CAG suggests better monitoring of rail projects

Taking note of slow progress in railway projects, Comptroller and Auditor General of India (CAG) has suggested the need to strengthen the mechanism for selection, periodical monitoring of works at every stage of execution like preparation of detailed estimate, tendering process and provision of fund.
While reviewing the status of 443 works introduced during 2009-10 to 2013-14 as New Services/New Instrument of Services through Supplementary Demands for Grants, CAG in its latest report observed that 62 works had not commenced even one to five years after their approval by the Parliament,
According to the CAG, 145 works had been completed up to March 2015, 37 works had been dropped up to March 2015, seven works were closed/frozen, 169 works were in progress as of March 2015.

Out of these, the audit found 140 works were sanctioned more than two years back.
Taking note of the safety related works, CAG observed as many as 37 works related to Complete Track Renewal, Through Rail Renewal and Through Sleeper Renewal were included in the 145 completed works.
Of these, urgency was not sustained in 23 works in the subsequent year which is clear from the fact that the works were completed in more than three years period from the date of sanction.

The 145 completed works also included 19 other insignificant works like development of freight terminals, development of circulating area at stations, loading points and works relating to staff quarters, etc. Such works should have been considered in the regular budget cycle instead of Supplementary Demands for Grants.

Besides, CAG has found shortcomings in the railways budget exercise and asked the public transporter for strengthening its budgetary estimation so that supplementary demands for grants do not remain unutilised.
Instances of persistent excess, reappropriation of funds, surrender of funds, incorrect assessment of demands for supplementary grants were observed by CAG in its latest report tabled in Parliament today.
The audit has also found mis-classification of expenditure from revenue grant to capital grant, unsanctioned expenditure remain unregulated by the competent authority.
Suggesting that internal control mechanism should be strengthened to reduce the instances of misclassification of expenditure, CAG has sought deterrent sanctions in place to foster greater responsibility and accountability at the level of key controlling officers.