In a landmark move to streamline the legal framework governing the Indian Railways, the Railways (Amendment) Bill, 2024 has been passed by the Parliament, bringing significant structural and administrative reforms. The Bill repeals the over-a-century-old Indian Railway Board Act, 1905 and integrates its provisions into the Railways Act, 1989, thus placing the Railway Board on a statutory footing for the first time.
The Bill, introduced in the Lok Sabha on August 9, 2024, was passed by the House on December 11, and later cleared by the Rajya Sabha in March 2025. The amendment is aimed at simplifying the legal landscape of the Indian Railways, eliminating the need to refer to two separate laws.
Key Highlights of the Bill
The Railways (Amendment) Bill, 2024 introduces a new Chapter (Chapter IA) in the Railways Act, 1989, which formally recognises the Railway Board as a statutory body. It states that the Board constituted through the Government of India’s resolution dated February 18, 1905, will be deemed as having been validly constituted under the new Act.
The Central Government has been empowered to:
- Determine the number of members in the Railway Board,
- Specify the qualifications, method of appointment, and service conditions of its Chairman and Members, and
- Assign powers and functions to the Board, subject to conditions as may be prescribed.
Additionally, the Bill clarifies that any notification, direction, approval, or communication made on behalf of the Railway Board will be considered valid if it is signed by the Secretary or any authorised person.
Repeal of Colonial Law
A major component of the Bill is the repeal of the Indian Railway Board Act, 1905, which was enacted during British rule. With the incorporation of its provisions into the Railways Act, 1989, the amendment aims to unify the legislative regime of Indian Railways under one modern Act. The now-repealed 1905 Act had provided the legal basis for constituting the Railway Board, but existed independently of the 1989 Act which governs the broader functioning of the railways.
To ensure continuity and avoid legal ambiguity, the amendment includes a savings clause that protects all actions previously taken under the repealed Act, provided they are not inconsistent with the new provisions.
No Financial Burden
The amendment does not create any new statutory body but simply provides a statutory backing to an existing one. As such, there will be no additional financial implications. The Railway Board will continue to receive its funding from the regular budgetary allocation of Indian Railways, which stands at ₹440.01 crore for 2024–25.
Government’s Rationale
According to the Statement of Objects and Reasons accompanying the Bill, the existence of two separate laws—the 1989 Act and the 1905 Act—was causing administrative complications and legislative confusion. The amendment brings all provisions under a single Act to provide clarity, legal consistency, and administrative efficiency.
Expert Opinions and Broader Implications
Policy analysts and governance experts have welcomed the move, stating that giving the Railway Board statutory status will lead to greater accountability and operational clarity. However, some experts have also called for deeper reforms in Indian Railways, including fare rationalisation, greater decentralisation, improved transparency, and encouragement of private sector participation.
The Bill also revives discussions from earlier expert panels such as the Debroy Committee and Sreedharan Committee, which had recommended the creation of an independent regulator, more zone-level autonomy, and better financial discipline in the railway sector.
While the current amendment does not touch upon privatisation or structural overhaul, it is seen as a foundational reform paving the way for future governance changes in the largest rail network under single management in the world.
