Modern signalling is vital for safe and punctual movements of trains. In the Indian Railways the Signalling and Telecommunication Department is responsible for providing modern, efficient and reliable signalling systems as well as telecommunication systems. In keeping with this, the Corporate Safety Plan (2003­2013) of the Railways lays down policy, provision of new technology, asset upgradation and renewal, maintenance, inspection and human resource development for Signalling and Telecommunication Wing. The progress in achieving the objectives of the Corporate Safety Plan between 2003­08, planning and execution of Signalling and Telecommunication works and the progress in achieving the targets under Special Railway Safety Fund were reviewed in this performance audit. Study revealed that none of the zones could achieve the targets in full for provision of all works such as Block Proving Axle Counters, Track Circuiting, Mobile Train Radio Communication, Solid State Interlocking, Route Relay Interlocking, Panel Interlocking etc. The final capital grant in all of the last five years except for 2004­05 was less than the budget grant and the actual expenditure even lesser. This indicates that the utilisation of funds could be improved through better planning and monitoring from the top.