New Delhi: In a clear indictment of the Ministry of Railways, the Comptroller and Auditor General (CAG) has come own heavily on the ministry for failing the purpose for which Rail Vikas Nigam Limited (RVNL) was constituted by assigning it projects which were not meant to be handled by the public sector undertaking.

The Ministry’s decision not only impacted the outcome of such projects but also compromised with the health of RVNL.

The RVNL was set up with twin objectives of mobilization of private and market funds and implement Railway Projects on fast track basis under the Company Act, 1956 in 2003.
The Railways had released an equity capital worth Rs 1000 crore to the RVNL. The fund was later increased to Rs 3000 crore.

The RVNL was entrusted with the task of constructing the Golden Quadrilateral, construction of Mega Bridges and the rail communication links to the ports. However, these projects are not included in the charter of the RVNL.

The Railways assigned 53 projects to the RVNL. It includes 16 such projects, which were already being carried out under the offices of different Railway Zones. For this a budgetary allocation was also made for RVNL.

The Comptroller and Auditor General (CAG) have raised question over the projects handed over to the RVNL stating the Railways have flouted the norms on awarding the contract to the Nigam.
Despite the battered financial condition of the RVNL, the Railways continued to assign the projects to the Nigam.

The RVNL was set up only to implement the projects of National Rail Vikas Yojana (NRVY). Contrary to it, they were assigned 19 such projects which have no conformity with norms of NRVY.

(JPN/Bureau)