Delay in ABT Metres Provisioning Costs West Central Railway
RAILWAYS & METRO RAIL

Delay in ABT Metres Provisioning Costs West Central Railway

A recent report by the Public Accounts Committee (PAC) has shed light on a significant financial setback for the West Central Railway, as a delay in the provisioning of Availability Based Tariff (ABT) metres led to an additional expenditure of Rs 75.10 crore on power purchase. The PAC, tabling its report in the Lok Sabha, revealed that the delay stemmed from procedural issues within the Railway Ministry.

In March 2015, the Railway Ministry issued directives to all zonal railways, urging them to acquire direct power from generating companies through open access and ensure the installation of ABT metres. These instructions were aimed at reducing traction tariffs and optimizing transportation costs.

However, despite entering into agreements for open access in March 2016, power supply commenced only in January 2017, primarily due to the delay in provisioning ABT metres. The PAC report, based on findings from the Comptroller and Auditor General of India report presented in Parliament in 2022, emphasized the adverse financial impact of this delay.

The report highlighted that despite repeated instructions from the Ministry, the West Central Railway Administration failed to promptly secure and install the necessary ABT metres. It was only between January 10, 2017, and April 20, 2017, that the ABT metres were finally procured and installed. This delay of over a year in procurement, coupled with delays in estimate preparation, resulted in a substantial extra expenditure of Rs 75.10 crore between March 15, 2016, and January 10, 2017.

In response to these findings, the Committee has recommended that the Ministry streamline and fast-track procedures for the procurement of all items relevant to the railways' operational network. This call for improved efficiency aims to mitigate financial losses due to delays and ensure optimal utilization of resources.

The revelation of this substantial financial burden underscores the importance of timely and efficient procurement processes within railway infrastructure projects. As the Railway Ministry works to implement the Committee's recommendations, it remains crucial to address procedural bottlenecks to prevent similar financial setbacks in the future.

A recent report by the Public Accounts Committee (PAC) has shed light on a significant financial setback for the West Central Railway, as a delay in the provisioning of Availability Based Tariff (ABT) metres led to an additional expenditure of Rs 75.10 crore on power purchase. The PAC, tabling its report in the Lok Sabha, revealed that the delay stemmed from procedural issues within the Railway Ministry. In March 2015, the Railway Ministry issued directives to all zonal railways, urging them to acquire direct power from generating companies through open access and ensure the installation of ABT metres. These instructions were aimed at reducing traction tariffs and optimizing transportation costs. However, despite entering into agreements for open access in March 2016, power supply commenced only in January 2017, primarily due to the delay in provisioning ABT metres. The PAC report, based on findings from the Comptroller and Auditor General of India report presented in Parliament in 2022, emphasized the adverse financial impact of this delay. The report highlighted that despite repeated instructions from the Ministry, the West Central Railway Administration failed to promptly secure and install the necessary ABT metres. It was only between January 10, 2017, and April 20, 2017, that the ABT metres were finally procured and installed. This delay of over a year in procurement, coupled with delays in estimate preparation, resulted in a substantial extra expenditure of Rs 75.10 crore between March 15, 2016, and January 10, 2017. In response to these findings, the Committee has recommended that the Ministry streamline and fast-track procedures for the procurement of all items relevant to the railways' operational network. This call for improved efficiency aims to mitigate financial losses due to delays and ensure optimal utilization of resources. The revelation of this substantial financial burden underscores the importance of timely and efficient procurement processes within railway infrastructure projects. As the Railway Ministry works to implement the Committee's recommendations, it remains crucial to address procedural bottlenecks to prevent similar financial setbacks in the future.

Next Story
Infrastructure Urban

Infrastructure Opportunity Outlook by IMPACCT.Info

India’s infrastructure pipeline is witnessing dynamic activity across stages — from immediate bidding to future planning. IMPACCT segments these into three categories: Immediate, 3–6 Month, and Future Opportunities, enabling businesses to identify, prepare, and participate in high-value tenders and projects across sectors...To read the full article Click Here..

Next Story
Real Estate

Serene Communities, Prathima Group Invest Rs 4 billion in Hyderabad

Serene Communities by Columbia Pacific, India’s largest senior living operator, has partnered with Prathima Group to develop two senior living projects in Hyderabad, marking its entry into Telangana. The collaboration represents an investment of Rs 4 billion, combining Serene’s international expertise with Prathima’s local development experience. The first project, Serene BILVANI One, launched in Shankarpally, is Hyderabad’s first premium senior living community. Designed for independent and active ageing, it features senior-friendly architecture, barrier-free design, and wellness..

Next Story
Infrastructure Urban

India remains our most important market

Foundamental, the world’s leading venture capital platform focused on the project economy, has launched its third fund to strengthen its presence in India, APAC, and other global markets. Led by Berlin-based Managing Partners Shubhankar Bhattacharya and Patric Hellermann, Fund III aims for a final close by the end of 2025. In an exclusive interaction with CW, Bhattacharya shares insights on the fund’s mandate, India’s role in their strategy, and the opportunities they see in the construction-tech and project-based sectors. Can you briefly explain Fund III’s mandate and how In..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?