The Comptroller and Auditor General of India (CAG) is set to present a comprehensive report on ‘Multi-Modal Transport and Logistics Initiatives’ during the Monsoon Session of Parliament in 2026. The audit, being prepared in collaboration with IIM Mumbai as the knowledge partner, will provide a cross-sectoral assessment of India’s efforts to modernize and integrate its transport and logistics ecosystem.
An Integrated Audit Group (IAG) has been constituted by the CAG to carry out coordinated evaluation across key infrastructure sectors, including railways, ports, shipping, and inland waterways, ensuring a unified approach to assessing the country’s logistics landscape.
The audit will examine the implementation and impact of the National Rail Plan (NRP) 2030, which envisions a future-ready railway network capable of meeting the country’s freight and passenger demands through to 2050. The plan aims to increase the Railways’ freight modal share to 45% and raise the average freight train speed to 50 kmph, significantly reducing transit times and logistics costs.
Highlighting the need for efficiency, Pandey cited a September 2025 study by NCAER, which estimated India’s logistics costs at 7.97% of GDP in FY 2023–24, while for the MSME sector, logistics expenses stood at a much higher 16.9% of GDP.
Given its oversight of all central government ministries and departments, the CAG is uniquely positioned to conduct this comprehensive, cross-sectoral audit, he added. The study will assess key areas including policy and regulatory frameworks, digitalisation, inter-modal integration, and ease of doing business—benchmarking India’s logistics environment against global best practices.
To ensure well-rounded insights, the audit team has engaged in extensive consultations with Railway Board members, CMDs and MDs of logistics PSUs, port authorities, freight and terminal operators, and private sector logistics players.
In addition to this flagship study, the CAG is also conducting a comprehensive IT audit of the Indian Railways e-Procurement System (IREPS) to evaluate its governance structure, IT controls, and compliance with business rules. The audit may highlight issues such as governance gaps, security vulnerabilities, tendering irregularities, and system control weaknesses.
Furthermore, two other concurrent audits are underway — one on ‘Sustainable Rail Transport: ESG and Green Energy Initiatives’, and another theme-based performance audit of suburban train services — aimed at assessing environmental sustainability and service efficiency within the rail network.
