Rlys improves operating ratio to 97.45% in Covid-hit 2020-21

New Delhi: Limited train services for most of the year with no subsidies or concessions and severely tightening of expenses have led to the Railways better its operating ratio to 97.45 per cent in the financial year 2020-21 from 98.36 per cent the previous fiscal, as per an RTI reply. Operating ratio is the amount spent to earn every Rs 100. The lower it is the better. It is used to measure the operational efficiency of any organisation. Higher the operating ratio, lower the financial resources available for expansion and growth.

The improvement in the running costs of the Railways means the national transporter was able to lower its expenditure and make up for the shortfall in passenger traffic through revenue generated by freight operations. "Operating ratio for the year 2019-2020 was 98.36 per cent... the operating ratio for 2020-21 has been calculated at 97.45 per cent on a provisional basis," the Railway Board replied to an RTI query by MP-based activist Chandra Shekar Gaur.

A railway spokesperson attributed the improved numbers to the strict monitoring of expenses by the national transporter which, he said, is a "combination of initiatives aimed at maximizing revenue receipts and minimizing controllable revenue expenses".

"The expenditure was monitored and regulated strictly in line with train operations. Investments made in the past 7 years in electrification helped the Railways not only save substantially in diesel cost but also helped it to be a more environmentally conscious organization. Other expenditure control steps included strict economy and austerity measures, improved manpower planning, better asset utilization, inventory management etc. These initiatives were supported by higher freight revenues," spokesperson said.