Railway Bill introduced in Lok Sabha

Why in the news?

• Railway Minister Ashwini Vaishnav introduced 'Railway Amendment Bill 2024' in Lok Sabha.

Key Points:

• The first passenger train service in India started in the year 1853 and the Railway Act was enacted in 1890.
• Railways were initially a part of the Public Works Department.
• In 1905, it was separated from the Public Works Department and a new Railway Board was formed.
• A new Railway Act law was introduced in 1989, but the Railway Board Act of 1905 was not integrated in it, which should have been done at the same time.
• This bill has been brought to integrate the Indian Railway Board Act 1905 in the Railway Act 1989.
• This will reduce the need to refer to two laws.
• The passage of this bill will increase the capacity and development of railways.

Key provisions:

• Under the Railway Board Act, 1905, the powers and functions of the Central Government in relation to railways are vested in the Railway Board.
• The Bill repeals the 1905 Act and incorporates its provisions in the Railways Act, 1989.
• The Bill retains the existing organisational structure of the Indian Railways.
• The Bill also proposes several measures to improve the functioning of the railways –
  • Establishing an independent regulator
  • Giving more powers and autonomy to zones.
  • Expert suggestions to improve railway finances include changes in accounting methods
  • Rationalising passenger fares
  • Improving freight traffic and increasing revenue through private participation

Constitution of Railway Board:

• The 1905 Act provides that the Central Government may vest the powers and functions of the Government relating to railways in the Railway Board.
• This can be done through a notification.
• The Bill repeals the 1905 Act and incorporates these provisions in the 1989 Act.
• The Railway Board constituted under Resolution No. 256G of the Government of India, Public Works Department, dated 18 February 1905, as amended from time to time, shall be deemed to be the Railway Board constituted under this Act.
• The Bill also adds that the Central Government shall determine –
  1. the number of members of the Board
  2. the qualifications, experience and conditions of service of the Chairman and members of the Board and the manner of appointment.