Billions Spent, Yet Trains Still Crawl: CAG Raises Serious Questions Over Railway Operations

CAG report questions Indian Railways’ efficiency as ₹2.5 lakh crore investment fails to improve train speed, punctuality, and passenger satisfaction.

Update: 2026-01-18 05:17 GMT

New Delhi: Indian Railways is often described as the lifeline of the country, but the reality of its speed and punctuality is far less impressive than projected. Chapter–2 of the Comptroller and Auditor General’s (CAG) Report No. 22 of 2021 brings to light the ground realities of Indian Railways’ operations and business development. The report reveals that over the past decade, the Railways invested nearly ₹2.5 lakh crore, yet neither has there been any significant improvement in the average speed of trains nor has punctuality shown meaningful progress.

In 2019–20, the total traffic operating cost of Indian Railways stood at ₹29,865 crore, while total traffic revenue exceeded ₹1.74 lakh crore. Despite this, passenger numbers declined by 4.19 percent, and freight movement and related revenue also saw a sharp fall. A decline of 0.78 percent in passenger revenue and nearly 11 percent in freight revenue has raised serious questions about the Railways’ business model.

According to the CAG report, Indian Railways launched ‘Mission Raftaar’ in 2016 with the objective of increasing the average speed of freight trains from 25 kmph to 50 kmph and that of mail/express trains from 50 kmph to 75 kmph. However, by 2019–20, the average speed of mail/express trains was only 50.6 kmph, while the speed of freight trains actually fell to 23.6 kmph. In other words, instead of achieving the targets, the situation deteriorated in several respects.

The report states that nearly 98 percent of mail/express trains in the country have a prescribed speed of less than 75 kmph. More surprisingly, even among trains categorized as “superfast,” there are 123 trains whose average prescribed speed falls below the Railways’ own standards. The CAG has termed this a clear example of policy failure and lack of monitoring.

On the front of punctuality as well, Indian Railways lags far behind global standards. While in Japan train punctuality is measured in seconds, and in European countries a delay of even 3 to 10 minutes is considered unacceptable, in India a delay of up to 15 minutes is still treated as “on time.” Even with such relaxed benchmarks, the punctuality rate of mail/express trains declined from 79 percent in 2012–13 to 69 percent in 2018–19. According to the report, every second mail/express train arrived late in 2018–19.

Passenger dissatisfaction is evident from the sharp rise in complaints related to train delays. While around 9,000 such complaints were recorded in 2015–16, the number crossed 40,000 by 2018–19. The CAG notes that this growing dissatisfaction is a direct reflection of declining service quality.

The report further highlights that most delays are not caused by external factors, but by internal reasons entirely within the Railways’ control. Nearly 66 percent of total delays are linked to issues such as non-availability of paths, engineering works, rescheduling of trains, traffic congestion, and planned blocks. External factors such as weather, protests, or law-and-order situations contribute only around 13 percent to overall delays.

The CAG has also raised serious concerns over the Railways’ control mechanisms. Due to zone- and division-based operational structures, trains often remain stuck for hours at interchange points. The report documents several instances where freight trains were delayed by hours during handover from one zone to another. Such delays not only affect freight movement but also have a cascading impact on passenger train operations.

The condition of freight trains is even more worrying. In 2012–13, a freight train took an average of 39 hours to cover a distance of 1,000 kilometers. By 2019–20, this time had increased to over 42 hours. Despite this, the Railways has neither introduced fixed timetables for freight trains nor provided any guaranteed delivery timelines. According to the CAG, this reality stands in stark contrast to the government’s claims of improving the “Ease of Doing Business.”

The most significant conclusion of the report is that despite massive investment, the expected outcomes have not been achieved. Between 2008–09 and 2018–19, substantial expenditure was incurred on new lines, doubling, electrification, and track renewal, yet there was no concrete improvement in average train speeds nor any sustained enhancement in punctuality.

The CAG has categorically stated that the problem is not one of resources, but of planning, coordination, and management. If computerized timetable planning, route-based integrated control systems, and strict action against internal causes are implemented, significant improvement is possible even with existing resources.

Overall, the report serves as a warning for Indian Railways. If the country’s largest transport system is to be aligned with future needs, mere announcements and investments will not suffice. What is required are concrete reforms, accountability, and a mindset that truly places passengers and customers at the center.

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