Indian Railways stays afloat in FY19, helped by advance freight charges


Indian Railways stays afloat in FY19, helped by advance freight charges

Indian Railways just about managed to keep its head above water in FY19 with an operating ratio (OR) of 97.3%, but only after getting state-run NTPC and Container Corporation of India (Concor) pay Rs 10,000 crore and Rs 3,000 crore, respectively, in advance as freight charges for the current financial year. The national transporter’s OR had crossed 100% in November 2019, indicating an operational deficit. OR is the share of operational expenditure in revenue.

According to a railway official, the improvement in OR is due to a two-pronged approach —advance freight charges and expenditure containment. For FY19, the transporter was able to contain its expenditure a tad below the revised estimate (RE) of Rs 1.43 lakh crore. Read more

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