CAG Report on Logistics and Railways to be Tabled in Parliament, Focusing on Efficiency and Cost Reduction

The Comptroller and Auditor General of India (CAG) is set to submit a comprehensive report on 'Multi-Modal Transport and Logistics Initiatives' to Parliament during the Monsoon session of 2026. Prepared in collaboration with IIM Mumbai as a knowledge partner, the report will involve coordinated audits across key sectors including railways, infrastructure, ports, shipping, and waterways by an Integrated Audit Group (IAG).

The audit specifically focuses on enhancing 'First Mile Last Mile' connectivity with logistics hubs and optimizing Origin-Destination (O-D) pairs, aligning with the goals of the National Rail Plan (NRP) 2030. The NRP aims to significantly increase railways' modal share in freight to 45% and improve freight train speeds. Current logistics costs represent a substantial portion of India's GDP, highlighting the importance of such initiatives. The CAG's report is expected to cover regulatory frameworks, logistics operations, digitization, and ease of doing business, incorporating international best practices. Potential recommendations may target reducing logistics costs, facilitating seamless cargo transport, and integrating digital systems.

Additionally, a comprehensive IT audit of Indian Railways' e-Procurement System (IREPS) is underway to assess its governance, controls, and compliance, with possible findings including governance deficiencies and IT security weaknesses. The CAG is also conducting audits on sustainable rail transport (ESGs and Green Energy) and the performance of suburban train services.

Impact This audit and the subsequent report could lead to significant policy reforms and operational improvements in India's vast logistics and transportation network. Streamlined logistics operations, reduced costs, and enhanced connectivity are vital for economic growth and competitiveness. Companies involved in transportation, logistics, warehousing, and supply chain management could benefit from these potential changes, leading to improved efficiency and profitability. Rating: 7/10.

Difficult Terms: CAG (Comptroller and Auditor General of India): India's supreme audit institution, responsible for auditing government spending and performance. Multi-Modal Transport: Using more than one mode of transport (like road, rail, air, water) for moving goods or people. Logistics Initiatives: Plans and actions aimed at improving the efficiency of moving, storing, and managing goods. IIM Mumbai (Indian Institute of Management, Mumbai): A premier business school in India, serving as a knowledge partner for the report. First Mile Last Mile Connectivity: The initial and final stages of transporting goods or people, connecting the main transport hubs to their origin and destination points. Origin-Destination (O-D) Pairs: Specific pairs of starting and ending locations for transportation routes. National Rail Plan (NRP) 2030: A strategic blueprint by Indian Railways to modernize its infrastructure and operations by the year 2030. Modal Share: The proportion of total freight or passenger traffic carried by a particular mode of transport, such as railways or roads. GDP (Gross Domestic Product): The total monetary value of all finished goods and services produced within a country's borders in a specific time period. MSME (Micro, Small, and Medium Enterprises): Businesses classified based on their investment in plant and machinery and annual turnover, crucial for economic growth. ESG (Environmental, Social, and Governance): A set of standards for a company's operations that socially conscious investors use to screen potential investments, focusing on environmental impact, social responsibility, and corporate governance. IREPS (Indian Railways' e-Procurement System): The online portal used by Indian Railways for all its procurement and tendering processes.