Delay in wagon induction causes Rs 1635 cr loss: CAG

Punching holes in the railways' freight management, the Comptroller and Auditor General has found deterioration in the various efficiency parameters causing hindrance in smooth goods train operations and sought streamlining of the monitoring mechanism.
"Cases of excessive detentions 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," CAG has said in its latest report tabled in Parliament today.
Delay in induction of the 15,815 wagons in the railway system led to an avoidable loss of earning capacity of Rs 1,635.67 crore in seven zonal railways, it said.

Freight movement is one of the core activities of Indian Railways in terms of earning revenue as well as transport effort. Railways carries more than 35 per cent of the total freight traffic of the country and about two-third of its revenue comes from transportation of goods.
The operation of goods trains depends largely on the adequate availability of required rolling stock, crew and appropriate paths for movement of goods trains, maintaining the rolling stock in good condition by facilitating timely repair and maintenance and ensuring optimum utilization of locos/wagons by achieving reduction in turn-around time.
The national auditor, in its report covering performance of freight train operations during the period 2008-13, has found the requirement of rolling stock assessed did not have any input from the zonal railways, the ultimate user.

Further, the quantity procured during the review period was not in line with the requirement assessed, it said.

It was also observed that even the ordered quantity of wagons was not supplied in full by the railway production units and public sector wagon manufacturers and the shortfall in wagon manufacturing was 36 and 24 per cent respectively.
Funds provided for procurement of wagons were not utilised resulting in savings in all the years except for 2011-12. Principal lease payment of Rs 5514 crore made to Indian Railway Finance Corporation (IRFC) from capital led to the railways bearing an additional dividend liability of Rs 221 crore, the audit said.

Out of 77,639 new wagons allotted by the Railway Board to various zonal railways, 53,539 wagons (69 per cent) were inducted into the railway system with in a period of one year and the remaining wagons were inducted in the subsequent years.