Operating Ratio for 2015-16 Proposed at 88.5%, Best in Last Nine Years

The Minister of Railways Shri Suresh Prabhakar Prabhu has said that he proposes the operating ratio for 2015-16 at 88.5% as against a targeted operating ratio of 91.8%in 2014-15 and 93.6% in 2013-14. Presenting the Railway Budget 2015-16 in Parliament today he said, not only will this be the best operating ratio in the last 9 years but the best after the Sixth Pay Commission. The Minister said, to get the most out of the additional resources that will be invested, the Railways will need to ensure the highest standards of operational and business efficiency. He said, there is an improvement on Railways’ financial performances in the year 2014-15 relative to what it had anticipated earlier.

 The Railways will not be able to deliver sustained improvement in operating efficiency unless changes are made to speed up decision making, tighten accountability, and improve management information systems. He said, for our transformation journey to succeed it will be very important to harness the talent of railway employees through training and development.

 Shri Prabhu said, keeping in mind the highest standard of governance and transparency, he as a Minister has delegated all his tender approving powers to the level of General Managers of the Railways.

Operating ratio proposal drives operational efficiency, accelerating decision-making and delegating tender approval authority to General Managers. Proposed operating ratio for 2015-16 is reduced relative to prior years and is presented as a benchmark for improved financial performance; achieving and sustaining these efficiency gains requires faster decision making, tightened accountability, improved management information systems, workforce training, and increased transparency. To expedite procurement and reinforce decentralised accountability, tender approving powers have been delegated to General Managers.