The Comptroller and Auditor General of India (CAG) has released a report highlighting significant shortcomings in the Indian Railways’ management of non-fare revenue and dues recovery, raising concerns about the potential financial losses for the national transporter. The report indicates that the Railways is missing out on substantial revenue opportunities due to underutilized land and ineffective enforcement of dues collection from private siding owners.
According to the CAG’s findings, the Indian Railways has approximately 43,000 hectares of land, much of which remains undeveloped. The report emphasizes that this vast expanse of vacant land represents a missed opportunity for generating non-fare revenue, which is crucial for the financial sustainability of the rail network. Non-fare revenue includes income from sources other than ticket sales, such as land leasing, advertising, and commercial activities on railway premises.
The CAG report specifically points to Rs 4,087 crore in dues that remain unrecovered from private siding owners. These dues are payments owed to the Railways for the use of its infrastructure, which is essential for the operation of private freight terminals. The report suggests that weak monitoring and enforcement mechanisms have contributed to the inability to collect these dues effectively.
The Rail Land Development Authority (RLDA), which is responsible for the development of railway land, has also come under scrutiny. The CAG report indicates that the RLDA has awarded only a small fraction of the land entrusted to it for development, further exacerbating the issue of underutilized assets. The report highlights that out of the 1,000 hectares of land identified for commercial development, only a limited number of projects have been initiated, leading to significant delays in revenue generation.
The systemic issues identified in the CAG report are compounded by poor inter-agency coordination. The report notes that various departments within the Indian Railways and other governmental bodies have not collaborated effectively, hindering timely monetization of railway assets. This lack of coordination has resulted in missed opportunities for revenue realization, which could have otherwise contributed to the financial health of the Railways.
The implications of these findings are significant for the Indian Railways, which has been grappling with financial challenges in recent years. The organization has been under pressure to improve its financial performance, particularly as it seeks to modernize its infrastructure and enhance passenger services. The inability to capitalize on non-fare revenue streams could hinder these efforts, making it more difficult for the Railways to invest in necessary upgrades and expansions.
The CAG report also raises questions about the governance and oversight mechanisms in place within the Indian Railways. The findings suggest that there may be a need for a comprehensive review of policies and practices related to land management and revenue collection. Strengthening these mechanisms could help the Railways unlock the potential of its assets and improve its overall financial position.
The report’s release comes at a time when the Indian government is focusing on enhancing the efficiency and profitability of state-owned enterprises. The Railways, as one of the largest employers and transport networks in the country, plays a critical role in the economy. Addressing the issues highlighted in the CAG report could not only improve the financial standing of the Railways but also contribute to broader economic growth by facilitating better transportation and logistics services.
In conclusion, the CAG’s report underscores the urgent need for the Indian Railways to address its shortcomings in non-fare revenue generation and dues recovery. The findings point to systemic issues that require immediate attention, including improved monitoring, enforcement, and inter-agency coordination. As the Railways seeks to navigate its financial challenges, the effective management of its assets will be crucial for ensuring its long-term sustainability and ability to serve the needs of the nation. The report serves as a call to action for stakeholders to prioritize the development of railway land and the recovery of dues, which could significantly enhance the financial viability of this vital public service.
