National Railway Plan to boost operating ratio: Railway Board Chairman VK Yadav

New Delhi: The Indian Railways will see a significant improvement in its operating ratio with reduction in its cost of operations and adaptation of modern technology, all envisaged under the National Railway Plan, chairman Railway Board VK Yadav told ET. The national transporter is banking on freight revenue to improve its finances, while an increase in passenger fares is nowhere planned, Yadav said.“By 2024, we should see a significant improvement in our operating ratio,” Yadav said in an interview. “We are trying to improve our operating expenses by introducing technology and upgrading our infrastructure.” Operating ratio is the amount of money the national transporter spends to earn each rupee. Lower the ratio, the healthier are Nishtha.Saluja@timesgroup.com railways’ finances. “This year, our projection is, that we will be able to fully meet with our operating expenditure despite this Covid situation, by reducing the expenditure, and increasing the freight revenue,” he said. Yadav, who is also the first CEO of the Railway Board, superannuates this month. 79946368 The railway ministry last week unveiled the draft National Railway Plan, setting a vision to improve its modal share of freight to 45%, which currently stands at 27%. Yadav said the idea behind the NRP was to create capacity ahead of demand. The railways currently does not have enough capacity to meet the demand for passenger travel in the country. He said the railways will encourage public-private partnership in a big way to fund the infrastructure development envisaged as part of the NRP.

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