New Delhi: The Comptroller Auditor General of India (CAG) in its latest report on the Ministry of Railways has highlighted that the operating ratio (OR) was 107.39 per cent in 2021-22 against 97.45 per cent in 2020-21 as the national transporter could not generate a net surplus.
The CAG report number 13 of 2023 on Railways finances dated August 8 highlighted that “against the target of 96.15 per cent in the Budget Estimates, the operating ratio of Railways was 107.39 per cent in 2021-22”.
“This meant that the Railways spent Rs 107.39 to earn Rs 100. As compared to the Operating Ratio of 97.45 per cent during 2020-21, there was deterioration in 2021-22,” the report highlighted.
Operating Ratio represents the ratio of working expenses and a higher ratio indicates poorer ability to generate surplus.
The report further pointed out that had the actual amount of Rs 51,215.94 crore required to meet the expenditure on pension payments of Railways, been appropriated to the Pension Fund (instead of Rs 48,100 crore), the Railways working expenses would have increased.
“With the increased working expenses, the OR would have been 109.02 per cent instead of 107.39 per cent in 2021-22. Thus the OR of 107.39 per cent shown by the Railways does not reflect the true financial performance of the Railways,” it said.
“Again, had the actual amount (Rs 661.01 crore) required to meet the expenditure on DRF payments of Railways, been appropriated to the DRF (instead of NIL), the Railways working expenses would have increased. With the increased working expenses, the OR would have been 109.36 per cent instead of 107.39 per cent in 2021-22. Thus the OR of 107.39 per cent shown by the Railways does not reflect the true financial performance of the Railway,” the report said.
The audit analysis also revealed that the operating ratio of six Zonal Railways — East Coast, North Central, South Central, South Eastern, South East Central and West Central Railways — was below 100 per cent, with the operating ratio of East Coast being the best at 54.58 per cent.
“However, operating ratio of eleven Zonal Railways — Central, Eastern, East Central, Northern, North Eastern, Northeast Frontier, North Western, Southern, South Central, South Western, Western and Metro Railway/Kolkata, Railways — was more than 100 per cent during 2021-22, with operating ratio of Metro Railway/Kolkata being the worst at 432.19 per cent. This implied that the working expenditure of these Railways was more than their traffic earnings,” the report stated.
The CAG suggested to the Railways that it needs to critically analyse the cost of passenger operations and take steps to reduce its losses.
(IANS)
