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CAG to audit, guide railways’ multi-modal plan to increase cargo transportation

CAG to audit, guide railways’ multi-modal plan to increase cargo transportation

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NEW DELHI: In a first-of-its-kind exercise, CAG will carry out an audit of the ‘multi-modal transport logistics initiative’ to assess the preparedness of the railways to increase its cargo transportation share to 45% in the next five years (2030) from the current 27%.The federal auditor will also assess the railways’ planning for seamless multimodal transportation, which is key to bring down logistics cost, and plans to submit a report in the next year monsoon session of parliament.Additional deputy CAG (railways) Pravir Pandey said it would make recommendations on cutting logistics costs, promoting ease of doing business, ensuring seamless cargo transportation and integrating the digital ecosystem across the chain. “The focus will be on improving the system and efficiency in logistics to bring down cost,” he said.Pandey said CAG is conducting the audit with particular emphasis on ‘first mile and last mile’ connectivity with logistics hubs and origin-destination pairs in the financial year 2025-26. Initial studies have indicated good scope for improvement to make logistics movement seamless across different modes of transportation. CAG has roped in IIM-Mumbai and IIM-Ahmedabad for the report. “CAG, being the auditor of all ministries and departments of the Govt of India, is uniquely positioned to undertake a comprehensive, cross-sectoral audit covering multiple entities involved in the logistics ecosystem,” it said. “Accordingly, an integrated audit group (IAG) has been constituted to carry out coordinated work across key infrastructure verticals, such as railways, infrastructure, ports, shipping and waterways,” CAG said.The federal auditor will also carry out an audit for sustainable rail transport, which aims at achieving net-zero carbon emission by 2030, and also how efficiently IRCTC, the railways’ catering and ticketing wing, is managing plastic waste.INSETIn another development, CAG has set up two centralised cadres to build deeper professional expertise and further improve the quality of audit of central govt finances. It has accorded in-principle approval for the creation — Central Revenue Audit (CRA) Cadre and Central Expenditure Audit (CEA) Cadre — within the Indian Audit and Accounts Department. The scheme will be operationalised from January 1, 2026.

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