What’s ailing the Indian Railways?

‘What are the stress factors for Indian Railways?’, The Hindu, October 20, 2024:

The operating ratio (OR) — the amount the Railways spends to earn ₹100 — in 2024-2025 is estimated to be ₹98.2, a small improvement from 2023-2024 (₹98.7) but a decline from ₹97.8 in 2016. A higher OR leaves less for capex and the Railways more dependent on budgetary support and Extra-Budgetary Resources (EBRs). In 2016-2017, the BJP government brought the railway budget under the regular budget after nine decades of separation. One outcome was easier access for the Railways to gross budgetary support. As for EBRs: the Railways’ dues have ballooned to 17% of its revenue receipts today from 10% in 2015-2016.

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