Report No. 8 of 2010 - Performance Audit on Union Government (Railways)

Date on which Report Tabled:
Tue 03 Aug, 2010
Date of sending the report to Government
Government Type
Union Department
Transport & Infrastructure


Freight is a profit making business segment of Indian Railways and is the backbone of railway revenues.  Over the years the market share of Indian Railways has been consistently shrinking and railways was losing out to road.Indian Railways laid down detailed freight operational and marketing strategies for the X Five-year plan to regain the lost market share.  Achievement of projected freight targets largely depended on the manner in which the Indian railways reshaped its policies and strategies not only to regain the lost share in freight traffic but also to provide value for money to customers in terms of better facilities and improved services.

This Performance Audit was aimed at assessing the adequacy of infrastructure commensurate with freight raffic growth envisaged in the operational and marketing strategy of Indian railways.It is also intended to asses the effectiveness of initiativbes taken to improve market share of Indian Railways besides efficient maintenance and optimum utilisation of available assets.

The recent growth in freight loading due to more intensive asset utilisation and adoption of market responsive strategies has brought into focus its long term sustainability. Subsequent reviews of the impact of enhanced loading in the zones have emply demonstrated that the current infrasture was overstretched and capacity enhancement was essential to sustain the enhanvced loading strategy in the long run.

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