CSD AFD Online Registration Process 2024 CANTEEN STORES DEPARTMENT MANUAL
FOR
UNIT RUN CANTEEN
✓ URC – CSD INTERFACE
Role of URCs
3.1 URCs serve as a vital link between the CSD and ultimate customers. The main role of URCs is to provide the day-to-day requirements of consumer items and durables to the troops, wherever they may happen to be posted, at a price cheaper than the market. There are about 3794 URCs all over the country which are playing a pivotal role.
Registration
3.2 Units are required to obtain sanction for operating a URC from the Sub-Area Commander / Brigade Commander or Higher Formation Commander or their equivalents in the other two Services. Formation Commander may sanction opening of URCs of their own formation headquarters also. After the sanction is obtained and intimated to CSD Head Office, a Registration Number is allotted to the URC by the CSD. On the basis of such registration, URCs are authorised to purchase canteen stores from the CSD Area Depot on which they are dependent. Existing formation headquarters and units wishing to run their own URCs should obtain sanction and registration in accordance with the provisions of Army order A019/2003 reproduced as Appendix 2A and 2B to this chapter. The guidelines contained therein will also be applicable to the other two Services.
3.3 The Registration Number is required to be indicated on the indent failing which; the indent will not be accepted by the CSD Area Depot, for execution. Whenever a unit moves from one location to another, it will inform the CSD Area Depot on which it is dependent as well as the one on which it is to be based in future, quoting its Registration Number . Necessary approval with regard to change of dependency to be obtained from AGM (Secy) CSD, HO to purchase items from the new dependent depot
Use of Abbreviation ‘CSD’
3.4 Unit-Run-Canteens are not permitted to use the abbreviation ‘CSD’ for their own canteens as this has and is likely to cause complications / misunderstanding regarding employment by URCs of civilian staff, if any, and fixation of their pay and allowances, besides exemptions of Goods & Service Tax (GST) and other such allied matters. GST exemption has been granted by the Government only to the CSD. Further, the usage of abbreviation „CSD‟ by URCs may also lead to misunderstanding by outside agencies who seem to believe that URCs are funded from Public Funds. In this connection, clarifications given by the Deputy Director General Canteen Services vide their Circular No 96029/Q/DDGCS dt 10 Feb 95 (Appendix 2C) and Govt of India, Ministry of Defense, vide their letter No BOCCS/00181/Q/CAN/5469/D (MOV) dt 27 Oct 1977 (Appendix 2D) may be referred. Therefore, URCS should not use ‘CSD’ as prefix or suffix.
Financial Assistance / Loans to URCs
3.5 To assist URCs to improve their canteen facilities and to keep sufficient inventory, some funds are made available in the CSD budget every year which are disbursed as loans to URCs.
3.6 Refundable loans are granted by the CSD Head Office to formations and units who need financial assistance to establish their URCs or for expansion of existing canteens. The prescribed form for making the application to obtain financial assistance is given at Appendix 2E and Annexures 1 and 2. On receipt of the application, CSD Head Office scrutinizes the financial position of the canteen and determines the quantum of loan based on the strength of serving and retired defence personnel dependent on the URC and the sale potential in relation to their spending capacity. Where an application for financial assistance is for expansion of existing canteens or for a second loan, a copy of Trading Profit and Loss Account and Balance Sheet should accompany the application.
3.7 Financial Powers to Sanction Loans. General Manager, CSD, has been vested with financial powers to sanction loans to URCs upto Rs 2 lacs. The Board of the Administration is empowered to sanction loans upto Rs 5 lacs. Beyond Rs 5 lacs and upto Rs 25 lacs all loans to URCs are sanctioned by QMG. Beyond this the loans are sanctioned by Executive Committee of Board of Control Canteen Services.
3.8 Terms and Conditions. The financial assistance is granted on the following terms and conditions.
(a) Loans extended, in the form of stores, to URCs is repayable within a period of five years in fixed five yearly or ten half-yearly installments as approved by the BOA. Depending upon the size and the repaying capacity of the URC upto a maximum of Rs 5 lakhs can be sanctioned by BOA. Loans exceeding Rs 5 lakhs can be sanctioned only with the approval of Executive Committee of BOCCS, taking into account repaying capacity and justification.
(b) The first loan bears an interest at the rate of 4.5% per annum and second and subsequent loans bear an interest @ 6.5 % per annum, or as revised from time to time.
(c) The unit commanders are responsible for repayment of the loan installments regularly on the due dates, failing which penal interest @ 15% per annum will be charged from defaulting URC.
(d) The Promissory Note and Undertaking as per specimen given at Annexure 1 and 2 to Appendix 2E will be signed by the Unit Commander in favour of the President of India on a valid Stamp Paper.
(e) A new Unit Commander, when he takes over the unit, will also take over the URC with its assets and liabilities and will execute and forward, to CSD. Head Office, Mumbai, Promissory Note and the Agreement given at Annexure 3 and 4 to Appendix 2E .
(f) CSD Head Office, Mumbai, will be intimated immediately in the following cases so that the documents and records can be updated. (i) In case of change of designation of unit or move to a new location.
(ii) When a unit is merged with another unit, fresh loan documents as mentioned in sub-para 3.8 (d) above will be executed by both the unit commanders.
(g) On receipt of orders for disbanding of a unit, CSD Head Office will be informed immediately and the unit commander who has executed the legal documents, will obtain clearance of the loan from CSD Head Office, Mumbai, by refunding the balance of the loan with interest.
(h) Second or subsequent loan will be made available only after payment of first / earliest loan (if any).
(i) The loan application should be supported with one statement of case (SoC) justifying the requirement of loan.
3.9 Loans are NOT given in Cash. The Unit-Run-Canteens will be extended credit facilities to the extent of loan sanctioned for drawal of stores from the dependent Depot.
3.10 As the authority to sanction loans between Rs Two – Five lakhs is vested with the Board of Administration, which meets once a month, it takes between six to eight weeks before a loan is finally sanctioned.
Winter / Monsoon Stocking
3.11 Units located in snow-bound areas and in A & N Islands are extended special credit facilities.
(a) Units located at Leh and Siachin Glacier. These units are entitled to credit facility upto a maximum of Rs 3 lacs for a maximum period of three months. The units will liquidate their debt with CSD Depot, Leh prior to their deinduction from the region. (Authority: DDGCS, QMG‟s Branch, Army Headquarters letter No 96031 / Q / DDGCS dt. 26 Aug „93, reproduced at Appendix 2F )
(b) Units located in Snow-bound Area. Such units are allowed to draw stores in advance from the CSD Area Depot upto a maximum amount of Rs 60,000/- for the entire winter season.
(c) Units located in A & N Group of Islands. Similar concession as (b) above is admissible to units located in A & N Group of Islands, during the entire monsoon season during the year when normal shipping contact between the mainland and the Islands is not possible due to adverse weather conditions.
3.12 Procedure.
(a) Interest on the amount of loan or outstanding credit will be charged @ 4.5% per annum.
(b) URCs availing the credit facility will have to pay the entire cost of stores by the end of winter / monsoon season. Thus it is advisable that the URCs make periodical remittances.
(c) URCs have to accept liablity for full payment of stores to CSD, even if any of the stores‟ losses are incurred by them because of deterioration and/or damage due to inherent hazards of operational areas.
Units Proceeding on UN Missions
3.13 Units going abroad on UN Missions are permitted to take additional interest-free loans. Such units may contact Deputy Director General Canteen Services, IHQ of MoD (Army), QMGs Branch, Wing-III, West Block-3, RK Puram, New Delhi- 110066. Such loans should be re-paid with the depot from where URC has availed the facility of credit, within the five years from the date of loan sanctioned or earlier. Defaulter URCs will be penalized as per the procedure in vogue.
Repayment of Loans
3.14 Units which have obtained loans shall make regular repayments. Units which are in arrears in repayment will be reminded of the responsibility to make the payment in time. Failure even after that would force the CSD to report the matter to higher formation headquarters.
In case of first / new raising loan, the URCs would be given an option to refund the full amount of credit by twelve months or before without any interest. (Please refer DDGCS, QMG‟s branch letter No. 0842/Q/CS dated 21.06.1989 (Appendix-3J).
Temporary Credit Facilities to URCs
3.15 GM, CSD, is empowered to grant Temporary Credit Facility upto Rs 2 lacs to needy URCs for a period not exceeding 30 days. However, it is to be ensured that URCs shall avail this credit facility for their genuine requirement beyond normal average purchases for the last three months and the amount must be repaid within the stipulated period of 30 days. Non-refund of Temporary Credit amount by URCs within the stipulated period will result in levy of penal interest @ 18% per annum.
Pictorial Price-Lists
3.16 A Pictorial Price-List, containing coloured photographs of the items, is issued to all the URCs annually in January every year, free of charge through their dependent Depots. The URCs must acknowledge receipt to the Depots.
Price Revisions
3.17 Price revision circulars, including price of newly-introduced items, are issued by the CSD Head Office as on 1st, 11th and 21st of every month. However, in some cases, e.g. change in government levies, price revisions are implemented with immediate effect. Price revision circulars are serially numbered during each financial year. The aim of giving consecutive serial numbers to such circulars during each financial year is to enable the URCs to implement the same without missing any circular, and thereby avoid any financial loss to them at a later date.
Monthly Bulletins
3.18 To reach out to the customers directly, Monthly Bulletins are being published by the CSD Head Office and distributed since Jan 1997. The Bulletins contain information about the new arrivals, deletion of items, gift offers, one-to-one replacements and other matters of consumer interest. URCs are expected to display the Monthly Bulletins in the dispensers already provided to them for the purpose. All URCs are requested to ensure to collect their monthly Bulletin copies from their dependent depot by 20th of every month. The bulletin is also available on the CSD web site viz. www.csd.india.gov.in
Depot-level Bi-monthly Bulletins
3.19 Depot-level Bi-monthly Bulletins are issued by Area Depot Managers to the units dependent on them. These contain the information about price changes, URC meetings, deletions, introduction of new items, information which is of interest to URCs and the customers.
Quarterly URC Meetings
3.20 Regular URC meetings on quarterly basis are held at Depot level to facilitate URCs to have interaction with the Depot and to resolve their problems. In order to derive maximum benefit from this forum, unit commander must depute their Canteen Officers to attend such meetings. These meetings are now being organised under the aegis of the local formation / Station Headquarters as per the QMG‟s Branch letter No 96131/Q/DDGCS dt 31 Mar 98, placed as Appendix 2G. These meetings should be attended by the canteen officers of concerned URCs.
Collection of Indented/Demanded Stores by URCs Within 45 Days
3.21 Instances have come to notice that, after giving the regular indent/demand of items, URCs are unable to collect the stores/assembled stocks within 45 days with one or other pretext such as unit having no sufficient funds to pay or moved out of station/another location.
To avoid that situation, URCs are hereby advised to observe their funds position. In case, if the unit is moving out to a different location, the URC canteen officer/OC/CO should intimate the Depot Manager so that recourse would take place as far as the stocks are concerned.
If the URC is unable to lift the demanded stocks from depot, within 30 days of collection schedule, Canteen officer should intimate the reasons by fastest means for non-collection.
The depot will not issue stores against fresh indent if the previous indents are not collected.