OREANDA-NEWS. August 17, 2011. The Operating Ratio of the Railways was 90.5 per cent in 2008-09, 95.3 per cent in 2009-10 and 94.6 per cent in 2010-11. Budget Estimates 2011-12 envisage an operating ratio of 91.1 per cent, reported the press-centre of Indian Railways.

The main reason for Operating Ratio being more than 90 per cent, 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 per cent in 2008-09, 8.6 per cent in 2009-10 and 8.5 per cent in 2010-11. The ordinary working expenses, however, registered a much higher growth of 33 per cent and 21 per cent in 2008-09 and 2009-10 respectively, against a normal increase of 8 per cent to 9 per cent.

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.

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 crore through issue of tax-free bonds for financing the projects.