Short recoveries, lost revenue cost Indian Railways Rs 543 crore: CAG
In its compliance audit report on Railways for the year ending March 2023, which was tabled in Lok Sabha on Monday, the CAG found a consistent pattern of short recoveries, avoidable expenditures, mismanagement and loss of potential revenue in a total of 25 cases, which happened due to the violation of rules, regulations or directives by specific entities of railways.
Among the most significant findings is Northern Railway's failure in recovering Rs 148.61 crore in land licence fee from five government-aided schools, despite clear directives to charge 6% of market value of the land. This was the largest single non-recovery cited in the report.
The CAG has also found that a total of nine zonal railways — South Eastern, South Western, North Central, East Coast, Eastern, North Western, South East Central, West Central and Central Railway — collectively failed to recover Rs 55.51 crore in District Mineral Foundation (DMF) contributions from contractors from January 2015 to March 2024. The amount is DMF is used in the interest and benefit of persons and areas affected by mining-related operations.
Another key finding in the CAG report is East Central Railway losing Rs 50.77 crore due to non-realisation of shunting charges at Bina siding (BCSK), for unbilled shunting activities using railway engines. The audit was conducted for a period from April 2020 to March 2023.
The national auditor also said that the Southern Railway and Integral Coach Factory (ICF) manufactured a total of 28 Nilgiri Mountain Railway (NMR) meter gauge coaches for Rs 27.91 crore without adequate technical assessment or consultation with the Research, Design and Standards Organisation (RDSO).
'ICF did not comply with the instructions of MoR (Ministry of Railways) in developing a prototype coach in consultation with RDSO, which led to creation of ineffective and deficient assets at a cost of Rs 27.91 crore as NMR coaches were not put to effective use even after three years of manufacturing,' said the auditor.
Similarly, some other findings are that South Central Railway incurred an 'avoidable financial liability' of Rs 23.16 crore in late fees due to delayed renewal of licences for Very High Frequency (VHF) sets.
Central Railway faced extra expenditure of Rs 15.62 crore on Road Under Bridges (RUBs) in Diva-Panvel-Jasai-JNPT section on Western Dedicated Freight Corridor (WDFC) due to non-adherence to cost apportionment instructions, with the state government not contributing its share.
South Central Railway irregularly reimbursed Rs 15.51 crore in seigniorage charges to contractors, by amending contract provisions without the Ministry's approval, the report said. Western Railway suffered a revenue loss of Rs 12.62 crore from June 2021 to September 2023 due to non/delayed upgrade of routes to higher axle-load capacity, restricting freight loading, it said.
Similarly, Northeast Frontier and South Central Railways did not realise Rs 12.76 crore in maintenance and inspection charges from Container Corporation of India due to the non-execution of formal agreements.
South Western Railways construction of a road over bridge without ensuring approach road work by the state government resulted in Rs 11.81 crore in blocked capital for more than five years (2018 to 2023) and non-elimination of level crossing.
Dheeraj Mishra is a Principal correspondent with The Indian Express, Business Bureau. He covers India's two key ministries- Ministry of Railways and Ministry of Road Transport & Highways. He frequently uses the Right to Information (RTI) Act for his stories, which have resulted in many impactful reports. ... Read More
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