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Restructuring of Railways

  • IASbaba
  • September 18, 2021
  • 0
UPSC Articles
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Restructuring of Railways

Part of: Prelims and GS III – Infrastructure 

Context The Indian Railways is heading for a major restructuring plan that could lead to the closure of key establishments, merger of organisations and private participation in running of its schools and hospitals.

  • The recommendations were proposed by the Principal Economic Adviser Sanjeev Sanyal as part of the Rationalisation of Government Bodies and Proposal for the Ministry of Railways.
  • The Indian Railways is the country’s largest employer and transporter.

What were the Major recommendations?

  • Winding up (closing) the Central Organisation for Railway Electrification (CORE), the Central Organisation for Modernisation Of Workshops (COFMOW), the Centre for Railway Information Systems (CRIS) and the Indian Railways Organisation for Alternative Fuel (IROAF)
    • IROAF was recently closed.
  • RailTel would be merged with the IRCTC.
    • RailTel is one of the largest telecom infrastructure providers in the country that focuses on modernising operations and safety systems through optic fibre networks that exist along railway tracks.
  • Rail Vikas Nigam Ltd. (RVNL) to be merged with the Indian Railway Construction Limited (IRCON), a specialised infrastructure construction organisation.
    • RVNL implements projects relating to creation and augmentation of railway infrastructure.
  • Merging of railway schools with Kendriya Vidyalayas or handing them over to the respective State governments
  • Establish Central Public Sector Enterprises to bring eight production units under its fold.
  • Merger of the Central Training Institutes with the National Rail and Transportation Institute after upgrading the latter into a Central University and an Institute of National Importance.
  • Roping in private participation for investments to enhance healthcare facilities of railway hospitals and polyclinics

News source: TH 

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