Title - Operating cost of railways worst in three years

Railway has witnessed a decline in operating ratio this fiscal year. The operating ratio was 91.3% during 2014 – 15 which improved in next fiscal year of 2015 – 16 with 90.5%, however during the year 2016 – 17 it got deteriorated and went upto 94.9%.

Operating ratio is the indicator of railways expenditure for earning rupee 1. 94.9% operating ratio means railway is spending 94.9 paisa to earn 1 rupee i.e. 100 paisa.

A desirable operating ratio is considered anything below 80%. Operating ratio of less than 80% suggests better financial health of system.

According to Minister of state for Railways, 94.9% operating ratio shows the revised figure after implementation of Seventh pay commission. Implementation of 7th pay panel has affected the railways as its expenditure for pay and pension has increased considerably.