Indian Aviation Academy

Induction Training Programme

on Junior Executives (AOS)

29 April 2024

General Requirements of
Financial Concurrence &
Delegation of Powers
R D Vishwakarma
Ex-GM (Finance), AAI
 Outline

• Classification of Expenditure
• Requirements of Financial Concurrence
• Financial Concurrence of AA & ES
• Financial Concurrence of Award
• DOP 2021 (Version 2) as Amended

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex GM
(F), AAI
 What is Capital Expenditure?
• Benefit accrues over multiple years
• Creation of asset
• Acquisition of asset
• Addition to value
• Increase in revenue-earning capacity
• Non-recurring

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex
GM (F), AAI
 What is Revenue Expenditure?

• Benefit for up to one year only

• Recurring Nature
• To maintain capacity
• Special repairs

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex
GM (F), AAI
Financial Concurrence

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex GM
(F), AAI
 Requirements of Financial
Concurrence
• What is Financial Concurrence?

• Why is it required?

• Who seeks Financial Concurrence?

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex
GM (F), AAI
 Requirements of Financial Concurrence
Which proposals require financial concurrence?
1. In-Principle Approval?
2. Proposal for AA & ES?
3. Award of Work/Procurements?
4. Negotiation?
5. Proposal put up for Constituted Boards/Committees
having Finance Officer?
6. Ex-post Facto Approval?
7. EOT with or without levy of compensation
8. Proposals under DOP
Financial Chapters
Concurrence & DOP for2 and 3?
JE (AOS)
by R D Vishwakarma, Ex
GM (F), AAI
 Requirements of Financial Concurrence

• Latest Manuals and Circulars/Guidelines

• Delegation of Powers Version 2 (as amended)

• CapEx Budget and Revenue Exp Budget

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex
GM (F), AAI
 Powers for Financial Concurrence

• At CHQ

• At RHQs/APD Grade 1 airports

• At other airports

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex
GM (F), AAI
 Difference of Opinion

• What if there is a difference of opinion

between the Finance and the Proposing
Directorate?
– At an Airport
– At a Region

• What if Finance is overruled?

Financial Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex GM
(F), AAI
 Difference of Opinion at CHQ

• What if there is a difference of opinion

between the Finance and the Proposing
Directorate at CHQ?

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex GM
(F), AAI
 Requirements for AA & ES…
• Justification for the requirement
• Users’ Consultation in respect of Projects in a
Major Airport – AUCC meeting
• Cost Estimation
• Mode of Tendering
• EPC Policy
• Provision of facilities to MoCA, DGCA, etc
Financial Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex
GM (F), AAI
 …Requirements for AA & ES

• Availability of Clear Land/Site

• New Facilities requiring additional manpower
• Total Financial Implication
• Financial implication without CD, GST??
• Revision of AA & ES
• Who is the Competent Authority?
Financial Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex GM
(F), AAI
 Acceptance of Tender…
• AA & ES/PIB Approval before Award
• Budget Provision, Reappropriation of Funds
• Technical Evaluation – Who does it?
• Tender Scrutiny Note
• Reverse Auction
• Comparative Statement

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex GM (F),
AAI
 …Acceptance of Tender

• CVC/AAI Guidelines regarding negotiation

• Is Concurrence required before Negotiation?
• Who can constitute a Negotiation Committee?
• Number of members on the Committee?
• Minimum Level of the Negotiation Committee
Members?
Financial Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex GM
(F), AAI
 …Acceptance of Tender
• Postponement of Opening of Financial Bids?
• Who will ensure the reasonability of rates?
• What if the L1 bid is more than 25% below?
• Rate Contract
• Procurements from GeM
• Benefits under MSME, ‘Make In India’
• Clear Recommendation for Financial Concurrence
Financial Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex GM
(F), AAI
 Limited Tenders

• Reasons?

• From Which Limited firms/parties?

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex GM
(F), AAI
 Single Tender
• Reasons?
• Reasonability of rates?
• What if only a single response is received??
• What if a single response even after extensions?
• Against open tender/limited tender, if three or
more responses are received but only one
bidder is qualified, can we consider it open or
single tender???
Financial Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex GM
(F), AAI
 Repeat Order-Requirements
• Last purchase order not more than----old
• Not more than --% of original quantity
• ‘No downward trend of prices’ certificate by
user dte.
• Last purchase order on competitive basis
• Supplier meets the required technical / financial
capacity in the proposed repeat order.

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex GM
(F), AAI
 Option Clause

CONDITIONS:
• Can purchase additional quantity (upto30%) as per the
terms & conditions of the present contract.
• Procuring Dte to certify no downward trend in prices.
• Within the currency of the Contract.
• The last purchase order was through competitive
bidding.

…Conditions continue
Financial Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex GM
(F), AAI
 …Option Clause
• In case the value of the contract goes beyond the DOP
of the original tender accepting authority, the authority
next higher should be informed. the approval of the
next higher authority up to the concerned Whole-time
Member should be obtained, who shall have full
powers under this para even for the cases where the
original contract was awarded by the Chairperson.
(AMENDMENT NO. 4 DATED 06 FEB 2024
• If the total amount is exceeding the AA&ES by more
than 10%, then the revised AA&ES should be obtained.
Financial Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex GM
(F), AAI
 Foreign Exchange Outgo

• Who can approve Foreign Exchange Outgo?

• Can an officer below a Member approve?
• Who has Full Powers to approve the FE outgo?

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex
GM (F), AAI
 DOP 2021 Version 2
& Amendments thereto

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex GM
(F), AAI
 Delegation of Powers

• Who is vested with all the powers in AAI?

• What does Delegation of Powers mean?
• Why is the Delegation of Powers important?
• Who delegates the powers down the line?

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex GM
(F), AAI
 Delegation of Powers
• What is the ultimate source of powers?
• From where does AAI get its powers?
• What is the maximum power of AAI for CapEx?
• Who can approve if the proposed CapEx goes
beyond the powers of the AAI Board?
• Who can amend delegated powers?

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex
GM (F), AAI
 Changes in DOP 2021
• Structural Change
• Simplification
• Removal of Ambiguity
• New powers
• Increase/Decrease of Powers
• Effective from August 2021
• DOP 2021 (Version 2)
Financial Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex GM
(F), AAI
 Chapters in the DOP…

1. General Information.
2. Powers related to HRM Matters
3. Powers related to Administration Matters
4. Powers related to Revenue Earning Proposals
5. Powers related to Legal Matters

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex GM
(F), AAI
 …Chapters in the DOP

6. Powers related to Revenue Matters

7. Powers related to Procurement of Capital
Goods including Allied Services
8. Powers related to Capital Works
9. Powers related to Revenue Expenditure
proposals

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex GM
(F), AAI
Delegation of Powers
(Version 2)
11 May 2023

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex GM
(F), AAI
 Vitals of Delegation of Powers
• The powers delegated to the officers shall
be restricted to their spheres of
responsibility.
• All proposals requiring financial concurrence
can be approved by the competent
authority with prior financial concurrence of
the Concurring Authority.
• In case of a difference of powers between
the DOP and the Manuals, DOP shall prevail.
Financial Concurrence & DOP for JE (AOS)
Jun 11, 2024 by R D Vishwakarma, Ex 30
GM (F), AAI
 Board/Committees/Sub-committees
Advisory Boards

Advisory Committees

Sub-Advisory Committees

Region/APD Gr1/Station level Committees (RAC)

General Committees
Financial Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex GM
(F), AAI
 Regional Advisory Committee
RAC shall consist of :

• HOD of the concerned Department

• HOD of Finance Department
• Any other HOD nominated by the Competent
Authority
• HOD of the concerned directorate will be the
Member (Secretary).
Financial Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex GM
(F), AAI
 Amendments to DOP 2021

• Amendment no. 1 dated 5th Jan 2022

• Amendment no. 2 dated 15 Mar 2022
• Amendment no. 3 dated 21st Oct 2022
• Amendment no. 4 dated 8th Dec 2022
• Amendment no. 5 dated 9th Jan 2023
• Amendment no. 6 dated 06 Mar 2023
• DOP 2021 (VERSION 2) DATED 11 MAY 2023

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex GM
(F), AAI
 Amendments to DOP Version-2

• Amendment no. 1 dated 15th June 2023

• Amendment no. 2 dated 11th Sept 2023

• Amendment no. 3 dated 21st Nov 2023

• Amendment no. 4 dated 6th Feb 2024

Financial Concurrence & DOP for JE (AOS)

Jun 11, 2024 by R D Vishwakarma, Ex GM 34
(F), AAI
…Amendment No. 1 dated 5th Jan 2022…

The Purchase Committee shall consist of

three officials from three different
departments, not below the level of
Assistant Manager for purchase of more
than ₹ 25,000/- per reference for purchase
under DOP para 9.20 [1.25(d)(iii)]

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex GM (F),
AAI
 Amendment No. 1 dated 5th Jan 2022…
• All GMs, Jt. GMs, DGMs, AGMs/ SMs posted
at any of the RHQs/Airports/Stations/Units
(of any category) shall exercise powers as
indicated in various chapters of the DOP.

• However, in-principle approval shall be

accorded by Unit Heads, i.e. REDs/ APDs of
any grade/any other Unit Head In-charge, for
works/schemes not covered in the approved
Budget/ActionFinancial
Plan. [Para 1.26]
Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex GM
(F), AAI
 …Amendment No. 1 dt 5th Jan 2022

The Pre-Qualification (PQ) and Technical

Evaluation shall be carried out by the
concerned Directorate. A Finance
representative is NOT required. [Para 1.32]

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex
GM (F), AAI
…Amendment no. 1 dt 5th Jan 2022

4.3 (b): For Fixation of Minimum Reserve

Licence Fees (MRLF) and Minimum Annual
Guarantee (MAG) for new Facility:

Powers to RED for RHQ and Grade III and IV

airports
…Amendment no. 1 dt 5th Jan 2022

4.12(a) [ADDITION]: For Approval of Charges for

AAI Equipment / Services:

Chairperson – Full Powers

Concerned Whole Time Members – Full Powers
 …Amendment no. 1 dt 5th Jan 2022
9.10 (d) [ADDITION]: For Advance Payment to
Government Institutions like IIT, CRRI CBRI, etc
for Consultancy Works:

Chairperson – Full Powers

Concerned Whole Time Members - up to ₹ 20
Lakhs in each case
…Amendment no. 1 dt 5th Jan 2022

9.14 (a) [ADDITION]: For Land on Lease or Rental

basis from Government Departments:

Chairperson – Full Powers

Concerned Whole Time Members: Up to 10
years on the recommendation of PAC
 Amendment No. 2 dt 15th Mar 2022…
Amended on 6th March 2023
• The powers for accord of AA&ES shall be
enhanced by 20% in each case over and
above the powers as indicated under the DOP
paras 7.1, 7.3, 8.1, 8.3, 8.4(a) and 9.1.

• Financial Powers indicated in the DOP denote

total financial implications including GST and
all other taxes/duties, etc DUTIES AND LEVIES
BUT EXCLUDING GST[Para 1.39]
Financial Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex GM
(F), AAI
 Total Financial Implication History
DOP Amendment before DOP Excludes CD and GST
2021

DOP 2021 + Clarification Dec Total Financial Implication

2021 includes GST and all other taxes
and duties. NOT for Tender
Amendment 2 Includes GST.
AA&ES Powers increased by 20%

Amendment 6 The Increase of 20% deleted

Excluding GST
… Amendment No. 2 dt 15th Mar 2022

5.5.1[ADDITION]: For Advance Payment of

Arbitration Fees:
Chairperson - Full Powers
Concerned Whole Time Member - up to ₹ 3
Crores in each case
ED (CHQ), HOD (Law) and REDs: up to ₹ 30
Lakhs in each case
 …Amendment no. 3 dt 21 Oct 2022
4.5 (d)[ADDITION]: For Award of Revenue
Earning Contract as per pre-defined
rate/modality like Prepaid Taxi Service, App
based Cab Aggregator Service, Advertisement
on Rate Card basis:

Full Powers to Chairperson, Concerned Whole

Time Members, REDs and below up to APD
Grade IV / concerned DGM
…Amendment no. 3 dt 21st Oct 2022
8.2 (a): For Reappropriation of Funds out of Expenditure
Budget for Budgeted Schemes:

Chairperson – Full Powers

Concerned Whole Time Members: up to ₹50cr(₹20 cr)
Concerned ED (CHQ): up to ₹15cr (₹5cr)
REDs/Principal CATC/APD Gr I: up to ₹15cr (₹5cr)
Power increased at all other levels
“For AA &ES accorded by him or her” DELETED
POWERS UNDER 8.2 (a) INCREASED VIDE AMENDMENT
NO. 6 DT 6TH MARCH 2023.
…Amendment no. 4 dt 8th Dec 2022
7.8: (ADDITION) For Purchase of
new/additional Operational Vehicles (except
staff cars):

Concerned ED (CHQ), REDs/Principal CATC/APD

Gr 1: up to ₹ 100 Lakhs on the
recommendation of PASC / RAC, subject to in-
principle approval of the Concerned Whole
Time Member.
 …Amendment no. 5 dt 9th Jan 2023

9.28 Official meetings/arrangement for

mediation proceedings and related
expenses/conferences/functions/ workshops,
etc
 Amendment no. 6 dt 6th Mar 2023

1.27 (C): If a Project In-charge (Jt. GM level) is

posted for a specific project, he/she shall exercise
GM-level powers till completion of the project or
a period of 1 year, whichever is earlier. The same
shall be withdrawn once he/she moves out of the
project.

Financial Concurrence & DOP for JE (AOS)

Jun 11, 2024 by R D Vishwakarma, Ex GM
(F), AAI
 Amendment no. 6 dt 6th Mar 2023

1.39: Financial Powers indicated in the DOP

denote total financial implications including all
duties/levies, etc but excluding GST.

Financial Concurrence & DOP for JE (AOS)

Jun 11, 2024 by R D Vishwakarma, Ex GM
(F), AAI
 Amendment no. 6 dt 6th Mar 2023
4.5 (a): (EARLIER) In case of a single bid (not
resulting in a single tender) and quoted amount
above 110% of MRLF.
(MODIFIED) (i) In case of a competitive bid (not
resulting in a single tender) and quoted amount
above MRLF
(ii) In case of a single tender and quoted amount
above 110% of MRLF
Financial Concurrence & DOP for JE (AOS)
Jun 11, 2024 by R D Vishwakarma, Ex GM
(F), AAI
 Amendment no. 6 dt 6th Mar 2023
7.10: Purchase of Furniture/Art Effects/Furnishing
Fittings and Fixtures items for Lounges and
Terminal Buildings:

(EARLIER) - NIL Powers to Concerned ED (CHQ)

(MODIFIED) - Powers to ED (Engg) up to ₹ 500

Lakhs per reference.
Financial Concurrence & DOP for JE (AOS)
Jun 11, 2024 by R D Vishwakarma, Ex
GM (F), AAI
 Amendment no. 6 dt 6th Mar 2023
8.1: Administrative Approval and Expenditure
Sanction (AA&ES) for Capital Expenditure of a
Project or Scheme:

Powers INCREASED BY 2.5 TIMES OR MORE

Chairperson-₹300crs(120), Members-₹150crs
(60),ED/Gr1&RED*-₹50cr(18), GM&APD GrII-
₹15cr(6), JGM&APD Gr III-₹10cr(3.6), DGM&APD
Gr IV-₹7.5cr(2.4), OIC/AGM/SM-₹1.5cr(0.60)
*Halved by Amendment no. 4 dt 06.02.2024.
Financial Concurrence & DOP for JE (AOS)
Jun 11, 2024 by R D Vishwakarma, Ex GM
(F), AAI
 Amendment no. 6 dt 6th Mar 2023
8.2: Reappropriation of Funds out of Expenditure
Budget for Budgeted Scheme:

Powers INCREASED TO 2.5 TIMES OR MORE

Chairperson-Full Powers, Members-₹50crs (20),
ED/GR1/RED-₹15cr(5), GM&APD GrII-₹5cr(2),
JGM&APD Gr III-₹2.50cr(0.75), DGM&APD Gr IV-
₹0.75cr(0.25), OIC/AGM/SM-₹0.15cr(0.05).
Financial Concurrence & DOP for JE (AOS)
Jun 11, 2024 by R D Vishwakarma, Ex
GM (F), AAI
 Amendment no. 6 dt 6th Mar 2023
8.6: Approval of Technical
Specifications/Technical Sanction :
(i) In case the actual expenditure exceeds the
original TS by more than 10%, then a Revised
TS is to be obtained from the next higher
authority.
(ii) Approval of TS shall not be required for the
Emergent Works, General Maintenance Works
and works on “Design and Construct”/EPC
mode.
Financial Concurrence & DOP for JE (AOS)
Jun 11, 2024 by R D Vishwakarma, Ex
GM (F), AAI
 Amendment no. 6 dt 6th Mar 2023
8.12: Extension of Time:

• Extension of Time with or without levy of

compensation does not require financial
concurrence. It shall be regulated as per
contractual terms and conditions on the
justification recorded by the concerned
department

Financial Concurrence & DOP for JE (AOS)

Jun 11, 2024 by R D Vishwakarma, Ex GM
(F), AAI
 Amendment no. 6 dt 6th Mar 2023
8.13: Signing of Contract:

• For Contract valuing more than ₹500 crs –

Concerned GM
• For Contracts valuing more than ₹15 crs to
₹500crs – Concerned JGM/DGM
• For Contracts upto ₹15 crs – Concerned
AGM/SM
• Concerned Manager shall sign the contracts
approved by him/her or officers below.
Financial Concurrence & DOP for JE (AOS)
Jun 11, 2024 by R D Vishwakarma, Ex GM
(F), AAI
 7.16 and 9.50: Signing of Contract

• For contracts valuing ₹300 Crore and above,

by concerned GM.

• For contracts valuing below ₹300 Crore,

concerned Jt. GM/DGM in respect of tenders
which are accepted by him/ her and above

• Concerned AGM/SM/Manager/ AM in respect

of tenders accepted by him/ her.
Financial Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex GM
(F), AAI
 Any
Questions?
Financial Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex GM
(F), AAI
Thank you!

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex GM
(F), AAI
 Thank you
very much!!!
Financial Concurrence & DOP for JE (AOS)
by R D Vishwakarma, Ex
GM (F), AAI
 DOP Amendment no. 1 dt 15th Jun 2023…

Allotment /Renewal of Built-Up Space, Paved

Surface or Land in Operational Area to
Operators/Airlines(Scheduled/Non-Scheduled
/Ground Handling Agencies / Oil Companies /
Aircraft Maintenance Agencies for line
maintenance / Engineering Facility, Placement of
Porta Cabins / Parking of Equipment / Dollies
/Trolleys / Oil Bowsers / Mobile Storage on License
and rental thereof. (Powers on next slide…)
 DOP Amendment no. 1 dt 15th Jun 2023

• Powers increased for the Chairperson from 15

to 25 years and the Concerned Whole Time
Member from 10 to 20 years.
• The Concerned ED has been given new powers
ie from nil to 10 years.
• Powers to Region (RED and below) withdrawn!
• revived VIDE AMENDMENT NO. 2 dt 11 Sept 2023

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex GM (F),
AAI
 Acceptance of tender
BELOW reserve price for
disposal of stores
declared surplus or
unserviceable where
purchase value is known

• i) The decision to accept bids or tenders

below reserve price shall be exercised by the
authority next higher to the one mentioned above.
• (ii) In respect of surplus stores costing over
₹15 Lakh, if the purchase value estimated is not
Known, Chairperson in consultation with
WAB; and
In the case of the known purchase value,
concerned ED shall accept the bids/ tenders
below the reserve price.
 DOP Clarification dt 3rd Jan 2022
4.5(c) For Award of any other Revenue Earning
Contracts(without MRLF/ MAG):

• Full Powers to Members for RHQ and APD

grade 1 Airports on the recommendations of
CAC/ OAC

• Full Powers to REDs for Grade II, III & IV

Airports on the recommendations of RAC
 Distinction between
Capital and Revenue Expenditure
Capital Expenditure Revenue Expenditure
Incurred in acquiring or improving Is a routine expenditure incurred in
permanent assets not meant for the normal course of business and
resale. May add to value of an existing includes cost of sales and
asset. maintenance of fixed assets
Increases earning capacity Maintains the earning capacity
Normally a non-recurring outlay Usually a recurring item
Benefits over several years. Thus a Benefits within one year. Thus entire
small part is charged to income amount charged to income
statement as depreciation and rest statement. Does not appear in the
appears in the balance sheet balance sheet.
An item of balance sheet Shown in Trading and Profit & Loss A/c

Financial Concurrence & DOP for JE (AOS)

by R D Vishwakarma, Ex
GM (F), AAI