Lok Sabha Question No. 429 (UNSTARRED), answered on 2021-02-03
Subject: Improvement of Operating Ratio
Ministry: RAILWAYS
Asked by: Omprakash Bhupalsinh alias Pawan Rajenimbalkar, Rahul Ramesh Shewale

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA

## UNSTARRED QUESTION NO. 429 TO BE ANSWERED ON 03.02.2021

## IMPROVEMENT OF OPERATING RATIO

429. SHRI OMPRAKASH BHUPALSINH alias PAWAN RAJENIMBALKAR SHRI RAHUL RAMESH SHEWALE:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether  the  Government  has  made  any  assessment  of  the  losses incurred  by  the  Railways  from  non-operation  of  trains  during  the period  of  nationwide  lockdown  and  thereafter  due  to  COVID  19 pandemic  and  if  so,  the  details  thereof,  zone-wise  along  with  the present operating ratio of the Railways; and
- (b) the steps taken by the Government to improve the operating ratio of the Railways during each of the last three years and the current year along with achievements thereof?

## ANSWER

MINISTER OF RAILWAYS, COMMERCE & INDUSTRY AND CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRI PIYUSH GOYAL)

- (a) & (b): A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  AND  (b)  OF UNSTARRED QUESTION NO.429 BY SHRI OMPRAKASH BHUPALSINH alias PAWAN  RAJENIMBALKAR  AND  SHRI  RAHUL  RAMESH  SHEWALE  TO  BE ANSWERED IN LOK SABHA ON 03.02.2021 REGARDING IMPROVEMENT OF OPERATING RATIO.

(a)  &  (b)  :  Overall  profit  or  loss  of  Indian  Railways  is  calculated  at  the close of a financial year. However, due to the adverse impact of COVID 19 pandemic,  consequential  lockdown  and  partial  operation  of  passenger services,  total  traffic  revenue  of  Railways  in  the  current  year  to  end  of December,  2020  have  declined  by ` 36,993.82 crore  compared  to corresponding  period  of  last  year.  The  zone-wise  decline  in  total  traffic revenue is given below:

|                    | ( ` in crore)           | ( ` in crore)           | ( ` in crore)                                                                          |
|--------------------|-------------------------|-------------------------|----------------------------------------------------------------------------------------|
| Railway            | Total Traffic Revenue   | Total Traffic Revenue   | Total Traffic Revenue                                                                  |
|                    | To end of December 2019 | To end of December 2020 | Variation of revenue to end of December 2020 over the position to end of December 2019 |
| Central            | 10773.95                | 5659.65                 | -5114.30                                                                               |
| Eastern            | 5052.03                 | 3533.24                 | -1518.79                                                                               |
| East Central       | 8399.35                 | 7391.47                 | -1007.88                                                                               |
| East Coast         | 12775.95                | 12192.90                | -583.05                                                                                |
| Northern           | 10374.81                | 6305.46                 | -4069.35                                                                               |
| North Central      | 10086.72                | 6444.15                 | -3642.57                                                                               |
| North Eastern      | 2545.95                 | 1618.08                 | -927.87                                                                                |
| Norteast Frontier  | 3937.14                 | 3375.58                 | -561.56                                                                                |
| North Western      | 5258.61                 | 4088.43                 | -1170.18                                                                               |
| Southern           | 6309.79                 | 2389.30                 | -3920.49                                                                               |
| South Central      | 11872.93                | 6706.59                 | -5166.34                                                                               |
| South Eastern      | 11617.91                | 10195.13                | -1422.78                                                                               |
| South East Central | 9963.88                 | 9447.33                 | -516.55                                                                                |
| South Western      | 3650.57                 | 2404.87                 | -1245.70                                                                               |
| Western            | 8663.45                 | 4961.48                 | -3701.97                                                                               |
| West Central       | 8727.58                 | 6460.54                 | -2267.04                                                                               |
| Metro/Kolkata      | 184.74                  | 27.34                   | -157.40                                                                                |
| Total              | 130195.36               | 93201.54                | -36993.82                                                                              |

Operating  Ratio  of  Indian  Railways  is  calculated  at  the  close  of  each financial year when the revenue receipts and expenditure figures for the whole  year  is  available.  The  Ministry  has  been  taking  measures  on  a continuing  basis  to  improve  the  financial  position  and  to  bring  the Operating  Ratio  to  a  reasonable  level.  The  endeavour  comprises  of  a combination  of  initiatives  aimed  at  maximizing  revenue  receipts  and minimizing controllable revenue expenses. Revenue enhancing measures, inter alia, include targeting progressively higher traffic throughput, expansion  of  commodity  basket,  effective  and  innovative  marketing strategies  to  capture  more  and  more  traffic,  creation  of  additional capacity and  optimum  utilization of the existing rail infrastructure including rolling stock,  enhancement  in  productivity  and  efficiency, improvement of passenger interface, periodic rationalization of fare and freight  rates  and  focus  on  increasing  the  share  of  non-fare  revenue sources in Railways' total revenue. Expenditure control measures include strict  economy  and  austerity  measures,  improved  man-power  planning, better asset utilization, inventory management, optimizing fuel consumption  etc.  As  a  result  of  such  measures,  the  Operating  Ratio  at 98.4% in 2017-18 marginally improved to 97.3% in 2018-19. However, the trend of improvement could not be sustained in 2019-20 due to adverse impact of the COVID 19 pandemic on rail operations and revenue towards the close of the year.

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