Indian Railways sets internal target of raising Rs5,500 crore

By Ragini Verma

New Delhi: Indian Railways has set an internal target of raising Rs.5,500 crore of additional revenue by reducing costs and increasing revenue to improve its dismal operating ratio.

Railways’ operating ratio, which is a measure of its operating cost as a percentage of revenue, slipped to 93.5% in the year ended 31 March. It was 90.8% in the previous year. “Reduction in cost and increase in revenues should generate Rs.5,500 crore, both combined, which should help improve our operating ratio,” D.P. Pande, member, traffic, Railway Board, said in an interview.

This additional revenue is largely expected to come in from a fall in diesel prices and increase in revenue from the freight stream. The Railways has set a target of achieving an operating ratio of 92.5% in the current fiscal year. More info

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