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Westferry Times > Law and Articles > Railways Amendment Bill 2024: Enhancing Functionality and Independence of the Railway Board
Law and Articles

Railways Amendment Bill 2024: Enhancing Functionality and Independence of the Railway Board

Mona Porwal
By Mona Porwal Published August 10, 2024
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NEW DELHI: In a move aimed at streamlining and strengthening the operations of Indian Railways, Railway Minister Ashwini Vaishnaw introduced the Railways (Amendment) Bill 2024 in the Lok Sabha on Friday. The bill seeks to integrate provisions from the Indian Railway Board Act of 1905 into the Railways Act of 1989, with the goal of enhancing the functionality and independence of the Railway Board.

Overview of the Railways Amendment Bill 2024

The Railways (Amendment) Bill 2024 is designed to modernize the legal framework governing Indian Railways by consolidating existing laws. The bill proposes incorporating provisions from the Indian Railway Board Act, 1905, into the Railways Act, 1989. This consolidation aims to streamline and simplify the regulatory structure of Indian Railways.

Minister Vaishnaw explained that before independence, the railways network was part of the Public Works Department. As the network expanded, the Indian Railways Act, 1890, was enacted to manage different railway entities effectively. Subsequently, the Railway Board Act was established in 1905, separating the railway organization from the Public Works Department.

The Railways Act of 1989, which repealed the Indian Railways Act of 1890, remains the contemporary law governing Indian Railways. Despite this, the Railway Board continued to operate based on executive decisions rather than statutory backing. The new bill seeks to rectify this by integrating the provisions of the 1905 Act into the 1989 Act, providing statutory authority to the Railway Board’s functions.

Key Objectives of the Bill

The Railways Amendment Bill 2024 aims to achieve several objectives:

  1. Simplification of Legal Framework: By merging the provisions of the Indian Railway Board Act, 1905, into the Railways Act, 1989, the bill intends to reduce the complexity of the legal framework governing Indian Railways. This will eliminate the need to refer to multiple laws and streamline regulatory processes.
  2. Enhancing Functionality: The integration of the provisions from the 1905 Act is expected to bolster the operational efficiency of the Railway Board. It will provide a clear statutory basis for the board’s functioning, enabling it to execute its responsibilities more effectively.
  3. Strengthening Independence: One of the primary goals of the bill is to enhance the independence of the Railway Board. By providing statutory sanction to its operations, the board will be better positioned to make decisions and implement policies without undue external influence.
  4. Modernization of Railway Governance: The bill represents a step towards modernizing the governance structure of Indian Railways. It reflects the government’s commitment to updating outdated regulatory frameworks and aligning them with contemporary needs.

Reasons Behind the Proposal

The Modi government has proposed the Railways Amendment Bill 2024 as part of its broader agenda to reform and modernize Indian Railways. Minister Vaishnaw emphasized that the bill is a crucial step towards simplifying and improving the legal and operational framework of the railway system.

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He noted that the current regulatory structure, which relies on both the Railways Act, 1989, and the provisions of the Railway Board Act, 1905, creates inefficiencies and complications. By consolidating these laws, the bill aims to create a more coherent and streamlined governance structure.

Furthermore, the integration of the 1905 Act’s provisions into the 1989 Act will enhance the statutory authority of the Railway Board, providing it with a more robust framework to manage and oversee railway operations. This move is expected to facilitate better decision-making and more effective management of the railway network.

Implications of the Bill

The passage of the Railways Amendment Bill 2024 will have several implications for Indian Railways:

  • Operational Efficiency: The consolidation of laws is likely to improve the operational efficiency of the Railway Board, enabling more effective management of railway services and infrastructure.
  • Legal Clarity: The bill will provide greater legal clarity by eliminating the need to reference multiple statutes, making the regulatory framework more straightforward and accessible.
  • Governance: Strengthening the independence of the Railway Board will enhance its ability to implement policies and make decisions in the best interest of the railway network and its stakeholders.

Overall, the Railways Amendment Bill 2024 represents a significant step towards modernizing and improving the governance of Indian Railways. As the bill progresses through the legislative process, its successful implementation could pave the way for a more efficient and well-regulated railway system in India.

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