Railways (Amendment) Bill 2024 Introduced 

Syllabus: GS3/ Infrastructure; Railways

In Context

• The Railways (Amendment) Bill, 2024 was introduced by the Union Minister of Railways in the Lok Sabha, proposing significant reforms to enhance the autonomy and efficiency of Indian Railways. 

Key Objectives of the Bill

• Statutory Backing to Railway Board: Amends the Railways Act, 1989, to provide legal sanction to the Railway Board, which has operated without statutory backing since its inception.
• Decentralisation of Powers: Grants greater autonomy to railway zones to manage budgets, infrastructure, and recruitment independently.
• Establishment of an Independent Regulator: Introduces an autonomous body to regulate tariffs, ensure safety, and facilitate private sector participation.
• Simplification of Legal Framework: Merges the Indian Railway Board Act, 1905, with the Railways Act, 1989.

Proposed Reforms and Structural Changes

• Independent Regulator: Addresses issues like tariff regulation, infrastructure access, and service standards.
  • Recommendation initially made by the 2015 Committee on Restructuring Railways.
• Autonomy to Railway Zones: Decentralises operational and financial decision-making.
  • Supported by the Sreedharan Committee (2014).
• Appointment and Composition of Railway Board: Empowers the government to define the Board’s structure, qualifications, and appointment processes for members and the Chairman.
• Infrastructure Upgrades: New Section 24A enables expedited superfast train operations and infrastructure upgrades. For instance, extending the Arunachal Express via the Siwan-Thawe-Kaptanganj-Gorakhpur route is expected to benefit Bihar, with an estimated cost of Rs. 300 crore for upgrades and Rs. 250 crore annually in recurring expenditures

Potential Benefits

• Improved Governance: Streamlining the legal framework and clarifying the Railway Board’s role can lead to better governance and accountability.
• Enhanced Efficiency: Decentralization and autonomy for zones can result in faster project implementation, better resource utilization, and improved service delivery.
• Increased Investment: An independent regulator can create a more level playing field for private players, attracting investment in railway infrastructure.
• Regional Development: Provisions like those for extending the Arunachal Express demonstrate the potential for targeted infrastructure development in specific regions.

Concerns and Way Ahead

• Privatization Fears: The opposition’s concern about potential privatization needs careful consideration. While private sector participation can bring in investment and expertise, safeguarding public interest and accessibility for all remains crucial.
• Autonomy vs. Control: Balancing increased autonomy for zones with effective oversight and accountability will be essential. The government’s role in Board appointments needs to be transparent and ensure the Board’s independence.
• Passenger Welfare: Addressing concerns about passenger concessions and ensuring affordable fares for vulnerable sections of society is important for maintaining the railways’ social responsibility.

Source: FE