The Railways (Amendment) Bill, 2024 was passed in the Lok Sabha. The Bill was passed five months after it was introduced on the floor of the House.
Main objectives of the Bill
- Simplification of legal framework: The Indian Railway Board Act, 1905 was merged with the Railways Act, 1989.
- Statutory backing to Railway Board: The Bill amends the Railways Act, 1989 to provide statutory backing to the Railway Board.The statutory powers are intended to enhance the functioning and independence of the Railway Board.
- Decentralisation of powers: Railways provides greater autonomy to zones to independently manage budget, infrastructure and recruitment.
- Establishment of Independent Regulator: An autonomous body has been set up to regulate tariffs, ensure safeguards and facilitate private sector participation.
Railway Sector
- India has one of the largest rail networks in the world in terms of passenger traffic.
- India’s railway system is the fourth largest in the world, behind only the United States, Russia and China.
- The total length of Indian Railways is 126,366 km and it has 7,335 stations.
- 5100 km long track will be constructed during 2023-24.
Evolution of Railway Acts
- The construction of the Indian Railway network began under the Public Works Department before Independence.
- The Indian Railways Act, of 1890 was enacted to regulate the growing railway network under British rule.
- In 1905, the Indian Railway Board Act separated the Railway Board from the Public Works Department by giving it specific powers.
- In 1989, the Indian Railways Act, of 1890 was repealed with the introduction of the Railways Act of 1989.
- However, the Railway Board Act, of 1905 remained in force, continuing the governance structure.
Key amendments in the Bill
- The Railways (Amendment) Bill, 2024 aims to repeal the Indian Railway Board Act, of 1905.
- The provisions of the 1905 Act will be incorporated into the Railways Act, 1989.
- The Bill amends Section 2 of the Railways Act, 1989, and inserts a new Chapter IA to provide legal sanction to the Railway Board.
The Bill proposes that the central government will prescribe
The number of members of the Board
- The qualifications, experience, terms and conditions of service, and manner of appointment for the Chairman and members of the Board.
- The Chairman and members of the Railway Board, who were previously appointed under the 1905 Act, will now be deemed to be appointed under the Railways Act, 1989.
- The Bill also proposes to improve operational efficiencies and decentralize powers, granting greater autonomy to Railway Zones.
- The Bill does not propose the creation of a new body or board, as the existing Railway Board will continue its functioning under the revised structure.
Expected Impacts of the Bill
- The Bill retains the current organizational structure of Indian Railways, simplifying the legal framework by reducing the need to refer to two laws.
- It is expected that by integrating the Railway Board into the broader Railways Act, the functioning of the Railway Board will be more streamlined, leading to better development and efficiency in railway operations.
- The efficient functioning of the Railway Board is expected to improve services for passengers, including better infrastructure, safety, and train operations.
- The amendment is expected to speed up the approval process for train services and will help meet pending demands from various regions.
Concerns Raised by Political Parties
- Independence of the Railway Board: There were calls for the Railway Board to be made an independent body with greater decision-making authority, free from government control.
- Failure to Incorporate Expert Recommendations: Concerns were raised about the Bill, not including key recommendations, particularly the establishment of an independent regulator, as proposed by the Committee on Restructuring of Railways in 2015.
- Representation on the Railway Board: Issues were raised regarding the inclusion of SCs, STs, OBCs, and women in the Railway Board, with calls for appointments based on qualifications and expertise rather than political affiliations.
- Unresolved Operational Challenges: Some political parties questioned whether the merger of the two Acts would effectively address operational delays, safety concerns, bureaucratic inefficiencies, and slow adoption of technology within Indian Railways.