The Comptroller and Auditor General of India (CAG) will submit its report on ‘Multi-Modal Transport and Logistics Initiatives’, being prepared in consultation with IIM Mumbai as knowledge partner, in Parliament in the next Monsoon session.
The CAG has constituted an Integrated Audit Group (IAG) to carry out coordinated audit work across various audit verticals, including railways, infrastructure, ports, shipping, and waterways.
Giving details, ADAI (Railways) Pravir Pandey said the Railway Audit Wing is conducting the audit of ‘Multi-Modal Transport and Logistics Initiatives’, with particular emphasis on 'First Mile Last Mile' connectivity with logistics hubs and (Origin -Destination) O-D pairs in 2025-26.
He said the Indian Railways is undergoing a transformative phase, with significant investments and modernisation efforts to enhance its infrastructure, safety, mobility, customer satisfaction and commerce.
It has emerged as an important strategic player in India's logistics and infrastructure development.
The National Rail Plan (NRP) 2030 aims to create a 'future-ready' Railway system by 2030.
The NRP aims to increase the modal share of the Railways in freight to 45 per cent and substantially reduce transit time by increasing the average speed of freight trains to 50 kmph.
The objective is to create capacity ahead of demand, catering to future growth in demand till 2050.
While an NCAER study (September 2025) places logistics costs at 7.97 per cent of the GDP for FY 2023-24, for the MSME sector, it stands at a substantial 16.9 per cent of the GDP.
Pandey said the C&AG, being the auditor of all ministries and departments of the central government, is uniquely positioned to undertake a comprehensive, cross-sectoral audit covering multiple entities involved in the logistics ecosystem.
The audit on 'Multi-Modal Transport and Logistics Initiatives' will focus on the National Rail Plan 2021–2030, the regulatory and legal framework, logistics operations, digitisation, and the ease of doing business in logistics, keeping in mind the international best practices.
Pandey said the report may make recommendations for reducing logistic costs, promoting ease of doing business, seamless transportation of cargo, and integration of the digital ecosystem.
To ensure that the audit provides comprehensive and practical insights, a series of consultations, meetings, and conferences with key stakeholders, like the Chairman and Members of the Railway Board, CMDs/MDs of logistics-related PSUs and Heads of Port Authorities, public and private train operators, freight operators, and terminal operators, were held.
The audit report is planned to be placed before Parliament in the Monsoon session of 2026, Pandey said.
He further informed that a comprehensive IT audit of Indian Railways' e-Procurement System (IREPS) is also being undertaken to assess governance, IT controls, and business rule compliance within the system.
Possible audit findings may include governance and implementation deficiencies; weaknesses in IT controls and system security; and tendering irregularities and business rule non-compliance.
Pandey also informed that the CAG is also conducting an audit on 'Sustainable Rail Transport: ESGs and Green Energy' and 'Theme-Based Audit on Performance of Suburban Train Services'.
