CAG slams Railways for losing Rs 1400 crore

New Delhi, May 14 (UNI) Indian Railways may be trumpeting its turnaround story globally, but the latest CAG report has slammed the transport behemoth for a slew of deficiencies in its operations, lacunae in decisions and incorrect application of rules, resulting in avoidable losses and unproductive expenditure to the tune of around Rs 1400 crore.

The CAG Report on Railways for the year ended March 2006, tabled in Parliament today, says error in computation of distances, detentions of rolling stocks, routing deficiencies, combined with non-observance and non-application of rules, ''have had an adverse effect on the overall operational efficiency of the Railways.'' The losses suffered by the Railways were Rs 41.19 crore on account of lacunae in rules and decisions, Rs 30.44 crore (non-observance of rules and orders), Rs 31.94 crore (non-compliance of instructions for rationalisation of routes), and Rs 326.27 crore (heavy detention of coaches, wagons and locomotives during repairs and loading and unloading operations).

In particular, the Comptroller and Auditor General (CAG) berated the Railways for making investments on unremunerative projects, which were sanctioned and executed without adequate planning and overlooking their utility aspects.

While taking note of the increase in Railways' earnings over the previous years, the report, however, slammed it for non-utilisation of assets like bogies and High Speed Track Recording Car, valued at Rs 16.33 crore.

''There were delays ranging from 11 to 23 months in sending the bogies to the places where they were required. The High Speed Track Recording Car was not commissioned for six years. Various deficiencies in procurement practices led to loss of Rs 20.69 crore,'' said the report.

Further, injudicious manufacture of EMU bogie frames and non-recovery of cost of rejected stores led to a loss of Rs 7.19 crore.

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