New Delhi: People may be complaining about rising train fares, but the Railways has new figures to show its own plight. The latest data, gathered by the finance wing of the Railways, show that the Railways is spending more money than it earns through various passenger fare and freight. For an income of every Rs 100, the Indian Railways spends Rs 111.51.
The Railways has set a record-high operating ratio of over 111 per cent for April-July period. It reflects lower than targeted traffic growth but higher expenditure owing to increased pension liability and operational expenses.
Operating ratio of the railways has been high for many years but it has hovered in mid-90 per cent range for the last five or six years. It was 96 per cent in 2017-18. The estimated operating ratio for the whole 2018-19 was put at 92.8.
Higher operating ratio for railways simply means that the national transporter does not have money for capital investments. So, laying new railway lines, deploying more coaches and similar modernisation efforts cannot be carried out.
Interestingly, the railways has planned its highest ever capital expenditure for the current financial year at Rs 1.48 lakh crore. Capacity enhancement, electrification, station redevelopment and infrastructure upgradation are in the focus of the railways for the fiscal year. But with less money at hand, the plans may not hit the ground.
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