CAG Report on Indian Railways

Why in news?

CAG has recently released a report revealing that there are major lapses in Indian Railways catering services.

What are the highlights of the report?

• Articles unsuitable for human consumption, contaminated food stuffs were offered for sale in the railway stations.
• No reduction in the number of complaints over the years and the major complaints was related to overcharging and quality issues.
• Unauthorised vendors were operating in platforms and trains.
• Unfair practices were being followed in the execution of catering services at stations and trains.
• Hygiene was greatly compromised. The food and water sold at the railway stations and trains are unfit for human consumption.

What are the factors behind these unhygienic practices?

• In its report, CAG held that the Policy shifts in catering are mainly responsible for this mess in catering services.
• Even the new catering policy launched recently is not clear on how zonal railways will be held accountable.
• In 2005, the Railways gave all catering contracts to IRCTC, its PSU, but took it back in 2010. It gave the contract back to IRCTC under the new policy this year.

Recap

CAG Report

• Comptroller and Auditor General (CAG), an authority audits all receipts and expenditure of the Government of India and the state governments.
• It also audits the accounts of those bodies and authorities substantially financed by the government.
• The CAG is also the external auditor of Government-owned corporations and conducts supplementary audit of government companies.
• The reports of the CAG are taken into consideration by the Public Accounts Committees (PACs) and Committees on Public Undertakings.

Source: Financial Express