(a) whether the Railways supplied empty Tank Wagons to Indian Oil Corporation Refineries, which were totally unfit for transportation of petroleum and lubricants and were thus rejected by the IOC, as has been reported by CAG in its latest report;
(b) if so, the details thereof;
(c) the reasons for supplying unfit wagons to IOC; and
(d) the losses suffered by the Railways due to rejection of these wagons by the IOC?
MINISTER OF RAILWAYS (SHRI LALU PRASAD)
(a) to (d): A statement is laid on the Table of the Sabha.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF STARRED
QUESTION NO. 235 BY SHRI SURESH ANGADI TO BE ANSWERED IN LOK
SABHA ON 16.12.2004 REGARDING LOADING OF PETROLEUM AND
LUBRICANTS.
(a) No, Sir. Indian Railways supply fit tank wagons for loading
of petroleum products. However, some of the wagons are rejected
later on by Oil Companies at the time of their loading on
technical reasons.
(b) CAG Report mentioned by the Hon’ble MP in part (a) of this
question refers to supply of unfit empty tank wagons to M/s
Indian Oil Corporation (IOC) refinery at Barauni. As per CAG
report a total of 811.5 tank wagons (in terms of 4-
wheelers), out of a total of 20,524 tank wagons supplied for
loading (3.95%), were rejected by IOC siding during 2000-01
to 2002-03. However, as per Railway records, a total of
968 tank wagons ( in terms of 4 wheelers) out of a total of
1,43,610 tank wagons supplied for loading, during the same
period of 3 years, were rejected by M/s. IOC at this
refinery. The rejection is merely 0.67% of the total wagons
supplied. The difference in figures is on account of the
fact that the CAG Report does not include all the wagons
which were supplied for loading. All such rakes wherein
there was no rejection have apparently not been included in
the CAG Report.
(c) Tank Wagons are rendered unfit for loading on account of
non-evacuation of the product completely from the tank
wagons at the unloading points, an activity which is
performed by Oil Industry and its customers. The residual
product allows heavier distillates to settle at the bottom
of tank wagons, which ultimately transforms into black/hard
sludge over a period of time. However, the status of wagons
developing deposits of black/hard sludge inside the shell
cannot be ascertained beforehand and their loading
worthiness can be confirmed only at the time of loading of
petroleum products in tank wagons.
Tank wagons also get rejected on account of defective
master valve, bottom discharge valve, and various other
fittings. Such rejection, too, can be reduced further if
all the fittings are properly put back in place after
decantation of product from the tank wagons at the
unloading points. Railway Administration carries out
carriage and wagon examination of rakes at its yards prior
to their supply for loading, at terminals. Wagons with
missing or defective fittings are attended to wherever
such defects are detected. Possibility of rejection of
such wagons, therefore, gets minimized.
Thus the loading worthiness of all the tank
wagons supplied for loading because of sludge or defective
fittings cannot be ascertained beforehand as explained
above.
(d) As per the CAG Report, Indian Railways have suffered a
consequential loss of freight of Rs. 1.4 crores and a loss of
Rs. 0.28 crores on account of empty haulage of rejected wagons
thus totalling to a figure of Rs. 1.68 crores. The originating
freight earnings to Indian Railways in the aforesaid period of
three years (2000-01 to 2002-03) have been Rs. 2,26,03,40,244
(Rs. 226.03 crores). The loss of Rs. 1.68 crores as mentioned
in CAG Report works out to be 0.74% only.
Indian Railways have a wagon holding of about 4.5
lakhs (four wheeler units). Out of this figure around 43,000
wagons (four wheeler units) are tank wagons. These tank wagons
are utilized to cater to the Petroleum transportation demand
received not only from M/s. Indian Oil Corporation but from
other Oil Companies too. In the process of Petroleum, Oil and
Lubricants (POL) operations of this magnitude, minor rejection
of tank wagons is unavoidable. Hence the loss is only notional.