CAG Audit Reveals Rs 573 Crore Shortfalls and Railway Inefficiencies
The Comptroller and Auditor General of India (CAG) has revealed significant lapses amounting to ₹573 crore within Indian Railways, as detailed in its latest compliance audit report tabled this Monday. The findings highlight critical shortfalls in revenue recovery and pervasive inefficiencies in project execution across multiple railway zones. This comprehensive audit, covering instances up to the financial year 2022-23, underscores an urgent need for enhanced fiscal discipline and operational accountability within the nation’s vital rail network, which is pivotal for sustainable urban development.
Among the most substantial shortfalls identified was the Northern Railway’s non-compliance with directives, resulting in a short recovery of ₹148.61 crore in licence fees from government-aided schools occupying railway land. Further, nine railway zones collectively failed to recover ₹55.51 crore in District Mineral Foundation (DMF) contributions, intended for the benefit of mining-affected communities. Such revenue leakages directly impact the public exchequer and compromise the equitable distribution of resources for development initiatives.
The audit also exposed operational inefficiencies leading to considerable financial losses. The East Central Railway, for instance, failed to realise ₹50.77 crore from shunting charges at Bina Siding, while the South Eastern Railway incurred a potential freight loss of ₹10.25 crore by allowing unfit or unloadable wagons to run empty. Moreover, a critical lapse was observed in the Southern Railway, where ₹27.91 crore was spent on manufacturing deficient Nilgiri Mountain Railway coaches that remained unused for three years, highlighting ineffective asset creation and poor project oversight.
These instances extend to procurement and policy implementation. The Northeast Frontier Railway accepted higher rates for track ballast procurement, granting an undue benefit of ₹9.40 crore to a contractor. Elsewhere, delayed implementation of directives by Western Railway led to revenue losses of over ₹12 crore due to lower commodity loading. The Southern Railway also sanctioned ineligible freight concessions under the Station-to-Station Rates scheme, resulting in a loss of ₹11.02 crore, demonstrating a clear disregard for prudent financial management guidelines.
The CAG report serves as a critical call to action for Indian Railways to fortify its internal financial management frameworks and ensure stringent compliance with established guidelines. In an era where public infrastructure is crucial for fostering zero net carbon, eco-friendly, and equitable cities, efficient resource utilisation is paramount. Addressing these systemic lapses through robust accountability mechanisms will not only safeguard public funds but also enable Indian Railways to channel vital resources towards modernising its network, enhancing passenger experience, and contributing more effectively to the nation’s sustainable development goals.
