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Category :
industry
Headline :
Railways faces over Rs 75 cr extra expenditure due to delay in provisioning tariff meters: Panel
Date:
08/02/2024 15:26
The delay in provisioning Availability Based Tariff (ABT) meters by the West Central Railway led to an additional expenditure of Rs 75.10 crore on power purchases, as highlighted in a Public Accounts Committee (PAC) report presented in the Lok Sabha. The Railway Ministry had directed all zonal railways in March 2015 to procure direct power from generating companies through open access and ensure the installation of ABT meters, aiming to reduce traction tariffs and optimize transportation costs.
Despite the Ministry's directives, power supply under open access agreements commenced only in January 2017, primarily due to delays in procuring ABT meters. This delay resulted in the incurred extra expenditure on power purchases amounting to Rs 75.10 crore, as outlined in a report based on findings from the Comptroller and Auditor General of India in 2022.
The Committee observed that despite repeated instructions from the Ministry, the West Central Railway Administration failed to promptly secure and install the necessary ABT meters. Eventually, the meters were procured and installed between January 10, 2017, and April 20, 2017. This delay of over a year in procurement and estimation preparation led to significant additional costs during the period from March 15, 2016, to January 10, 2017.
The Committee recommended that the Ministry streamline and expedite procedures for procuring all items essential to the railway's operational network.
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