Railways suffers loss due to injudicious procurement of machine by Patiala Locomotive: Parl panel
New Delhi (PTI): Injudicious procurement of an additional CNC horizontal boring and milling machine by Patiala Locomotive Works cost a financial loss of Rs 25.43 crore to the Railways, the Public Accounts Committee (PAC) has said in its report in the Lok Sabha.
The PAC, in its report tabled in the Lok Sabha on Wednesday, carried out a detailed examination based on the CAG report, which was laid on the table of the House on December 21, 2022.
Titled "Injudicious procurement of an additional CNC horizontal boring and milling machine: Patiala Locomotive Works", the report recommends the ministry to establish a mechanism for periodic review of procurement policies in line with evolving directives to prevent recurrence of such infructuous expenditure in future.
The matter pertains to the manufacturing and rebuilding of Diesel Locomotives for Zonal Railways and Non-Railway Customers by the Patiala Locomotive Works (PLW) as the Railway Board assigns the work for manufacturing and rebuilding of various types of Locomotives to different Production Units as per its production plan.
According to the report, the Patiala Locomotive Works (PLW) embarked on a procurement initiative for an additional CNC Horizontal Boring and Milling Machine in pursuit of increased production targets.
"However, the course of events took an unforeseen turn when the Railway Board communicated in June 2014 that there was no need for new mainline ALCO Locomotives for Indian Railways and advised the PLW to stop production of mainline ALCO Locomotives from 2015-16 onwards, leading to a fundamental shift in PLW's production strategy," the PAC's report said.
"Despite the directive to cease the production of mainline ALCO Locomotives, the PLW proceeded with the procurement of the CNC machine without revisiting the necessity in light of the policy change," it added.
The Committee observed that the machine faced delays in installation and commissioning, resulting in substantial time overruns.
"Moreover, within six months of commissioning, the PLW sought to transfer the machine to other Railway Units, citing a declining trend in engine block production due to decreased demand for Diesel Locomotives," the report said.
"Total expenditure of Rs 25.43 crore (as of April 2022) was incurred by the PLW for purchasing of the CNC machine," it added.
According to the report, the Ministry of Railways justified the initial procurement based on the 2011 requirement for new engine blocks but failed to acknowledge the need for a review after the 2014 directive to cease mainline ALCO Locomotive production.
"While acknowledging the context in which the initial decision of procuring the CNC machine was taken, it is also evident that with the changing policy landscape, as communicated by the Railway Board in 2014, a thorough review of the procurement plan was a necessity," the Committee observed in the report.
"The Committee, therefore, does not find the reasons afforded by the ministry for going ahead with the proposal for procuring the machine despite the changed policy dimension to the convincing and recommends that the ministry should own responsibility for the failure to review the proposal for purchasing the CNC machine in light of the change in policy," it added.
The Committee also noted that 80 per cent of the payment towards procuring the CNC machine was made to the supplier before the actual shipment.
Questioning it, the report said, "The Committee wishes to be apprised of the reasoning behind agreeing to this payment schedule, and safeguards, if any, that may have been put in place to protect the ministry's interests in the event of non-compliance by the supplier."
Besides, according to the report, the Committee also recommends that, in future procurements, the ministry considers all viable options and selects the most suitable solution to meet its manufacturing or maintenance needs, and minimises the risk of encountering deficiencies or delays.
"The Committee also feels that it would be appropriate for the ministry to establish a comprehensive supplier developing and handholding programme for identifying, developing and providing technological support for Indian suppliers so that they could be an integral part of the 'Make in India' supply chain system," the report said.
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T'gana RTC strike: Talks between govt, employees successful
Hyderabad (PTI): Talks between employees of Telangana State Road Transport Corporation (RTC) who were on strike and the state government concluded successfully on Friday as the government agreed to the key demands of the workmen.
Following a day-long marathon of talks between the leaders of the employees' Joint Action Committee (JAC) and the cabinet sub-committee, the government announced after midnight that it acceded to the demands, including a merger of RTC with the government, 11 per cent pay revision and elections to the employees' unions.
A committee comprising officials and employee leaders would be appointed over the merger of RTC with the government, it said.
The RTC management has also agreed to address the remaining issues as well, an official release said.
The employees would call off their strike and the RTC buses would hit the roads shortly, it said.
The employees had been on an indefinite strike since April 22 over a series of demands, including the merger of RTC with the government.
Earlier in the day, a driver of the RTC, who attempted suicide on April 23 during the strike, died at a hospital here in the early hours of Friday.
Shankar Goud, a 55-year-old driver, set himself ablaze by pouring petrol at Narsampet in Warangal district when the employees were staging a protest on Thursday in support of their demands.
Goud suffered serious burns, was initially admitted to a state-run hospital in Warangal, and later shifted to a super-speciality hospital in Hyderabad for advanced treatment.
"He succumbed (to injuries) at about 1.30 am on Friday," a senior official said.
The driver’s body was taken to his relative’s village, Muttojipet in Warangal district, for funeral rites.
Tension prevailed in Muttojipet as his family members and RTC employees attempted to take the body to the Narsampet bus station, where he worked, to enable his colleagues to pay their last respects. However, police did not permit this, citing law-and-order concerns.
This led to a deadlock before the funeral could proceed.
Union Minister Bandi Sanjay Kumar criticised the Telangana government for not allowing the body to be taken to the Narsampet bus station.
Kumar, Minister of State (Home), visited Muttojipet village in Warangal district, where the funeral was held, and paid homage to Goud.
“They (family members) want to take the body to the bus depot for five minutes. Is the RTC bus depot in Pakistan or Bangladesh? They are emotionally attached to taking the body there. The government is hurting sentiments and creating fear among RTC employees,” Kumar told reporters.
He also expressed anger at the police for not allowing the body to be taken to the bus station and staged a protest, according to a release from his office.
RTC employees and BJP workers attempted to take the mortal remains in an ambulance to Narsampet, but were stopped by the police.
Later, after discussions with the police, the family members and RTC employees agreed to conduct the funeral in the village.
Sanjay Kumar, stating he would abide by the family’s decision, left the village after the funeral was conducted there.
Transport Minister Ponnam Prabhakar said an ex gratia of Rs 10 lakh, a house, and a government job would be provided to the kin of Goud.
Chief Minister A Revanth Reddy expressed shock over the employee’s death and conveyed deep condolences to the grieving family, according to the release.
The RTC employees’ JAC had earlier announced an agitation programme from April 24 to 29, including silent marches and submission of memorandums to MLAs and other leaders.
