Expert Committee on Railways restructuring submits final report

The Committee for Mobilization of Resources for Major Railway Projects and Restructuring of Railway Ministry and Railway Board (Chairperson: Mr. Bibek Debroy) submitted its report in June 2015.13 The Committee was constituted in September 2014 to make recommendations for the mobilization of resources for major railway projects and restructuring of the Railway Ministry and Board.
The Committee had submitted an interim report in March 2015.14 Key recommendations of the Committee include:  The Committee recommends setting up an independent regulator, the Railways Regulatory Authority of India. The authority will regulate tariff, safety, provide for licensing, and set technical standards.  Indian Railways also undertakes other peripheral activities such as running hospitals and schools, manufacturing locomotives, catering, etc. Railways should not conduct these peripheral activities and instead focus on its core function, which is of running trains.
 The Railway divisions must be treated as independent business units. Decision making powers must be decentralised from the level of the general manager down to the division level.
  Railways accounting practices are not in the same band of commercial accounting as followed by other international railway systems. A responsive and transparent accounting system must be established.
  Employee costs including pension constitute the largest component of the railways expenses and hence it must rationalise its manpower. A performance assessment system should be implemented to rationally differentiate between the performance and aptitude of employees