BackDelay in induction of wagons led to `1,635.67 crore loss for Railways: CAG
Report is based on results of railways' audit for 2008-2013 and points to various inefficiencies in management of freight
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New Delhi: Delays in the induction of 15,815 wagons in the railway system led to an avoidable loss of earning capacity of ₹ 1,635.67 crore in seven zonal railways, the Comptroller and Auditor General of India (CAG) said in a report tabled in Parliament on Friday.
The report is based on the results of the railways’ audit for the period between 2008 to 2013 and points to various inefficiencies in the management of freight by railways.
“More than 50% of trains run at an average speed below 20kmph. Empty run of wagons had been consistently at 33% during 2008-13 despite measures initiated by IR (Indian Railways) to capture the traffic in empty direction," the performance audit report said, adding more than 50% goods trains started late for want of locomotives.
The report also found that while assessing rolling stock, the railways did not take any inputs from the Zonal Railways, which is the ultimate user.
Also, the quantity procured during the review period was not in line with the requirement assessed, the report said. “It was observed that even the ordered quantity of wagons was not supplied in full by railway production units and public sector wagon manufacturers and the shortfall in wagon manufacturing was 36% and 24%, respectively," the report said.
The funds provided for procurement of wagons were not utilized, resulting in savings in all the years except for 2011-12. A principal lease payment of ₹ 5,514 crore made to Indian Railway Finance Corp (IRFC) from capital led to the railways bearing an additional dividend liability of ₹ 221 crore, the report said.
Indicating a compromise in safety procedures, the report also found that out of 45,563 wagons initially rejected during 2008-13, 39,853 were subsequently passed locally without being certified as fit in eight zonal railways and put into service.
Railways carries more than 35% of the total freight traffic of the country and about two-third of its revenue comes from transportation of goods.
“Cases of excessive detention of wagons at various activity centres affecting the availability of wagons, non- availability of locomotives for running the goods trains and deterioration in average speed of goods trains, point towards a monitoring mechanism that warrants streamlining," the report said.
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