Monday, February 22, 2016

Rly losing Rs2,160cr in freebies to staff

Times of India: Nagpur: Monday, 22 February 2016.
At a time when Indian Railways is finding new ways to mop up revenue, railway minister Suresh Prabhu has failed to touch the sensitive issue of privilege passes to existing and former employees, which could save huge public money running into crores.
Railways annually provide six privilege passes to each of its officers, three to their employees and one to retired staff, along with concessional travels, virtually allowing them a free ride.
There are around 27 lakh 16 lakh working & 11 lakh retired railway employees -- who have been enjoying privilege passes. Assuming Rs8,000 is the minimum amount the Railways 'lose' on AC travel by every employee, the financial burden is a whopping Rs2,160 crore on the taxpayer. With this amount, the Railways could complete the third line project between Nagpur-Wardha-Ballarshah (208km).
A senior railway audit department official, on condition of anonymity, said the loss amount could be much higher. "If employees use benefit of all privilege passes, the railways may be losing at least Rs15,000 crores towards freebies," he said.
Though Prabhu aims to bring fiscal discipline and railways are exploring possibilities of cutting revenue losses that come by way of providing free or concessional travel, passes to employees have been left untouched.
Over the last five years, Indian Railways' has incurred a loss of approximately Rs5,000 crore towards providing for free or concessional travel to a total of 53 categories of persons that includes disabled, senior citizens, sportsmen, students, media persons and medical professionals. The revenue loss on account of free/concessional travel in the last fiscal is estimated at Rs1,300 crore.
As per information received under RTI by city-based activist Avinash Prabhune, railways are not maintaining or calculating cost of privilege passes.
"Not maintaining costing for such huge revenue loss is contradicting all the principles of transparency and accountability," says Prabhune. "Railways claim reimbursement of expenditure for ticket vouchers issued to all MPs and MLAs. The same principle needs to be applied to employees requiring working out the costing of each privilege pass."
However, the Railway Board doesn't agree. Prabhune, who is pursuing the issue with CAG and Railway Board for the last three years, has been told by Board that "suggestion of reimbursing cost of journey in view of pass facility to employees is not feasible to accept".
Surprised by the reply, Prabhune says he is not against passes, but unaccounted revenue loss. Considering the huge amount of LPG subsidy, Centre took appropriate steps to curtail subsidy from rich people. "Similarly, if valuation of railway passes is done, government can save huge money. But it seems officials are against it as they don't want give up this privilege," he said.
Interestingly, railways claim reimbursement of expenditure from Dedicated Freight Corridor Corporation of India Ltd (DFCCIL) officials towards cost of journey undertaken on duty. The same principle needs to be applied for privilege passes. The RTI activist had written to Prabhu on the issue in March requesting to stop misuse of passes as every pass is valid for five months. However, Railway Board is reluctant.
"When LPG subsidy of crores of citizens can be deposited to individual bank account, why can't travel to a few lakh railway employees be calculated," asked Prabhune.
TAKEN FOR A RIDE
*       Burden of around Rs2,100 cr passed on to common man by way of privilege passes
*       The huge financial transaction neither taxed by finance ministry nor accounted by railways
*       Common man sharing huge financial burden due to privilege passes but deprived accommodation in trains as his legitimate seat is occupied by pass holders
*       Railways not maintaining costing details of railway passes
*       CAG too has not objected to such incorrect practice of not computing costing of passes
*       RTI by Prabhune was misplaced by CAG office
*       Railway audit wing of CAG compared pass facility with LTC facility, which is given once
*       CIC allows applicant Prabhune's case stating CAG defeated purpose of RTI by not supplying information