Railways (amendment) Bill a move to privatization

Context: It was a serious step towards bringing good governance to the Indian
Railways when the Union Railway Minister, Ashwini Vaishnaw, introduced the
Railways (Amendment) Bill, 2024, in the Lok Sabha. The legislation amends the
Railway Act of 1989 by importing certain provisions from the Indian Railway
Board Act of 1905 to make the powers of the Railway Board statutory and
rationalise the legal framework governing the Indian Railways. The committee,
however, observed that while the role of the Railway Board was found to be
critical in running and managing the affairs of the Indian Railways, it
continued to function without its base provided by an Act, after the Railways
Act of 1989 had repealed the earlier Act of 1890.

The Railways (Amendment) Bill, 2024

·       About: The Railways
(Amendment) Bill, 2024, being laid is to give effect to the overdue requirement
of statutory recognition to the Railway Board by formalising its powers and
enhancing operational independence.

·       Key
Features: Statutory powers of Railway Board - The Railways Act, 1989, would
be further inclusive of all the provisions of the Indian Railway Board Act,
1905. This would bring out the statutory powers for the Railway Board and
define formally its role and responsibilities under the legal framework of the
Indian Railways.

Financial
independence - The Bill provides for the fact that expenditure of the Railway Board
shall keep on being met out of annual Budgetary provisions under the revenue
budget of Indian Railways. This assures that there are no further financial
considerations to be made to meet the needs of the Board.

Section 24A -
Enhancement of Connectivity - A new section, 24A, is incorporated into the
Railways Act of 1989. Provision has been given for the Central Government to
permit the running, extension, or diversion of superfast trains through Thawe
Junction. This provision concedes long-pending demands of the districts of
Uttar Pradesh and Bihar for improved rail services in the region.

No New Board or
Body - The Bill does not propose the creation of any new board or body, thereby
avoiding additional administrative or financial burden. No change is being
proposed in the existing provision relating to the terms and conditions of
service for Chairman, Members of the Board, Secretary, and other officers.

·       Significance
of Bill: Simplification of Legal Framework - The Bill has incorporated
provisions that rested in the Indian Railway Board Act, 1905, in the provisions
of the Railways Act, 1989. The rationalisation of the legal framework under
which the Indian Railways operate dispenses with the need to reference two
separate laws, thereby reducing reference cases and making the process of
governance more efficient.

Strengthening
Railway Governance - It vests statutory powers upon the Railway Board,
making it more free and empowered, and thus, more functional. This is crucial
for the management of such a vast and complex network as the Indian Railways.

Regional
Development - The addition of Section 24A caters to the meeting of the aspirations of
regional people, particularly those pertaining to the people of Uttar Pradesh
and Bihar, since it now provides that superfast train services can be extended
up to under-provisioned Thawe Junction. This will further strengthen regional
connectivity and economic development in these areas.

·       Conclusion: The Railways
(Amendment) Bill, 2024, is progressive towards the transformation of the
governance framework of Indian Railways. Simplification of the legal framework
and giving statutory status to the Railway Board help in improving the
operational efficiency and autonomy of Indian Railways. Improved connectivity
of underdeveloped areas puts an emphasis on government commitment to balanced
regional development. As the Bill goes through the legislative wringer, it will
be important to keep an eye on how it impacts the functioning of Indian
Railways and larger objectives of governance reforms in India.