CAG hauls up CR for unproductive expenditure

Mumbai, May 20 (UNI) The Comptroller and Auditor General of India (CAG) has hauled up the Indian Railways for slow approach on a work, undertaken for speedy economic development of backward area, which has not only resulted in unproductive expenditure of Rs 15.15 crore, but also diluted the objective of the project.

The project, even after 14 years of its being conceived, is far from completion.

In September 1993, Railway Board had asked Central Railways (CR) to conduct re-survey of a new line project for Ahmednagar-Beed-Parli Vaijnath that had been shelved earlier on account of inadequate traffic prospects.

The codal provisions said expenditure other than ordinary revenue incurred on creation of new assets should be financially justified and the works should be taken up only if the rate of return (ROR) is 14 per cent or above.

Though the survey report submitted indicated negative rate of return, the project was included in the works programme for the year 1995-96 at a total cost of Rs 353.08 crore suggesting that the new line will provide infrastructure for speedy economic development of a backward area in the Marathwada region of Maharashtra.

In July 1997, the Board directed the CR to start the work from Ahmednagar side so that the section on completion could be put to use. The project was divided into five sections and the detailed estimate amounting to Rs 13.86 crore for first section- Ahmednagar-Narayandoh (15 Kms) was sanctioned in January 1999.

The work of Ahmednagar-Narayandoh section was proposed for completion within 24 months subject to availability of funds. The review of the planning and execution of the work, however, the CAG report pointed out, revealed that despite provision of sufficient funds year after year, the Railway could utilise only 2.33 to 30 per cent of the annual budget provisions except for 2001-02.

According to the report, non-utilisation of funds was attributable to delay in commencement of the land acquisition process, which was started late in December 2000, which was five years after the work was approved. And the land for the first phase could be acquired only in February 2005.

Though land was not available, Railway awarded two contracts, one for construction of a station building at Beed and another for earthwork in embankment and cutting side drains in July 1997 and May 2002 respectively, the CAG report said.

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