After 7-year Gap, Railways Improves Operating Ratio

Published: 31st July 2015 03:23 AM  |   Last Updated: 31st July 2015 03:23 AM   |  A+A-

NEW DELHI: For the first time in the last seven years, the Railways’ operating ratio (OR) has improved the target in 2014-15.  The provisional accounts indicate an OR of 91.3 per cent which is an improvement over the budgeted target of 92.5 per cent and also better than the revised estimate target of 91.8 per cent. According to the Railways, this is the first time in the last seven years that the ratio has improved the budget estimate target in a year.

This is also an improvement over the OR of preceding year 2013-14, which had closed at 93.6 percent.

The OR indicates how much the Railways spends to earn a rupee. An OR of 91.3 per cent means that Railways is spending 91.3 paisa to earn one rupee. A lower figure of OR is therefore regarded better and is indicative of better financial health of the system.

“The improvement in OR will enable the Railways to allocate more resources for developmental activities particularly safety, passenger amenities and modernisation,” said an official.


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