Railway Reforms

Why Railways Amendment Bill 2024 was introduced?

Note4Students

From UPSC perspective, the following things are important :

Mains level: Issues related to Governance in Railawys;

Why in the News?

Amid intense debates between the government and the opposition, the Lok Sabha passed the Railways (Amendment) Bill, in 2024.

What were the significant key features of the bill?

  • Repeal of the Indian Railway Board Act, 1905: The Bill repeals the 1905 Act, which governed the establishment and powers of the Railway Board. Provisions from the 1905 Act are now incorporated into the Railways Act, of 1989, for a unified legal framework.
    • It combines the provisions of the 1905 Act and the 1989 Act, reducing legislative redundancy and simplifying governance.
  • Constitution of the Railway Board: It empowers the central government to determine:
    • The number of Railway Board members.
    • Qualifications, experience, and terms of service for the Chairman and members.
    • Method of appointment for these positions.
  • Streamlining Legal Provisions: It consolidates provisions for easier administration and reduces the need for cross-referencing between multiple laws.
    • It enables the central government to prescribe updated qualifications and service terms for Railway Board members, potentially improving leadership quality.
  • Administrative Integration: It maintains the Railway Board’s central authority while aiming for operational efficiency and uniformity in governance.
    • It aligns with recommendations for a modernized railway structure, paving the way for potential decentralization and private sector participation.
  • Development Goals: The Bill is in line with India’s broader infrastructure and economic development objectives, which depend heavily on an efficient railway system.

Why did the Government Bring the Bill?

  • The government aims to repeal the Indian Railway Board Act of 1905 and integrate its provisions into the Railways Act of 1989, simplifying the legal framework governing Indian Railways and reducing reliance on multiple laws.
  • The government argues that this integration will enhance the efficiency and development of railways, allowing for better governance and decision-making within the Railway Board.
  • Since its inception, the Railway Board has operated under the 1905 Act. The new Bill seeks to modernize this structure by aligning it with contemporary governance practices.

What did MPs Say About the Bill?

  • Support from Government MPs: The ruling party MPs praised the Bill as a significant step towards modernizing and strengthening Indian Railways, asserting that it would enhance the functions and independence of the Railway Board.
  • Concerns from Opposition MPs: Opposition members argued for an independent Railway Board free from government control and highlighted that the Bill does not address critical issues like:
    • Concerns About Privatization: The Opposition party is worried that the new Bill could lead to the privatization of Indian Railways, making it less accessible to poorer people.
    • Loss of Independence: Many Members of Parliament (MPs) are concerned that more government control over appointments to the Railway Board could reduce the independence of Indian Railways.
    • Restoration of Discounts: Several MPs are calling for the return of fare discounts for senior citizens, journalists, and economically weaker groups, which were stopped during the pandemic.
  • Calls for Inclusivity: Some MPs raised concerns about representation within the Railway Board, questioning whether marginalized groups would be adequately represented in appointments.

Way forward: 

  • Strengthen Railway Board Autonomy: Establish an independent regulatory framework to ensure the Railway Board operates with greater autonomy, focusing on safety, operational efficiency, and decentralization at zonal and divisional levels.
  • Inclusive Representation and Expertise: Mandate merit-based appointments to the Railway Board, ensuring adequate representation of marginalized groups (SCs, STs, OBCs, and women) while emphasizing domain expertise for effective governance.

Mains PYQ:

Q The setting up of a Rail Tariff Authority to regulate fares will subject the cash strapped Indian Railways to demand subsidy for obligation to operate non-profitable routes and services. Taking into account the experience in the power sector, discuss if the proposed reform is expected to benefit the consumers, the Indian Railways or the private container operators. (UPSC IAS/2014)

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