Why in the news?
In the month of January, the Railways (Amendment) Bill, 2024, was passed in the Lok Sabha and Parliamentary Standing Committee on Railways released a report on Railway Modernization and Financial Sustainability. In this article, we have discussed reforms in Indian Railways issues & actions by the government.
About the bill
Simplified Legal Framework
(a) Repeals the Indian Railway Board Act, 1905, and incorporates its provisions into the Railways Act, 1989.
(b) The Indian Railway Board Act, of 1905 constituted the Railway Board as the central authority to administer the Indian Railways.
(c) Aims to avoid referencing two separate laws for railway administration.
Extra Power to Union Government on Constitution of Railway Board:
The central government will prescribe:
(a) the number of members of the Board,
(b) the qualifications, experience, terms, and conditions of service, and
(c) manner of appointment for the Chairman and members of the Board.
Need and significance of the reforms in Indian Railways
Economic development:
(a) To ensure that it meets the requirements of a soon-to-be 5 trillion dollar economy,reforms in the segment are necessary.
(b) To contribute comprehensively to Indian development, IR needs administrative reforms. Improvement in services and efficiency and engineering reforms, along with improved cost and environmental effectiveness.
Departmentalism:
(a) The apex decision-making body of Indian railways is the ‘Railway Board’. It has several departments like electrical, traffic, mechanical, and finance which are separated from top to bottom.
(b) This makes Indian railways a complex over-departmentalised organisation with inefficient decision-making.
Administrative Reforms
(a) The management organization needs to be radically simplified. The Debroy committee’s recommendation to separate the core functions (rail operations) of IR from the non-core (medical, schools, protection force, etc.) is of utmost importance.
(b) A revised governance structure is suggested by the Debroy committee, to make decisions and create some distance from the government.
Modernization
(a) Indian Railways is not going with enough modernization of infrastructure and services and is not able to expand at the pace that India needs.
(b) Modernisation of equipment, processes, and training is necessary as all are still continuing as they have been, through the decades. Due to this, railways continue to be a burden on the exchequer while continuing to provide vital services inefficiently.
Safety:
(a) In India rail accidents are high. As per the National Crime Record Bureau (NCRB) Railways recorded 38 percent rise in accidents in 2021.
(b) Investment of Rs 1 lakh crore over 5 years and creating a statutory railway safety authority is a recommendation by the Kakodj-kar committee.
Steps taken by the government
- PM Gati shakti
- Atma Nirbhar Bharat initiative
- Green fuel initiative
- Station infrastructure redevelopment program
- Digitisation initiative
- Kisan rail
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Major Issues Related to Indian Railways?
- Accidents due to Derailments: Bad infrastructure maintenance and age-old assets have led to recurring accidents, derailments, and collisions.
- Financial challenges: The stark contrast between its profitable freight segment and its loss-making passenger segment, poses significant challenges.
- Cripplingly Slow Journeys: Average speeds of mail and express trains are 50-51 kmph, against the promised improvements under “Mission Raftar.”
- Slow Integration of Emerging Technologies: The Indian Railways is sluggish in adopting and leveraging emerging technologies. Due to this, it lags in enhancing efficiency, safety, and customer experience.
- Glitches in Public-Private Partnership(PPP) Models: Ineffectively leveraging PPP models for infrastructure development, operations, and service delivery, eventually hindering the mobilization of private capital and expertise.
- Ineffective Asset Utilization and Maintenance Strategies: The Indian Railways is not able to optimize the utilization of its vast asset base effectively which includes rolling stock, infrastructure, and land resources, leading to inefficiencies and underutilization.
What should be the approach?
- There is a need to implement the recommendations of the Bibek Debroy committee. A few of them are to expand the Indian Railways manufacturing company, Corporatization of core functions of railways, etc.
- The focus should be on increasing the revenues, particularly the freight revenue. In this context, the operationalization of two DFCs(dedicated freight corridors) is a must-do step.
- An annual report ‘Indian Railways Report’ along with the annual Economic Survey should be placed in Parliament regularly. In this, the details of the physical and financial performance of the Railways should be there. It will help in making railways more accountable and transparent.
- Establish a regulator and moderate charges like the amount for the maintenance of tracks and stations. This will help in attracting more investment in railways.
- Environmental Sustainability by Focusing on electrification, solar-powered stations, and waste management. The Indian Railways has set a target of becoming a “Net Zero” entity by 2030 by completing electrification of all railway tracks.
- Passenger-centric reforms like Improved hygiene, ticketing systems, and station amenities.For eg-Swachh Rail, Swachh Bharat, Amrit Bharat Station Scheme
Conclusion
While Indian Railways remains a vital part of India’s economy, addressing these challenges through modernization, financial restructuring, and technological advancements is crucial for its long-term sustainability and efficiency.