Railway earnings jump 12%, mere 4% rise in freight revenue

Operating ratio improves to 91.8 during 2014-15

Indian Railways’ total revenue rose 12.2 per cent in 2014-15 to Rs 1,57,880 crore as compared with Rs 1,40,761 crore in 2013-14.

Freight earnings, 66 per cent of the total, grew 12.7 per cent to Rs 1,07,074 crore. And, passenger earnings registered a historic rise of 14.3 per cent to Rs 42,866 crore, the ministry said.

The ministry told Business Standard the revised estimate of IR’s operating ratio showed the target of 91.8 had been achieved.

“This is an improvement over the Budget Estimate target of 92.5 and the 2013-14 achievement of 93.6 per cent,” said a senior official. The ratio shows the money spent to earn every Rs 100 and is a measure of efficiency.

The 12.7 per cent growth in freight earnings came despite a mere 4.7 per cent rise in volume to 1,101 million tonnes (mt), indicating a clogged network and high rates, which have historically cross-subsidised losses in the passenger segment but have also resulted in loss of market share to the roads sector.