered
clearance problems can be taken up with vendors

vi)

Proactive DEC approvals can be assured for timely Customs clearance of consignments

vii) Check on pending consignments for RR generation will become more efficient
58

Good Governance in Returnable Gate Passes (RGPs)

Present system
Division receives/despatches materials against the Purchase/Sale orders raised by IMM,
Outsourcing and Marketing departments. These materials movements are monitored through
gate passes manually. In this article, the scope of study is limited to Outsourcing material
transactions only.
Difference between IMM and Outsourcing procedures for materials receipt/dispatch are
tabulated as below:
Sl.
No.

IMM Purchase orders (PO)

Outsourcing Purchase orders

1.

Mainly receipt activities are involved

except wrong supplies cases

Both dispatch and receipt activities

are involved

2.

Receipts of project materials and

consumable items are directly
accounted against respective PO

Materials are issued/accounted

against Shop/Work orders (WO)

3.

Both foreign and Indian suppliers

are involved

Indian vendors are involved

4.

Customs plays an important role,

discrepancies arises mainly due
to improper documents

Customs role is limited, discrepancies

arises mainly due to quality and quantity
of supplied items

5.

Limited scope for RGPs and NGPs

(Non-Returnable Gate Passes) except
wrong supplies cases

RGPs and NGPs are frequently issued. RGPs are

issued where shape of issued materials are not
changing such as tools, Jigs fixtures whereas
NGPs are issued where shape of issued materials
will change due to machining operations

In case of Outsourcing POs, materials/components are despatched/ received against

respective WO's through RGPs and NGPs as the case may be. These WO's are generated for a
required quantity of finished/semi finished component from the vendors.
Observation
i)

Recording & monitoring entries for RGPs and NGPs are time consuming processes

ii)

Oversight errors are probable as manual entries are not intact in nature

iii)

Accounting of outstanding numbers of RGPs and NGPs is a tedious job and real time
updates are not possible

iv)

Traceability and check on outstanding items i.e. due for deliveries are not efficient

Good Governance and Recommendations

Introduction of Bar-code reading system for Gate Passes
A bar-code reader to be installed at Security gate to make the data entry process intact and
faster compared to prevailing system.
Bar-code tags to be generated by respective PO Initiating Authority (IA) against the
respective WO and its released quantity for dispatch. The bar code tags for two way
clearances (dispatch and receipt activities) to be generated by IA.
59

For dispatch, the bar-code tag to be pasted over issued material by IA

whereas for receipt, issued tags by IA will be pasted by Vendor over
material packing as per the delivery schedule. The bar code reader
will read the pasted tag over material packing/ item/component and
automatic entry will appear in IFS.
Advantages
i)

Margin for manual errors will reduce due to technological leverage

ii)

The RGP and NGP entry making process will become fast and intact

iii)

Duplicacy of data at several stages can be avoided

iv)

Real time information update for RGPs and NGPs

Incorporation in BIS Portal

A module/screen for Gate Passes to be developed/ introduced in BIS Portal which will
provide real time information updates about RGPs and NGPs. Different colour flags can be
assigned for items issued against RGPs and NGPs based on delivery due date i.e. PDR
(Probable Date of Return) . Values of such items can also be displayed for scheduled checks.
A module/screen in BIS Portal for Gate Passes will display details such as GATEPASSES
summary (Table-1); and GATEPASSES released category wise, year wise &
material/component wise.
GATEPASSES details for RGP information display in BIS portal is shown sequentially in
following tables (Table-2 to Table-4) as below:
GATEPASSES RELEASED SUMMARY
NO OF GATEPASSES

GATE PASS TYPE

TOTAL

RGP

NGP

OTHERS

TOTAL

RGP RELEASED CATEGORYWISE

CATEGORY

NO OF RGPs

COMMERCIAL

A1

CONSUMABLES

A2

IDTO

A3

MAINTENANCE

A4

NON-PROJECT

A5

OUTSOURCING

A6

PROJECT

A7

TOOLING

A8

OTHERS

A9

TOTAL

60

RGP RELEASED YEARWISE

CATEGORY

YEAR

2012

OUTSOURCING
2013

PROJECT

NO OF RGPs

PROJECT-1

A11

PROJECT-2

A12

PROJECT-3

A13

PROJECT-4

A14

PROJECT-5

A15

OTHERS

A16

PROJECT-1

A17

PROJECT-2

A18

PROJECT-3

A19

PROJECT-4

A20

PROJECT-5

A21

OTHERS

A22

TOTAL

A6

YEAR

PO NO

RGP DATE

DELIVERY DUE DATE

WORK ORDER NO

PART NO

FLAG

PROJECT

CONCERNED AUTHORITY

NO OF DAYS

TOTAL VALUE

OUTSTANDING QUANTITY

UNIT PRICE

WORK ORDER QUANTITY

VENDOR NAME

PART NAME

CATEGORY

RGP RELEASED MATERIAL/COMPONENTWISE DETAILS

Note The statistics for above tables to be extracted from IFS.

Advantages
i)
ii)

Traceability of materials/components and transparency will improve

Real time information availability for number of outstanding RGPs and NGPs

iii) Real time value updates for outstanding delivery materials/components against RGPs
and NGPs
iv) Check on outstanding deliveries and responsible vendors will become easy and efficient
v)

Check on vendors who do not comply with PDR (Probable Date of Return) schedule

vi) Materials/Components adequacy can be ensured for smooth production run

(R.V. Rao is Masters in Business Administration. He joined the security department of HAL in 1994. He was
selected in the Vigilance Department in 2010. Presently he is working as Manager (V) at Engine Division
Bangalore).

61

Good Governance: Hospital Management

System in HAL

C Venkatesh

In todays world new technologies have revolutionized the way health care is delivered,
monitored and managed. Technology is inherent in all aspects of the health care experience.
The value of technology is its ability to capture and process large amounts of data and to
display data in meaningful ways that optimize communications, support collaboration,
informed decision making and maximize resource use. It can be used to manage hospital
operations such as prevention, diagnosis, treatment, post treatment monitoring and sharing
patient information across care providers.
The idea of leveraging technology to transform hospitals has gained significant momentum.
Hospitals unquestionably are among the public institutions with the greatest need for
sophisticated information systems, both because of the vast amounts of data they handle
and because of their literal life-and-death responsibilities. Technological advancements in
the form of Enterprise Resource Planning (ERP) applications, Hospital Management System
(HMS), Electronic Patient Records(EPR) and newly capable clinical applications have spurred
many health care institutions to use Information Technology (IT) as an engine for
institutional change
Apart from this, by leveraging technology in medical services lot of Transparency and
accountability can be brought into the system which helps in eliminating the scope of
corruption. Technology can also be used as a psychological deterrent in fighting corruption.
Hospital Management System (HMS):
HMS is state-of-the-art software that offers comprehensive solutions to various segments of
Healthcare Industry. HMS is a major step towards adapting technology to improve
healthcare. It provides various Analytic reports to facilitate the Hospitals to obtain a 360degree snapshot of the hospital performance and take proactive decisions. It provides many
benefits which include enhanced administration & control, streamlining of operations, cost
control & improved profitability and promoting corruption free environment. This HMS
solution addresses the issues from multi-discipline angle namely Patients, Doctors,
Pharmacy and Hospital Management Services.
This Software provides both clinical as well as patient care aspects to hospital management.
The software is divided into different modules, each addressing a specific activity of the
hospital and there by facilitating better patient care. Each module can be used as a
stand-alone solution or can be integrated in a phased manner.

62

Various Modules of HMS:

Evaluation of prevailing system with proposed system.

Patient Management
At present in HAL Hospital, the most of the Patient Management functionalities such as
Patient registration, Consultation, Diagnosis, Medical & Lab prescription, Lab Investigations,
Medicines dispensation, Treatment for In-patient and maintaining their medical records are
done on isolated/ redundant system in partially automated manner and these functionalities
are not interlinked.
Present System
i)

Every day hundreds of employees and their dependents are experiencing long
frustrating waits as there is no smooth and efficient appointment scheduling system
such as generating unique ID/Token No. for the patients at the time of registration and
displaying systems placed outside doctor's chamber to show the No. of patients that are
in queue.

ii)

A practical difficulty is being faced by the doctors in going through the patient's past
medical records/ clinical results due to the absence of Electronic Medical Records
(EMR). There is no on-line facility for doctors to directly access the pathological/
radiology reports. This is causing waste of time & resources as the lab reports are
generated in paper mode.

iii)

There is no facility for the doctors to know the real time stock positions of the
medicines and its alternate one, resulting in increase of Not in Stock (NIS) procurement
and loss to the Company. Duplication of work as the medical prescriptions are written
by doctors at the medical book is being typed again in pharmacy stores for issuance of
medicines. The NIS slips are entered (manually) by the pharmacists and have to be

63

counter signed by a pharmacy officer. As a result, patients are made to wait in long
queue and also put extra pressure on pharmacists to handle the peak hour rush.
iv)

There are no adequate controls & measures to check the pilferage of medicines at
Central Dispensary, Ward pharmacy & Post Retirement Scheme (PRS) pharmacy.
(No records available in CD other than computer entry to substantiate that the actual
quantity of medicines are dispensed to patients as mentioned in the system).

v)

There are no checks and balances to control the misuse of medicines by the
employees/patients (availing excess medicines by using duplicate books/ getting
prescription from different doctors (zonal) for the same illness/ collecting chronic
medicines twice or thrice in a month etc).

vi)

Medical & Lab prescriptions are given by doctors are in paper mode. Hence, patients
have to re-register again in the pathology/radiology labs with the doctor's prescription
and wait for their turn. Barcode system is not followed at pathology lab while collecting
the samples which enable the possibilities of samples getting swapped. Patients have
to make repeated visits to labs since there is no system of communicating patients once
the reports are ready.

vii) Outpatient who has been referred by doctor to get admitted as inpatient has to go
through a fresh registration process i.e filling up various forms and completing other
office formalities. Allocation of Beds Transfer Shifting and facility of bed allocation
to relatives of patients are maintained at registers.
viii) Doctor visit activities, diet prescription, treatment sheet, Doctor Standing Instructions
for Medicine, Investigation, Diet Prescription/ Vitals capturing are done in
manual/paper mode.
ix)

Nurse notes, Doctor Instruction follow-up, writing of progress notes are done through
registers and various case sheets. There is no facility for Doctors to monitor the nurse's
activities against the patients from remote location. Among their patient care duties,
the nurses are preparing discharge summary of a patients by going through various
registers, lab reports and case sheets.

Good Governance Recommendations: Introduction of HMS

i)

Patient & Doctor scheduling techniques are most effective in reducing wastage of time
both for patients as well as Doctors. Employees can take appointment with doctors
from their respective Divisions. Alerts to patients on appointments using messages
and appointment reminders. Registration with token numbers across individual
consultants. Facility of waiting patients display outside doctor's chambers.

ii)

Uploading generic documents and external Investigation reports into patient EMR helps
in Doctor Consultation (examination, prescription, investigations and services). Review
of old clinical history and trend reports of vitals and tests values using EMR View. Lab
reports can be accessed through LAN/WAN. Alert SMS's on reports readiness to Patients.

64

iii)

Doctors can view the stock position of the medicines along with their alternates before
prescribing to patients. Doctor's medical and lab test prescription will automatically
trigger request to internal pharmacy for issuance of medicines and to labs for
appointments. HMS facilitates to print and authorize NIS (not in stock) and record the
same for purchase planning.

iv)

Pilferage of medicines can be controlled to optimum level as the registration,

consultation and pharmacy modules are interlinked. The misuse of medicines by way of
availing excess medicines by using duplicate books/ getting prescription from different
doctors (zonal) for the same illness/ collecting chronic medicines twice or thrice in a
month etc., could be restricted by implementing real time report generation facilities.

v)

Lab & radiology modules perfects the sample processing (auto barcode generation and
printing, label printing, sample assertion, sample source, sample/specimen condition,
sample recollection). Automatic status update of normal, abnormal, critical and
impossible values in lab test results. Inventory control of Lab Reagents, X-ray Films,
and Service Consumables.

vi)

X-rays and mammograms are filmless, due to the Picture Archiving and Communication
System (PACs). Centralized storage using Document Management Solution. All these
digital improvements mean cost & time savings and improve the quality.

vii)

Advice for admission as in-patient will be triggered from OPD or emergency diagnosis
and prescription management system. Allocating Wards/Rooms/Beds as per
entitlement. Transfer, Shifting & Facility of bed allocation to relatives of patients.
Operation Scheduling, recording of procedures patient wise & statistical analysis of
patient treatment/procedures.

viii) The wards module tracks the movement of In-patient. Real time data capture of
Doctor's visit activities, diet prescription, treatment sheet, Doctor Standing
Instructions for Medicine, Investigation, Diet Prescription/ Vitals capturing.
ix)

Clinical Data Capturing using Hospital Specific Forms. Automatic issue of medicines in
pharmacy based on doctor prescription. Nurses Activity Schedule (Nurse Notes, Doctor
Instruction Follow-up, Patient Observations).

x)

Writing of progress notes, Monitoring Nurses Activities against the patients from
Remote Location. Automatic preparation of discharge summary/death records. The
casualty module handles cases of medical emergencies and accidents. Scheduling of
follow up visit for both Inpatient and Outpatients.

Inventory & Procurement Management System (Drugs/Non drugs):

The expenditure on drug is increasing every year. Experiences have shown that a
procurement system will become efficient and effective only if efforts are made at all times
and levels to have a transparent & corruption free process and follow the principles of good
procurement practices. The way in which medicines are procured has an impact on prices

65

and accessibility of medicines. Beyond prices, procurement procedures and decisions are
influenced by selection and quantification of medicines. It has to be determined which
medicines are needed in what quantity. The decision about quantities requires specific data
to estimate the expected medicines based on past consumption.
Present System
i)

ERP/IFS/SAP is yet to be implemented in Medical & Health Unit. There are no

classifications of medicines such as Vital, Essential and Desirable. There is no exclusive
vendor directory for Drugs and Non-drugs.

ii)

Material request is being generated by manual mode. Time consuming process (from
raising indent to releasing PO). Procurement of medicines is done on piecemeal basis
i.e. issuing a number of low value purchase orders instead of clubbing the same and
procuring on rate contract.

iii)

Bulk of procurement of Drugs/Non drugs are made on Proprietary basis. Major chunk of
procurement happens through manual mode and hardly 5% of procurement happens
through e-mode.

iv)` Inadequate planning in procurement resulted in non-availability of medicines and

consequently cost of NIS reimbursement is on the rise. Last year expenditure incurred
on NIS was Rs. 2.13 Crore. Average variations in MRP & Quoted price is 38.62%. Hence,
NIS resulted in loss of about Rs 80 lakhs. No database is readily available with regard to
expenditure incurred on reimbursement of NIS & Not in Procurement (NIP).
v)

Every month the list of medicines nearing expiry is prepared by manual mode. No
automated provision to dispense the medicines on FIFO (First In First Out) or FEFO (First
Expiry First Out) basis.

Good Governance(ERP/IFS/HMS)
i)

ERP/IFS/HMS supports very comprehensive inventory management starting from

indents to sales. Implementation of ERP/IFS/HMS will facilitate both doctors and IMM
Dept to take faster and informed decisions.

ii)

Inventory management is divided under various categories and the key functions are
such as Indent Process (Generation, Approval, Processing and Acceptance), Stock
Transfer, Gate Pass Generation, Stock acceptance & Stock Quantity Adjustment.

iii)

Monitoring the various levels of reorder levels and raising the indents for those items.
Multiple Store concept, Sub Stores, Categorizing Items and Stores using Item category.

iv)

HMS support generating or recording of existing bar codes for items. This ensures the
items are tracked easily. HMS facilitates to maintain the stocks based on FIFO (First In
First Out) or FEFO (First Expiry First Out) basis. Various types of Reports can be
generated such as Stock details, Purchase detail, Stock Movement, Stock Transfer and
Issuance.

66

v)

Classification of Drugs & Non-drug items as per VED and ABC analysis. HMS facilitates in
preparing a comprehensive vendor's list under various categorizations. Procurement on
e-mode can be made simple by creating interface between ERP/IFS/HMS and eprocurement portal.

vi)

HMS reports the user about the slow moving, non-moving and the fast moving items by
which the IMM Dept can Plan the Purchase schedules. HMS informs the user about the
Expired Medicines / Medicines nearing the Expiry date so that the user can make timely
decision and return the Medicines & get the fresh batch.

Hospital Administration
Hospital administration is the field relating to management and administration of public
health systems, health care systems, hospitals, and hospital networks. It ensures that
specific outcomes are attained, departments within a health care are running smoothly, the
right people are in the right jobs, people know what is expected out of them, resources are
used efficiently and all departments are working towards a common goal.
Present System
i)

ERP/IFS are yet to be implemented. HR Dept, Finance Dept & IMM Dept work on their
own modules. But, those modules are not interlinked to share the data.

ii)

Salary for the M&H unit is prepared at M&H and processed by FMD. Maintenance &
Contract management for M&H is being done by FMD.

iii)

There is no practice of maintaining database of Medical Equipments, Electronic and

Other Equipments and their Maintenance schedule, complaints & due date for service
etc.

iv)

Various MOUs, Agreements & Contracts signed between HAL Hospital and other
empanelled hospitals/Diagnostic centers are maintained in files/physical mode.
Hence, hospital administration finds difficult in monitoring the expiry of such
MOUs/Agreements.

v)

There are no data sharing facility between HAL Hospital Administration and various
empanelled hospitals with regard to referral cases. Correspondence with empanelled
hospitals pertaining to patient admission, treatment, and payment are made in manual
mode. There is no facility to check the status of bills pending with the various Divisions
for payment.

vi)

Misuse of Ambulance and Transport facilities cannot be ruled out since the same is being
maintained by making register entries. Attendance of JCLs/SCLs is recorded by manual
mode.

Good Governance (ERP/IFS/HMS)

i)

Enterprise resource planning (ERP) integrates internal and external management

information across an entire organization. ERP combines various departments

67

together into a single integrated system, so that the various departments can share
information and communicate with each other very easily.
ii)

ERP/IFS manage all aspects of HR and payroll operations including payroll processing,
Time Office Management, Employee benefits administration, Recruitment & Training,
HR Management Information system, salary statements, reimbursements, PF, ESI,
Performance appraisal and so on.

iii)

HMS facilitates M&H to carry out its maintenance and contract. Facility to Prepare
Weekly, Monthly, Quarterly, Custom Maintenance Schedule for Fixed Assets, Bio Medical
Equipments, Electronic and Other Equipments.

iv)

Facility to store/create hospital Contracts and Licences with value, start and end date,
renewal date, contract type. Facility to upload scanned copy of contracts and licenses.

v)

HMS facilitates for updation of Admission details, treatment plan, cost estimate, no.of
days of treatment through online by referred hospitals. Provision to extract the patient
history from HMS and upload the same on internet module of referral management.

vi)

Ambulance & Transport management modules of HMS helps to monitor the movement of
ambulance by way of recording the phone calls for emergency requests and recording
ambulance service / trips to the patients along with Ambulance number, start datetime, end date-time. Bio-metric attendance system can be used for recording the
attendance of JCLs.

Conclusion
By Leveraging Technology (ERP/IFS/HMS) in Hospital Administration the system can be
integrated endto-end that provides relevant information across the hospital to support
effective decision making for patient care, hospital administration and critical financial
accounting. It also reduces redundant data entry and processes, it shares information
across the departments, it establishes uniform processes that are based on recognized best
business practices, and it improves workflow and efficiency.
Apart from this, technology has the biggest potential for curbing the corruption. By
leveraging technology corrupt practices can be minimized with the help of transparency and
fair practices. Leveraging technology allows greater accessibility, wider reach, instant
communication and dissemination of information, automatic record keeping, systematic
classification and recovery of data, better knowledge management and the sharing of
information.
(C Venkatesh is a Post Graduate in Geology. He started his career in 2002 as Sub Inspector in CISF. He worked 6
years in BEML as Security Officer before joining the Vigilance Department of HAL in 2012. Presently he is
posted as Vigilance Officer at Medical & Health Unit, Bangalore).

68

Good Governance: Procurement System

in HAL

Major (Retd.) Srihari

In 21st Century, Digitalization, Deregulation and Globalization have altered the corporate
landscape and ushered in an era of discontinuity where only certainty is Uncertainty. To
cope with these seismic changes organizations are reconstructing their very business
architecture. In this process of reinvention, there is growing realization that a strong supply
chain management will be a key differentiator between successful companies & laggards.
Procurement is one of the most important activities in Supply Chain Management.
Procurement encompasses procurement of goods, works and services. Procurement by
Government & its various agencies / undertakings is estimated to constitute about 20 to 25
percent of the GDP. As large sums of money are involved, this area is prone to malpractices
and complaints. It is therefore essential that besides the four basic principles of procurement
which are right quantity, right quality, right price and right time; the aspects of equity,
fairness and transparency are also addressed adequately while awarding contracts. Public
Sector procurements must operate within a range of regulations and policies established to
accomplish desirable social as well as economic, financial and public audit requirements.
Hence, transparency in Public Procurement is not just an ethical requirement, but an
operational necessity. E-procurement is one operational tool which enables an organization
to enhance both efficiency & transparency.
E-procurement
E-procurement is the business to business (B2B) purchasing of goods and services through the
internet. It defines the automation of an organization's entire procurement processes using
web-based applications. It is the value added application of Internet and e-Commerce
solutions to facilitate, integrate and streamline the entire procurement process, from buyer
to supplier and back.
Overview of E-procurement in HAL:
With the objective to improve efficiency & transparency in procurement process through
streamlining & automating the procurement process, e-procurement system has been
adopted by HAL w.e.f. 1st Sept 2011. Initially all types of tenders pertaining to IMM,
Outsourcing & Works with estimated value of Rs 10 Lakhs & above were covered under the
system, which has been reduced to Rs 5 Lakhs w.e.f. 1St Sept 2012. However, the following
purchases have been exempted from the ambit of e-procurement:
a)

Purchases through License Agreement (LA)

b)

Purchases through World Wide Catalogue Price (WWCP)

c)

Purchases emanating out of Inter-Governmental Agreements (IGA)

69

Considering the sensitivity involved in Defence procurement, the e-Procurement Portal of

HAL & the Data Centre are completely owned by HAL. The portal takes care of key security
concerns like 'Privacy', 'Authentication', 'Integrity of Data' and 'Non-repudiation' through the
state-of-art technology & bids/ documents uploaded by bidders are encrypted (through DSC)
and the same can be retrieved and decrypted only by authorized HAL users through their
Digital Signature Certificate (DSC). To participate in e-Tenders of HAL, vendors are required
to first get themselves registered on the HAL e-Procurement system.
Scope & Activities presently being carried out in HAL e-procurement portal
a)

Registration & empanelment of vendors in the e-Procurement System

Web Registration: For participating in Open Tenders, Suppliers are required to web
register themselves. This is a onetime activity and is valid for all Open tenders called by
any HAL Division. For registration, a DSC Class III Certificate issued by any of the
licensed Certifying Authorities (CA's) in India is required. In web registration, vendors
are required to furnish only the basic information about the firm, contact details,
details of Digital Certificate & categories under which the vendor wants to get
registered (IMM, Works, HAL, Outsourcing- Service Provider & Outsourcing Sub
Contractor).
e-Registration (empanelment): To participate in Limited/ Single/ Proprietary Tenders,
the web registered Suppliers have to complete their e-Registration activity by logging
on to the portal with Public Key Infrastructure (PKI) and complete the e-Registration
activity. Supplier may select any Division of his choice for submission of the eRegistration Form & upload relevant documents. Once the respective HAL Division
approves the Vendor's e-Registration, vendor will be available in the Vendor's directory
of HAL, which is accessible to all the Divisions of HAL. As per the e-registration forms
vendors/ contractors of works department are grouped into 03 categories (Civil,
Electrical & Mechanical Works, and Service Works) with further sub-divisions. Further
the contractors are classified into categories A1, A, B, C, D, and E as per works contract
manual. In the case of Outsourcing, the type of operations/ manufacturing processes
for which vendors can seek registration have been categorized into 29 groups as given in
the Outsourcing manual with further sub groups. In case of IMM department, based on
the information furnished, vendors are classified into categories Bought out Parts, Raw
Material, Consumables, Tools, GSE/GHE, Capital, Maintenance Spares and Commercial
& Others.

b)

Creation of tender, uploading of relevant documents & vendor selection from the list of
registered vendors available in the e-portal. The system enables importing the RFQ
created in IFS to the e-portal or creation of RFQ on the e-portal itself.

c)

Approval & Publishing of the tender.

d)

Modification Addendum/ Corrigendum in the tender.

e)

Submission of bids by vendors

70

f)

Opening of tenders.

g)

Registration of Foreign Proprietary Vendors (FPV), (who are finding difficulty because of
their administrative/ security reasons) on HAL e-portal without DSC for one time
tendering activity.

h)

Generation of Technical/ Price Comparison statement based on the pre defined

Technical/ price bid format. The comparison statement will map all supplier bids and
display in tabular format as Supplier 1, Supplier 2, etc.

i)

Bid Clarification: Bid clarification module is available in the e-Procurement portal to

obtain clarifications on pre-bid queries and provide response to Bidder queries. After
bid opening, the HAL user can select any/ all the Vendors and ask for clarifications/
documents for scrutiny. The selected vendor shall provide the response to the said
clarification within the stipulated date and time.

Status of E-procurement in HAL & critical analysis

Registration of vendors: Number of vendor's web-registered, e-registered & awaiting eregistration across HAL as on 14/09/2013 are as under:

Department

Web Registered

IMM
Outsourcing

7375

Works
Total

7375

E-Registered

Awaiting
E-Registration

717

68

107

175

22

76

846

1782

It can be seen that the number of E-registered vendors is too less even though most of the
procurements done by HAL fall in categories other than open tenders. In % terms only around
11% of the vendors are e-registered. However, around 24% of the Web Registered vendors
have submitted the online forms & are awaiting e-registration an activity which has to be
carried out by the Divisions. Hence, special effort needs to be made by the Divisions to clear
the backlog of vendors awaiting E-Registration and encourage the balance Web Registered
vendors to apply for E-Registration. Approval of vendors should be done in time bound
manner.
E-Procurement during 2012-13: Number of tenders issued, total procurement, value of
e-procurement & mode of procurement by HAL during 2012-13 is as under:

Tenders Issued

4831

Value of all procurement

8239 Crs

Value of e-procurement

1088 Crs

71

From the data collected and collated for the company, it has been found that in terms of
value, e-procurement accounted for around 13% of total procurement & the average value of
each e-procurement was just about Rs 22.5 Lakhs. Bulk of the procurement activity is being
done outside the e-procurement portal due to exempted categories, which have to be
gradually brought under e-procurement mode to enhance the coverage.
Web Registration: Most of the 7375 web registered vendors have selected multiple
categories for registration. Only 1573 vendors have registered themselves in a single
category. The remaining 5802 vendors have registered themselves under multiple
categories. The top 5 individual / multiple categories under which the vendors are registered
are as under:
Sl. No.

Categories Web Registered in

No. of vendors

1.

IMM, Works, HAL, Outsourcing-Service Provider,

Outsourcing-Sub Contractor

3887

2.

IMM

1033

3.

IMM, Works, Outsourcing-Service Provider,

Outsourcing-Sub Contractor

492

4.

IMM, Works, HAL

296

5.

IMM, HAL

275

Total

5983

It can be seen that more than 50% of the vendors have registered themselves under all the 05
categories i.e. HAL, IMM, Outsourcing-Service Provider, Outsourcing-Sub Contractor &
Works. The same appears to be due to lack of clarity on part of the vendors under what
category they should register. In open tenders the system sends alerts & RFQ / tender notice
to all the suppliers/ contractors who have registered themselves under that particular
category. It is understood that lot of vendors have complained about receiving RFQ's for items
which they do not deal with. There is an urgent need to guide the vendors on this aspect so
that they can select the correct category at the time of web registration. Also, vendors
already registered may be allowed to modify the categories selected by them earlier at the
time of web registration. Also, it is not clear to which department the category 'HAL'
pertains.
Vendor selection: In limited tender, while creating RFQ, the list of web registered vendors is
displayed from which the vendors can be selected. This is causing problems as the system
does not display any details of the vendors i.e. the category of goods/ items/ products/
services in which they are dealing etc to enable short listing. This is so as the information
about the products/ category of items being dealt in is furnished by vendors only at the time
of e-registration & not at the stage of web registration. Further in the case of e-registered
vendors also these details are not displayed thus severely restricting the dealing official's
ability to select appropriate vendors. As a result, Divisions invariably end up selecting only
known vendors or vendors already having dealings with the Division.

72

This issue can be addressed by modifying the system to display the list of e-registered
vendors only in limited tenders. Further, the system should provide filters so that vendors/
contractor's can be selected category/ product/ service wise. Further, in the case of IMM
department, the vendors are categorized into eight groups. Considering the vast range of
items/ products procured by HAL, it is felt that more detailed categorization/ sub
categorization should be done so that the right vendors can be selected.
As per guidelines dealings with a firm/vendor can be suspended or it can be banned by a
Division/ Complex/ Corporate Office/ Govt. This issue has not been addressed in the eprocurement portal. The system should enable the Division/ Complex suspending or banning
a firm to enter the details against the firm's name including the period up to which it has been
banned/ suspended. The system should not allow the concerned Division/ Complex & its
subordinate offices to select the vendor or its allied firms for sending RFQ/ enquiry till the
duration of its banning / suspension. Further, these details should appear against the names
of these firms, so that other Divisions can exercise caution before sending RFQ to such firms.
In case the Banning / Suspension is by Corporate Office/ Govt. then such supplier & its allied
firms should be deleted from the vendor directory.
As per Government policy total of 358 items have been reserved for purchase from Small
Scale Industrial Units including Handicraft Sector. In case of procurement of any of these
items the system should enable selection of firms only registered as Small Scale Industrial
Units. This will ensure compliance with Government policy.
Procure to Pay: Another module of E-Procurement portal is Procure to Pay. This module
provides information to e-registered vendors on following aspects after collecting the same
from the ERP systems of all the Divisions of HAL:
a)

Advances: Provides information about outstanding advances with the vendor.

b)

PO Placed: Provides information about PO's placed on the vendor since 01/04/2012.

c)

Items delivered but rejected:

details.

d)

Items pending for Acceptance: Provides information about the items supplied by
vendor but pending for acceptance including the current status i.e. under physical
verification, under quality check, under acceptance.

e)

Items accepted payment due: Provides information about outstanding invoices of the
vendor.

f)

Payment History: Provides information about the payments made to the vendor with
details of deduction, mode & date of payment.

g)

Status against PO/ Part No: Provides information about PO's placed & supplies made.

h)

Order fulfillment: Provides information about outstanding supplies

Provides information about items rejected with

The following improvements are suggested in the Procurement to Pay Module & its
implementation:
a)

2 way flow of information: Presently the Procure to Pay module is only one way
communication i.e. from HAL to vendors thus limiting its full potential. It is felt that if
information can flow backwards also i.e. from vendors to HAL the benefits will be much
73

more by incorporating features like order acknowledgement by vendors,

acknowledgement of receipt of payment, likely date of supply to be entered by vendors
with provision for updating the status, entering the dispatch details of material
dispatched etc.
b)

Mapping of vendors: On e-registration, vendor is allotted a code. The list of eregistered vendors with their e-procurement code is circulated by Corporate Office at
regular intervals. All the Divisions are required to map this e-registration code with the
vendor code allotted to the vendor in Divisional IFS system. This mapping is required
because ERP system of each Division is independent of others & same vendor registered
with different Divisions has been assigned different Vendor code by each of the
Division. Unless the Division maps/ links the e-registration code of the vendor with the
vendor code of the Division, none of the information pertaining to that particular
Division would be available to the vendor in the Procure to Pay Module. During
interaction & on checking it was observed that the above exercise in r/o all the eregistered vendors has not been completed by the Divisions. This needs to be
monitored & completed on priority.

c)

Presently at the vendor end there is no filter for sorting Division wise the information
being displayed in the various screens of Procure to Pay module. This feature may be
considered for incorporation as the same is expected to be useful to the vendors.

d)

The details of items quarantined with reason should also appear in the screen showing
items pending for acceptance.

e)

Presently the system is providing information of PO's/ Contracts placed after

01/04/2012. It is felt that the system should be modified to display information of PO's
placed prior to 01/04/2012 also where advances, supplies, payments etc are pending.

Alerts by System: Presently the e-procurement module sends auto alerts in the form of
SMS/E-mail to registered vendors on occurrence of any of the following event:
a)

At the time of Web Registration & E-Registration

b)

In Limited tenders - To the selected vendors on release of RFQ.

c)

In Open tenders - To all vendors web registered in that particular category (IMM,
Outsourcing, Works) on release of RFQ

d)

Corrigendum/ Addendum to the tender.

e)

Acknowledgement of receipt of bid.

f)

On Opening of Technical Bid

g)

On opening of Price Bid

It is suggested that the Procure to Pay module may be modified to send alerts on following
occasions also:
a)

Placement of PO/ Contract

b)

Supplies Accepted

74

c)

Supplies Rejected/ Quarantined

d)

Payment made

e)

Notification of scheduled delivery date

f)

PO's & Payments not acknowledged

g)

On issue of Modification in case of suppliers of Outsourcing department.

The system should consolidate the above information from all the Divisions and a single mail
should be sent to the concerned vendor.
Presently, the tendering module is capable of generating Technical Compliance Statement &
Comparative Statement of Prices. However, in case the bids are submitted in multiple
currencies, the system does not convert the prices into single currency for comparison. The
system may be suitably modified so that it is able to generate comparative statement of
price even when the bids are in multiple currencies.
Presently only tendering activity is being carried out on the e-procurement portal. Some
important activities/ features which are yet to be carried out:
a)

Reverse Auction: In this type of auction the role of the buyer and seller are reversed
with the primary objective to drive purchase prices downward. Sellers compete the
obtain business. The Central Vigilance Commission has been stressing on
implementation of reverse auction in HAL on priority basis.

b)

Catalogue Management: Facilitates management of new and concluded Rate

Contracts.

c)

E-Payments: Presently payments to vendors are processed in IFS & payment is made
through Bank via RTGS. The process involves forwarding list of payments to be made
with a consolidated cheque for the total amount to the bank which then processes the
payments. The present system has its share of problems like manual intervention,
reconciliation as bank statement does not give details of individual payments made to
the vendors. This can be overcome by adopting e-payments i.e. online payment
through electronic transfer gateway which will enable direct transfer of payments to
the vendor without intervention of the bank. Similarly the facility for online payment
of EMD, Tender fee etc by bidders can also be incorporated in the system.

Conclusion: Good Governance measures clearly imply that the real benefits of eprocurement can be realized only when the entire procurement process right from the stage
of indent creation to payment is seamlessly integrated. Otherwise the expected gains in
terms of reduction in cost, procurement cycle time, paper work, enhanced transparency etc
will be lost due to remaining system inefficiencies. An integrated end-to-end e-procurement
solution, will lead to win-win situation for HAL as well its business partners i.e. vendors,
suppliers, contractors etc.
(The author served Indian Army for close to 6 years & joined HAL in Vigilance Department during 2002. He has
served in Kanpur, Korwa, Lucknow Divisions & is presently posted as Chief Manager (Vig) at Helicopter
Division).

75

CVC Updates
Sl. Letter No.
No

Date

Contents

1. Circular No. 07/4/2013

Delhi High Court's decision in
LPA No. 618/2012 dated
06.11.12 in the matter of
disclosure of information under
the provisions of RTI Act,
relating to disciplinary matters.

04.04.2013 1. The attention of the CVOs concerned is drawn to

the Judgment / Order passed by the Hon'ble High Court
of Delhi dated 06.11.2012 in LPA No. 618/2012 in case
of Union Public Service Commission Vs R. K. Jain, in
which the issue of disclosure of information/documents
under the provisions of RTI Act, pertaining to Vigilance/
disciplinary proceedings has been considered by the
Hon'ble Court.
2. The Hon'ble Court in its Judgment, has observed that:
The counsel for the respondent has argued that in the
case before the Supreme Court the CIC itself had denied
the information while in the present case CIC itself has
allowed the information. To our mind the same is
irrelevant. The counsel for the respondent has next
sought to take us through the reasoning given by the
learned Single Judge. However, in the light of the dicta
aforesaid of the Supreme Court and which if applicable to
the facts of the present case is binding on this Bench, we
are not required to go into the correctness or otherwise of
the reasoning given by the learned Single Judge. Faced
therewith the counsel for the respondent has lastly
contended that the appellant UPSC in the present case is
not the employer of the officer Shri G.S. Narang,
information pertaining to whom was sought and the
principle laid down by the Supreme Court is applicable to
the employer only. We however fail to see the difference.
The ratio of the dicta aforesaid of the Supreme Court is
that the disciplinary orders and the documents in the
course of disciplinary proceedings are personal
information within the meaning of Section 8(1)(j) and the
disclosure of which normally has no relationship to any
public activities or public interest and disclosure of which
would cause unwarranted invasion of the privacy of an
individual.
Though the appellant UPSC is not the
employer of Shri G.S. Narang, information pertaining to
whom is sought by the respondent, but his employer had
sought the advice/ opinion/ recommendation of the
appellant UPSC in the matter of disciplinary proceedings
against the said Shri G.S. Narang and we fail to see as to
how it makes a difference whether the information
relating to disciplinary proceedings is sought from the
employer or from the consultant of the employer. What is
exempt in the hands of the employer would certainly be
exempt in the hands of consultant of the employer also.
The advice given by the appellant UPSC would necessarily
pertain to the disciplinary action against Shri G.S.Narang.
Section 8(1)(j) exempts from disclosure personal
information, irrespective of with whom it is possessed and
from whom disclosure thereof is sought.
The respondent at no stage set-up a case of the said
personal information being required in public interest. In fact

76

when we asked the counsel for the respondent as to what was

the public interest in which the said personal information was
sought, he replied by stating that an information seeker under
the Act is not required to state the reasons for seeking the
information. That being the position, the need for any
discussion further on the said aspect does not arise.
We therefore, following the dicta in Girish Ramchandra
Deshpande, set aside the judgment dated 13th July, 2012 of
the learned Single Judge and allow the writ petition preferred
by the appellant UPSC, consequently setting aside the order
dated 12th January, 2011 of the CIC.
3. The CVOs may bring the above quoted Judgment/Order of
the Hon'ble High Court of Delhi to the notice of the all
CPIOs/Appellate Authorities of their respective organization,
who may take due cognizance of the same, while deciding the
RTI Applications and Appeals relating to disclosure of
documents/information pertaining to Vigilance/disciplinary
proceedings (including Orders of the Disciplinary Authority).
4. The complete decision of Hon'ble High Court of Delhi in the
aforementioned case is available on its website,
www.delhihighcourt.nic.in in downloadable form under the
head JUDGEMENTS.
2. Circular No. 03/09/13 on
Rotation of Official working
in sensitive posts regarding.

11.09.2013

1.
Central Vigilance Commission and the Department of
Personnel and Training have issued instructions for effecting
rotational transfers of officials posted on sensitive posts. As
per Commission's instructions issued vide letter Nos.
98/VGL/60 dated 15.04.1999, 02.11.2001 and 004/VGL/90
dated 01.05.2008 and 04.01.2012 (for public sector banks) on
this issue, it was prescribed that Ministries / Departments /
Organisations and CVOs are to identify the sensitive posts and
staff working in these posts and also ensure that they are
strictly rotated after every two / three years to avoid
developing vested interests.
2.
The Commission in the superintendence of Vigilance
Administration over the years has observed that such
rotational transfers are not effected in many organizations
due to which officials continue to remain in the same posts for
long periods. Such overstay and continuous postings afford
scope for indulging in corrupt activities, developing vested
interests etc. which may not be in the interest of the
organization. The Commission would, therefore, emphasis
that periodical rotation of officials holding sensitive posts /
jobs needs to be ensured. As such, officials should not be
retained in the same place / position for long by the Ministries
/ Departments / PSUs / Banks / Organisations etc.
3.
Heads / CVOs of all Departments / Organisations are
advised to ensure strict compliance of the Commission's
guidelines and implement the same in letter and spirit.
Further, the CVOs should specifically report the action taken
indicating the number of officials rotated / transferred in the
respective organizations in the Monthly Report of CVOs
submitted to the Commission.

77

Team Vigilance Welcomes The New Officers/Staff in its Ranks

Shri K T Venkatesh
Chief Manager (V)
ARDC Division

Shri Rajeev Bhatnagar

Vigilance Officer
CMD Division

Shri P K Manju
Asst Vigilance Officer
Helicopter Division

Shri Kumar Gaurav

Asst Vigilance Officer
Bangalore Complex

Shri Gurudutt
Sr. Vig. Assistant
LCA Division

Shri C Nanjunda
Vigilance Trainee
Corporate Office

Ms N J Sunanda
Vigilance Trainee
IJT Division

Shri S Sunil Kumar

Office Trainee
Aircraft Division

Smt. Chaitanya
Vigilance Trainee
CMD Division

Ms V Lokeshwari
Vigilance Trainee
Design Complex

Shri H B Ramesh
Vigilance Trainee
FMD Complex

Shri Manjunath S Revanna

Admin Trainee
Bangalore Complex

Smt T V Srilakshmi
Vigilance Trainee
AERDC Division

Ms M P Devishree
Vigilance Trainee
ARDC Division

Ms K Hemavathi
Vigilance Trainee
Corporate Office

Patron-in-Chief
R K Tyagi, Chairman

Editor-in-Chief
Anurag Sahay, IRS, Chief Vigilance Officer

Editorial Board
(Left to Right)

Shri Devendar Singh

VO - AERDC & MCSRDC
Shri R Renjith
DM (V) -FMD
Shri Mani Bhushan
DGM (V) - BC
Shri M A Anandan
DGM (V) - Fin
Shri H K Kamath
DM (V) -CO
Disclaimer: "The contributors have expressed their own views in the articles and the same should not be construed either
as the views of the editors or the official policy of the company"

78

Dr, R K Tyagi, Chairman, HAL with Team Vigilance

Wisdom raises the quality of governance,

The wisdom is the combination of theory and practice.
It makes the ruler more capable and more efficient.
- Chanakya