Recommendations of Rakesh Mohan Committee (National Transport Development Policy Committee (NTPDC))

The Government of India set up the NTDPC in the year 2010, under the chairmanship of Dr.  Rakesh Mohan. The aim of NTDPC was to provide a long-term transport policy for the country up to the year 2029-30.

• Increase in investment in railways from 0.4 per cent of GDP in 11th plan to 0.8 per cent in 12th plan and 1.1 per cent in 13th plan and beyond.
• Separation of railways management and operations from the Government. The Ministry of Railways in the future should be limited to setting policies. A new Railways Regulatory Authority should be setup, which would be responsible for overall regulation including the setting of tariffs. The management and operations should be carried out by a corporatized entity, the Indian Railway Corporation (IRC) (to be setup as a statutory corporation).
• Accounting system to be revamped into a company account format in line with the Indian GAAP (Generally Accepted Accounting Principles).
• Indian Railways should take steps to capture a significant share of the fast growing FMCG, Consumer Durable and Information Technology, containerized cargo and other segments like automobiles, etc, where its presence is negligible.
• Strategy for passenger services should include augmentation of supply, shift of focus to long distance and inter-city transport, upgradation of speed and development of select High Speed Rail corridors.
• Improved connectivity to industry clusters as well as significant ports, based on their current and projected traffic volumes.
• Development of 15-20 logistics parks at the main network hubs such as Mumbai, Bangalore, Delhi NCR etc.
• Construction of six Dedicated Freight Corridors (DFCs) on top priority.
• Establishment of National Board for Rail Safety & Establishment of Railway Research and Development Council.
• Setting up a National Railway Construction Authority, partially independent of Ministry of Railways, to expedite delivery of projects.
• Multiple services and cadres of Railways at the management level need to be rationalized and coalesced into fewer services.
• Indian Railways should expedite the execution and operationalization of identified interconnectivity projects.

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.