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CAG spots slips in rail projects

New Delhi, May 19: The railways’ gauge conversion plans have gone off the tracks.

The comptroller and auditor general of India (CAG) today made the startling revelation that 107 out of 133 gauge conversion and new line projects taken up by the railways in recent years are not financially viable. The total outlay earmarked for these projects is Rs 54,716 crore.

The report states that although Indian Railways have well laid out financial norms for taking up new projects, these have not been followed.

Sources said most of these projects have been sanctioned by various railway ministers on political considerations and the practice has been continuing.

The CAG report also highlights that 54 of the 116 works cleared, out of turn, to enhance the safety of the railways had not commenced even after one to five years of being sanctioned. These works were sanctioned through supplementary demands for grants for new schemes that were urgently required.

According to the works programme for 2005-06, as many as 62 gauge conversion and 87 new line projects were in progress.

The CAG audit of these projects has shown that at the present rate of funding, the railways require another 15 years to complete the pending gauge conversion projects and 38 years to complete the pending new line projects.

The report stated the projects were sanctioned without adequate justification and decisions were taken during their implementation without keeping in mind the original objectives.

Consequently, the core objectives underlying the projects were not achieved.

Uncertainties in project funding and inadequate project planning had an adverse impact on the efficiency of project implementation.

Delays in the preparation of detailed estimates, lack of co-ordination with state governments for acquisition of land, insufficient delineation of the scope of the projects have all contributed to time and cost overruns.

CAG has recommended the railways should ensure the systems and norms established for the selection of technically and financially viable projects are kept in view in the future before fresh projects are taken up.

According to the report, railways should work out a clear plan to complete all the pending projects within a reasonable time frame.

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