Indian Railways expecting improved operating ratio despite Covid-19 impact

Rail ministry official says huge cut in expenditure offset falling passenger revenues; freight revenue seen driving improvement

The Indian Railways expects to report a better operating ratio for the fiscal year 2020-21 (FY21) in the upcoming Budget despite the Covid-19 pandemic, according to officials in the know.

“There has been a massive reduction in expenditure. So, operating ratios are expected to be better than last year,” a rail ministry official told Business Standard.

This is despite passenger revenues falling significantly during FY21 as the Covid-19 pandemic stalled most travel. The railways made gains in freight revenue, which is driving the improvement this year.

“This turnaround has been a result of extraordinary efforts on reduction in expenditure and historic results in