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ADB comits $120 million loan to improve railways' infrastructure

Multilateral funding agency Asian Development Bank (ADB) today committed USD 120 million loan for completion of works for double-tracking and electrification of railways tracks along high-density corridors to improve operational efficiency of Indian railways.

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Multilateral funding agency Asian Development Bank (ADB) today committed USD 120 million loan for completion of works for double-tracking and electrification of railways tracks along high-density corridors to improve operational efficiency of Indian railways.

The tranche 3 loan is part of the USD 500 million multi-tranche financing facility for Railway Sector Investment Programme approved by the ADB Board in 2011, an official statement said.

The loan amount will be used to complete the ongoing works commenced under earlier tranches, it said.

The project is aimed at enhancing the efficiency of the rail infrastructure through electrification, introduction of modern signalling system, and doubling rail tracks on key routes in the country, it said.

The programme will help to develop an energy-efficient, safe, and reliable railway system that will result in reduced travel time along project rail routes and improved operational and financial efficiency, it added. 

Meanwhile, the Comptroller and Auditor General (CAG) has lambasted the Indian Railways in its latest report tabled in the Parliament on Tuesday over deteriorating operational costs in successive years.

The report claimed that the operating costs actually would have reached 99.54% against the reported 96.5%, if the actual amount of Rs 400.25 billion towards pension payments had been incorporated in its accounts instead of Rs 350 billion.

Operating ratio represents Railways spending over its expenditure to gain every Rs 100 and is an indicator of its efficiency in operations.

Noting that the operating costs has reached its worst since 2001 at 96.50% as compared to 98.34% in 2000-01, the CAG report criticised Railways for not fully recovering the cost of passenger services in case of AC 1st Class and AC 2-Tier and said the Ministry of Railways should also look into the various innovative ways for revenue generation and closely monitor the expenditure.

The report said had the additional expenditure on pension payments of Zonal Railways been appropriated, the gross working expenditure of Railways would have increased by Rs 50.25 billion to Rs 1.64 trillion leading to an operating ratio of 99.54%.

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