Bibek Debroy Committee Report

Date: June 15, 2015

Indian Railways Ministry of Railways privatisation

Debroy committee report on Railways pushes for private sector participation

Bibek Debroy Committee on the restructuring of Indian Railways has submitted its final report to the Union Ministry of Railways. It lays down a five-year roadmap to evolve a statutory rail regulator, scrap the Rail Budget and make room for more players in an “open access” regime which turns the Railways into just another train-service provider in the country.

Union government had constituted the high-level committee in September 2014 to restructure the Railways and suggest ways for resource mobilisation. It was seven-member panel headed by eminent economist  Bibek Debroy.

prepareiasRecommendations of Bibek Debroy committee

Establishment of an independent regulator Railway Regulatory Authority of India (RRAI) with a separate budget and to be independent of the Ministry. RRAI will decide on tariffs to revamp the cash-strapped railways.

Railway Budget should be phased out with gross budgetary support to Indian Railways.

There is need to improve the internal resource generation and explore varied methods of financing but also to improve utilisation of available resources.

No privatisation of Indian Railway but allowed participation of private sector in the railway projects. Separation of activities like running of hospitals, schools, real estate development, catering, manufacturing of locomotives, coaches and wagons from the core business of running trains.

State governments should be asked to entirely fund the Government Railway Police (GRP). General Managers should have the freedom to choose between private security guards and RPF for security on trains.