Rajya Sabha Passes Historic Railways Amendment Bill 2025 to Modernize Indian Railways

Rajya Sabha Passes Historic Railways Amendment Bill 2025 to Modernize Indian Railways

Rajya Sabha Passes Historic Railways Amendment Bill 2025 to Revamp Indian Railways

On Monday, March 10, 2025, the Rajya Sabha passed the Railways (Amendment) Bill, 2025, marking a major step toward modernizing and streamlining the operations of India’s vast railway network. This reform-oriented bill, championed by Union Minister of Railways Ashwini Vaishnaw, is designed to bring significant changes to how Indian Railways functions, with an emphasis on decentralization, simplification of rules, and enhancing operational efficiency.

A Historic Shift in Indian Railways Governance

During his speech in the Rajya Sabha, Ashwini Vaishnaw explained that the Railways (Amendment) Bill 2025 would replace several outdated provisions from the colonial era, which have long governed the country’s railway system. The bill is intended to bring Indian Railways into the modern age by simplifying regulations and removing redundancies in the existing framework, consolidating them into a single piece of legislation.

“This bill will not only modernize Indian Railways but also strengthen the framework for cooperative federalism. It will streamline operations, making decision-making faster and more efficient at the regional level,” Vaishnaw said.

The bill also reorganizes the powers and functions of the Railway Board, which oversees the functioning of railways across the country through various zones, divisions, and production units. According to the Railway Ministry, the new provisions will now be integrated into the Railways Act of 1989, making the railway governance structure more straightforward and easier to navigate. The shift is expected to reduce the need for references to multiple Acts, centralizing authority in a manner that can better address modern challenges.

Empowering Regional Authorities and Decentralizing Decision-Making

One of the key aspects of the bill is its focus on decentralization. Vaishnaw clarified that the new legislation would not diminish the powers of state governments or Parliament. Instead, the bill aims to decentralize the approval process for large-scale projects within Indian Railways. Under the new bill, general managers in railway zones will be empowered to approve projects up to Rs. 1,000 crore, significantly reducing delays caused by bureaucratic red tape at the central level.

The minister emphasized that this move would enhance the speed and responsiveness of the railways in handling regional issues and enable a more flexible, localized decision-making process. This is part of a broader effort to modernize railway operations and ensure that infrastructure projects are completed on time and within budget.

Enhancing Cooperative Federalism

Vaishnaw also underscored the bill’s contribution to strengthening cooperative federalism by ensuring that all states receive a fair share of the railway development budget. The minister pointed out that, under the current government, even states that are not governed by the ruling party have seen an increase in allocations for railway development. Kerala, Tamil Nadu, Odisha, and West Bengal, for example, have seen higher railway funding compared to previous years, ensuring equitable development across the country.

“This is a step toward ensuring that railway infrastructure development is balanced and fair across all regions,” Vaishnaw said.

Amrit Bharat Station Scheme: Call for Accelerated Development

In related developments, the Standing Committee on Railways, which presented its second report to the Lok Sabha on the same day, called for faster action on the modernization of railway stations under the Amrit Bharat Station Scheme. This initiative aims to upgrade 1,337 stations across India, focusing on improving passenger facilities, amenities, and infrastructure.

The committee emphasized the need for timely completion of the project, with regular monitoring to ensure its progress. The report also suggested expanding the scope of the Amrit Bharat Station Scheme to include more stations, particularly in rural and backward regions, to ensure a broader impact across the country.

Furthermore, the committee advocated for public-private partnerships (PPP) to support the redevelopment of stations, which could reduce reliance on government funding and encourage private investment in railway infrastructure.

What’s Next for Indian Railways?

The passage of the Railways (Amendment) Bill, 2025, signals a new era for Indian Railways, one that is focused on modernization, efficiency, and fair distribution of resources. As the bill moves forward in the legislative process, its successful implementation will likely reshape the future of rail transportation in India, improving the speed and quality of services and making railways a more competitive and reliable mode of transportation.

The government’s commitment to railway development across states, alongside the planned upgrades to railway stations, offers a promising outlook for the future of Indian Railways. This will not only improve connectivity across regions but also create new opportunities for growth and innovation within India’s railway sector.