Rail Budget 2015: Railways aims operating ratio of 88.5% in 2015-16, best in 9 yrs

By: | Updated: February 26, 2015 5:23 PM

The railways aims to improve the operating ratio to 88.5 per cent during the next fiscal, the best in the last nine years...

Rail Budget, Rail Budget 2015, indian railways, railways operating ratioThe operating ratio, a key measure of efficiency, was at 91.8 per cent in 2014-15 after touching a high of 93.6 per cent in the previous financial year. (PTI)

The railways aims to improve the operating ratio to 88.5 per cent during the next fiscal, the best in the last nine years, Railway Minister Suresh Prabhu said today.

The operating ratio, a key measure of efficiency, was at 91.8 per cent in 2014-15 after touching a high of 93.6 per cent in the previous financial year.

The lower the operating ratio, the better is the profitability of an entity.

Also read: The state of Indian Railways in Suresh Prabhu’s White Paper

To get the most out of additional resources that will be invested, he said the ministry will need to ensure the highest standards of operational and business efficiency.

“I propose the operating ratio for 2015-16 at 88.5 per cent as against a targeted operating ratio of 91.8 per cent in 2014-15 and 93.6 per cent in 2013-14.

“I am pleased to state that not only will this be the best operating ratio in the last nine years but the best after the VIth Pay Commission,” he said.

Prabhu added that the railways will not be able to deliver sustained improvement in operating efficiency unless changes are made to speed up decision making, tighten accountability, and improve management information systems.

“For our transformation journey to succeed, it will be very important to harness the talent of our employees through training and development,” he said.

Further, he said the total receipts of railways have been revised to Rs 1,63,450.13 crore in 2014-15 and was proposed at Rs 1,88,556.70 crore for 2015-16.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition