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
Resources

Skyview by Empyrean is Making Benchmarks in the Indian Ropeway Industry

FIL Industries Private Limited, the parent company of Empyrean Skyview Projects that pioneered ropeway mobility solutions in India with Jammu’s Skyview Gondola, is currently developing the Dehradun-Mussoorie ropeway and is on track to complete Phase I by September 2026. The ropeway is set to be India’s longest passenger aerial monocable covering 5.8 km between the foothills of Dehradun in Purkulgam and MDDA taxi stand in the hills of Mussoorie in just under 20 minutes. The firm pioneered green mobility solutions in India with the development of the flagship Skyview Gondola in Jam..

Next Story
Technology

Creativity is for Humans, Productivity is for Robots!

On most construction sites, the rhythm of progress is measured by the clang of steel, the hum of machinery and the sweat of thousands. But increasingly, new sounds are entering the mix: the quiet efficiency of algorithms, the hum of drones overhead, and the precision of robotic arms at work. Behind the concrete and cables, an invisible force is taking hold: data. It is turning blueprints into living simulations, managing fleets of machines, and helping engineers make decisions before a single brick is laid. This is not the construction of tomorrow; it is the architecture of today – built on ..

Next Story
Infrastructure Urban

Bhartiya Urban Unveils ‘Bhartiya Converge’ GCC Enablement Platform

Bhartiya Urban has launched Bhartiya Converge, its latest business venture designed to become India’s premier platform for enabling Global Capability Centres (GCCs). The initiative offers an integrated ecosystem aimed at helping global clients gain a competitive edge in today’s rapidly evolving business environment. Focused on enhancing turnaround time and operational efficiencies, the company seeks to deliver better business outcomes powered by top-tier talent. Bhartiya Converge presents a customised and integrated suite of microservices that addresses the nuanced and evolving operational..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?