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(Railways) No. 19 of 2019

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(Railways) No. 19 of 2019 Report of the Comptroller and Auditor General of India for the year ended March 2018 Laid in Lok Sabha/Rajya Sabha on ___________ Union Government (Railways) (Compliance Audit) No. 19 of 2019 Preface The Report for the year ended March 2018 has been prepared for submission to the President under Article 151 of the Constitution of India. The Report contains significant results of the compliance audit of the Ministry of Railways of the Union Government. The instances mentioned in this Report are those, which came to notice in the course of test audit for the period 2017-18 as well as those which came to notice in earlier years, but could not be reported in the previous Audit Reports; instances relating to the period subsequent to 2017-18 have also been included, wherever necessary. The audit has been conducted in conformity with the Auditing Standards issued by the Comptroller and Auditor General of India. Contents Particulars Paragraph Page Abbreviations v-viii Overview ix-xxviii Chapter 1–Introduction Audited Entity Profile 1.1 1 Authority for audit 1.2 4 Audit Planning 1.3 4 Reporting 1.4 4 Structure of the Report 1.5 5 Response of the Ministry/Department to 1.6 6 Provisional Paragraphs Recoveries at the instance of Audit 1.7 6 Remedial action on Audit Paragraphs included 1.8 7 in the Audit Reports Chapter 2 – Traffic Setting up of Private Freight Terminals in 2.1 12 Indian Railways Working of Automatic Ticket Vending 2.2 30 Machines (ATVMs) in Indian Railways Implementation of Train Management System 2.3 45 in Mumbai suburban system Injudicious conversion of Domestic Container 2.4 54 Terminal as Container Rail Terminal led to loss of revenue Non-recovery of penal interest from the 2.5 58 Nationalized Banks for delayed payment of license fee Loss of revenue due to charging of lower 2.6 60 freight than Normal Tariff Rate (NTR) of class LR1 Underloading of caustic soda lye in higher 2.7 62 volumetric BTPN wagons Non-levy/collection of shunting, demurrage 2.8 64 and detention charges Loss of revenue due to non-realization of 2.9 66 empty haulage charges and stabling charges for the flat wagons owned by CONCOR Non-realization of staff cost from siding 2.10 68 i Particulars Paragraph Page owners Non-levy of siding charges from the siding 2.11 71 owners Non-levy and short levy of service tax on 2.12 74 taxable auxiliary services Chapter 3 – Engineering Construction and utilization of Limited Height 3.1 78 Subway (LHS) Payment of Workers Welfare Cess by the 3.2 91 Railways in compliance of Building and Other Construction Workers Welfare Cess Act Short deduction of Jharkhand VAT from the 3.3 100 contractors on-account bill resulting in avoidable liability Construction of sub-standard pit lines leading 3.4 102 to delay in development of new coaching terminal at Mau Discrepancies in maintenance of Works 3.5 106 Registers of track renewal works in Varanasi Division Duplicate payment to contractors due to 3.6 110 inclusion of labour and machine charges in two schedules for procurement of steel and execution of work Delays in completion of yard works and non- 3.7 112 achievement of expected benefits Unproductive expenditure due to execution of 3.8 116 work without prior permission of Commissioner of Railway Safety Infructuous expenditure due to failure in 3.9 119 ensuring full availability of clear site before initiating works Failure to augment capacity of Electric Loco 3.10 122 Shed at Santragachi led to detention of locos Injudicious decision taken in construction of 3.11 125 third platform/line at Mahanayak Uttam Kumar Station of Metro Railway, Kolkata Non-construction of chord lines leading to 3.12 128 haulage of goods trains via longer route and recurring loss of revenue to Railways Irregular payment of water charges to 3.13 131 ii Particulars Paragraph Page municipal bodies Execution of substandard bridge work by the 3.14 134 contractor Blocking up of capital due advance 3.15 136 procurement of electric cables and high conductivity rails for Naopara-Barasat metro extension project Non-recovery from State 3.16 139 Governments/Defence Authorities towards cost of staff deployed on level crossings Non-realization of license fee for railway land 3.17 141 licensed to private siding owners Delay in construction of Electric Loco Shed 3.18 144 (ELS) and consequent cost overrun Failure of Internal Control mechanism resulted 3.19 146 in non-realization of license fee from Hindustan Cables Limited Chapter 4 – Rolling Stock Status of Commissioning and Utilization of 4.1 150 Major Machineries and Plants procured by COFMOW in Indian Railways Working of Rail Wheel Plant (RWP), Bela 4.2 164 Infructuous expenditure due to non- 4.3 180 commissioning of cut to length machine Infructuous expenditure on purchase of special 4.4 183 purpose machine for Bogie Bolster and Bogie Frame Welding Chapter 5 – Signalling and Telecommunications Implementation of Train Protection Warning 5 188 System (TPWS) in Indian Railways Chapter 6 – Traction Installation and commissioning of Solar Power 6.1 205 Plants in Indian Railways Non-mixing/ blending of bio-diesel into HSD oil 6.2 214 by Zonal Railways and non-achievement of Environmental objectives Procurement of readymade Traction Motors at 6.3 216 higher rate Delay in Commissioning of Electric Arc 6.4 218 Furnace leading to blockage of fund iii Particulars Paragraph Page Avoidable extra expenditure due to delay in 6.5 219 completion of work of Traction Sub Station at Limkheda in Ratlam Division Non–segregation of electricity supplied to 6.6 223 Railway colonies Chapter 7 – Other issues Extra expenditure due to procurement of 7.1 226 stores at higher rates and non-levy of liquidated damages Unproductive expenditure due to non- 7.2 230 redeployment of surplus staff of a closed Metre Gauge Diesel shed Management of Kumbh Mela, 2019 by the 7.3 232 Railways Annexure 244-262 iv Abbreviations Abbreviation Full form AFRES Advanced Financial and Railway Expenditure Management System AMC Annual Maintenance Contract ATVM Automatic Ticket Vending Machine ARS Automatic Route Setting ATM Automated Teller Machine ATN Action Taken Note AWS Auxiliary Warning System ASRS Automatic Storage and Retrieving System BOCW Building and Other Construction Workers BG Broad Gauge CC Carrying Capacity CCM Chief Commercial Manager CCTV Close Circuit Television CEE Chief Electric Engineer COFMOW Central Organization for Modernization of Workshops CPE Chief Plant Engineer CSTE Chief Signaling and Telecommunication Engineer CLW Chittaranjan Locomotive works CME Chief Mechanical Engineer COM Chief Operations Manager CONCOR Container Corporation of India Limited COS Controller of Stores CR Central Railway CRB Chairman Railway Board CRIS Centre for Railway Information Systems CRS Commissioner of Railway Safety CWE Chief Workshop Engineer DCT Domestic Container Terminal DJB Delhi Jal Board v Abbreviation Full form DLW Diesel Locomotive Works DPR Detailed Project Report DSP Durgapur Steel Plant DRM Divisional Railway Manager ECOR East Coast Railway ECR East Central Railway ELS Electric Loco Shed EPC Engineering Procurement and Construction ESP Engineering Scale Plan EMU Electric Multiple Unit EIMWB Electronic in-motion Weigh Bridge ER Eastern Railway ETCS European Train Control System FA&CAO Financial Advisor and Chief Accounts Officer FCI Food Corporation of India FOB Foot Over Bridge GCC General Conditions of Contract GM General Manager GSR General and Subsidiary Rules HDN High Density Network ICF Integral Coach Factory ICMS Integrated Coaching Management System IPAS Integrated Payroll and Accounting System IR Indian Railways iMMIS Integrated Material Management Information System LC Level Crossings LEU Line side Electronic Unit LOA Letter of Acceptance LHB Linke Hofmann Busch LHS Limited Height Subway MIS Management Information System MoR Ministry of Railways vi Abbreviation Full form MEA Ministry of External Affairs MEMU Mainline Electric Multiple Unit MG Meter Gauge MR Metro Railway MMIS Material Management Information System MNRE Ministry of New and Renewable Energy M&P Machinery and Plant NCR North Central Railway NDMC New Delhi Municipal Corporation NEFR/NFR Northeast Frontier Railway NER North Eastern Railway NHS Normal Height Subway NOC No Objection Certificate NR Northern Railway NTES National Train Enquiry System NTKM Net Tonne Kilometer NWR North Western Railway NTR Normal Tariff Rate OEM Original Equipment Manufacturer OHE Over Head Electric Equipment PAC Public Accounts Committee PCE Principal Chief Engineer PFT Private Freight Terminal PGT Performance Guarantee Test PIS Passenger Information System POH Periodic Overhaul POL Petroleum, Oils and Lubricants PPA Power Purchase Agreement PRS Passenger Reservation System PTC Proven Test Certificate PPP Public Private Partnership RDSO Research, Designs and Standards Organization vii Abbreviation Full form REL Railtel Enterprises Limited RITES Rail India Technical and Economic Services Limited RKM Route Kilometer RLDA Rail Land Development Authority ROB Road Over Bridge RR Railway Receipt RRI Route Relay Interlocking RUB Road Under Bridge RWF Rail Wheel Factory RWP Rail Wheel Plant S&T Signaling and Telecommunication SCR South Central Railway SOP Standard Operating Procedure SPD Solar Power Developer SR Southern Railway Sr. DCM Senior Divisional Commercial Manager Sr. DOM Senior Divisional Operations Manager SWR South Western Railway TEU Twenty Foot Equivalent Unit TVU Train Vehicle Unit TMC Terminal Management Company TKM Track Kilometre TMS Train Management System TPWS Train Protection and Warning System TSS Traction Substation UTS Unreserved Ticketing System UMLC Unmanned Level Crossings WAP Wheel and Axle Plant WCR West Central Railway WCL Western Coalfields Limited WR Western Railway viii Report No. 19 of 2019 (Railways) Overview Overview The Audit Report consists of audit findings relating to compliance issues in respect of the Ministry of Railways and its various field units. The Audit Report includes five pan India paragraphs and 40 individual Paragraphs.
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