'Railways failed to improve mobility outcomes despite investing Rs 2.5 trn'

Despite investing Rs 2.5 lakh crore on track infrastructure in the 2008-19 financial year, the railways has failed to improve on its mobility outcomes, CAG has said

Despite investing Rs 2.5 lakh crore on track infrastructure in the 2008-19 financial year, the railways has failed to improve on its mobility outcomes, the CAG has said in its latest report and pulled up the national transporter for avoidable expenses.

In the report submitted in Parliament on Wednesday, the Comptroller and Auditor General of India said the railways' 'Mission Raftaar' scheme too has failed to propel trains on to the fast lane.

"Indian Railways, despite investing Rs 2.5 lakh crore on track infrastructure during 2008-19, has failed to improve on the mobility outcomes. Mission Raftaar introduced in 2016-17 targeted an average speed of 50 kmph for mail/express and 75 kmph for freight trains by 2021-22. The average observed speed of mail/express and freight trains until 2019-20 was, however, still around 50.6 kmph and 23.6 kmph, respectively," the CAG said.

It also said that out of 478 superfast trains, the scheduled speed of 123, or 26 per cent, was less than the specified 55 kmph.

"Six main internal critical factors contributing 66 per cent of total detention of trains were identified as controllable. Indian Railways has no guaranteed delivery time for goods consignment. This was due to non-scheduling of goods trains operation," it said.

The CAG also said that Dedicated Freight Corridor Corporation of India Limited (DFCCIL) could not fully utilise the World Bank fund resulting in payment of avoidable commitment charges of Rs 16 crore.

"No maintenance facility was created by the DFCCIL. Out of total 4,844 route km, only 2,346 route km (48 per cent) of feeder routes were upgraded till November 2020. DFCCIL incurred avoidable expenditure of Rs 285.21 crore during the land acquisition process," the report stated.

It also said that the progress of the project was affected due to a delay in awarding of contracts.

"There was also a delay in appointment of consultants up to 32 months. DFCCIL incurred avoidable extra expenditure of Rs 2,233.81 crore till March 2021 towards price escalation. This was due to delay in completion of project," it said.

The national auditor also raised the issue of unnecessary and avoidable expenditure incurred by the railways. The railways had incurred avoidable expenditure of Rs 968.73 crore towards procurement of power from Bhartiya Rail Bijlee Company Limited (BRBCL).

"This avoidable expenditure includes Rs 463.30 crore towards fixed capacity charges and Rs 505.43 crore due to injudicious decision to discontinue power purchase agreement with TATA Power-Distribution and procurement of power from BRBCL at higher tariff," it said.

Further, it suffered losses of Rs 27.43 crore for not realising service tax from contractors.

Northern Railway awarded contracts for the construction of grade separator without ensuring clear sites of work. Due to encroachments, the work could not be completed even after 10 years from its sanctioning. As a result, capital expenditure of Rs 71.50 crore incurred on the work till 31 March 2021 remained unfruitful, the report stated, highlighting another avoidable expense.

Improper planning for mid-life rehabilitation workshop of coaches in Anara in South Eastern Railway resulted in the project being dropped which cost the national transporter Rs 8.42 crore, the report stated.

It also flagged the infructuous payment of spectrum charges by rail PSU RailTel.

"RailTel without utilisation surrendered the allocated spectrum. As a result, Rs 13.82 crore spent on royalty charges of spectrum was rendered infructuous," according to the CAG report.