4.5.2. The Bibek Debroy Committee

“Mobilization of Resources for Major Railway Projects and Restructuring of Railway Ministry and Railway Board” is the theme of the Report. The final Report was submitted in June, 2015 and reviews almost all areas of Indian Railways operations. The key recommendations of this committee are as follows:

♤ Transition to commercial accounting: The financial statements of Indian Railways need to be re-drawn, consistent with principles and norms nationally and internationally accepted.

♤ Streamline recruitment & HR processes: There is a multiplicity of different channels through which people enter the railway services. It essentially recommended unifying and streamlining the process.

♤ Establishment of Independent Regulator RRAI: setting up an overarching Railway Regulatory Authority of India (RRAI) as an independent regulatory body. The Railway Board should continue only as an entity for the Indian Railways (PSU).

♤ Encouraging private entry: Private entry into running both freight and passenger trains in competition with Indian Railways should be allowed and private participation in various railway infrastructure services and non-core activities like production and construction, should be encouraged.

♤ Indian Railway Manufacturing Company: The Committee proposes that all these existing production units whether it is for coaches or locomotives should be placed under a government SPV known as the Indian Railway Manufacturing Company (IRMC).

♤ Raising resources: An Investment Advisory Committee may be set up, consisting of experts, investment bankers and representatives of SEBI, RBI, IDFC and other institutions for raising resources for investment.

♤ Social costs & JVs to bear them: Constructing new suburban lines should be undertaken as joint ventures with state governments. There are too many Zones and Divisions and thus a rationalization exercise is required.

♤ Changing relationship between government & Railways: A separate Railway budget should be phased out progressively and merged with the General Budget.

♤ Decentralisation: Decentralisation should happen at the bottom level duties.

♤ Non- core areas: Separation of activities like running of hospitals, schools, catering, real estate development, manufacturing of locomotives, coaches and wagons from the core business of running trains.

Clearly, the panel has articulated a very far sighted report with major changes that will take time for completion. Once implemented, it will surely have an optimising effect on the current state of railways.