We shall overcome the financial crunch: Railway Chairman

Railways maintain been destroy powerfully due to the implementation of Sixth Pay Commission tell which drained Rs 55,000 crore from its treasury and may well take "two to three" years to absorb the effect, Railway Board Chairman Vivek Sahai thought.

"Some method ought to be found to arrive by the side of a solution to reduce the effect (on railways) for the reason that it happens similar to each wage commission," he thought.

He thought Railways is the solitary organisation paying its employees from its interior wealth, and pragmatic "it takes not far off from two to three years to absorb the impact".

He besides allayed fears not far off from the rising operating ratio, contending with the aim of it will approach down once upon a time the effect of the wage commission tell dissipates.

The operating ratio is on the edge by the side of around 95.3 apiece cent, which implies railways are expenditure more and earning a smaller amount.

Sahai besides exuded confidence with the aim of earning targets in place of the current fiscal would be "achieved".

He thought similar to the Fifth Pay Commission was implemented, the operating ratio had besides used up up 90.5 apiece cent but came down to not far off from 75.9 apiece cent in 2007-08.

"Railways is a very upright and robust organisation and it will join the challenge posed by the payments of colossal arrears in place of Sixth Pay Commission recommendation as well as the increased requirement of pension deposit," he told PTI.

 He thought in 2008-09 railways had to wage 40 apiece cent of the arrears to its employees while implementing wage panel recommendations which pressed up operating ratio to 90.5 apiece cent. Clothed in 2009-10 the operating ratio went up to 95.3 apiece cent for the reason that 60 apiece cent of the arrears were paid.

Railways, the chief public-sector employer, has 14 lakh employees and 12 lakh pensioners to whom it had to dole barred Rs 55,000 crores in place of implementing the wage commission tell together with Rs 14,500 crores on tally of pension liabilities from its interior wealth.

Railways pension liability similar to 6th wage commission is by the side of Rs 1,500 crore apiece annum. It besides faces the other burden of shooting barred Rs 1,500 crores to its employees under modified self-assured career sequence scheme.

Sahai thought the ultra burden of Rs 1,000 crores on tally of the hike in diesel prices besides impacted the organisation financially.

"Though these factors were outside railways control, as it should be steps are being taken to convalesce the remuneration and control the expenditures", he thought.