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The Comptroller and Auditor General of India (CAG) has flagged delays in railway safety works, with 20,304 safety-related projects remaining unfinished during FY 2024-25. The audit also raised concerns over the funding and use of the Rashtriya Rail Sanraksha Kosh (RRSK), noting that Indian Railways contributed only a fraction of the internal resources originally envisaged for the fund. The audit report further pointed to the use of RRSK money for non-priority works, budgetary irregularities and a backlog of renewal and replacement works. The findings come as railway expenditure and gross traffic receipts continued to rise.
The Comptroller and Auditor General of India (CAG) has flagged delays in railway safety works, with 20,304 safety-related projects remaining unfinished during FY 2024-25. The findings were part of the audit review of Indian Railways' finances and accounts for the year ended March 2025, which was tabled in Parliament this week.
The audit highlighted delays in achieving the intended safety outcomes of these projects. It also raised concerns over the functioning and funding of the Rashtriya Rail Sanraksha Kosh (RRSK), a dedicated fund established for railway safety-related works.
According to the audit, Indian Railways was expected to contribute substantial internal resources to the RRSK but fell considerably short of the planned contribution. During the first five years of the fund, the Railways contributed INR 5,324.62 crore from internal resources against the envisaged INR 25,000 crore. This amounted to only 21.30% of the targeted contribution.
The CAG also found that INR 823.14 crore from the RRSK was allocated to non-priority works, contrary to the prescribed prioritisation framework. The audit said this reduced the funds available for critical safety-related projects.
Between FY 2022-23 and FY 2024-25, INR 3,397.60 crore of RRSK funds was used for non-priority works. The CAG said this reduced resources available for critical safety projects and diluted the core purpose of the fund.
The audit further identified instances of expenditure without budget grants, underutilisation of funds, unrealistic budgeting and expenditure exceeding approved budget grants.
The Ministry of Railways recorded total expenditure of INR 5,32,378.43 crore during FY 2024-25, an increase of 3.36% from the previous year. Capital expenditure stood at INR 2,69,360.63 crore, up 2.69%, while revenue expenditure increased 4.03% to INR 2,63,017.80 crore.
Around 76.83% of the Railways' total working expenses went towards staff costs, pension payments and lease-hire charges for rolling stock, according to the audit.
The Railways' gross traffic receipts rose 3.86% to INR 2,65,113.61 crore. The increase was mainly driven by higher passenger earnings, other coaching earnings and freight earnings. Coal transportation accounted for 51.68% of freight earnings during the year.
Despite the increase in total receipts, the Railways' net surplus declined to INR 2,660.28 crore from INR 3,259.68 crore in the previous year. Its Operating Ratio stood at 98.22%, compared with 98.43% a year earlier.
The CAG also pointed to under-provisioning for depreciation, which has contributed to a growing backlog of renewal and replacement works involving ageing railway assets.
The audit estimated the accumulated 'throw forward' of such works at INR 6,448 crore up to FY 2024-25. These works relate to the renewal and replacement of over-aged assets and indicate the financial requirement building up for maintaining railway infrastructure.
The report also flagged financial irregularities in railway expenditure. The Ministry of Railways incurred unsanctioned expenditure of INR 9,458.25 crore across 1,321 cases during FY 2024-25. This represented 2.55% of the ministry's total expenditure during the year.
The findings place the focus not only on the amount being spent on railway infrastructure but also on whether available funds are reaching the projects that have the highest safety priority. The unfinished safety works and the use of RRSK funds for non-priority projects remain key issues highlighted by the audit.
Source PTI
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