The Railways Amendment Bill 2024, which would introduce comprehensive reforms in the efficiency, governance, and autonomy of Indian Railways, was introduced by Union Railway Minister Ashwini Vaishnaw in the Lok Sabha.
It amends the Railways Act, 1989, by statutorily vesting powers in the Railway Board, providing for measures of streamlining operations. This, on the other hand, generated a hot debate for and against the possible privatization of railways and related access issues.
Table of Contents
The Key Objectives of the Bill
- Legality to the Statutory Powers for the Railway Board: The said Bill provides legal backing to the Railway Board, which since the date of its institution has kept on working without statutory authority.
- Decentralization and Autonomy: Greater autonomy in financial management, infrastructure, and recruitment matters will be given to railway zones to reduce centralization.
- An independent regulator would be established to regulate tariffs, safety, and private sector participation by introducing more transparency and competition in the industry.
- Simplification of Legal Framework: It will, therefore, join the Railways Act, 1989, for simplification in the legal framework; hence, the Indian Railway Board Act, 1905, was passed.
Proposed Reforms and Structural Changes
- Independent Regulator: The Bill also provides for the establishment of a regulator that will look after the interests of stakeholders and ensure fair competition. Recommendations for such a body go back to 2015, covering aspects related to tariffs, infrastructure access, and service quality.
- Autonomy for Railway Zones: The Bill, therefore, has sought to distribute the operational and financial decision-making powers down the line to the zones, something that some committees—including the Sreedharan Committee in 2014—have been batting for. This change in the Bill would also facilitate the zones in managing local budgets for infrastructure projects and recruitments in a far more effective manner.
- Composition of the Railway Board: The Government will decide on the size, qualification, and tenure of the Railway Board to bring in clarity in accountability and efficiency in governance. The government will also conduct the selection process for the chairman and members of the railway board.
- Infrastructure Development: New Section 24A now allows speedy superfast train operations along with infrastructural development. For instance, extension of Arunachal Express via Siwan-Thawe-Kaptanganj-Gorakhpur route would help Bihar, and Rs. 300 crore will be spent on upgradation work while Rs. 250 crores per year will be required for recurring expenditure.
Overview of Concerns and Criticism
The Bill has witnessed opposition; critics raising concern on:
- Privatization Risks: The opposition has claimed that the reforms will pave the way for the privatization of Indian Railways and thereby reduce accessibility to low-income groups.
- Erosion of Autonomy: In the appointments to the Board, some element of control by the government has caused the recent trend that may see the Railway Board lose part of the hard-earned independence it has accumulated thus far.
- Fare concession on tickets: The MPs have asked for the restoration of fare concessions, which were abolished during the pandemic in 2020.
On grounds of privatisation, this claim was denied by Vaishnaw, who mentioned that this reforms would make Indian Railways more efficient, self-reliant, and responsive toward society. The Minister stated explicitly that the proposed reforms were geared in the direction and vision regarding changing facades of an upgraded railways system to cater to Indian Needs growing ahead.
While the Railways Amendment Bill, 2024, envisages transformative changes, the same would require a proper balancing in terms of efficiency, accessibility, and public interest.
