Report of the Comptroller and Auditor General of India STATUS OF ONGOING PROJECTS IN INDIAN RAILWAYS for the year ended March 2014 Laid in Lok Sabha/Rajya Sabha on_____________ Union Government (Railways) No. 48 of 2015 CONTENTS Paragraph Pages List of Abbreviations i to ii Executive Summary iii to ix CHAPTER 1 - Status of Ongoing Projects of Indian Railways- New Lines, Doubling and Gauge Conversion Introduction 1.1 1 Organisation Structure 1.2 2 Audit objectives 1.3 2 Scope and Audit Methodology 1.4 3 Audit Criteria 1.5 3 Audit Findings 1.6 4-35 Conclusion 1.6.14 35 Recommendations 1.6.15 36 CHAPTER 2 - Management of Works Contract in Indian Railways Introduction 2.1 37 Audit Findings 2.2 38-56 Conclusion 2.4 56 Recommendations 2.5 56 CHAPTER 3 - Dedicated Freight Corridor Projects Introduction 3.1 58 About the Project 3.1.1 58 Approval and Planning of the Project 3.2 60 Conclusion 3.4 69 Recommendations 3.5 69 CHAPTER 4 – Modernisation of Signalling and Telecommunication System by Indian Railway Project Management Unit Introduction 4.1 70 Organisation Structure 4.2 72 Audit Findings 4.4 72 Conclusion 4.6 94 Recommendations 4.7 95 APPENDIX Status of Ongoing Projects of Indian Railways- New Lines, Doubling and Gauge Conversion 96-179 Management of Works Contract in Indian Railways 180-181 Modernisation of Signalling and Telecommunication System by Indian Railway Project Management Unit 182-186 ANNEXURE Status of Ongoing Projects of Indian Railways- New Lines, Doubling and Gauge Conversion 187-286 Management of Works Contract in Indian Railways 287-302 Modernisation of Signalling and Telecommunication System by Indian Railway Project Management Unit 303-316 PREFACE This Report for the year ended March 2014 has been prepared for submission to the President of India under Article 151 of the Constitution of India. This Report of the Comptroller and Auditor General of India contains the results of performance review on the following subjects: I. Status of ongoing projects of Indian Railways- New Chapter 1 Lines, Doubling and Gauge Conversion II. Management of Works Contract in Indian Railways Chapter 2 III. Dedicated Freight Corridor Projects Chapter 3 IV. Modernisation of Signal and Telecommunication Chapter 4 System by Indian Railway Project Management Unit The instances mentioned in this Report are those, which came to notice during the course of test audit for the period 2013-14 as well as those which came to notice in earlier years, but could not be reported in the previous Audit Reports; matters relating to the period subsequent to 2013-14 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. Audit wishes to acknowledge the cooperation received from Ministry of Railways at each stage of the audit process. Status of Ongoing Projects in Indian Railways Abbreviations used in the Report ASK Arsikere Jn FLS Final Location Survey APR Anuppur Jn GC Gauge Conversion ANG Ahmadnagar GBS Gross Budgetary Support AAP Ambiapur GM General Manager AJR Ajaibpur GOC Ponmalai (Golden Rock) ALD Allahabad GOK Government Of Karnataka ALJN Aligarh Jn GOAP Government Of Andhra Pradesh BBL Balrai HAG High Administrative Grade BDN Bhadan HNG Hirahgaon BNT Bharthana HRS Hathras BRN Barhan HQ Headquarters BG Broad Gauge HP Himachal Pradesh BPL Bhopal Jn HWH Howrah BINA Bina Jn HAS Hassan BSP Bilaspur Jn HJP Hajipur BXQ Brundamal JGR Jaswant Nagar BZA Vijaywada Jn JJK Jheenjhak CR Central Railway JLS Jalesar Road CUPJ Cuddalore Port Jn JPTN Jaggayya Peta Town CAO Chhauradano JRU Chikjajur Jn CPH Champa Jn JSG Jharsuguda Jn CIDCO City And Industrial KAA Kaurara Development Corporation CMGR Chikkamagaluru KGI Kengeri CTA Chitradurg KLA Kulwa CHL Chola KNS Kanchausi CPYZ Chipyana Bujurg KRJ Khurla Jn CRS Commissioner Railway KQZ Kolar Safety DL Doubling KYQ Kamakhya Jn DAQ Daud Khan KTV3 Kottavalasa DAR Danwar KRMR Karimnagar DER Dadri KZJ Kazipet Jn DKDE Dankaur LMG Lumding Jn DOC Date Of Completion LAR Lalitpur DR Dadar LED Liquid Crystal Display DPR Dhampur MIT Mitawali DRU Kadur MIU Maripat DVG Davangere MKK Madrak ER Eastern Railway MNR Makkhanpur ECOR East Coast Railway MBG Mixed Broad Gauge FA&CAO Financial Advisor & Chief MG Meter Gauge Accounts Officer EKL Ekdil MTP Mettupalayam ETW Etawah MOU Memorandum Of Understanding FZD Firozabad MYS Mysore Report No.48 of 2015 i Status of Ongoing Projects in Indian Railways MM Material Modification RRB Birur Jn MACU Mellacheruvu RRH Rura NL New Lines SB Sarai Bhopat NR Northern Railway SCADA Supervisory Control and Data Acquisition NEFR North East Frontier SDH Synchronous Digital Hierarchy Railway NCR North Central Railway SKB Shikohabad NER North Easterm Railway SKQ Shikandarpur NWR North Western Railway SNS Sarhi NG Narrow Gauge SOM Somna NGP Nagpur SA Salem Jn NDLS New Delhi Railway Station SER South Eastern Railway NTPC National Thermal Power SWR South Western Railway Corporation NBQ New Bongaigaon Jn SECR South East Central Railway NMX New Maynaguri SR Southern Railway NRCO Northern Railway SCR South Central Railway Construction Organization NZB Nizamabad SOD Sojat Rd OHE Overhead Equipment SCL Silchar PHD Phaphoond SBP Sambhalpur PNK Panki SGRL Singhrauli PRA Pora TJ Thanjavur PAC Public Accounts THM Thivim Committee PB Pink Book TK Tumakuru PCE Principal Chief Engineer TIG Titlagarh PWP Preliminary Works TKJ Tilak Bridge Programme PVC Price Variation Clause UBL Hubli RB Railway Board VRI Vriddhachalam Jn ROR Rate Of Return VZM Vizianagaram Jn RITES Rail India Technical And Economic Services RVNL Rail Vikas Nigam Limited ROB Road Over Bridge RUB Road Under Bridge RMGM Ramagundam RNY Rangiya Jn RGL Rengali Report No.48 of 2015 ii Status of Ongoing Projects in Indian Railways EXECUTIVE SUMMARY 1. Review of Status of Ongoing Projects - New Lines, Doublings and Gauge Conversions Indian Railways (IR) runs about 21598 trains (passenger and goods) daily throughout its network of 65808 track kilometer. In order to increase the line capacity and to bring the unconnected backward areas within the railways network, it undertakes projects of expansion by constructing New Lines, Doublings and Gauge Conversions. Over the years, total planned expenditure of the IR has increased disproportionately to its internal resources resulting in increased dependence on Gross Budgetary Support. During 2009-14, though IR added 10240 Km. to its network, 442 projects were ongoing as of March 2014 which would require `185569 crore for completion. This report focuses on the performance of IRs in planning and in addition, attempts to assess the efficiency in financial management and execution of projects. The major Audit findings are mentioned below: I. Out of 442 ongoing projects, target for completion of projects was fixed for only 156 (35 per cent) projects. Even after fixation of targets, there was time overrun up to 16 years. Delay in completion of projects resulted in cost overrun of ` 1.07 lakh crore and throw-forward1 of ` 1.86 lakh crore in respect of 442 ongoing projects. Audit observed that 75 projects were ongoing for more than 15 years and of them, three projects were 30 years old. Para 1.6.2 and 1.6.4 II. Out of 442 ongoing projects, rate of return in respect of 236 projects was less than the prescribed benchmark of 14 per cent and 126 of them had negative rate of return. Out of 28 High Priority projects test checked, the physical progress of 7 projects was less than or up to 10 per cent and in respect of three High Priority projects, there was no physical progress. Para 1.6.6 and 1.6.7.1 III. While the allotment of funds was not proportionate to the requirement, there were several instances of under-utilisation of funds which had adverse impact on the physical progress of projects. Para 1.6.9.1 and 1.6.9.2 1 Funds required for completion of balance works of the project Report No. 48 of 2015 iii Status of Ongoing Projects in Indian Railways IV. Deficient planning resulted in change in design and diversion of alignment causing avoidable extra expenditure of ` 369 crore. Para 1.6.10 V. Out of 11 National Projects, three projects were ongoing for more than 17 years and the remaining eight projects were ongoing for periods ranging from 4 to 11 years. Physical progress of seven national projects ranged between 0 and 34 per cent and the original cost of these seven projects increased substantially from `7651.23 crore to ` 20313.75 crore (265 per cent). Para 1.6.11.1 VI. Due to deficient planning in execution of Lumding- Silchar Gauge Conversion Projects, there were several instances of collapse of tunnels, bridges, diversion of alignment etc. resulting in extra/wasteful expenditure of ` 131.05 crore. Para 1.6.11.2 1.1. Gist of Recommendations I. Indian Railways need to revisit all projects which are ongoing for more than 15 years and do not fulfil the prescribed Rate of Return for assessing the viability of the projects. II. Indian Railways need to prioritise projects on short term basis and ensure adequate funding so that the projects are completed in a time bound manner. III. Monitoring of execution of projects both at the Railway Board and at the Zonal Level needs to be strengthened to avoid wasteful expenditure and blocking of funds. IV. Timely completion of strategically important ‘National Projects’ needs to be ensured in a uniform and coordinated manner. 2. Management of Works Contract in Indian Railways Indian Railways executes a wide range of works for creation of assets such as construction of new lines, doubling and gauge conversion and maintenance works such as maintenance of track, renewal of track, maintenance of office buildings/quarters etc.