The Comptroller and Auditor General – CAG – has recommended rationalising of freight and passenger tariffs to improve its finances. The premier auditing body also pressed for making quick decisions about unviable projects and increasing focus on more viable projects. The CAG in its 2010-11 report tabled

in Parliament today said the way forward for Indian Railways to improve its finances is to rationalise both freight and passenger tariffs through some form of pre-determined non discretionary inflation indexing. The report further said, efforts are required to enhance capacity in such a way that the growing demands are satisfactorily met.

Speaking later to reporters, Deputy CAG Rekha Gupta said, the Railways further needs to review all cases of licensing and renting of its assets for timely revision and raising of bills. She said the CAG has recommended strengthening of Railway budgetary mechanism and system of expenditure control. Gupta said availability of land for construction of a new line should be ensured before the approval of a new line project and detailed estimate should be prepared immediately to facilitate the commencement and completion of the project.