Railways’ 98% operating ratio not a reflection of its true financial performance: CAG

THE COMPTROLLER and Auditor General of India in its report on Railways’ finances tabled in Parliament on Tuesday noted that the Indian Railways’ operating ratio of 98.36% in 2019-2020 does not reflect its true financial performance and if the actual expenditure on pension payments is taken into account, the ratio will be 114.35 %.

The CAG also noted that the national carrier needs to revisit the passenger and other coaching tariffs so as to recover the cost of operations in a phased manner and reduce losses in its core activities.

This comes at a time when the national transporter has targeted to reduce its operating ratio to 95%.