Railways operating ratio indicates failure of its management: Chidambaram

Former Finance Minister P Chidambaram has hit out at the Modi government over the worsening operating ratio of railways and dubbed it as a “comprehensive failure” of management of the public transporter.

Chidambaram's attack came as reports suggested that the operating ratio of railways had touched 98.5% – the worst since 2000-01 when it was 98.3%.

“Is it correct that the true operating ratio has exceeded 100%? Is it correct that the accounts are being 'dressed' to show an Operating Ratio just a little less than 100 percent,” the senior Congress leader wrote on Twitter.

“If the Operating Ratio is close to 100% or has exceeded 100%, that indicates a comprehensive failure of management of the Indian Railways,” Chidambaram said.

Operating ration refers to the amount spent by the railways to run its operations for every rupee earned. An operating ratio of 98.5% suggests that the public transporter has very little room to have surplus earnings.

The operating ratio has been above 90% for the past six years. The Centre has set an operating ratio target of 92.5% for the current fiscal. It also aims to bring it down to 88% by 2022.