_edited.png)
Syllabus: GS2/ Governance
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.
For more detailed information (Source): Bill to grant statutory powers to Railway Board introduced in Lok Sabha
Background:
Established during British colonial rule, Indian Railways is one of the largest railway networks in the world. When founded back in the year, the railways were a branch of the Public Works Department and later managed by the Indian Railways Act of 1890. Gradually as the network grew, the requirement for better management in a more orderly manner and with increased autonomy arose, and in 1905 the Railway Board was formed under the Railway Board Act.
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the Indian Railways, it continued to function without its base provided by an Act, after the Railways Act of 1989 had repealed the earlier Act of 1890.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, 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 of Railways (Amendment) Bill, 2024:
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, in particular 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.
Comments