(a) whether the operating ratio of Indian Railways is very high;
(b) if so, the details thereof and the reasons therefor;
(c) the steps taken/being taken in this regard; and
(d) The remedial measures taken/being taking by the Railways for funding of new projects
with such a high operating ratio?
MINISTER OF THE STATE IN THE MINISTRY OF RAILWAYS (SHRI K.H. MUNIYAPPA)
(a) & (b) The Operating Ratio of the Railways was 90.5% in 2008-09, 95.3% in 2009-10 and 94.6% in 2010-11.
Budget Estimates 2011-12 envisage an operating ratio of 91.1%.
The main reason for Operating Ratio being more than 90% is steep increase in staff cost and pensionary charges
consequent upon implementation of the recommendations of VI Central Pay Commission. This is despite a healthy
growth in earnings of 9.1% in 2008-09, 8.6% in 2009-10 and 8.5% in 2010-11. The ordinary working expenses,
however, registered a much higher growth of 33% and 21% in 2008-09 and 2009-10 respectively, against a normal
increase of 8% to 9%.
(c) With the stabilizing of the impact of the VI Central Pay Commission, the Operating Ratio is
expected to improve in due course. Railways are also taking several measures to augment traffic
earnings and controlling expenditure.
(d) Besides taking steps to augment the internal resources and increase in the gross budgetary
support by Ministry of Finance, Railways has also been permitted for the first time to raise
Rs 10,000 cr. through issue of tax-free bonds for financing the projects.