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Kolkata, Mar 26 : The Sixth Pay Commission’s recommendations may upset Indian Railway’s move towards better operating ratio, pushing the figure back to the 80’s. Basudeb Acharia, chairman of the Parliamentary Committee on railways, said, “The railways has kept aside Rs 7,000 crore as per the Sixth Pay Commission’s recommendations, which could push operating ratio further up.”
The projections in the Railway Budget 2008-09 show the operating ratio (OR)—the percentage of working expenses to gross earnings—for 2008-09 is 81.4%, significantly up from the OR in 2007-08, which is expected to be at 76.3%. In other words, out of every Rs 100 earned, the railways’ working expenses would amount to Rs 76.30.
The Indian Railways OR varied between 85% and 92% from 1985-1992 and touched 98.8% in 2000-01. The OR was as high as 92% in 2003-04 and was brought down to sub-80% level after Lalu Prasad took charge of the ministry of railways.
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