Railways operating ratio indicates failure of its management: Chidambaram
New Delhi: Former Finance Minister P Chidambaram today said the available information about the Indian Railways' operating ratio, the direct indicator of working of the national transporter, has indicated a "comprehensive failure" of its management.
In a series of tweets, Chidambaram asked what was the operating ratio of the Railways in 2017-18 and would it be the worst ratio in recent years.
"Is it correct that the true operating ratio has exceeded 100 per cent? Is it correct that the accounts are being 'dressed' to show an Operating Ratio just a little less than 100 per cent?," he wrote on Twitter.
The former Finance and Home Minister said if the operating ratio is close to 100 per cent or has exceeded 100 per cent, that indicates a "comprehensive failure" of management of the Indian Railways.
As per the reports, the Railways operating ratio, the direct indicator of working of the government-run transporter, could settle at 98.5 per cent for 2017-2018, recording its worst performance ever since 2000-2001 when it was 98.3 per cent.
The number reflected the increased burden of allowances and pensions that have gone up because of the revision in the 7th Pay Commission, an official said.
An operating ratio of about 98.5 per cent in fiscal 2017-18 would mean a dip of more than two per cent in the revised 96 per cent figure announced in the February budget.
The operating ratio indicates how much railway spends to earn a rupee.