Context:
Recently, the Railway Minister reiterated the government's commitment to implement the recommendations of the Committee led by Bibek Debroy.
More on News:
- Economist Bibek Debroy, who advised the government on policies for over a decade and also dazzled as a scholar-translator of classical Indian literature in Sanskrit, deceased in New Delhi.
- The Bibek Debroy Committee in its interim report on the Indian Railways recommends sweeping changes in the way the ailing organisation runs.
About Bibek Debroy Committee:
- Formation: The committee was established in 2014 under economist Bibek Debroy to reform Indian Railways.
- Objective: To enhance operational efficiency and financial viability through comprehensive reforms in the railway sector.
- Scope: The committee examined decision-making structures, accounting systems, and human resource management across Indian Railways.
- Report Submission: After detailed analysis, the committee submitted forty recommendations in its final report in 2015.
Key Recommendations of the Bibek Debroy Committee:
- Management Restructuring: Recommend redesignating the Railway Board Chairman as CEO to streamline decision-making and improve organisational efficiency.
- Organizational Powers: Suggested empowering General Managers and Divisional Railway Managers with enhanced decision-making authority at field level.
- Budget Integration: Proposed phasing out the separate Railway Budget and merging it with the Union Budget.
- Accounting Reform: Advocated switching to an accrual-based accounting system from the cash-based system for better financial transparency.
- Operational Freedom: Recommended liberalization of railway operations without privatization to encourage competition and improve service quality.
- Regulatory Body: Proposed establishing an independent Rail Development Authority to ensure fair competition and regulate pricing mechanisms.
- Safety Fund: Suggested creating a dedicated safety fund for replacement and renewal of critical railway infrastructure.
- Non-Core Activities: Recommended outsourcing non-core activities like security and medical services to focus on train operations.
- Technology Integration: Proposed adoption of modern technologies like Vande Bharat trains and KAVACH safety systems.
Outcomes:
- Full Implementation: Nineteen recommendations were fully implemented, including CEO designation and Railway Budget integration.
- Partial Success: Seven recommendations saw partial implementation, including limited decentralization and selective field officer empowerment.
- Pending Changes: Fourteen recommendations remain unimplemented, including complete liberalization of passenger services.
- Safety Measures: Successfully established Rashtriya Rail Sanraksha Kosh with an initial corpus of one lakh crore rupees.
Present Status of Railways in India:
- India has the 4th largest railway system in the world, behind only the US, Russia and China.
- Employment: Indian Railways is the single largest employer in India and 8th largest in the world.
- Scale of Operation: Indian Railways operates over 13,000 passenger trains and more than 8,000 freight trains daily.
- Goal: India aims to become the largest green railway network in the world.
Challenges:
- Union Resistance: Railway unions strongly oppose liberalization efforts, hindering the implementation of major reforms.
- Political Factors: Political considerations often interfere with the implementation of commercially viable but sensitive recommendations.
- Financial Constraints: High operational costs and limited private sector participation restrict modernization efforts.
- Implementation Delays: Slow execution of approved reforms due to bureaucratic hurdles and organizational resistance.
Way Forward:
- Reform Acceleration: Speed up implementation of pending recommendations while maintaining dialogue with stakeholders.
- Private Partnership: Develop innovative public-private partnership models to attract investment in railway infrastructure.
- Technology Adoption: Accelerate integration of modern technologies for improved operational efficiency and passenger safety.
- Skill Development: Enhance workforce capabilities through specialized training programs and technological exposure.
- Infrastructure Focus: Continue investing in modern infrastructure while maintaining the existing network through regular upgrades.
