Indian Railways has been able to maintain an operating ratio, its operating expenses as a percentage of revenues, of 96.15 % in the current financial year despite a loss of passenger traffic during the lockdown clamped in the aftermath of Covid-19.
This means the national transporter was able to lower its expenditure and make up for the shortfall in traffic through revenue generated by freight operations. A fall in pension liabilities also helped; Indian Railways’ massive pension bill of more than ₹51,000 crore in the current financial year has been converted into a loan by the finance ministry.
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“Railways’ operating ratio is expected to improve by end of the current financial year to 96.96%, despite the disruption caused due to Covid-19,” Railway Board member (finance), Naresh Salecha said on Monday. This is lower than the revised estimate of 98.36% for 2019-20. Passenger traffic was suspended during the lockdown imposed on March 25; select passenger trains resumed in the middle of May.
“Pension liability was budgeted at ₹53,160 crore in the beginning of the current fiscal. However, the revised estimate stood at ₹623 crore as the national transporter made an arrangement with the finance ministry to defer this expense,” Salecha said.
{{/usCountry}}“Pension liability was budgeted at ₹53,160 crore in the beginning of the current fiscal. However, the revised estimate stood at ₹623 crore as the national transporter made an arrangement with the finance ministry to defer this expense,” Salecha said.
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