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CHAN D!GARH AOMINISTRAr10N

GUIDELiNES
FOR
DiSPOSAL OF OBSOLETE/UNUSABLE
:T AND ELECTRON:CS EQUIPMENT

v10,Issue:DECEMBER 2014

助 クカ ー 4r/r-,/- *?*-/l-/U.
“

issued bv:
DEPARTMENT OF!NFORMAT:ON TECHNOLOGY
CHAND!GARH ADMIN:STRAT10N
Table of Contents

1. Categories of items ................................................................................................................... 1

2. Useful / Average life of items .................................................................................................. 2

3. Calculating rates of depreciation ............................................................................................ 3

4. Procedure for replacement and disposal ............................................................................... 4

1. Categories of items

A number of unusable, irreparable or redundant IT and Electronics equipment are lying in

the stores of various Government Departments of Chandigarh Administration, which have
been placed in the stores for being of outdated technology and non-usability. These items
may have either been declared obsolete or on the verge of being obsolete and hence being a
part of electronic waste need to be disposed off in a proper manner as per the e-Waste
Management & Handling Rules-2011, published by Ministry of Environment & Forests, Govt.
of India.

Depending upon the nature, intensity of usage, maintenance cost, serviceability, obsolescence
in terms of technology, up gradation of technology etc., the related items are classified in
following categories for the purpose of disposal of these items :-

1.1. Category-I: Immediate Obsolescence: These equipment / items can be referred to as

“Use and throw products”. These equipment have no fixed life and can be used till these
are consumed. However, the user departments must maintain proper inventory of
purchase, issue and disposal thereof so as to ensure prudent official use of these items.

1.2. Category-II: Fast Obsolescence: These equipment / items can be referred to as “Low
Life products”. The average productive life in the case of equipment/ items in this
category is 3 years for replacement purposes and these items would become e-Waste on
their end of life i.e. after 6 years. However, one may use the same for longer period so
long as the item/ equipment serves the purpose.

1.3. Category-III: Medium Obsolescence: These equipment / items can be referred to as

“Medium Life products”. The average productive life of equipment in this category is 5
years even though the equipment can be continued to be used for longer period in the
department, being a multiple level of usage in terms of level of works to be done like
Software development / testing, Data Processing, Information searching, Word
processing etc. and these items would become e-Waste on their end of life i.e. after 8
years. However, one can use the equipment for longer period so long as it fulfills the
user requirements.

1.4. Category-IV: Slow Obsolescence: These equipment / items can be referred to as “Long
Life products”. It has been observed that these equipment can be used for longer period
due to comparative stability in specifications / services. Accordingly, the productive life
of these equipment is 7 years and these items would become e-Waste on their end of life
i.e. after 10 years. However, one can use the same for longer periods so long as these
equipment serve the user requirements.

Guidelines for Disposal of Obsolete/Unusable IT & Electronics equipment, v1.0, Dec 2014 Page 1 of 7
Department of Information Technology, Chandigarh Administration
2. Useful / Average life of items

The following table may be used for classifying the items for its replacement / disposal:

Productive Life for

Category Items life for dispose off /
replacement End of Life
(1) (2) (3) (4)
- Printing Consumables (Ink,
I. Immediate
Toners, Cartridges) Immediate on
obsolescence As per usage
- DVDs, CDs, Floppies non-usability
- UPS Batteries
- Laptops, Notebooks, Tablets
II. Fast - Mobile phones
3 years 6 years
obsolescence - Pen Drives
- External Hard Disk Drives (HDD)
- Servers, Desktop Computers
- Printers, Scanners, Copiers
III. Medium - Multi-Functional Devices (MFDs)
5 years 8 years
obsolescence - Typewriters
- Projectors, UPS Systems
- All Networking items
- FAX, EPABX
- Electronic Attendance Systems
IV. Slow - Digital Cameras
7 years 10 years
obsolescence - DVD Players
- TVs, LCDs, LEDs
- Other Electronics items
Table 1. Category-wise life span of items for replacement and disposal

2.1. The table describes only the average life of an equipment, however, all these items
(except items under Category-I) can be used beyond the mentioned / specified life till
the time these items continue to serve the purpose.

2.2. On completion of productive life period (column no. 3 of the above table), if required,
the items may be replaced with equipment of latest and better configurations.

2.3. On completion of End of Life period (column no. 4 of the above table), the items may
be declared as electronic waste (e-Waste), if not in use.

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Department of Information Technology, Chandigarh Administration
3. Calculating rates of depreciation

The depreciation value for the items (category-wise) may be calculated as per the following
criteria:

3.1. Category-I: As most of the items in this category are consumable items and of junk
value after one-time use, there is no need to calculate the depreciation value. Once
used, the residual value of these items may be treated as NIL. The SMF (Sealed
Maintenance Free) batteries under this category may be hazardous for health and
environment and therefore, if not in use, immediately be declared as e-Waste.

3.2. Category-II: The depreciation value for items under this category may be calculated as
under:

On completion of
Items
Year-1 Year-2 Year-3 Year-4 Year-5 Year-6

Items under
40% 40% 60% 60% 80% 100%
Category-II

Bill Value (INR) Illustrative depreciated value (INR)

Rs. 50,000 30,000 18,000 7,200 2,880 576 NIL

Table 2. Depreciation calculation for Category-II

3.3. Category-III: The depreciation value for items under this category may be calculated
as under:

On completion of Year
Items
1 2 3 4 5 6 7 8

Items under
40% 40% 40% 60% 60% 80% 80% 100%
Category-III

Bill Value
Illustrative depreciated value (INR)
(INR)

Rs. 50,000 30,000 18,000 10,800 4,320 1,728 346 70 NIL

Table 3. Depreciation calculation for Category-III

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Department of Information Technology, Chandigarh Administration
 3.4. Category-IV: The depreciation value for items under this category may be calculated
as under:

On completion of Year
Items
1 2 3 4 5 6 7 8 9 10
Items
under
15% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Category-
IV
Bill Value
Illustrative depreciated value (INR)
(INR)

50,000 42500 34000 23800 14280 7140 2856 857 171 17 NIL

Table 4. Depreciation calculation for Category-IV

4. Procedure for replacement and disposal of obsolete items

The following procedure may be adopted for replacement and disposing off the items
covered under these guidelines:

4.1. All the IT & Electronics equipment covered under these guidelines are procured
with a prescribed warranty period. No replacement of any of the equipment would
be permissible so long as it is within the stipulated warranty period built in upfront
at the time of the purchase order.

4.2. The minimum life for replacement / disposal of the equipment must be followed as
defined for each category separately (refer table no. 1, section 2). However, in case
any equipment gives frequent problems before attaining its minimum
recommended life or goes badly out of order and repair / maintenance cost is not
economically viable (i.e. where the repair costs exceed the depreciated value of the
item), such items can also be disposed off with the recommendation of a Technical
Committee to be constituted for the purpose.

4.3. All the Departments of Chandigarh Administration must constitute a Technical

Committee for declaring the IT & Electronics equipment fit for disposal as per the
instructions of these guidelines. One technical expert from Department of
Information Technology, Chandigarh, must be the member of such Committee.

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Department of Information Technology, Chandigarh Administration
 4.4. An “e-Waste Management Cell” shall be created by Department of Information
Technology, Chandigarh in consultation with Chandigarh Pollution Control
Committee, which would be responsible for auctioning, collection and disposal of
the e-Waste generated by Departments of Chandigarh Administration in a proper
manner as per the e-Waste (Management & Handling) Rules, 2011 and Batteries
(Management & Handling) Rules, 2001 of Govt. of India.

4.5. No separate physical store would be set-up by the Department of IT. The items
once declared to be fit for replacement / disposal would remain physically only
within the stores of respective Departments till the process of auction / collection of
e-Waste is completed by e-Waste Management Cell.

4.6. For items under Category-I, no residual value has been assigned. Hence, once
consumed and on further non-usability, these items shall immediately be declared
as electronic waste and be transferred to e-Waste Management Cell at zero value for
electronic waste management and recycling purposes and can be written off from
the books of the respective Department once the process is completed.

4.7. Replacement of equipment: Depending upon the specific requirements of the

respective Department, the officers / officials using the items under Category-II, III
and IV, may seek replacement of the equipment after the completion of productive
life period (refer table no. 1, section 2). Once declared fit for replacement, the
following procedure be followed:

4.7.1. On completion of replacement period, it would be at the discretion of the

Department to allow the concerned user of the item to retain / purchase the
item for its personal use at the depreciated value. In such cases, the user has
to pay the depreciated value of the item to Department from its own
pocket.

4.7.2. In case the concerned user is not interested, the items declared fit for
replacement may also be offered to all the Govt. employees working across
the various Departments of Chandigarh Administration at the depreciated
value. In case more than one person are interested for same item, it may be
allotted by holding a draw of lots.

4.7.3. Wherever no Government employee comes forward to purchase such

items, the items shall be added for buy-back by the vendors in the indent
for purchase of new items / equipment of better configuration to be made
by the Department. However, the buy-back should not be made below the
calculated Reserve Price.

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Department of Information Technology, Chandigarh Administration
 4.7.4. In case the equipment is not to be replaced with a new one, the same may
be transferred to e-Waste Management Cell at the depreciated value. These
items would be auctioned centrally by Department of IT every six months
by inviting rates through press tenders or from empanelled vendors. In
such cases, the depreciation value of the item would be fixed as Reserve
Price, unless fixed lower by the Technical Committee for reasons to be
recorded in writing.

4.7.5. In cases where repeatedly either sufficient bids are not being received for
disposal of items at the Reserve Price or bids received are for a value lower
than the Reserve Price, it would be at the sole discretion of Department of
IT to negotiate with the participating bidders to avoid re-auctioning. Such
negotiations would be informed in advance to the respective Departments
before finalizing the vendor for disposal.

4.7.6. Department of IT would be entitled to retain the funds / proceeds collected

over and above the Reserve Price from disposal of such items in lieu of the
processing / advertisement charges for inviting rates through press tenders.
The Department of IT would also be liable to pay the applicable sales taxes
to the Department of Excise & Taxation. The funds collected would be
transferred to respective Departments after the necessary deductions of
sales taxes; however, the amount transferred should not be more than the
Reserve Price. The items can be written off from the books of the respective
Department once the disposal process is completed.

4.8. End of Life equipment: The items who have attained / completed their end of life
period (refer table no. 1, section 2), shall immediately be declared as e-Waste, if
unusable. Once declared e-Waste, the following procedure be followed:

4.8.1. Such items shall be transferred to e-Waste Management Cell at zero value for
electronic waste management and recycling purposes.

4.8.2. Department of IT would dispose off these items with the e-Waste collector /
dismantler / recycler registered by the Pollution Control Boards /
Committees of the States / UTs of India as per the provisions made under
the e-Waste (Management & Handling) Rules, 2011.

4.8.3. Department of IT would be entitled to retain the funds / proceeds collected

from disposal of such items. No payment would be made to the respective
Department in such cases. The items can be written off from the books of
the respective Department once the disposal process is completed.

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Department of Information Technology, Chandigarh Administration
 4.9. The concerned Departments, in any case, would have to maintain the inventory of
all the transfers / disposals made with the Department of IT in their books of
record.

4.10. The respective Department shall be required to submit the details of such items to
Department of IT in the following Performa:

Invoice
Invoice No. of years
S. Item / Bill Qty. Depreciated
/ Bill from the date
No. Description Value (No.) value (INR)
date of invoice
(INR)

Table 5. Performa to be filled for submission of e-Waste to Dept. of IT

4.11. Department of IT may also consider donating the obsolete items after end of life
period, which are still usable, to State / Central Govt. recognized non-profit service
organizations / institutes. A certificate shall be recorded for such purposes.

The procedure and instructions under these guidelines shall be applicable to all the
Departments / Corporations / Boards / Societies / Institutions etc. of Chandigarh
Administration.

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Department of Information Technology, Chandigarh Administration