CAG Flags Rs 5.73 Bn in Lapses across Indian Railways
RAILWAYS & METRO RAIL

CAG Flags Rs 5.73 Bn in Lapses across Indian Railways

The Comptroller and Auditor General of India (CAG) has identified financial lapses and operational shortcomings amounting to over Rs 5.73 billion across Indian Railways, raising concerns over systemic issues in revenue recovery, asset management, and project execution.

The findings are part of Audit Report No. 5 of 2025, which was tabled in the Lok Sabha and earlier laid before the Rajya Sabha on 4 April. The report includes 25 key audit observations based on test audits conducted up to the financial year 2022–23, with some updates from later periods.

The report comes at a time when Indian Railways is seeking to modernise its infrastructure and attract private investment. However, the audit reveals persistent governance challenges that could hinder these reform goals.

Key lapses in revenue and operations
One of the most significant lapses flagged was Northern Railway’s short recovery of land licence fees worth Rs 1.48 billion from five government-aided schools, attributed to non-compliance with Railway Board directives.
Nine railway zones were found to have failed to recover Rs 550.51 million in contributions to District Mineral Foundations (DMF) from contractors involved in mining-related projects, despite having collected royalty charges.
East Central Railway lost Rs 500.77 million due to failure in levying shunting charges at Bina siding between April 2020 and March 2023. South Central and Northeast Frontier Railways were unable to realise Rs 250.48 million for deposit works, while South Central Railway incurred a loss of Rs 230.16 million due to delays in licence renewals for Very High Frequency (VHF) radio equipment.
The South Western Railway continued operating an express train between Satya Sai Prasanthi Nilayam and Bengaluru for six years despite poor occupancy, resulting in a loss of Rs 170.47 million.

In other findings:

  • Western Railway lost Rs 120.62 million due to failure to upgrade routes for higher axle loads.
  • Southern Railway incurred Rs 50.43 million in losses on the Karur–Nagercoil section for similar reasons.
  • West Central Railway faced a potential loss of Rs 60.16 million due to non-supply of rakes against premium indents.
  • South Eastern Railway lost Rs 100.25 million in freight earnings from operating unfit wagons empty.

Unutilised and incomplete infrastructure
The audit also uncovered idle public expenditure:

  • South Western Railway built a Road Over Bridge that has remained unused for over five years due to coordination issues with the Karnataka government, tying up Rs 110.81 million.
  • A loco trip shed in New Jalpaiguri remains non-functional, blocking Rs 90.33 million.
  • A terminal station at New Garia was poorly planned, leading to an infructuous spend of Rs 70.62 million.

The CAG, currently led by K. Sanjay Murthy since November 2024, continues to underscore the need for stronger oversight and planning within the Ministry of Railways to improve fiscal discipline and operational efficiency.

News source: Mint

The Comptroller and Auditor General of India (CAG) has identified financial lapses and operational shortcomings amounting to over Rs 5.73 billion across Indian Railways, raising concerns over systemic issues in revenue recovery, asset management, and project execution.The findings are part of Audit Report No. 5 of 2025, which was tabled in the Lok Sabha and earlier laid before the Rajya Sabha on 4 April. The report includes 25 key audit observations based on test audits conducted up to the financial year 2022–23, with some updates from later periods.The report comes at a time when Indian Railways is seeking to modernise its infrastructure and attract private investment. However, the audit reveals persistent governance challenges that could hinder these reform goals.Key lapses in revenue and operationsOne of the most significant lapses flagged was Northern Railway’s short recovery of land licence fees worth Rs 1.48 billion from five government-aided schools, attributed to non-compliance with Railway Board directives.Nine railway zones were found to have failed to recover Rs 550.51 million in contributions to District Mineral Foundations (DMF) from contractors involved in mining-related projects, despite having collected royalty charges.East Central Railway lost Rs 500.77 million due to failure in levying shunting charges at Bina siding between April 2020 and March 2023. South Central and Northeast Frontier Railways were unable to realise Rs 250.48 million for deposit works, while South Central Railway incurred a loss of Rs 230.16 million due to delays in licence renewals for Very High Frequency (VHF) radio equipment.The South Western Railway continued operating an express train between Satya Sai Prasanthi Nilayam and Bengaluru for six years despite poor occupancy, resulting in a loss of Rs 170.47 million.In other findings:Western Railway lost Rs 120.62 million due to failure to upgrade routes for higher axle loads.Southern Railway incurred Rs 50.43 million in losses on the Karur–Nagercoil section for similar reasons.West Central Railway faced a potential loss of Rs 60.16 million due to non-supply of rakes against premium indents.South Eastern Railway lost Rs 100.25 million in freight earnings from operating unfit wagons empty.Unutilised and incomplete infrastructureThe audit also uncovered idle public expenditure:South Western Railway built a Road Over Bridge that has remained unused for over five years due to coordination issues with the Karnataka government, tying up Rs 110.81 million.A loco trip shed in New Jalpaiguri remains non-functional, blocking Rs 90.33 million.A terminal station at New Garia was poorly planned, leading to an infructuous spend of Rs 70.62 million.The CAG, currently led by K. Sanjay Murthy since November 2024, continues to underscore the need for stronger oversight and planning within the Ministry of Railways to improve fiscal discipline and operational efficiency.News source: Mint

Next Story
Infrastructure Urban

PTC Industries and BDL Form JV for Missile and UAV Propulsion

PTC Industries, a leading manufacturer of high-performance materials and precision-engineered components for Defence and Aerospace, has signed a Memorandum of Understanding (MoU) with Bharat Dynamics (BDL) to establish a Joint Venture (JV) for the design, development, and manufacture of propulsion systems, aero-engines, guided bombs, and loitering munitions for missiles and UAVs, subject to regulatory approvals.The MoU was exchanged during the Lokarpan Ceremony of PTC’s Titanium & Superalloys Materials Plant at the Strategic Materials Technology Complex (SMTC), Lucknow, in the presence o..

Next Story
Infrastructure Urban

J&K Bank Reports H1 Net Profit of Rs 9.79 Bn, Q2 at Rs 4.94 Bn

J&K Bank announced a net profit of Rs 4.94 billion for the July–September quarter (Q2) of the current financial year (CFY), bringing its half-year (H1) net profit to Rs 9.78 billion, up from Rs 9.66 billion in H1 last fiscal. The results were approved by the Bank’s Board of Directors at a meeting held at its Corporate Headquarters.The Q2 performance was moderated by Rs 920 million provisioning towards its investment in Jammu and Kashmir Grameen Bank following the amalgamation of Ellaquai Dehati Bank under the “One State, One RRB” initiative. Total provisioning for H1 stands at Rs 1..

Next Story
Building Material

Tata Steel, Air Water India Ink 20-Year Deal for Jamshedpur ASU

Tata Steel has signed a 20-year agreement with Air Water India Private Limited (AWIPL) to operate and maintain its advanced Air Separation Unit (ASU) in Jamshedpur. The partnership aims to boost Tata Steel’s industrial gas infrastructure and improve efficiency through the use of cutting-edge cryogenic technologies. The agreement was signed between Peeyush Gupta, Vice President (TQM, GSP & SC), Tata Steel, and Kausik Mukhopadhyay, Managing Director, AWIPL. Under the contract, AWIPL will manage operations of the ASU, which can produce 1,800 tonnes of oxygen per day, along with nitrogen, argon..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?