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Home / UPSC Editorials / Railways (Amendment) Bill 2024

Railways (Amendment) Bill 2024: Objectives & Features | UPSC Editorials

Last Updated on Dec 06, 2024
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On 9th August, 2024 the Minister for Railways, Ashwini Vaishnaw presented the 'Railways (Amendment) Bill, 2024' in Lok Sabha that triggered heated debates in Indian Parliament. The bill integrated two acts: Indian Railways Board Act, 1905 and the Railways Act, 1989 in a harmonized single legislation. It was directed at simplifying the legal apparatus governing Indian Railways. However, the Opposition, especially Congress MP Manoj Kumar, has seriously objected to the consequences of loss of autonomy and even privatization of the railways. This article will go into the details of the Bill and discuss objections put forth by the Opposition.

What is the Railways (Amendment) Bill 2024?

The Railways (Amendment) Bill, 2024 was introduced before Lok Sabha on August 9, 2024, to amalgamate the Indian Railways Board Act, 1905, and the Railways Act, 1989 into a single integrated enactment. It would also lighten the legal scenario regarding Indian Railways as one law will replace the need to refer to two separate enactments in the pursuit of more efficient administration and better operation. However, the Opposition reacted negatively towards the Bill and felt that the Bill might adversely affect the independence of Indian Railways and also may open a window for the privatization of railways. Such fears can be assuaged only when these reforms strike at the efficiency without sacrificing independence and public accountability.

Purpose of the Amendment

The Railways (Amendment) Bill, 2024, consolidates the regulatory structure of Indian Railways and brings two major acts-an Indian Railways Board Act, 1905 and the Railways Act 1989-into one main body. Since the dawn of the two acts Indian Railways has been being governed for its administrative work and operations respectively.

The Indian Railway Board Act, 1905 instituted the Railway Board as the highest body that was expected to oversee the running of the rail, thereby entrusting powers to the central government to pass on their duties to the Board. In contrast, the Railways Act, 1989 is an all-encompassing legislation that governs the operation of the railways and structuring the railways into zones for better administration. The two acts being consolidated will make the Indian Railways system free from legal redundancy and create an effective, streamlined governance structure.

Read the article on the Evolution of Indian Railways!

Analysis based on 

Editorial What in the Railways (Amendment) Bill 2024 is upsetting the Opposition? published in the Business Standard on December 5th, 2024

Topics for UPSC Prelims

Indian Railways, Indian Railways Board Act 1905, Railways Act, 1989, Transport sector

Topics for UPSC Mains

Issues concerning the autonomy of public sector undertakings, Modernization of Indian Railways, Passing of Bills

Key Features of the Railways (Amendment) Bill, 2024

Some of the major features of the Railways (Amendment) Bill, 2024 include the following:

  • Integration of Acts: It attempts to repeal the Indian Railways Board Act, 1905 and integrate all its important provisions into the Railways Act, 1989. This integration has been done in furtherance also of the historical recommendation of the Joint Parliamentary Committee while scrutinizing the Railways Bill, 1986, which later went into enactment in 1989.
  • Empowerment of the Railway Board: This is done by merging the two acts so that the functions of the Railway Board would become streamlined under one legal framework, thus strengthening its authority. This change should positively impact the administrative efficiency and decision-making of Indian Railways.
  • Integrated Legal Framework: Both the acts will integrate in their efforts to minimize the legal framework, so that cross references of different acts are discarded and avoided. This seems likely to offer a rather more feasible mode of running and executing the policies.
  • Efficiency Orientation: The consolidation would ensure that Indian Railways became an operationally efficient entity by making available a consistent legal framework, which would subsequently translate into effective resource allocation and smooth functioning.

Read the article on the Privatization of Indian Railways!

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Significance of the Railways (Amendment) Bill, 2024

The presentation of the Railways (Amendment) Bill, 2024, is very important for quite a few reasons:

  • Streamlining Governance: The amendment seeks to create a more cohesive structure of governing Indian Railways by unifying the legal framework. This may lead towards better policy implementation and more effective administration processes.
  • Historical Context: The Bill acts on a long-standing recommendation from the 1980s. Implementing this recommendation reflects the government's commitment to modernizing and reforming the railway sector.
  • Operational Efficiency: A single all-encompassing act is expected to streamline the operations of the Indian Railways, leading potentially to better service delivery and operational management.
  • Better Accountability: A single legal regime may improve the accountability and transparency of the Railway Board concerning its alignment with closer modern governance standards.

Read the article on the Indian Railway Management Service (IRMS)!

Criticisms Faced by the Railways (Amendment) Bill, 2024

Even though this bill has the aforementioned advantages, it has been strenuously criticized by the Opposition. These criticisms basically revolve around the following:

  • Autonomy Issues: The unification of functions and powers of the Railway Board under one enactment may be violative of the autonomy of Indian Railways. Increased state control would mean a decrease in autonomous decision-making powers and innovations in the Railways as well.
  • Privatisation Fears: The Bill has left open the door for privatising Indian Railways. Critics, like Congress MP Manoj Kumar, think centralizing control might make it easier to privatize railway operations incrementally and change the affordability and accessibility of rail services to the common man.
  • Job Security: The new structure is a cause of concern regarding job security for labor unions and employee organizations. The very threat of privatization along with efficiency measures is also perceived as affecting the job of railway employees and giving them working conditions that may also be considered adverse.
  • Lack of Consultation: Opposers of the Bill point out that the Bill had been brought in without much consultation with all concerned parties, such as railway staff, experts, and society at large. They feel laws of this nature should come together through an inclusive, open process of decision making.

Read the article on the National Rail Plan!

Way Forward

The issues concerning the Railways (Amendment) Bill, 2024 need to be approached from a balanced perspective considering reforms alongside the interests of every party. The following are considered steps:

  • Consultation: The government needs to involve vast consultations with railway workers, labor unions, and industry experts as well as public consultation. It gives all voices a chance to be heard and concerns met with a solution before enacting the Bill.
  • Provisions Preserving Autonomy: Provisions to ensure that the Railway Board retains a strong measure of independent decision-making authority can be included. Draft guidelines are presented to clarify explicit expectations around responsibility between the central governments and the Board.
  • Protection of Jobs: There must be safeguards to protect the jobs and rights of railway employees. This will include job guarantees against redundancy, retraining and redeployment, and ensure that the changes do not adversely affect the terms and conditions of existing employees.
  • Transparency in Operations: The new framework of legislation should introduce transparency in the operations and the decision-making process of the railways. It should include periodical audits, public disclosures, and accountability and redressal mechanisms also.
  • Gradual Implementation: Indian Railways is vast and significant, so all such changes should be implemented gradually. It will give room for adjustments according to feedback given and ensure a smooth, seamless transition into the new framework.
  • Legislative Scrutiny: The Bill should be placed under the magnifying glass of parliamentary committees and debates. This intense scrutiny of provisions would identify certain pitfalls and ensure that the final legislation was robust and holistic.
  • Public Awareness Campaigns: The government should hold public awareness campaigns to communicate the benefits and safeguards of the Bill. This would dispel privatization fears and loss of autonomy through clear communication.

Read the article on the Committee on Public Undertakings!

Conclusion

In conclusion, the Railways (Amendment) Bill, 2024 is a significant step forward for modernizing the Indian Railways' regulatory framework. However, the intent of streamlining and making its operations more efficient is welcome. But it must be accompanied by taking on board the valid concerns of the Opposition and other stakeholders. It can strive to make the bill pass so as to achieve its objective of bettering the working of Indian Railways while protecting the interests of its employees and the public at large.

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UPSC Practice Questions
  1. Analyze the implications of the Railways (Amendment) Bill, 2024, on the autonomy and operational efficiency of Indian Railways. How does this legislative change align with historical recommendations and current governance needs?
  2. Discuss the potential impact of the Railways (Amendment) Bill, 2024, on the privatization of Indian Railways. In your opinion, what safeguards and measures could be implemented to address the concerns of various stakeholders, including employees and the public?
  3. Critically examine the significance of consolidating the Indian Railways Board Act, 1905, and the Railways Act, 1989, through the Railways (Amendment) Bill, 2024. How can the government ensure a balanced approach to modernization while maintaining transparency and accountability?

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