Indian Railways went through a loss of ₹25.43 Crore after the injudicious procurement of an additional CNC Horizontal boring and mining machine. Patiala Locomotive Works ordered the machine for which around 80% of the payment was made before the shipping. The Public Account Committee (PAC) presented the report on the table in Lok Sabha. We will have more information about Indian Railways’ recent loss in more detail below. The ministry is advised to plan the procurement strategically to prevent such losses further.
Patiala Locomotive Works ordered an additional CNC Horizontal Boring And Milling Machine at an 80% advance payment before shipping. It led to a loss of ₹25.43 Crore to the Indian government as stated by the Public Account Committee (PAC). On Wednesday, PAC presented the reports in Lok Sabha.
The matter started after Patiala Locomotive Works (PLW) got the task of manufacturing and rebuilding Diesel Locomotives for Zonal Railways and Non Railway Customers. As the demand was greater, they decided to make a procurement for an additional CNC Horizontal Boring and Milling Machine. The requirement was made in 2011. However, it was revised in 2014 again when the ALCO Locomotive production ceased. However, PLW continued with the procurement of additional CNC Horizontal units.
Later, they continued the procurement of additional CNC leading to a loss. Apart from that, they also gave 80% of the payment in advance before the shipping. The machinery took time in the installment. It delayed all the activities further. PLW says that they were acting as per the orders given in 2011. However, they missed ceasing the production even after revision in the task to be ceased.
Indian Railways are suffering from an ₹25 Crore loss which is coming from the procurement of an additional CNC Horizontal boring and milling machine by Patiala Locomotive Wokrs. PAC presented the reports in Lok Sabha later. Patiala Locomotive Works is considered responsible for the loss as they did not take the revisions to cease the work in 2014. It was an expenditure of ₹25.43 Crore in April 2022. It impacted the Railway’s budget. The amount could be utilized in a better place. We will update you as soon as we get to know more about it. We hope you get enough details about Indian Railways above.