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Transformational Organisational Restructuring of Indian Railways

With a budgeted expenditure of Rs 50 lakh crore within the next 12 years, the Indian railways have an intensive program to renovate and provide the best safety, speed, and services to customers. This necessitates speed and size and a united, agile organisation capable of focusing solely on this mission or reacting to difficulties. Today’s reforms were part of a series of reforms carried out by the current government, including merging the Rail Budget with the Union Budget and delegating authority to empower GMs and field officers while allowing competitive operators to run trains, among other things.

Reforms Included

  • Consolidation of the railways’ previous eight Group A services into the single central service known as the Indian Railway Management Service (/RMS).

  • Railway Board reorganisation along functional lines, led by CRB comprising four members and only a few independent individuals

  • As a result, the present Indian Railway Medical Service (IRMS) will be called Indian Railway Health Service (IRHS).

Need

Departmentalism is a threat to Indian Railways, which has resulted in inefficiencies in work, internal fighting regarding control of assets and resources, and delays in judgement, all of which have hindered the running of Indian Railways.

The government has set aside about Rs. 50 trillion in infrastructure construction funds to upgrade the national transportation system in the next few years to enhance safety, speed, and overall services. This necessitates speed and size and a cohesive, agile organisation capable of focusing solely on this mission and reacting to difficulties.

Indian Railway Management Service

  • The Railways’ current eight Group A services will be combined into a single Central Service called Indian Railway Management Service (IRMS).

  • Henceforth, the Railways will have only two divisions: the Railway Protection Force and the Medical Service Department, with all of the other agencies falling under the umbrella of the Railway Management System.

  • As a result, the present Indian Railway Medical Service (IRMS) will be termed Indian Railway Health Service (IRHS).

Recommendations

  • An overarching Railway Regulatory Authority of India (RRAI) was suggested to be established as a separate regulatory organisation.

  • Making the switch to commercial accounting, Indian Railways must abandon its convoluted accounting system favouring basic commercial accounting, based on globally recognised approved guidelines and norms.

  • It was suggested that the Indian Railways reorganise the current eight organised Group-A services into two larger groups, namely technical and non-technical services.

  • Indian Railways must concentrate on core functions to compete better with the private sector. It will separate itself from non-core activities such as schools, and hospitals, including manufacturing and building.

  • An Investment Advisory Committee composed of experts and investment bankers, including members from SEBI, RBI, IDFC, and some other organisations, could be formed to generate investment funds.

Impact

Departmentalism’s Ending

This change will assist in breaking a 150-year-old practice of “working in silos,” which can help eliminate departmental disputes, which are considered an obstacle in railway transportation.

Unification of services would therefore end departmentalism and focus on promoting smooth railway operations, expediting judgement, generating a coherent vision for the organisation, or promoting smart decisions, putting Indian Railways on just a high-growth route.

Making India’s Railways a Growth Engine

This historic change would go a long time away toward realising the government’s objective of producing Indian Railways into Vikas yatra’s development engine.

Conclusion

The eight railway services will be merged into the Indian Railway Management Service, a centralised service (IRMS). All management workers will enter the Railways throughout a single service, the IRMS. The Indian Railways is divided into various service departments, including traffic, civil, electrical, signal & telecom, personnel, and accounts. It’s in line with the other committees’ suggestions, including Rakesh Mohan (2001) and the Bibek Debroy panel (2015). I hope now you have all the necessary information regarding Indian railways. For better understanding, you must read this topic thoroughly to clear all your doubts.

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Get answers to the most common queries related to the UPSC Examination Preparation.

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