Also, as a result, 18,700 kms of new lines, pending execution for a long time, lie frozen, but not abandoned. They are kept alive in the pink book (work book) with annual allocations of a paltry Rs.1,000 each. Out of this, work on 800 kms have been undertaken on the recommendation of the RSS and to suit the interests of the ruling party.In the first combined Budget in 2017, major areas of passenger safety, capital and development works, cleanliness, finance and accounting reforms were announced. Listing of railway subsidiaries, IRCTC, IRCON and IRFC in bourses were the other announcements. In 2018, the outlay of Railways was increased to 1.48 lakh crore from 1.43 crore in the 2017 budget. It provided for capacity creation, track renewal, doubling, redevelopment of 600 stations and gauge conversion. Development of world-class trains with Train 18 and Train 20 with Wi-Fi, CCTVs across trains and stations were also announced.In 2019, the allocation was increased to 1.6 lakh crore. Downsizing of Railway Board from eight to five members was also announced in the Budget.In 2020, the focus was on the private sector for operating trains and redeveloping stations. It was also announced that more trains on the lines of Tejas Express would be introduced on major tourism routes with 150 private trains within the next three years. There is little or no information whether the target is being met.During 2021, Railways was allocated Rs.1,10,055 lakh crore, out of which Rs.1,07,100 lakh crore was for capital expenditure. There was a proposal for taking up 263.7 km long Sonnagar-Gomoh section of the eastern Dedicated Freight Corridor (DFC) in the PPP (Public-Private-Partnership) model. New DFC routes, East Coast, East-West, and NorthSouth were also proposed.In the Budget 2022-23 announced this week, allocation for Railways is substantially higher at Rs.1,40,367.13 crore that include seven engine (multi-modal transportation) growth to boost the Atmanirbhar dream including 400 Vande Bharat trains, with aluminum built high speed lightweight coaches, first envisioned in the 12th Five Year Plan by the Planning Commission as a pilot project.A major worrying sign is however the worsening Operating Ratio (OR) of Indian Railways indicating enormous losses being incurred. It is earning less than what it has been spending. In the Budget document for the 2022-23 financial year, the ratio, it is claimed, will remain the same at 96.98 paise as in the year 2021-22. The OR means that the Railways is spending 96.98 paise to earn a Rupee.According to several former Financial Commissioners of the Railways, the OR is being fudged to hoodwink the public since the ratio indicates the financial health of Indian Railways. In fact, Railways’ expenditure is higher than its revenue. Expenses include administrative expenses, salary for staff, repair, maintenance, operations, fuel, energy costs, etc. and contribution to the pension fund and Depreciation Reserve Fund (DRF).During the last two years, expenses have gone up but revenue has increased only marginally. The ratio that used to be in the range of 90 paise, they claim, climbed to 115 paise in 2019-20. Government, however, did some accounting jugglery, met the contribution to the pension fund with borrowings and budgetary support from General Exchequer and reduced contribution to DRF drastically while artificially showing OR to be around 98 paise.In 2020-21, due to the pandemic and the lockdown, the actual OR climbed even higher to 131, meaning thereby that to earn one Rupee the Railways spent 131 paise. In 2021-22 again, according to projected revenue so far, the OR is expected to be around 120 paise. The trend points to continuing deterioration.
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