Railway Minister Suresh Prabhu on Thursday said that the railways' operating ratio will be 90 per cent against the targeted 88.5 per cent for the currency financial year.
In simple terms, it means that the railways will spend 90 paise for each rupee of revenue. The lower the operating ratio, the better is the profitability.
(Also Read: Suresh Prabhu's Three-Pronged Approach to Transform Railways)
For 2016-17 financial year, the railways operating ratio will go up to 92 per cent because of the impact of the 7th Pay Commission, which had recommended a total pay hike of Rs 28,450 crore for 2.6 million railway employees and pensioners.
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