Railways seek to improve operating ratio to 84.9% in FY13

Seeking to significantly improve working of the Indian Railways, Railways Minister Dinesh Trivedi today pegged the operating ratio, a parameter that measures financial performance for the organisation, for 2012-13 at 84.9%, down from 95% in current fiscal. "I expect to achieve an Operating Ratio of 84.9% in 2012-13 as compared to 95% in the current year. If this trend continues, I have no doubt that my Operating Ratio will improve upon even the best ever of 74.7% within the 12th Plan," the minister said while unveiling his Budget proposals in the Lok Sabha. Click here for Cloud Computing Also Read Related Stories News Now - Keeping track - Trivedi's Budget surprise - K'taka gets rail coach unit - Lalu slams rail fare hike - Railways to miss revenue target of Rs 1.06 lakh cr - Govt stable, says PM The 84.9% Operating Ratio suggest Indian Railways would have to spend 84.9 paise to earn a rupee. Hence, lower the Operating Ratio, the better it is for the organisation. The minister, whose budget proposals seek to raise the gross traffic receipts by 28% to Rs 1.32 lakh crore in 2012-13 from Rs 1.04 lakh crore estimated in the current fiscal, said that efforts would be made to bring the ratio down to 80% by the end of the 12th Plan (2012-17). The best ever Operating Ratio of Indian Railways was 74.7% in the year 1963-64. "This landmark improvement in railway finances would enable building up of a strong base to meet the challenges ahead and bring back the confidence of people in Railways, thereby dispelling all apprehensions that Indian Railways is going downhill," he added. The proposal aims at raising the total receipts of the Railways in the next fiscal by 27% to Rs 1.35 lakh crore. Total expenditure has been pegged at Rs 1.13 lakh crore during 2012-13, up 14% from Rs 99,502 crore estimated in the current fiscal. The net revenue has been projected at Rs 22,233 crore as against Rs 7,144 crore in 2011-12. Of this, Rs 5,000 crore would be appropriated towards the capital fund and Rs 10,557 crore towards Development Fund.