Indian Railways improves its Operating Ratio
Updated: Jul 31, 2015 11:30:48am
New Delhi, July 31 (KNN) For the first time in last seven years, Indian Railways operating ratio has improved the budgeted target in a Year.
The provisional accounts indicate an Operating Ratio of 91.3 per cent which is an improvement over the budgeted target of 92.5 per cent and also better than the revised estimate (RE) target of 91.8 per cent.
According to the Ministry of Railways, this is also an improvement over the Operating Ratio of preceding year 2013-14 which had closed at 93.6 per cent.
Operating Ratio indicates how much railway spends to earn a rupee. An Operating Ratio of 91.3 per cent means that railway is spending 91.3 paisa to earn 100 paisa (one rupee). A lower figure of Operating Ratio is therefore regarded better and is indicative of better financial health of the system.
During 2014-15, passenger earnings grew at 15.5 per cent and goods earnings at 12.7 per cent over the previous period. Freight achieved net incremental loading of 42.9 MT totalling to 1094.61 MT. Overall, Indian Railways earned Rs.17,758 crores more over 13-14.
On the freight side, coal with incremental contribution of 37.5 MT continued to be the biggest revenue earner for IR. Second highest incremental contribution of 5.2 MT was witnessed in the export-import container category. In passenger segment, the reserved class segment witnessed 6 per cent growth contributing 61 per cent to total passenger earnings.
After steps were taken to keep the expenditure within limits by adopting suitable measures, the ordinary working expenses of IR, budgeted at a growth of 11.7 per cent in RE 2014-15, actually closed at a lower figure of 8.6 per cent.
The low growth in expenditure was a result of prudent and intensive expenditure management by putting in a system of effecting economy and austerity in expenditure.
The improvement in OR will enable the railways to allocate more resources for their developmental activities such as safety, passenger amenities and modernisation. (KNN Bureau)
The provisional accounts indicate an Operating Ratio of 91.3 per cent which is an improvement over the budgeted target of 92.5 per cent and also better than the revised estimate (RE) target of 91.8 per cent.
According to the Ministry of Railways, this is also an improvement over the Operating Ratio of preceding year 2013-14 which had closed at 93.6 per cent.
Operating Ratio indicates how much railway spends to earn a rupee. An Operating Ratio of 91.3 per cent means that railway is spending 91.3 paisa to earn 100 paisa (one rupee). A lower figure of Operating Ratio is therefore regarded better and is indicative of better financial health of the system.
During 2014-15, passenger earnings grew at 15.5 per cent and goods earnings at 12.7 per cent over the previous period. Freight achieved net incremental loading of 42.9 MT totalling to 1094.61 MT. Overall, Indian Railways earned Rs.17,758 crores more over 13-14.
On the freight side, coal with incremental contribution of 37.5 MT continued to be the biggest revenue earner for IR. Second highest incremental contribution of 5.2 MT was witnessed in the export-import container category. In passenger segment, the reserved class segment witnessed 6 per cent growth contributing 61 per cent to total passenger earnings.
After steps were taken to keep the expenditure within limits by adopting suitable measures, the ordinary working expenses of IR, budgeted at a growth of 11.7 per cent in RE 2014-15, actually closed at a lower figure of 8.6 per cent.
The low growth in expenditure was a result of prudent and intensive expenditure management by putting in a system of effecting economy and austerity in expenditure.
The improvement in OR will enable the railways to allocate more resources for their developmental activities such as safety, passenger amenities and modernisation. (KNN Bureau)
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