 "Railway Restructuring: Fresh start, with revamped Board")
The Indian Railways will undergo structural changes in the coming months, with the Railway Minister Suresh Prabhu on Thursday spelling out a seven-pronged strategy, including an equal number of missions.
The entire exercise has been named Navarambh, or a new beginning.
An independent regulator would be set up and a Bill to establish it would be drafted soon, said the minister. The regulator would ensure fair pricing of services, promote competition, protect customer interests and determine efficiency standards.
Prabhu also hinted at a restructuring the Railway Board.
He said departmental orientation, absence of cross-functional collaboration and a lack of business focus in the board was impeding progress, adding that the Railway Board would be reorganised to have a corporate objective.
"As a first step, cross-functional directorates will be set up within the Railway Board to focus on areas like non-fare revenues, speed enhancement, motive power and information technology. We will explore the possibility of unifying cadres for fresh recruitment of officers," said Prabhu, addressing the Lok Sabha.
Also, a Railway Planning and Investment Organisation would be set up for revitalising and developing the existing infrastructure. The organisation would draft medium five-year and long 10-year corporate plans. Projects would be identified based on these plans to achieve corporate goals.
The minister said a National Rail Plan (NRP-2030) would be framed in consultation with all the stakeholders, including state governments, public representatives and relevant central ministries.
The NRP-2030 would aim to integrate the rail network with other modes of transport, to allow for the creation of a multi-modal transportation network across the country.
The public sector undertakings of the Railways would also be a part of the restructuring plan. The possibility of bringing them under a holding company structure would also be examined. This would help in providing necessary strength for leveraging the combined resources.
On the technology front, there is a plan to partner foreign railway systems. To institutionalise and take forward this initiative, a Foreign Rail Technology Cooperation Scheme would be chalked out. Besides, a dedicated cross-functional team, called Special Unit for Transportation Research and Analytics, would be set up for carrying out detailed analytics leading to optimised investment decisions and operations.
The Railways has also set aside Rs 50 crore to fund innovation.
Employees, start-ups, and growth-oriented small businesses would be encouraged to support internal and external innovation. The most critical problems of the Railways would be taken up as challenges. This year, the problems chosen are making train accessible from low platforms, increasing capacity of coaches and digital capabilities at stations.
LOOKING AHEAD
Railway Minister Suresh Prabhu's seven 'Mission Activities - Avataran' for reforming the Railways
Mission 25 Tonne: Aims to increase revenue by augmenting carrying capacity. To achieve this, 10-20% freight loading will be done through 25-tonne axle-load wagons in 2016-17 and target movement of 70% of freight traffic on high axle-load wagons by FY20
Mission Zero Accident: Includes elimination of all unmanned level crossings on broad gauge in the next 3-4 years through innovative financing mechanisms and introduction of Train Collision Avoidance System to prevent head-on collisions and improvement through increased average sectional speeds
Mission PACE (Procurement and Consumption Efficiency): Aims to improve procurement and consumption practices to improve quality of goods and services
Mission Hundred: Will commission at least a 100 sidings in the next 2 years through greater private participation
Mission Raftaar: Targets doubling average speeds of freight trains and increasing average speed of superfast mail/express trains by 25 kmph in the 5 years
Mission beyond book-keeping: Will establish an accounting system where outcomes can be tracked to inputs
Mission Capacity Utilisation: Preparation of a blueprint for making use of new capacity that will be created through two Dedicated Freight Corridors
Each mission will be headed by a mission director, who will report to the chairman, Railway Board
The entire exercise has been named Navarambh, or a new beginning.
An independent regulator would be set up and a Bill to establish it would be drafted soon, said the minister. The regulator would ensure fair pricing of services, promote competition, protect customer interests and determine efficiency standards.
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The draft Bill to set up the proposed Rail Development Authority would be completed after consultation with stakeholders. "The independence of the institution is sought to be ensured by way of a transparent and streamlined selection process and keeping [it] at an arm's length from the Ministry of Railways," the minister said.
Prabhu also hinted at a restructuring the Railway Board.
He said departmental orientation, absence of cross-functional collaboration and a lack of business focus in the board was impeding progress, adding that the Railway Board would be reorganised to have a corporate objective.
"As a first step, cross-functional directorates will be set up within the Railway Board to focus on areas like non-fare revenues, speed enhancement, motive power and information technology. We will explore the possibility of unifying cadres for fresh recruitment of officers," said Prabhu, addressing the Lok Sabha.
Also, a Railway Planning and Investment Organisation would be set up for revitalising and developing the existing infrastructure. The organisation would draft medium five-year and long 10-year corporate plans. Projects would be identified based on these plans to achieve corporate goals.
The minister said a National Rail Plan (NRP-2030) would be framed in consultation with all the stakeholders, including state governments, public representatives and relevant central ministries.
The NRP-2030 would aim to integrate the rail network with other modes of transport, to allow for the creation of a multi-modal transportation network across the country.
The public sector undertakings of the Railways would also be a part of the restructuring plan. The possibility of bringing them under a holding company structure would also be examined. This would help in providing necessary strength for leveraging the combined resources.
On the technology front, there is a plan to partner foreign railway systems. To institutionalise and take forward this initiative, a Foreign Rail Technology Cooperation Scheme would be chalked out. Besides, a dedicated cross-functional team, called Special Unit for Transportation Research and Analytics, would be set up for carrying out detailed analytics leading to optimised investment decisions and operations.
The Railways has also set aside Rs 50 crore to fund innovation.
Employees, start-ups, and growth-oriented small businesses would be encouraged to support internal and external innovation. The most critical problems of the Railways would be taken up as challenges. This year, the problems chosen are making train accessible from low platforms, increasing capacity of coaches and digital capabilities at stations.
LOOKING AHEAD
Railway Minister Suresh Prabhu's seven 'Mission Activities - Avataran' for reforming the Railways
Mission 25 Tonne: Aims to increase revenue by augmenting carrying capacity. To achieve this, 10-20% freight loading will be done through 25-tonne axle-load wagons in 2016-17 and target movement of 70% of freight traffic on high axle-load wagons by FY20
Mission Zero Accident: Includes elimination of all unmanned level crossings on broad gauge in the next 3-4 years through innovative financing mechanisms and introduction of Train Collision Avoidance System to prevent head-on collisions and improvement through increased average sectional speeds
Mission PACE (Procurement and Consumption Efficiency): Aims to improve procurement and consumption practices to improve quality of goods and services
Mission Hundred: Will commission at least a 100 sidings in the next 2 years through greater private participation
Mission Raftaar: Targets doubling average speeds of freight trains and increasing average speed of superfast mail/express trains by 25 kmph in the 5 years
Mission beyond book-keeping: Will establish an accounting system where outcomes can be tracked to inputs
Mission Capacity Utilisation: Preparation of a blueprint for making use of new capacity that will be created through two Dedicated Freight Corridors
Each mission will be headed by a mission director, who will report to the chairman, Railway Board