Railway Minister Ashwini Vaishnaw has introduced the ‘Railway (Amendment) Bill, 2024’ in the Lok Sabha. The main objective of this bill is to integrate the Railway Act of 1989 and the Indian Railway Board Act of 1905, so that reforms can be made in the railway sector and a better administrative structure can be established.
Key provisions of Railway (Amendment) Bill, 2024
Simplifying the legal framework
- The Railway Act of 1989 and the Indian Railway Board Act of 1905 will be integrated.
- The need for two separate laws will be eliminated.
- Establishment of Independent Regulator: Proposal to establish an Independent Regulator for better operation of Railways.
- More powers to regional units: Zonal offices of Railways will be given more autonomy and powers.
- Improvement in Organizational Structure: Measures to make it more efficient while maintaining the current railway organizational structure.
Improvement in Financial Position: Expert suggestions to improve the financial management of Railways include
- Change in accounting methods.
- Making passenger fares practical.
- Diversifying freight services.
- Increasing revenue from private partnership.
Importance of Railways (Amendment) Bill, 2024
- Administrative Reforms: Increase in efficiency and autonomy by giving statutory status to the Railway Board.
- Legal Simplification: Simplification of legal framework, making decision making process faster and effective.
- Balanced Regional Development: Better connectivity in backward areas reflects the government’s commitment to regional development.
- Operational Improvement: Important steps towards making the functioning of Railways modern and effective.
- Governance Reforms: Progressive initiatives to improve the administrative and operational structure of Indian Railways.
Indian Railways: A Brief Introduction
Establishment and History
- Indian Railways was established in 1853.
- India’s first train ran from Mumbai to Thane, a distance of 21 miles.
- It is one of the largest railway networks in the world.
- By 2050, India is projected to account for 40% of global rail activity.
Structure and Responsibilities
Ministry of Railways
Functions:
- Formulate railway policy and provide strategic direction.
- Manage budget allocations.
- Approve major railway projects and expansion plans.
- Provide policy guidance to the Railway Board.
2024-25 Budget
- Capital expenditure allocated of ₹2.52 lakh crore.
- 100% foreign direct investment (FDI) allowed in the railway sector.
Railway Board
Functions
- Implement the policies of the Ministry of Railways.
- Monitor the daily operations of the railways.
- Formulate network development, modernisation and safety plans.
- Issue instructions and guidelines to zonal railways.
Zonal Railways (Zones)
Number
- There are 17 zones by 2024.
- 18th zone (South Coast Railway) proposed.
Structure
- Zones are divided into divisions.
- Each division is managed by a Divisional Railway Manager (DRM).