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Public Accounts Committee (1971-72)

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Public Accounts Committee (1971-72) PUBLIC ACCOUNTS COMMITTEE (1971-72) (E'IFTH LOK SABHA) FORTY-FIFTH REPORT [Appropriation Accounts (Railways) 1969-70 and Report of the Comptroller & Auditor General of India for the year 1969-70, Central Government (Railways)] &OK QABHA SEOBETAEIAT NEW DEItHI LIST OF AUTHORISED AGENTS FOR THE SALE OF LOX SABHA SECRETARIAT PUBLIC~TIONS 81. Nemeof Ageat aesnos 81. Name of Bgeat No. , No. No. %? 1. hdhre Univereity Oonerd tive Btones Ltd., ?rir (Viaekhspatnnm) Charlae Ismbert & Corn- gny, 101, Mahstma 2. G.R. Lakehmipatby Chatty andhi Road, Opposite and SOM, herd Mer. Clook Tower, Fort, chante and Nowa Ag~nta, Bombqv. Xewpet, -@i, Chittoot D~~tr~ct. The Current Book Houee, Nwti he, Jhghrurath Ddaji Street, Bombay-1. 3. Western Book Depot, Pan B~zat,Oanhati. BIHAR MIs. Ualia Book Depot, . 4. barKitah Ghw, Poet 68B/A, Chiro nazar, Khan Box, 78, Di~nolRoad, How, Oiipaum Rod, Jamshalpur. Bombay-3 BR. GUJARAT MTSORE 6. Fijey Storea, Station Road, Anand. 6. The New Oder Bwk Companv EUi3 Bridge, dhm&hd-6. Infi~mstiou Gentrc, Gwernrnoni nf Rajuathan, Tripolio, Jnipur City. ' -7. Bwestik Induatrinl Works, 60, HoliStroet,, IyI~o~1.tCity. 8. Wdem Book Hoasc. 8hiv Was Palace, Indoro City. 9. SIR.Sundenilu Ginnohand. 601, Giir nnm PQ&, Xear hinm8trcc?~, J%mbap.&. ao. ?'be kYtsrnatl.~nnl Rook &we (Private) Limited, w. Nmso & Compmg Q, Anh hue, &listma Ltd., 3, Old Ooot-t &ruo Gwdhi &)ad, Bumbay.1. Btreclt. Cnhrutts. CONTENTS CORKTGENDA TO THE FORTYIFTFTH REPORT OF T!Hll PAC (FIFTH LOK SAHA) PESENTED TO LOK SABHA ON THE 25M APRIL, 1972. u-Para Line 9 1.26 2 mleted mil cted 12 1.35 10 per train as per train per lnfle 1s the same for the mail train as trafflc tari f f class classes Dep a r tmen t Devel opmt dl scussed rfi ssuaded Cen t ral Rail ways IZsllway four d found all an d mi s This is services sources arised arlse delay 1s delay in norma3.y normalcy remedal reneni a1 21 2 14 servl ces sources CONTENTS I'AOE~ [!srr~~n1. Finat~cialRc~nlt& of Working of tho Railwsyn . 1 I. Comprebeneive note nn the nwkinp of the Marketing and FRICF Orgmiaation of Railn.a!.a . , . 15.5 111. neteilr of initid cost of alrepm PIvsriou~ t!~n with fittinps etc:. 163 28.10-Ifiil (F.N.) 1.4.1872 (AX.) -------.. --- . -.- --"--* -" . - . -.. -- - - - " -. - - **Not, win@ (nnr otolnstvl6il mpr Irhl an the T~hlrnf thr Hnnw and fir^ ropiu placd PUBLIC ACCOUNTS COMMITTEE (1971-72) Shri Era Sezhiyan MEMBERS 2. Shri Bhagwat Jha Azad 3. Shrimati Mukul Banerji 4. Shri C. C. Desai 5. Shri K. G. Deshmukh 6. Chaudh'ari Tayyab Husain Khan 7. Shri Debendra Nath Mahata 8. Shri Mohammad Yusuf 9. Shri B. S. Murthy 10. Dr. Laxminarayan Pandeya 11. Shri Ramsahai Pandey 12. Shrimati Savitri Shyam 13. Shri Vijay Pal Singh 14. Shri G. Venkatswamy 15. Shri Ram Chandra Vikal 16. Shri S. B. Bobdev 17. Shri B.K. Kaul $18. Shrimati Vidyawati Chaturvedi @19. Shri Jagdish Prasad Mathur 20. Shri Thillai Villalan 21. Shri Shyam La1 Yadav *22. Shri Sheel Bhadra Yajee Shri Avtar Singh Rikhv-Joint Secretary Shri B. B. Tewari-Deputy Secretmy Shri T. R. Krishnamachari-Under Secretary INTRODUCTION I, the Chairman of the Public Accounts Committee as authoris- ed by the Committee, do present on their behalf this Forty Filth Report of the Public Accounts Committee (Fifth Lok Sabha) on the Report of the Comptroller and Auditor General of India for the yeal: 1969-70, Central Government (Railways). 2. The Report of the Comptroller and Auditor General of India for the year 1969-70, Central Government (Railways) was laid on the Table of the House on the 1st April, 1971. The Committee examin- ed the Report of the Comptroller and Auditor General of India for the year 1969-70, Central Government (Railways) at their sit- tings held on the 25th to 28th October, 1971 and blised this Report at their sitting held on the 24th April, 1972. Minutes of the sittings form Part 11* of the Report. 3. A statement showing the summary of the main conclusions/ recommendations of the Committee is appended to the Report (Appendix V). For facility of reference these have been printed in thick type in the body of the Report. 4. The Committee place on record their appreciation of the assistance rendered to them in thc examination of the Audit Report by the Comptroller and Auditor General of India. 5. The Committee would also like to express their thanks to the Chairman and Men1bel.s of the Railways Board and representa- tives of the Min~striesof Industrial Development and Agriculture for the cooperation extendcd by them in giving information to the Committee. ERA SEZHIYAN, Chairman, PI[blic Accounts Committee. 'Not printed (ow opolo~tyldcopy Inid or, the Table of tbe How arid five aopiel plod in Patliarnant Library). FINANCIAL RESULTS OF WORKING OF THE RAILWAYS Financial Itesults Audit Paragraph 1.1. For the fourth year in succession the working of the sail- ways showed a deficit in 1969-70. Against a nominal surplus of ~s.1.92 crores anticipated in the Budget, the accounts for the year closed with a deficit of Rs. 9.83 crores. As the balance in the Revenue Reserve Fund which stood at Rs. 63.21 crores at the end of 1965-66 was practically exhausted during 1968-69 due to withdrawal there- from for meeting the recurring deficits in 196667 to 1968-69 the Railway had to obtain a loan of Rs. 8.86 crores from General Reve- ~ucsfor meeting the dividend obligation. This was the first time yince 1924-25 that the Railways had to resort to a loan to meet their l~abilityon account of dividend to General Revenues. Besides, the Railways had also obtained a loan of Rs. 18.14 crores during 1969-70 for meeting expenditure on works chargeable to Development Fund. Thc total liability on account of loans taken from General Revenues at the end of the year under report stood at Rs. 52.30 crores of which Rs. 13.45 crores was for meeting the cost of works charged to Deve- lopment Fund. In addition, Railways owe to the General Revenues Ks. 56.89 crorcs on account of deferred dividend of which Rs. 13.04 rrorcs became due for payment by 1969-70 but could not be paid owing to inadequate surplus in the working of the lines concerned. 1.2. The main reason for the deficit was the increase of Rs. 18.64 clwcs in the Revenue cxpenditl re which was partly off set by an incwasc of Rs. 4.27 crorcs in thc gross Receipts and a reduction of Iis. 2.62 crores in the payments to General Revenues. The bulk of the increase under revenue expenditure occurred under 'Repairs and maintenance' (Rs. 7.95 crores) and cost of fuel (Rs. 9.59 crores) :..f. para 4 below:- (111 cmw of rupees) .... .~ -. - - . .- ------ap- I'art iouhrrr Uncigrt Aotuab Variation " ... ., .. - .. .. -.. .. -. .-- -- 1 rlci~I . .. !b47.3? k61.B'J (.C)4337 2. !ri) R~wwvExlnndit un. 7M-39 SM,(K3 (+)lR.M (1)) I'aymrntw to C;tinorrrl Hrvr~iucr . 15U.Ol 1M.3!l (-)?.62 3. S~~rpl~in,'l)cfloit . ($) 1.92(-!0.83 (--)11.76 . .. - - .- . -, . 1.3. Thc Comn~ittr~dcsircd to knmv the machinery employed by lh() Railway Board for pyepal.infi ttw financial and physical targets ;i1ld lor 8 review of the wrformancp :?is-u-pis the prescribed tal-gets. T!le Chairman, Hai]wav Board stilted, "This plan is prepared on the basis of information obtained from the Ministries, vetted by the Planning Commission who hold discussions with the Ministries along- with the representatives of the Railway Ministry. The Railways have also got a planning cell. There is a Planning Deputy Chief (Operating) on every railway, and he is closely associated with the forn~ulationof the plan in the Railway Board office. We have also got an economist. and he takes into consideration the trends of in- dustrial production. agricultural output and all other relevant fac- tors, but as far as the main issues like tht. coming up of new indus- tries. major expansion etc., are concerned, we are dependent upon the information that is given to us by the other ministries, vetted by the Planning Con~mission.though we try to keep in touch with the developments to see that we do not exceed the realistic antici- pations in the construction of our works." 1.4. The Financial Commissioner for Railways further explained. "This plan is finalised at various stages. We have got a working group for finalising the targets of the Railway Plan which consists of the representative of the Railway Ministry. the Director of Rail- \vay Planning, and representatives of the various ministries, presid- ed over by a senior oficer of the Planning Commission. There is simultaneously the Committee of Resources which goes into the \&'hole question of resources---Central Government. State Govwn- ment, public sector undertakings, Railways, P&T rtc. To this Com- mittee we furnish our est.imated receipts and expenditure for thc Plan period and they find out from that ~vhatwill bc our surplus or deficit." 1.5. To a question whcthw the Railivays' plan was formulated according to the revenue surplus or according to the needs of thr areas! the Chairman Railwav Board replied. "The needs of the sail- ways in respect of additional facilities, new lines, conversion, addi- tional stock, etc. are knoivn to thr Railways through constant dis- cussion. There is an annual works programme which is discussed in great detail, after it is formulated by the railways under genera! directions given by the Board.
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