Operating ratio poor, Railways engaged in window dressing: CAG

NEW DELHI: The Indian Railways resorted to “window dressing” for presenting the working expenses and operating ratio in a better light for 2018-19, the federal auditor, CAG has flagged in a report tabled in the Parliament on Wednesday.

In its report on railway finances, the CAG found, “If advance freight of Rs 8,351 crore from NTPC and CONCOR was not included in the earnings of 2018-19, the operating ratio would have been 101.77% instead of 97.29%. The net surplus in 2018-19 was Rs 3,773.86 crore. Indian Railways would have ended with a negative balance of Rs 7,334.85 crore but for receipt of advance freight and less appropriation to depreciation reserve fund and pension fund. Ministry of Railways resorted to window dressing for presenting the working expenses and operating ratio in a better light.”

Operating ratio (OR) is the amount of money the railways spends to earn each rupee. A higher ratio indicates poorer ability to generate surplus.