OREANDA-NEWS. May 18, 2012. There is no ideal operating ratio for Railways. Lower operating ratio helps in generating higher internal resources for meeting requirement of Plan funds for safety, amenities, modernization of the system etc. The best ever Operating Ratio of the Indian Railways was 74.7 per cent in 1963-64. The year 2011-12 is likely to close with an operating ratio of 95 per cent and a target of 84.9 per cent has been kept for 2012-13.

 The information on Operating Ratio of other Railways systems is neither compiled nor maintained in this Ministry. Moreover, there are issues of diverse computation methodologies across countries, thus reducing validity of comparison of such statistical figures.

 Railways, in order to improve the operating ration, are striving for augmenting traffic earnings and containing the expenditure. Steps being taken for maximizing the traffic earnings inter-alia include rationalization of fare and freight tariff; effective marketing strategies to capture more and more traffic; creation of additional capacity and optimum utilization of the existing rail infrastructure; improved throughput by steps to increase productivity and efficiency; improvement of passenger interface etc. Railways are making efforts to contain the expenditure through diverse means including strict economy and austerity measures; improved man-power planning; better asset utilization and inventory management; optimizing the fuel consumption etc.