Rs 79,398-crore special support from FinMin may save Covid-hit railways

Even before Covid-19 struck, the national transporter was so short of money that it could provide for only a third of its annual liability.

The railways had to empty out even its pension funds in FY21 to meet current expenses as receipts ran dry due to the Covid-19 pandemic. No railway staff will lose pension in the process since it is a committed liability of the railways, but the hit on the finances of the organisation shows how precarious its position has become.

The railways was saved by a Rs 79,398-crore special support from the finance ministry. Else, it would have ended this fiscal year with an operating ratio of 131.49 per cent against the headline number of 96.96 per cent. This would have made