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Business Economy 19 Apr 2017 Railways' worst ...

Railways' worst operating ratios was during BJP rules: Chidambaram

Published Apr 19, 2017, 11:23 am IST
Updated Apr 19, 2017, 11:24 am IST
Former Finance Minister says problme of railways was deepr and it cannnot be run as govt department.
Former Finance Minister P Chidambaram (Photo: PTI)
 Former Finance Minister P Chidambaram (Photo: PTI)

New Delhi: The problem of Indian Railways is deeper and it cannot be run as a government department, former Finance Minister P Chidambaram said today while criticising the BJP government for the public transporter reporting the
"worst" operating ratio in the last fiscal.

"Railways worst operating ratio in 2016-17. Previous worst in 2000-01. Both under BJP governments! Despite well-meaning minister. Problem of Railways is deeper. It cannot be run as a department of government," he said on Twitter.


An operating ratio indicates how much the railways spends to earn a rupee. An operating ratio of 94.9 per cent means that the railways is spending 94.9 paisa to earn 100 paisa (one rupee).

A lower figure of operating ratio is therefore regarded better and is indicative of better financial health of the system. The operating ratio of railways has seen deterioration in 2016-17 in comparison to previous years, indicating a higher
operating cost.

Minister of State for Railways, Rajen Gohain, had said in a written reply in the Lok Sabha that the operating ratio of railways in 2016-17 was estimated at 94.9 per cent.

Officials, however, say this figure is tentative till final figures come. The last time Railways reported the worst operating ratio, 98 per cent, was in 2000-01 An operating ratio of 80 per cent or lower is considered desirable in the railways.