CAG Announces Audit of Indian Railways’ Key Transport & Logistics Projects
In a major transparency push, the Comptroller and Auditor General (CAG) of India will audit the Indian Railways’ multi-modal transport initiatives, logistics projects, and suburban train systems. The move aims to evaluate efficiency, financial accountability, and alignment with the national Gati Shakti Master Plan.
Why Is the CAG Auditing Railways’ Projects?
The CAG routinely reviews high-impact government programs to ensure policy compliance and optimal resource use. This audit targets three critical areas:
- Multi-Modal Transport Integration – Assessing rail-road-waterway connectivity under PM Gati Shakti.
- Logistics & Freight Corridors – Scrutinizing Dedicated Freight Corridors (DFCs) and last-mile cargo solutions.
- Suburban Rail Networks – Evaluating upgrades in Mumbai, Chennai, and new projects like Bengaluru’s Rs 15,767 crore suburban rail.
Key Focus Areas of the CAG Audit
1. Multi-Modal Transport: Bridging Gaps in Gati Shakti
The audit will examine:
– Intermodal hubs: Efficiency of rail-road-port connectivity.
– Project delays: Cost overruns in infrastructure (e.g., Eastern/Western DFCs).
– Coordination: Between Railways, Highways, and Inland Waterways Authority (IWAI).
2. Freight & Logistics: Cutting Costs, Boosting Efficiency
With logistics costs targeted to drop from 14% to 8% of GDP, the CAG will review:
– DFC performance: Freight movement speed and private sector participation.
– Last-mile delays: Impact on cargo delivery timelines.
3. Suburban Rail: Meeting Urban Demand
Focus areas include:
– Mumbai’s network: Fund utilization and safety upgrades.
– Bengaluru Suburban Rail: Progress on the 148 km project.
– Passenger amenities: Punctuality and overcrowding solutions.
Expected Findings & Implications
Past CAG reports revealed:
– Fund diversion: Safety budgets redirected to other projects.
– Delays: Slow electrification and station redevelopment.
– Freight inefficiencies: Underutilized corridors causing revenue loss.
This audit could reinforce accountability or highlight successes like:
– DFC-driven freight growth.
– Better last-mile links via Bharatmala/Sagarmala schemes.
Railways’ Response & Next Steps
The Railway Ministry welcomed the audit, calling it a “step toward transparency.” However, experts note that implementing CAG recommendations has lagged historically.
The report, due by mid-2025, will guide policymakers at NITI Aayog and the Finance Ministry.
Conclusion
As India targets a $5 trillion economy, efficient railways are vital. This audit could reshape transport policies, benefiting millions of passengers and businesses.
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