Title - Parliamentary Panel Raps Railways for Delayed Project

Rapping the Railways for "inordinate" delay of five years in executing a manufacturing unit project in Kerala, a parliamentary panel has sought explanation on the issue.Observing that the national transporter has not shown any "enthusiasm" in implementing the project, the committee has recommended that there should be in-built system of fixing responsibilities for delays, non-performance and ad-hoc decisions.The Railway Convention Committee in its latest report has noted that the Railways mooted a proposal to set up a joint venture with the Kerala in 2007 to manufacture wagon and coaching components for railways in autocast and steel fabrication units situated at Cherthala of Allapuzha district of the state.However, the developments thereafter shows that the railways had not shown any enthusiasm in implementing it, the 18-member panel observed in its report submitted in Parliament today.The committee expressed displeasure at lack of seriousness on the part of the Railways which it blamed for inordinate delay in the implementation of the project.The first pre-feasibility study report of the project done by RITES was available with railways in 2007 based on which provision of Rs 10 lakh was kept in the rail budget 2007-08 for the project, the committee noted.The shareholder's agreement was signed between the Railways and Kerala in 2009. Thereafter, the proposal for setting up the joint venture was put on the back burner, the panel observed.

The 18-member committee headed by Arjun Charan Sethi said it was surprised to find that even after a lapse of five years the project is nowhere in sight.

The committee has found that the shareholder's agreement to set up a joint venture for manufacturing the components for wagons and coaches of Integrated Coach factory (ICF) design was signed in 2009 and in the same year the decision was taken to shift from ICF bogie frames to LHB bogie frames. 

The committee has not agreed to the contention of ministry that the modernisation plan was not under consideration of the Railways when the shareholders agreement was signed in 2009 for manufacturing of ICF bogie frames in the manufacturing unit in Kerala particularly when the LHB coaches were introduced in railways as back as December 2003.

The case study of formation of this proposed joint venture has revealed that the project planning/implementation technology upgradation, absorption in railways projects require a thorough review so as to ensure that agreements of railways are honoured in letter and spirit, funds provided in budget are optimally utilized, latest technology/quality concepts are incorporated in project formulation, time lines are fixed and followed.

The committee has emphasised that there should be in-built system of fixing responsibilities for delays, non-performance and ad-hoc decisions.

The committee has, therefore, recommended that the railways should make a review of the ongoing projects keeping the well defined parameters in mind and apprise the committee accordingly within a period of three months.

The Railway Convention committee has selected pending ongoing projects of railways and its time and cost overrun effects as one of the subjects for detailed examination.

After examining the case of proposed autocast factory in Kerala, the committee has found little progress on the project.

It was critical of railways' decision for conducting two studies on the project by RITES.

RITES, a PSU of Railways, has recommended formation of joint venture structure, various combinations of product mix and the form of different scenarios for autocast and steel fabrication unit in Kerala in its report.

However, instead of honouring its own commitment of setting up the joint venture as envisaged, it dragged its feet and conducted a second study by RITES taking a plea of policy of modernised LHB coaches.

The committee has not appreciated the purpose of conducting another RITES study within a period of two years for the same project.

The parliamentary panel has observed that not only this amounts to duplication of efforts, time and financial burden on public exchequer but also reflects on the RITES study made in 2007.

The committee feels that at the time of making pre-feasibility study on a project, RITES should have kept itself abreast of the latest technology and railways should have shared the policy changes being considered so that a fool-proof study valid for a longer period could have been made.

The committee has asked railways to know that why necessary inputs were not provided to RITES as the time of their first study for the autocast project.

In order to expedite the project Kerala government has already met all commitments like providing land as the proposed joint venture company is an important project for railways as well as the state government.

Expressing its unhappiness over the undue delay in finalisation of the project, the committee has strongly recommended that the Railways should set up the project as per the shareholders' agreement for the manufacture of the components for the new wagons and coaches without any further delay.

The committee has asked the railways to be apprised of the concrete action taken in the matter within three months.