₹9,122 crore unsanctioned expenditure in Indian Railways, CAG finds

Who it concerns: Ministry of Railways (Indian Railways) and its Public Sector Enterprises

What the auditor found

• Under-provisioning for depreciation resulted in a backlog of renewal and replacement works for over-aged assets estimated at ₹ 30,921 crore.
• Unsanctioned expenditure of ₹ 9,122.24 crore was incurred across 1,999 cases.
• Additional expenditure of ₹ 9,797.26 crore was incurred in excess of the sanctioned budget under Revenue Grant.
• Savings of ₹ 50,694.82 crore were recorded in five specific budget cases where savings exceeded ₹ 100 crore each.
• Misclassification of expenditure was found between Revenue and Capital Grants, and between Voted and Charged sections.
• Railtel did not have a separate policy for e-waste disposal and disposed of old batteries in a manner that may not ensure handling by authorized recyclers.
• CAG recommended the Ministry to analyze passenger operation costs, diversify freight earnings, address the asset renewal backlog, and regularize unsanctioned expenditure.

Also in the document

• CAG noted that 72.89 per cent of total working expenses were incurred on staff costs, pension payments, and lease hire charges.
• CAG reported that only 12 out of 35 profit-earning Railway Public Sector Enterprises declared dividends as stipulated by DIPAM instructions.
• CAG observed that the market capitalization of seven Railway Public Sector Enterprises increased by 182.36 per cent compared to the previous year.