CAG exposes irregularity in Indian Railways’ freight management

By Staff report  www.business-standard.com

The Comptroller and Auditor General (CAG) has exposed major irregularities, compromise and violation of rules in Indian Railways’ management of freight business, providing insight into why the country’s largest goods carrier might be losing freight volumes to other modes of transport.
The auditor’s Performance Audit Report on Management of Goods Trains for 2008-2013 period, placed in Parliament on Friday, suggested railways’ rolling stock procurement for freight was not in line with the required assessment, and railways suffered a 36 per cent shortfall in wagon supply from its production units.
Also, the funds provided for wagon procurement were not utilised in any of the five years, except 2011-12; projects for wagon design were plagued by delays; railways lost Rs 1,635 crore due to delays in inducting 15,865 wagons during the period; and over 32 per cent wagons suffered from average detention time of 24 hours. More info

 

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