Recommendations of Bibek Debroy committee on restructuring of Indian Railways

Bibek Debroy Committee on the restructuring of Indian Railways has submitted its final report to the Union Ministry of Railways.
The committee has suggested measures for restructuring the Railway Board and its departments so that policy making is separated from day-to-day operations.
Recommendations of Bibek Debroy committee

• Establishment of an independent regulator Railway Regulatory Authority of India (RRAI) with a separate budget and to be independent of the Ministry.
• RRAI will decide on tariffs to revamp the cash-strapped railways.
• Railway Budget should be phased out with gross budgetary support to Indian Railways.
• There is need to improve the internal resource generation and explore varied methods of financing but also to improve utilisation of available resources.
• No privatisation of Indian Railway but allowed participation of private sector in the railway projects.
• Separation of activities like running of hospitals, schools, real estate development, catering, manufacturing of locomotives, coaches and wagons from the core business of running trains.
• State governments should be asked to entirely fund the Government Railway Police (GRP).
• General Managers should have the freedom to choose between private security guards and RPF for security on trains.
• The recommended changes should be implemented only by Union Railways ministry in the first five years including the resolution of the social cost issue.

Background

• Union government had constituted the high-level committee in September 2014 to restructure the Railways and suggest ways for resource mobilisation.
• It was seven-member panel headed by eminent economist and NITI Aayog member Bibek Debroy.
• The other 6 members are former cabinet secretary K M Chandrasekhar, Gusharan Das, Ravi Narain, Partha Mukhopadhyay, Rajendra Kashyap, Ajay Tyagi and Ajay Narayan Jha.

Month: Current Affairs - June, 2015