The railroad operating ratio in 2017-18 was 98.44%, worse in 10 years: CAG

NEW DELHI: The Railways recorded an operating rate of 98.44 percent in 2017-18, which is the worst in the previous 10 years, the Comptroller and Auditor General (CAG) said in a report submitted to Parliament on Monday.

A measure of spending against revenue, the operational relationship shows how efficiently the railroad operates and how healthy its finances are. An operating ratio of 98.44 percent means that the railroads spent Rs 98.44 to earn Rs 100.

The national auditor in his report on the finances of the railroads said that the railroads would have ended up with a negative balance of 5,676.29 crore instead of a surplus of 1,665.61 crore if it had not been for the advance received of NTPC and IRCON.

The Indian railways The operating rate of 98.44 percent in 2017-18 was the worst in the last 10 years, said the national auditor, Comptroller and Auditor General (CAG), in a report submitted to Parliament on Monday.

Otherwise, the exclusion of this advance would have increased the operating rate to 102.66 percent, the auditor said.

The ferrocarriles tampoco han podido cubrir el costo operativo de los servicios de pasajeros y otros servicios de entrenamiento. Casi el 95 por ciento de las ganancias del tráfico de carga se utilizó para compensar la pérdida en la operación de pasajeros y otros servicios de entrenamiento, dijo.

The audit analysis of the finance accounts of Indian railways revealed a declining trend of revenue surplus and the share of internal resources in capital expenditure. The net revenue surplus decreased by 66.10 per cent from Rs 4,913.00 crore in 2016-17 to Rs 1,665.61 crore in 2017-18.

The share of internal resources in total capital expenditure also decreased to 3.01 percent in 2017-18.

This had resulted in a greater dependence on gross budget support and extrabudgetary resources, the CAG said.

The CAG also recommended that the railways should take steps to increase their internal revenues, so that dependence on gross and additional budgetary resources is contained.

Provision for depreciation is resulting in the accumulation of 'pulling forward' works related to the renewal of over-aged assets. There is an urgent need to address this delay and ensure the replacement and timely renewal of old assets, he said.

He also advised the railways to avoid creating new funds for no justifiable reason.

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