Comptroller and Auditor General (CAG) in its report tabled in Parliament said that the Railways recorded an operating ratio of 98.44 per cent in 2017-18 which is the disappointing ever in the past 10 years. The operating ratio shows how efficiently the railway is operating and how healthy its finances are. An operating ratio of 98.44 per cent means that the Railways spent Rs 98.44 to earn Rs 100.
The CAG report tells that the Operating Ratio of the Railways was 95.3 per cent in 2009-10, 94.6 per cent in 2010-11 and 94.9 per cent in 2011-2012. The worst performance of the railways in the last two decades was in 2000-01 when its operating ratio was 98.3 per cent. The following year, it improved to 96.
The operating ratio of railways has been above 90 per cent over the six years before 2017-18. The national auditor in its report on railways' finances, said that the railways would have ended up with a negative balance of Rs 5,676.29 crore, instead of a surplus of Rs 1,665.61 crore, but for the advance received from NTPC and IRCON.
Railways has also been unable to meet its operational cost of passenger services and other coaching services as almost 95 per cent of the profit from freight traffic was utilised to compensate for the loss on operation of passenger and other coaching services. The report says that one of the contributing factors has been free and concessional fare tickets/ passes and Privilege Ticket Orders (PTOs) to various beneficiaries.
Railways: CAG report underlines disappointing operating ratio
By IndianMandarins - 2019-12-03 22:35:00
Comptroller and Auditor General (CAG) in its report tabled in Parliament said that the Railways recorded an operating ratio of 98.44 per cent in 2017-18 which is the disappointing ever in the past 10 years. The operating ratio shows how efficiently the railway is operating and how healthy its finances are. An operating ratio of 98.44 per cent means that the Railways spent Rs 98.44 to earn Rs 100.
The CAG report tells that the Operating Ratio of the Railways was 95.3 per cent in 2009-10, 94.6 per cent in 2010-11 and 94.9 per cent in 2011-2012. The worst performance of the railways in the last two decades was in 2000-01 when its operating ratio was 98.3 per cent. The following year, it improved to 96.
The operating ratio of railways has been above 90 per cent over the six years before 2017-18. The national auditor in its report on railways' finances, said that the railways would have ended up with a negative balance of Rs 5,676.29 crore, instead of a surplus of Rs 1,665.61 crore, but for the advance received from NTPC and IRCON.
Railways has also been unable to meet its operational cost of passenger services and other coaching services as almost 95 per cent of the profit from freight traffic was utilised to compensate for the loss on operation of passenger and other coaching services. The report says that one of the contributing factors has been free and concessional fare tickets/ passes and Privilege Ticket Orders (PTOs) to various beneficiaries.
