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Is the Railways a “for-profit” enterprise, or a “non-profit” one?
The correct answer is: “Both.”
There are operations of the railways which are clearly run on a for-profit basis, and there are activities which do not have a profit objective. Successive railway ministers, with Piyush Goyal being the latest, have argued that this creates a special problem when trying to assess the railways’ financial performance. The argument has merit.
Earlier this month, the Comptroller and Auditor General of India in its annual report on the Railways’ financial performance, pointed out that the Operating Ratio (OR) of the
The correct answer is: “Both.”
There are operations of the railways which are clearly run on a for-profit basis, and there are activities which do not have a profit objective. Successive railway ministers, with Piyush Goyal being the latest, have argued that this creates a special problem when trying to assess the railways’ financial performance. The argument has merit.
Earlier this month, the Comptroller and Auditor General of India in its annual report on the Railways’ financial performance, pointed out that the Operating Ratio (OR) of the
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