Archive · 7 Nov 2025
CAG Audits Indian Railways' Freight, Net-Zero, and Digital Systems
The government's top auditor, the CAG, is checking on Indian Railways to see how well it's doing with some big projects.
They're looking at how trains move goods, how the railways buy supplies using computers, how they are trying to be a 'green' railway, and how good the local trains are for people.
One main goal is to see if the railways can carry much more cargo, aiming for almost half of all goods to be transported by train by 2030.
They are also checking if the railways are on track to stop polluting by 2030.
The auditor found some issues, like a case where coal had to be moved many times, costing extra money and causing loss.
The results of these checks will be shared with lawmakers in 2026 to help make the railways better.
CAG is conducting comprehensive audits on Indian Railways' multi-modal logistics, e-procurement, suburban train services, and net-zero emission efforts.
The audit aims to verify if investments in multi-modal transport have led to cost reductions and improved freight mobility.
Indian Railways aims to reach a 45% freight modal share by 2030, a target now under the CAG's scrutiny.
An IT audit of the e-Procurement System (IREPS) revealed issues like delayed rollouts and weak project monitoring.
Audit reports covering these key areas are slated for presentation to Parliament in the Monsoon and Winter Sessions of 2026.
- Who
- Comptroller and Auditor General (CAG) of India and Indian Railways
- What
- The CAG is conducting multiple performance audits on Indian Railways' operations, including multi-modal logistics, e-procurement systems, suburban train services, and progress towards net-zero emissions.
- When
- Audits are underway; reports are expected in the Monsoon Session of 2026 and Winter Session of 2026.
- Where
- Across Indian Railways' operations, including nine railway zones, specific PSUs, and metropolitan regions.
- Why
- To assess efficiency, cost reduction, progress towards national goals (e.g., 45% freight share, net-zero emissions), identify structural inefficiencies, and suggest corrective measures.
CAG's Audit Focus
Indian Railways' Goals & Current Status
Freight Modal Share Target
CAG's Audit Focus
The CAG is scrutinizing Indian Railways' target to increase freight modal share from 26% to 45% by 2030, questioning whether investments and modernization efforts have yielded cost reductions and improved mobility.
Indian Railways' Goals & Current Status
Indian Railways aims to increase its freight modal share to 45% and the average speed of freight trains to 50 km/hour by 2030, as part of the National Rail Plan (NRP) 2030. However, the current share has remained stagnant around 26%.
Net-Zero Emissions Progress
CAG's Audit Focus
The audit will assess Indian Railways' progress towards achieving net-zero carbon emissions by 2030, reviewing the adoption of solar and wind power, electrification, and green building standards.
Indian Railways' Goals & Current Status
Indian Railways has set a target for net-zero carbon emissions by 2030, and the audit will evaluate the effectiveness of its ESG and green energy initiatives.
Multi-modal Logistics Efficiency
CAG's Audit Focus
The audit examines if multi-modal logistics investments and modernization have resulted in measurable cost reductions and improved freight mobility, citing an example of excessive handling in coal transport leading to losses.
Indian Railways' Goals & Current Status
The government's PM Gati Shakti plan and the National Rail Plan (NRP) 2030 focus on infrastructure efficiency and multi-modal logistics, with 115 out of 132 approved Gati Shakti Cargo Terminals (GCTs) commissioned as of August 2025.
- Audit Body
- Comptroller and Auditor General (CAG) of India
- Areas of Audit
- Multi-modal logistics, e-procurement, suburban train services, net-zero carbon emissions
- Indian Railways' Freight Target (NRP 2030)
- Increase freight modal share to 45% from current 26%; Increase average freight train speed to 50 km/hr
- Net-Zero Target
- By 2030
- Logistics Costs (FY 2023-24)
- 7.97% of GDP (overall); 16.9% for MSMEs
- Gati Shakti Cargo Terminals (GCTs)
- 115 of 132 approved commissioned (as of August 2025)
- Report Presentation Timeline
- Monsoon Session of Parliament, 2026 (general audit); Winter Session of 2026 (suburban rail audit)
Sources
CAG to undertake audit on multimodal transport and logistics initiatives of Railways, three more rail audits
CAG forms integrated audit group to review govt’s multi-modal transport push
CAG to audit Railways multi-modal transport, logistics initiatives, suburban train system
