Railways Unable To Renew, Replace ‘over-aged Assets’ Due To Poor Financial Health: CAG


Railways Unable To Renew, Replace ‘over-aged Assets’ Due To Poor Financial Health: CAG

The federal auditor painted a grim picture of affairs in the railways by highlighting the national transporter’s failure to renew and replace ‘over-aged assets’ due to weak financial health.

Asking railways to look into the innovative ways for revenue generation and closely monitor the expenditure, the comptroller & auditor general (CAG) suggested the transporter revisit the passenger and other coaching tariffs so as to recover the cost of operations in a phased manner.

It said the practice of issuing free and concessional tickets should be scaled down.

In its report on ‘Railways Finances 2016-17’ tabled in Parliament, the CAG said, “Non-availability of sufficient funds in Depreciation Reserve Fund to replace the over aged assets is indicative of weak financial health of Indian Railways.”

It added, “Huge backlog of renewal and replacement of over aged assets in railway system, which needs to be addressed for safe running of trains.”

In another report on ‘Maintenance of track on heavy traffic sections’, the auditor found lapses in maintenance plans, inspection by officials and usage of high-end machines to detect track defects. Read More

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