Will Golden Chariot chug into sunset?
CAG points out huge losses, discrepancies
By : shrinivasa m.
Update: 2015-02-22 05:58 GMT
Bengaluru: Golden Chariot was one of the most-ambitious projects conceived by the state government to attract tourists to the state. Though the feasibility study was conducted in 2002, the luxury train was formally launched in 2008. But with the Karnataka State Tourism Development Corporation (KSTDC) suffering losses, the project faces an uncertain future.
Though the Tourism Department is tightlipped about the reasons behind the project’s obvious failure, the Comptroller and Auditor General of India (CAG) has submitted an exhaustive report, pointing out major reasons for the failure of the project.
The defective agreement giving undue advantage to the management partner, operation of excess coaches than required, a large number of passengers travelling on familiarisation and complimentary passes, extension of benefits in violation of terms of agreement, acceptance of bookings without receipt of money and violation of tariff policy are some of the major reasons for the project’s failure, the CAG report states.
The objective of the project, to promote tourism and showcase unique tourist attractions in the state, was not achieved as it was not well planned and well thought out, it stated.
KSTDC paid excess commission to the management partner and general sales agents, ran excess coaches that resulted in unnecessary haulage charges and operated the train even when occupancy was less than the stipulated limit, the report pointed out.
Because of the defective agreement clauses and wrong decisions, the KSTDC suffered losses of Rs 27.11 crore. “The Golden Chariot did not even recover its operating cost, despite receiving a financial assistance of Rs 12.33 crore from the state government,” the CAG commented.