Limited train services, non-discounts, and cost-cutting have helped Railways improve its operating ratio during the year. While the operating ratio was 98.36 percent in the year 2019-20, it decreased to 97.45 percent in the year 2020-21. Operating average means how much is spent to earn Rs.100. The less it is, the better. If the operating average is high, the organization will have fewer financial resources available for expansion and growth.
In response to the question asked under Right to Information (RTI) by Chandrashekhar Gaur of Madhya Pradesh, the Railway Board said, 'The operating ratio for the year 2019-2020 was 98.36 percent.. of the operating ratio for the year 2020-21. The calculation has been done on a provisional basis at 97.45 percent.
A railway spokesperson said, “Expenditure is monitored and strictly regulated along with train operations. Investment in electrification in the last seven years has helped in reducing the cost of diesel.
He said that other steps included reduced expenditure, reduction planning, better asset utilization and efficient management of personnel, etc. Railways did not fully operate the highly subsidized passenger section in the year 2020-21. Till the end of the year, the Railways operated only about 65 percent of the trains and barring a few passengers were not given any class relaxation. In the year 2020-21, the freight traffic stood at 1232.26 million tonnes, which was 193% higher than the last financial year's 120.93 million tonnes.