Objectives

• The expert committee was formed to restructure Indian Railways to promote financial stability, competitiveness in the transportation market, and make recommendations for restructuring and improving operational efficiency.

Key recommendations

Implemented by the Government

• It recommended to end the separate Rail Budget. In 2017, the Railway Budget was merged with the General Budget.
• The Railway Board Chairman has been renamed Chief Executive Officer (CEO) to speed up the decision-making process. The Railway Board's first Chairman and CEO was appointed in 2020.
• To reduce the burden on Indian Railways, it recommended offloading non-remunerative services such as security through the Railway Protection Force (RPF), as well as medical and educational facilities for employees.
• In response to the recommendation, the government established the Rashtriya Rail Sanraksha Kosh (RRSK) in 2017 to upgrade critical safety assets, with a fund of Rs. 1 lakh crore for five years.

Recommendation not accepted

• The recommendation for the liberalization of Indian Railways, that proposed the entry of new operators into the railway system, has yet to be accepted.
• The committee proposed an effective performance assessment system based on objectivity and transparency. According to the Ministry of Railways, this recommendation is "under examination."

Why government has not accepted the liberalization proposal?

• The government rejected the liberalization recommendation, due to opposition from railway unions and political parties.
• It is believed that government support was required to maintain passenger facilities, and that privatization would be better suited to the goods transportation system than the passenger system.

• The committee clarified that "liberalization" does not mean "privatization." It referred to allowing new operators, both domestic and foreign, to enter the railway system to increase competition and improve services with a regulatory mechanism in place to protect stakeholders.

PRACTICE QUESTION

Q.Critically analyze the major recommendations of the 2015 Debroy Committee on Railway Reforms and explain how they can affect the operational efficiency of Indian railways. (150 words)