In a shocking revelation, it has come to light that the Indian Railways has been overcharged by the National Oil Companies for the purchase of diesel. According to sources, the railways have been paying significantly higher prices for diesel than the market rates, resulting in a massive loss of public money.
The scam was exposed when an audit report conducted by the Comptroller and Auditor General (CAG) revealed irregularities in the procurement of diesel by the railways. The report states that the railways have been paying more than Rs. 2,000 crores ($270 million) extra to the oil companies for the purchase of diesel since 2014.
The CAG report highlighted that the railways have been purchasing diesel from the national oil companies at a rate higher than the international benchmark price. Moreover, it was found that the railways have been purchasing diesel at rates much higher than other consumers such as state transport undertakings, defence services, and public sector undertakings.
The report also pointed out that the railways have been paying a fixed transportation charge to the oil companies, irrespective of the distance covered by the fuel tankers. This led to a situation where the railways were paying more for the transportation of diesel than the actual cost incurred by the oil companies.
The scam has caused a huge loss to the public exchequer, and action needs to be taken against those responsible for it. The railway authorities have assured that they will take the necessary steps to prevent such scams in the future.
The CAG report has brought to light yet another case of corruption and mismanagement in the country’s public sector undertakings. It is high time that the government takes stringent action against those found guilty of such irregularities and ensures that public money is not wasted in such scams.
The Indian Railways is the lifeline of the country, and any irregularities in its functioning can have severe repercussions on the economy. It is imperative that the government takes swift action to restore the public’s trust in the railways and ensure that such scams are not repeated in the future.