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Indian railways stares at weak finances as staff, pension costs rise

Operating ratio has already crossed 100% in FY20, while share of internal resources in capex is down to 3.5%

The government has recently come out with a road map to electrify 28,000 km in the next three financial years
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Shine Jacob New Delhi
The Indian Railways is increasingly depending on extra budgetary resources (EBR) for capital expenditure (capex) as the share of internal resources in capex shrinks, shows the national transporter’s annual plan, amid talks of restructuring of the Railway Board.

The operating ratio (ratio of operating expenses to operating revenue) of the railways has already crossed 100 per cent during the current financial year (2019-20, or FY20). This indicates that the Railways has spent more than what it earned so far. The operating ratio was at 97.3 per cent during 2018-19 compared to 98.4 per cent in 2017-18.

Based on the actuals

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First Published: Dec 27 2019 | 11:11 PM IST

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