Comptroller and Auditor General, CAG has said that Railways has suffered a huge loss of over Rs 29,000 crore in freight earning due to the non-compliance of rules in iron ore booking during May 2008 and September 2013. In its latest report tabled in Parliament today, the CAG found that iron ore carried at domestic rate but not consumed for domestic purposes and diverted for third party trading or export resulted in loss to the exchequer. It said, Railways failed to do the needful and allowed the manufacturers to transport iron ore at concessional rates. The national auditor reviewed the records connected with 83 major loading points over seven zonal railways and 180 major unloading points over 15 zonal railways during the period. It said, Railways had introduced the dual freight policy, DFP from May 22, 2008 as per which transportation of iron ore was categorised in two parts – domestic consumption and other than domestic consumption and there were inherited deficiencies in the framework of the DFP for iron ore. The DFP in effect led to freight difference between the domestic and export category, which was on an average more than three times. Audit also observed that Railways did not lay down adequate internal controls check and balances for effective implementation of DFP.