New Delhi: The Indian National Auditor has been marked £573 Crore in financial reliefs and operating inefficiency across the Ministry of Railways, detecting system weaknesses in recovering income, asset management and project implementation across several zones.
The findings were presented in the report on Audit No. 5 of 2025 by inspection and general auditor of India (CAG), which were submitted to Lok Sabha on Monday. The message previously laid in Rajya Sabha on 4 April, includes 25 key audit observations based on test audits made up to FY23, with updates from the following periods.
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These findings come, although Indian Railways seeks greater efficiency, private investment and extensive modernization of infrastructure. CAG observations emphasize persistent challenges in income management, contract enforcement and planning that could undermine the ambitions of the reform of the sector
The Indian controller and general auditor, the Indian Apex audit in the country, currently leads K. Sanjay Murty, who took over the office on 21 November 2024.
Shortcomings of renewal of income
One of the most expensive outages emphasized in the report was a short renewal of the land charges £148.61 crore from the northern railway from five government schools as a result of non -compliance with the Railway Council directives. Another significant deficiency included nine railway zones that did not recover £55.51 Crore in contributions to district mineral foundations (DMF) from suppliers involved in mining -related work, despite the collection of licensing values.
East Central Railway has suffered loss of income £50.77 Crore by failing to withdraw fees for shifting to the bina side (BCSK) between April 2020 and March 2023. Similarly, the southern and northeast borders could not realize £25.48 CRORE for deposit work, while delay in renewing licenses for VHF-Velmi high-frequency radio communication equipment used by Indian railways for real-time communication between local pilots, champions of stations, guards and control rooms-Pokladna South Central Railway £23.16 crore in late fees.
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In the southwest railway, an express train between Satya Sai Prasanthi Nilayam and Bengalur continued for six years despite the low number of passengers, which resulted in loss £17.47 crore, CAG report noted.
The failure of upgrading certain routes for higher axle load has also led to losses. Lost western railway £12.62 crore due to inactivity and southern railway lost £5.43 Crore in the Karur – NerCOil section. West Central Railway failed to deliver players against premium indentation, which resulted in a potential loss £6.16 crore while the southeast railway lost £10.25 CRORE in freight freight revenue by allowing non -wound cars to run empty.
The audit marked several cases of public funds tied in unused or incomplete infrastructure.
Southwest railway has built a road across the bridge that remains unused for more than five years due to lack of coordination with the Karnataka government, blocking £11.81 crore. Unchanged in the new jalpaiguri tied another £9.33 Crore while poor planning of the New Garia terminal station resulted in influctual expenses £7.62 crore.
Problems of Management and Manage Asset Management
The report emphasized several cases of incorrect contract and unused railway assets.
In the northeastern border railway, the assignment of contracts for the upright rate led to a disproportionate advantage £9.4 Crore for suppliers. Otherwise, the eastern railway could not claim £6.45 CRORE in tax credit to be entitled to pay for GST, due to incorrect and non -rectified designation of contractual contracts.
The Eastern Railway also continued with the purchase of a shot shot in value £12.66 Crore for Liluah workshop, despite an internal evaluation questioning its suitability. The associated paintings were later externally entered and the equipment remained largely unused.
Furthermore, CAG called the insufficient use of 28 railway trainers Nilgiri Mountain Coaches built by the South Railway and the integral coach of the coach without consulting with the organization of research, design and standards.
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The audit has indicated an incapable transport concession £11.02 Crore awarded Southern Railway under the Station Scheme (STS). The discrepancies of public procurement and failure in consultation with the relevant technical authorities led to additional costs and unused rolling.
Unused coach shot a liluah race and unused coaches of the Nilgiri Mountain Railway Mountain Railway £27.91 crore was also listed as examples of inefficient assets of assets.
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