NEW DELHI: The Finance Ministry pulled up Indian Railways after the government-run transporter posted its worst operating ratio since 2001 at 98.5 per cent for FY18 and missed revenue targets, sources from both the ministries confirmed.“The operating ratio is worsening every year. This is lowest since 2001 and this has raised concerns. The Finance Ministry has sought a report and a detailed roadmap from the Ministry of Railways on improving the financials,” a senior official at Finance Ministry told The New Indian Express.
According to the sources at the Ministry of Railways, an operating ratio of about 98.5 per cent would mean a dip in the revised 96 per cent figure announced in the February budget.The Railways, however, sought to blame the 7th Pay Commission for the surge in working expenses as it had to spend `20,000 crore on account of increased salary.Another issue flagged by the Finance Ministry was failing to meet the non-fare revenue targets including raising money from commercial usage of lands and divestment.
“As the expenditure has gone up, it has failed to generate revenues from monetisation of assets. Railways could raise only `10,000 crore out of `20,000 crore set as the revenue target from the land monetisation. Also it was slow on divestment target,” the Finance Ministry official said.Railways has blamed it on poor reality market.“The reality market was not very favourable and we cannot give away land at lower valuation. Also we are working on divestment targets,” Railways Ministry official explained.
Loss-making machine of India to earn 100 paisa railways spends 98.5 paisa currently
98.5% railways’ operating ratio for 2017-2018, recording its worst performance ever since 2000-2001 when it was 98.3%
A10,000 cr increase in railways’ salary bill in 2017-2018 while pension liability rose from C10,795 crore
92.8% operating ratio target for the current year