Why in News?
The Railways (Amendment) Bill, 2024 was introduced in the Lok Sabha on August 9, 2024, and debated on December 5, 2024. The bill was introduced aimed to unify two important legislations, the Indian Railways Board Act, 1905, and the Railways Act, 1989, into a single, streamlined framework.
Key Features of Railways (Amendment) Bill, 2024
- Unification of Laws: The bill seeks to repeal the Indian Railways Board Act, 1905, and incorporate its provisions into the Railways Act, 1989, simplifying the legal framework governing Indian Railways.
- Constitution of Railway Board: The bill defines the powers of the Railway Board, including the number of members and the qualifications and appointment process for the Chairman and members.
- Autonomy of Zones: While the bill retains the current structure, it has faced criticism for not giving more financial and operational autonomy to the railway zones.
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Background of these Acts:
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Significance of the Railways (Amendment) Bill, 2024:
- Simplification of Legal Framework: The bill seeks to repeal two Indian railway acts and to create a single, comprehensive piece of legislation. This is intended to simplify the governance of Indian Railways by eliminating the need to refer to multiple laws, thus reducing legal complexity.
- Streamlined Administration: By merging the two acts, the bill aims to create a more efficient administrative structure for the railways, which is seen as crucial for tackling issues like high operating costs, delays, and capacity bottlenecks.
- Defining Board Structure: The bill also clarifies the structure of the Railway Board. This move is seen as a step towards professionalizing the leadership and decision-making in Indian Railways.
- Revenue Generation and Private Participation: The bill supports measures to increase private sector involvement in railway operations, including leasing and freight operations. This could lead to increased investment, improve service delivery, and reduce financial stress on the public exchequer.
- Addressing Operating Losses: By modernizing the legislative framework, the bill aims to address chronic financial losses in the passenger segment, often attributed to underpricing and cross-subsidization between passenger and freight services.
- Key Recommendations from Expert Committees:
- Corporatisation: Several committees have suggested corporatising the Indian Railways, which would allow it to function more like a business, with a focus on profitability and efficiency.
- Independent Regulator: To protect consumer interests and promote competition, the establishment of an independent Railway regulator has been recommended. This regulator would oversee tariff setting, safety standards, and access to infrastructure for private operators.
- Decentralisation: Recommendations also include giving more power to railway zones, allowing them to make independent decisions about project tenders and resource allocation.
While the Railways (Amendment) Bill, 2024 is a step towards modernizing the governance and operations of Indian Railways, it raises significant concerns about autonomy, the privatisation of services, and the financial sustainability of the system.
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Indian Railways: Structure and Important Facts
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