Indian Railways contributed 21.30% of RRSK safety fund target in first five years

Who it concerns: Ministry of Railways (Union Government), Indian Railways, and its Public Sector Enterprises.

What the auditor found

• Net surplus of ₹ 2,660.28 crore in 2024-25, down from ₹ 3,259.68 crore in the previous year.
• Unsanctioned expenditure of ₹ 19,458.25 crore involving 1,321 cases, constituting 2.55% of total expenditure.
• Savings of ₹ 28,923.33 crore in 7 cases where savings exceeded ₹ 100 crore each.
• Backlog of renewal and replacement works for over-aged assets estimated at ₹ 6,448 crore due to under-provisioning for depreciation.
• RRSK internal resource contribution was only ₹ 5,324.62 crore against a target of ₹ 25,000 crore (21.30% achievement).
• ₹ 3,397.60 crore of RRSK funds utilized for non-priority works between 2022-23 and 2024-25.
• Throw-forward liability of ₹ 2,29,354 crore for ongoing RRSK-funded works.
• Recommendations include diversifying freight earnings, addressing asset renewal backlogs, regularizing unsanctioned expenditure, and ensuring dividend payments by subsidiaries as per DIPAM guidelines.

Also in the document

• CAG found that Indian Railways contributed only 21.30% of the targeted internal resources for the Rashtriya Rail Sanraksha Kosh (RRSK) safety fund in its first five years.
• CAG reported a substantial throw-forward liability of ₹ 2,29,354 crore for safety-related works funded by RRSK, indicating a significant backlog.
• CAG noted that 76.83% of total working expenses were incurred on staff costs, pension payments, and lease hire charges on rolling stock.
• CAG observed that despite supplementary provisions, there were significant savings in both Voted and Charged sections of Capital Grants, with savings of ₹ 11,515.50 crore and ₹ 238.86 crore respectively.