Railways Pulled Up For Neglecting Ongoing Projects
The Comptroller and Auditor General (CAG) has pulled up the railway ministry for embarking on new projects at the cost of ongoing works.
In its report presented to Parliament, CAG observed that a total of 215 works and projects involving a cumulative capital outlay of Rs 7,395 crore and in progress for more than five years, had remained partly or wholly unproductive. This has not only affected the expeditious completion of the ongoing works, but also resulted in scarce resources being thinly spread out, it said.
The report noted that no dividend was paid to the general revenues in respect of the expenditure on new lines (Rs 1,568.17 crore).
On other works in progress, only 50 per cent of the dividend was payable on the investment made during the current year and previous two years. While accepting the factual position, the railway ministry had contended that rail projects were being executed in phases and that, after each phase was completed, it was immediately put to use and made productive.
The ministry's contention is not tenable, the report said, adding that 29 out of 215 prolonged ongoing works pertained to Northern Railway and the Central Organisation for Railway Electrification (CORE).
The total outlay of these 29 works aggregated Rs 910.40 crore by the end of 1995-96 against the total anticipated cost of Rs 2,292.70 crore. The percentage of progress in monetary terms was only 39.71 by the end of 1995-96, requiring a balance outlay of Rs 1,382.30 crore for their completion.
The report said 170 other works were commenced after 1991-92 in Northern Railway and CORE with a total outlay of Rs 1536.75 crore at the end of 1995-96 against the total anticipated cost of Rs 6,023.24 crore. The balance required was Rs 4,486.48 crore for their completion. The percentage of progress in monetary terms came to a mere 25.15.
Thus, at the end of 1995-96, the ministry needed funds of Rs 5,868.78 crore for completion of 199 ongoing works in respect of Northern Railway and CORE alone.
The CAG stated that the ministry had provided allocation of Rs 753.25 crore for 1996-97, constituting only 12.83 per cent of the balance outlay needed. In respect of 29 prolonged ongoing works, the allocation was Rs 263.51 crore, constituting 19.06 per cent of the balance outlay needed for their completion. The ministry, however, launched 102 new works during 1996-97 in Northern Railway and CORE at the anticipated cost of Rs 667 crore and Rs 128 crore, respectively, were allotted for these works.
The report said there was a shortfall of 7.31 million tonnes in originating revenue earning goods traffic as compared to the budget estimates of 398 million tonnes. The Railways, however, registered an increase of Rs 165.4 crore and Rs 65.4 crore in goods earnings over the budget estimates of Rs 15.125 crore and revised estimates of Rs 15.225 crore, respectively.