Lok Sabha Passes Railways (Amendment) Bill, 2024

Syllabus: GS2/ Polity and Governance

Context

• The Lok Sabha passed the Railways (Amendment) Bill, 2024.

Key Objectives of the Bill

• Simplification of Legal Framework: Merges the Indian Railway Board Act, 1905, with the Railways Act, 1989.
• Statutory Backing to Railway Board: It amends the Railways Act, 1989, to provide legal sanction to the Railway Board.
  • The statutory powers seek to enhance the functioning and independence of the Railway Board. 
• 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.

About Railway Sector 

• India has one of the world’s largest rail networks in terms of passenger traffic.
• India has the 4th largest railway system in the world, behind only the US, Russia and China.
• The Indian Railways consists of a total track length of 126,366 km with 7,335 stations.
  • 5100 km of track length was achieved during 2023-24.

Challenges in Railway Sector 

• Aging Infrastructure: Much of the railway infrastructure, including tracks, stations, and signaling systems, is outdated and prone to accidents.
• Financial Sustainability: Indian Railways suffers from high operational costs and declining freight revenues, leading to financial stress.
• Safety Concerns: Despite improvements, railway accidents due to human error, derailments, and collisions remain a major challenge.
• Capacity Constraints: Overcrowding and delays are frequent on high-density routes, impacting passenger satisfaction.
• Lack of Private Participation: Limited participation of private players restricts investment and technological advancements.

Way Ahead

• Focus on Modernisation: Accelerate the adoption of technological upgrades, such as AI-enabled monitoring systems, high-speed trains, and automated signaling.
• Financial Restructuring: Address cross-subsidisation issues and diversify revenue streams through freight corridors, tourism trains, and commercialisation of assets.
• Public-Private Partnership (PPP): Develop a conducive policy framework to attract private investments in infrastructure development, rolling stock, and operations.
• Capacity Expansion: Enhance capacity on high-density routes and develop dedicated freight corridors to meet rising demands.

Concluding remarks

• The Railways (Amendment) Bill, 2024 is a landmark reform aimed at transforming the Indian Railways into a modern, efficient, and competitive transport system. 
• By addressing challenges related to governance, safety, and private participation, the Bill aligns with the government’s vision of achieving a sustainable and future-ready railway sector.

Source: TH