Context:

The Parliament of India has recently passed the Railways (Amendment) Bill, 2024, which seeks to amend the Railways Act, 1989 to enhance the powers and autonomy of the Railway Board. By streamlining railway operations, the Bill aims to improve governance, ensure greater accountability, and enhance efficiency in the functioning of Indian Railways.

Key Features of the Railways (Amendment) Bill, 2024

The Bill introduces significant changes in the governance structure of Indian Railways, particularly regarding the Railway Board.

1.   Repeal of the Indian Railway Board Act, 1905:

o    The Bill repeals the Indian Railway Board Act, 1905 and incorporates its provisions into the Railways Act, 1989 to simplify the legal framework.

o    This consolidation reduces bureaucratic complexity, making governance more streamlined and effective.

2.   Enhanced Role of the Central Government in the Railway Board:

o    The central government is empowered to invest powers and functions related to Indian Railways into the Railway Board via notification.

o    This provision grants flexibility in administration, enabling efficient decision-making.

3.   Structure and Appointment of the Railway Board:

o    The Bill authorizes the central government to define the number of Board members, their qualifications, experience, and terms of service.

o    It also specifies the manner of appointment for the Chairman and other members to ensure a competent and transparent administrative structure.

About Indian Railways

Indian Railways operates over 68,000 kilometers of track, making it the 4th largest railway network globally, after the United States, Russia, and China.

·        Indian Railways is a crucial part of India’s daily life, serving approximately 23 million passengers daily.

·        Indian Railways has made substantial progress in electrification, with 97% of broad-gauge lines electrified.

·        The government of India has set an ambitious target to increase the freight share in the railway sector from 27%(2022) to 45% by 2030.

Suggestions for Further Reforms

• Independent Regulator: Experts recommend the creation of an independent regulator to oversee crucial aspects of the railway sector, such as tariffs, safety, and competition. This would help ensure that the interests of consumers are protected, and the sector remains competitive and efficient.
• Autonomy to Zones: The decentralization of powers to railway zones is also a key recommendation. By granting more autonomy to individual zones, decision-making can be made more efficient, and each zone can be held accountable for its own performance.
• Corporatization: There is also support for the corporatization of Indian Railways. This would allow the organization to function more like a corporation, improving its financial management, accountability, and long-term sustainability.

Conclusion:

The Railways (Amendment) Bill, 2024 marks a major step toward modernizing Indian Railways, streamlining governance, and paving the way for future structural and operational reforms.