Debroy Committee Charted Railway Path Towards Competitiveness

The Bibek Debroy Committee – formed in 2014, submitted its report in 2015– suggested comprehensive reforms for the Indian Railways to improve operational efficiency, financial viability, and competitiveness.

Key Recommendations of the Bibek Debroy Committee for Indian Railways

Empowering Railway Officers:
- The committee suggested empowering field officers, including General Managers (GMs) and Divisional Railway Managers (DRMs), by giving them more decision-making power.
- The government has partly implemented this, allowing GMs and DRMs to handle tenders, make independent decisions, and manage their divisions like business units.
Setting Up an Independent Regulator:
- To promote fair competition and manage pricing, the committee recommended creating an independent regulatory body.
- In 2017, the government approved the Rail Development Authority (RDA), which advises on service pricing, boosts non-fare revenue, and encourages competition.
Opening Up to Private Players:
- The committee recommended liberalising Indian Railways by allowing private operators to participate in services to improve competition and service quality.
- This does not mean “privatisation” but aims to create a competitive environment.
- Due to resistance from unions and political parties, the government has only partially implemented this, focusing on Public-Private Partnership (PPP) projects in freight services.
Redesignating Railway Board Chairman as CEO:
- To streamline decision-making, the committee suggested that the Railway Board Chairman should also act as the Chief Executive Officer (CEO) with the final decision-making authority.
- This was implemented in 2020, giving the board a more corporate-style structure.
Outsourcing Non-Core Services:
- The committee recommended that Indian Railways focus on its core responsibility of operating trains, while outsourcing non-core services like security (Railway Protection Force), medical, and educational services for employees.
- The government is currently reviewing this proposal to reduce its operational load and allow Railways to concentrate on its primary function.
Reforming the Accounting System:
- A major shift from cash-based to accrual-based accounting was recommended to improve financial transparency.
- This has been implemented through an Accounting Reforms project, with Railways now preparing financial statements using both methods.
Enhancing Safety with Rashtriya Rail Sanraksha Kosh (RRSK):
- The committee recommended a strong focus on safety, leading to the creation of the Rashtriya Rail Sanraksha Kosh (RRSK) in 2017. This fund, starting at ₹1 lakh crore, is dedicated to replacing, upgrading, and maintaining critical safety assets.
- In 2022-23, the government further extended this with an additional ₹45,000 crore in budgetary support.
Integrating Advanced Technology:
- To modernise operations, the committee advised adopting advanced technology, such as high-speed trains like Vande Bharat and safety systems like KAVACH.
- Gati Shakti Vishwavidyalaya has been established for skill development and training in rail technology, supporting these modernization goals.

Implementation Status

Fully Accepted (19): Key recommendations such as appointing the Railway Board Chairman as CEO, accounting reforms, and setting up RRSK were fully implemented.
Partially Accepted (7): Decentralising power to DRMs and giving more authority at the divisional level were partly implemented.
Rejected (14): Recommendations, mainly those around liberalisation and private sector entry in passenger services, were rejected due to union resistance and political concerns.