Railways (Amendment) Bill 2024: A Step Towards Modernisation

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The Railways (Amendment) Bill 2024 has been passed to enhance the Railway Board's efficiency and autonomy by providing statutory backing. This marks a significant step towards modernising the railways and aligning its operations with contemporary needs. The Bill integrates provisions to streamline governance, improve infrastructure, and attract investment, ensuring a robust framework for future development.

Key Initiatives for Railway Modernisation

1. Infrastructure Development: The government has significantly increased railway budget allocations from ₹25,000–30,000 crore to ₹2.52 lakh crore, focusing on expanding infrastructure, including laying 31,000 km of new tracks.
2. Superfast Train Routes: Initiatives such as extending superfast train routes aim to improve connectivity and enhance service quality, especially in underserved regions.

Rationale for the Amendment

1. Need for Legal and Operational Modernisation: The existing framework was based on outdated colonial laws, lacking statutory support and operational independence. This amendment provides a modern legal structure.
2. Decentralisation and Efficiency: The Bill addresses the need for autonomy and decentralisation, as previously recommended by expert committees, to improve decision-making and service delivery.

Key Provisions of the Bill

1. Statutory Backing for the Railway Board: Integrates earlier legislative provisions to establish the Railway Board as a statutory body, ensuring its legal foundation.
2. Autonomy in Governance: Empowers the central government to determine the composition, qualifications, and appointment of Railway Board members.
3. Decentralisation to Railway Zones: Grants financial, operational, and recruitment autonomy to railway zones, facilitating faster and more region-specific decision-making.
4. Independent Regulatory Body: Proposes an independent regulator to oversee tariff-setting, safety protocols, and private sector participation.
5. Operational Efficiency Measures: Introduces policies for infrastructure expansion and service improvement, including the deployment of superfast trains.

Anticipated Benefits

1. Governance and Accountability: The legal framework clarifies roles, enhances transparency, and strengthens governance mechanisms.
2. Improved Efficiency: Greater autonomy enables quicker decision-making and accelerates infrastructure projects.
3. Attracting Investment: The independent regulator ensures fair opportunities for private investment, boosting infrastructure development.
4. Regional Development: Infrastructure projects under the Bill are expected to foster economic growth in underserved regions.

Challenges and Concerns

1. Privatisation Fears: Concerns about railway privatisation persist, especially regarding its impact on affordability and accessibility.
2. Balancing Autonomy with Oversight: Ensuring accountability while granting autonomy to railway zones remains a critical challenge.
3. Passenger Welfare: Addressing issues like concessions for vulnerable groups and maintaining affordability are areas of concern.

Way Forward

1. Addressing Privatisation Concerns: Clearly define the scope of private sector participation, focusing on infrastructure development without compromising public operations.
2. Strengthening Oversight Mechanisms: Ensure transparent appointments and robust guidelines for the independent regulator to maintain accountability.
3. Passenger-Centric Policies: Prioritise affordability, accessibility, and social responsibility in policies, ensuring the welfare of all passengers, especially vulnerable populations.