CHAPTER : III

RAILWAY BOARD

The Indian Railways are a departmental undertaking with

the Railway Board taking the place of the Board of Manage­

ment. However, among the Boards of Management, the Railway

Board is unique in its functioning. The Board has a dual

function : it is at once a departmental agency in so far as

its functions as a Ministry of the Government of India, are

concerned as well as the top executive authority of the

nation's largest public enterprise for the technical super­

vision and direction of the Railways.

The Railway Board is a ~utory body set up about nine­

ty years ago under the Indian Railway Board Act, 1905. By

virtue of this Act, certain powers and functions of the Cen­

tral Government under the Indian Railways Act, 1890, got

transferred to the Railway Board. I have discussed the evo­

lution of the Railway Board till independence, or to be more

precise till 1951, on the verge of the commencement of the

First Five Year Plan, in great detail in my earlier chapter

on the history of Indian Railways. Therefore I propose to

scrutinise in short the developments since 1950s in the

following paragraphs.

In the early 1950s, the Railway Board was again recons­

tituted to cope with the rising tempo of the pressures on

rail transport on account of the industrialisation schemes

100

undertaken during the First Five Year Plan.The Board consis­

ted of three functional members (the seniormost among these

being the Chairman), the Financial Commissioner, besides the

Secretary; Ministry of Transport, who continued as an ex­

officio Member of the Railway Board. Later,one more functio­

nal Member was added.The Chairman who continued to be an ex­

officio Secretary to the Government of India in the Ministry

of Railways, was vested with all the functions and powers of

the former Chief Commissioner of Railways.His power to over­

rule other Members of the Board was also restored.The Finan­

cial Commissioner in case of any disagreement with the Chair­

man, continued to have the right to refer the matter to the

Railway Minister and the Finance Minister. By virtue of the

inclusion of the Financial Commissioner for Railways in its

constitution, the Railway Board also exercised the full pow­

ers of the Government of Indi~ in regard to Railway expendi­

ture. These powers were derived from the provisions of the

Indian Railway Board Act of 1905, the Indian Railways Act

1890 and the Constitution of India.

The need for a further strengthening of the Board was

increasingly felt in order to effectively tacklethe additio­

nal duties and responsibilities arising out of the planning

and execution of developmental works during the second Five

Year Plan. The Estimates Committee (1955-56) in their 19th

Report recommended the strengthening of the railway adminis­

tration at various levels including that of the Railway

101

Board, in order to direct and control the large expenditure

that was being incurred on developmental works. After a de­

tailed examination it was considered by the Ministry of

Railways that the most appropriate method of strengthening

the Board would be to appoint additional Members.Accordingly

five Additional Members {of the pay and status of General

Managers) were appointed with effect from 25th June 1956 to

assist the Members concerned in achieving the twin objectiv­

es of maintaining the Railway Board as abodyof compact size

and at the same time strengtheningtheorganisation at a high

level to enable supervision to be exercised on anddirections

issued to Railway Administrations in respect of additional

volume of work that were supposed to be handled in course of

the Second Five Year Plan period. While the Members were not

debarred from examining any subject entrusted to the Addi­

tional Members, a demarcation of works and resnonsibilities

between the Members and the Additional Members was laid down

to enable the latter to function more or less independently.

Important policy matters were, however, to be routed through

the Member concerned.

With effect from 18 April 1957, the Railways were sepa­

rated from the Transport Departmentand became an independent

Ministry of Railways. In August 1958, the CRB was given the

status of Principal Secretary to the Government of India in

the Ministry of Railways retaining his existing position in

the Railway Board to ensure proper coordination in the Rail­

way Board so that the Board could function as a corporate

102

body as well as work as a team. The other Members were made

ex-officio Secretaries to the Government in their respective

spheres.

In pursuance of the recommendation made by the Railway

Corruption Enquiry Committee (1962) one more Additional Mem­

ber for Vigilance was added to the Railway Board with effect

from September 1964. Subsequently two more Additional Mem­

bers, viz. for "Electrical" and "Health" subjects were added.

In 1977, as a result of the recommendations made by the

ARC, the posts of Additional Members were abolished and in

lieu, in respect of only a few disciplines, posts of advi­

sers were created. I shall discuss this particular decision

of the Railway Ministry in a bit detail later in this chap­

ter.

In 1985, the Hinistry of Railways was merged into the

Ministry of Transport which would deal with all modes of

transport, viz., the Railways and the Surface Transport.Each

of the two modes of transport was placed under a minister of

state, who reported to a Cabinet Minister of transport. The

CRB held the additional charge as co-ordinating secretary in

the Ministry of Transport and was relieved of functional

responsibility of the Board. Other than Finance, which re­

mained under the Financial Commissioner,the major functions,

namely, staff, civil engineering, traffic and mechanical

engineering were held by four members.

103

However since the early 1990, the Ministry of Railways

have been functioning independently ofthe Ministry of Trans­

port with a Union Cabinet Minister at the helm of affairs.

Thus it is more or less clear, from the above that the

organisational structure of the Railways has continuously

being evolved with the intention to provide a unified con­

trol over the entire network in the country. As a result,

many individual Railway systems functioning as somewhat in­

dependent units, have gradually evolved into a confederated

network under the overall management of the Railway Board.It

is but natural that such a course of evolution should have

taken place, since the Railways, in their very nature, cons­

titute a system that has to function on an integrated basis:

goods and passengers move to and from places scattered all

over the country and this alone makes it imperative for the

whole network to operate on a unified basis, with a high

degree of standardisation not only in respect of rolling

stock and other equipments but with regard to maintenance

and operational practices also.

As the Ministry, the Railway Board functions as the

Secretariat of the Minister of Railways, assisting and advi­

sing the Minister in the formulation of policies, coordina­

tion with other Central Ministries,State Governments, Plann­

ing Commission, and other relevant authorities, and also in

the conduct of the work relating to Parliament. Formulation

of annual budget allocation of funds to Zonal Railways,

104

Production units and other subordinate and attached offices

and fixation of the freight and fare structure are some of

its important functions.In its capacity as the top executive

authority, the Railway Board coordinates and supervises the

working of the zonal Railways, issues directives on matters

having larger ramifications and oversees the implementation

of policies.

The Railway Board is responsible not only for the con­

trol and co-ordination and maintenance and operation of the

railways but also for planning the development of the system

and future construction. It has a fullfledged Directorate of

Planning which guides studies in planning on the ZOnal rail­

ways in co-ordination with other Ministries of the Union

Government. The Chairman and the Financial Commissioner fre­

quently attend meetings of the Planning Commission and other

Ministries to consider financial allocations

jects, expansion and development.

for new pro-

The Board works in close co-ordination with other eco­

nomic Ministries for the planned and co-ordinated movement

of the products of agriculture, forests, animals, mines,

mineral oil and manufactures.It also holds frequent meetings

with the Ministries of Food and Agriculture, Petroleum and

Mines, Steel and Industrial Development to discuss their re­

quirements of rail transportation to make the optimum use of

available rail capacity.The projections made by these bodies

and the surveys carried out by the Zonal Railways help the

105

Board in formulating plans for the expansion of the railway

system.

The Board also works in close liaison with the Ministry

of Defence to provide logistic support to the defence servi-

ces who are largely dependent upon the railways for movement

of personnel and stores. During military operations such

functions of the Board receive top priority and call for

close day-to-day co-ordination between the two Ministries

(i.e. the Railway Ministry and the Defence Ministry).

The members of the Railway Board are all equal in sta-

tus, except that the Chairman, Railway Board is the senior­

most amongst them. 1 Besides being functional members, they

are all designated as ex-officio Secretaries to the Govern-

ment of India in the Ministry of Railways and the Chairman,

Railway Board, is the principal Secretary. Thus, the Members

of the Railway Board have a three-dimensional. status, viz.,

as Members of the Board, as top execut·ive Heads of Depart-

ments and as ex-officio Secretaries to the Government of

India. Each of five Members, including the Chairman, is in-

charge of a specific group of portfolio. The distribution of

portfolios amongst them is generally as under :

1. Member Traffic (MT)

2. Member Engineering (ME}

: Transportation, Commercial, Security.

: Civil Engineering, Signall­ing,Telecomrnunications, Re­search and ~velopment, Railway Electrification,MTP

3. Member Mechanical (MM)

4. Member Staff (MS)

106

:Mechanical Engineering,Elec­trical Engineering, Stores.

:staff, Industrial Relations, Health Services, Vigilance, Planning, Public Relations.

5. Financial Commissioner (FC) :Finance, Budget, Efficiency Bureau, statistics, Economic Cell.

The Financial Commissioner represents the Ministry of

Finance in the Railway Board and in theory is vested with

powers of the Government of India in respect of all finan-

cial matters pertaining to the Railways. No proposals invol-

ving expenditure or affecting Railway Revenues can be sane-

tioned without his prior concurrence. He has the right to

refer directly to the Finance Minister any financial issues

on which he finds himself unable to agree with the views of

the Railway Minister.

In order to give relief to the Hembers of the Board from

the enormous amount of work involved in controlling Railways

and to enable them to give some time for touring and study-

ing the wider problems of Railway Policy,the Board is assis-

ted by a number of technical officers, designated as Direc-

tors, each placed in charge of a Directorate. They maintain

liasion with the Railway administrations, the general public

and other Ministries of the Government of India within their

own spheres. Each Director is also provided with the assis­

tance of Deputy and Assistant Directors.

The Ministry of Railways has a Cabinet Minister who is

107

usually assisted by a Minister of state. The relationship

between the Minister for Railways and the Railway Board have

developed in the course of time depending upon factors like

the Minister's status in his political party,his personality

and that of the Chairman, and the understanding or the lack

thereof, among Members of the Board.The Minister may resolve

matters at full Board meetings · at which his junior minister

may be present, or by discussion with the Chairman or one or

more Board Members.

The Minister's contacts are not confined to the Chair­

man (CRB) and Members only but extend to Directors and Joint

Directors. Papers can be submitted to the Minister directly

by any of the subordinate officers, though important matters

are generally routed through a Director. There are however

exceptions, when during a session of Parliament, notes have

to be furnished to short notice questions and cut motions.

Joint Directors who deal with certain matters independently

have direct access to the Minister.

The division of work among the ministers (the Cabinet

Minister, the Minister of state and the Deputy Minister)does

not follow any set pattern. Attempts made in the past to

allot specific subjects to Deputy Ministers have never succ­

eeded.

It would be perhaps quite relevant to note the observa­

tion of an expert body with regard to the relationship bet­

ween the Boards and the Ministers. The Gorwala Report

108

(Chairman - A.D. Gorwala) submitted to the Union Government

* in 1951 on The Efficient Conduct of State Enterprises, ob-

served : 11 In an autonomous authority what is being sought is

a combination of public ownership, public accountability and

business management, for public ends •.• A large degree of

independence for the Boards in matters of current adminis-

tration is vital to their efficiency as commercial undertak-

ings. A Minister is responsible to Parliament for action he

may take in relation to a Board or action coming within his

statutory powers which he has not taken. This is the princi-

ple that determines generally the matters on which a ques-

tion may be put down for an answer by a Minister inthe House

of Commons. It would be contrary to this principle and to

the clearly expressed intention of Parliament inthis govern-

ing legislation if a Minister were to give replies to Parlia-

mentor in letters,information about day to day matters. Un-

due intervention by the Minister would tend to impair the

Board's commercial freedom of action.

"If autonomy is to be properly preserved,the Hinister•s

powers must be strictly limited ••• He should have, however,

the power to give direction of a general character in regard

to matters appearing to him to affect the national interest

••• If the autonomy of the authority is to be preserved,

matters affecting the national interest must really be inter-

preted strictly and not made to cover a wide variety of un-

important details".

* The Gorwala Committee Report, pages 16 to pages 20, 1951.

109

Ministerial and Executive FuP-ctions

It has been suggested in certain quarters that the pre­

sent arrangement whereby the Railway Board combines the

Ministerial and the Executive functions has resulted in cer­

tain disadvantages for the organisation. It is stated that

when the top Executive Authority is also the Ministry, the

lapses in the performance of an organisation do not get de­

tected easily with the result that inefficiencies in the

system get overlooked for long periods.

While going into this aspect,the Administrative Reforms

Commission's study Team (1968) had stated that the arrange­

ment by which the top executive body,i.e. the Railway Board,

consisting of experienced railwaymen, who had worked in the

field in various capacities and had gained intimate and ex­

pert knowledge of the complex working of the Railway system,

functioned as the secretariat to the Minister,stood the test

of time. The ARC Study Team also stated :

"Both for coordination with other Hinistries and

for Parliamentary work, this arrangement makes

available to the Ninister a Secretariat with first­

hand knowledge of railway working which gives ad­

vice directly. Any other arrangement would have

necessitated an intermediate tier which may be

lacking in the necessary expertise

complicated problems". 2

to grasp the

Afterthe ARC it was the Railway Reforms Committee(1985)

110

which studied the problem in detail in the background of the

'1 f t. . 3 ra~ way unc ~on1ng. The Committee even took the evidence

of a large number of eminent persons/organisations connected

with the working of the railways on the above subject. The

unanimous view was that the arrangement in vogue was satis-

factory and was not to be tampered with. Most of them provi-

* ded the reasons in support of their decision.

Going into the reasons provided as well as analysing

all the aspects, some points emerge. In the first place,

Railways are a complex organisation. Their operation is of

such a nature which calls for daily monitoring at the high-

est level as well as leading problems need to be attended at

governmental level. If the Railway Board were to be divested

of their functions as a Ministry, it would lead to delays in

decisions on such issues thereby adversely affecting their

operational efficiepcy.

Second, due to the present amalgamation of Ministerial

and Executive functions in the Railway Board, one avoidable

tier in the hierarchy has been eliminated leading to quick

decision-making as well as economy, as the Members of the

Railway Board discharge both the Executive and the secre-

trial functions.There are no separate files for the Ministry

and the Board, and so all files deal with both policy-making

and execution.The officers of the Railway Board deal direct-

ly with their Secretariat counterparts in other Ministries

* FOr the detailed opinion of experts and various bodies as interviewed by the RRC, please see XXV Report of the RRC, page 134 to page 143 (1985).

111

as if they were also Secretariat counterparts. However only

disadvantage in this system is that when in any inefficiency

or neglect occurs, it does not get easily detected.

Third, the Railway Board is not only responsible for

helping the Minister in policy formulation but also in its

implementation. Thus those who formulate the policies are

directly accountable for the results of the implementation

of these policies.some critics of the system descend heavily

on this aspect.But dispassionately viewed the criticisms are

not well-founded.

The Railway Board is manned by personnel who have an

intimate knmvledge of the system and thus provide the Minis­

ter, a Secretariat with first-hand knowledge of the Railway

working. Thus it is clear that except for very strong rea­

sons, it would be unwise to disturb the existing sy~tem.

In view of the nature of· its composition and organisa­

tion, the Railway Board may be basically categorised as a

Functional Board, though not in the same sense of functional

Boards of autonomous public enterprises. Since the Railway

Board is a unit working immediately under the direct command

of a Cabinet Minister as an arm of the Government as well as

a part of the Executive, it assumes the role of an "Advisory .

Board" in so far as its relation~; with the Political Execu­

tive is concerned.The Railway Board forms a level where the

administrative requirements and the political possibilities

112

meet, emerging in a politico-administrative hierarchy, the

u:1ion of which helps in the fixing of the priorities of acti­

vities of the organisation. In view of its being a sort of a

forum where different technical view-points are projected and

considered through an integrated interdisciplinary approach,

it may be called a 'Technical Board'. While playing its co­

ordinating role in relation to the other Ministries of the

Government of India on the one hand,and the Railway Adminis­

tration on the other,it appears to be a 'Coordinating Board'

and while arranging for the execution of policies, it is an

'Executive Board'. Therefore, the Railway Board is not what

it appears to be but takes different forms at different tim­

es and exists under different context, viz., as a 'Managing

Committee' making only middle level or operational policies

or corollaries to the main policies, which are laid down by

Parliament, the Cabinet and the Hinister. Thus, the Railway

Board may be identified as something unparalleled because of

the nature of functions entrusted to it. As I have stressed

earlier in respect of the dual functions of the Board,

this arrangement should continue.As a Secretariat, the Board

advises the Minister(Railways)both on general Railway policy

as well as on technical aspects. As a Central Executive

authority at the same time, it has to instruct the Railway

Administration on all matters of Railway policy.

A vast undertaking like Railways, throw up problems of

management and administration, which while not meriting the

113

description of a policy, would be of such a significance, as

to demand decision atthe top level and also require the day­

to-day attention of the top management.In view of the large­

ness of the organisational network, unless specific arrange­

ments are made for delegation of functions to lower levels

and definite fixation of responsibility, even the trivial

problems are likely to get polarised towa=ds the top level,

in the guise of standardisation, uniformity, clarifications,

policy matters etc. I have pointed out earlier in my chapter

on Forms of Organisation,that this specific malaise is lead­

ing to the hinderances in the performance level of the Rail­

ways. The Board would lay down broad policy and ensure com­

pliance of it. But as an when necessary,to facilitate quick

sorting out of issues relating to endless clarifications

sought by Zones, ways have to be devised to the efficient

dispersement of issues at appropriate channels or levels.

Viewed structurally, the Railway Board has a unique

pattern in the sense, while at the top-most level,·the offi­

cers have dual capacities as functional heads and ex-officio

Secretaries, down the hierarchy the Secretariat designations

and the functional designations get divided, with the former

being almost non-existent. However, the mere fact that for­

mal Secretariat designations are not attached to the post,

does not invalidate the argument that the very same officers

discharge the Secretariat functions as well. There are no

separate Secretariat and Board files, nor is there any area

of identifiable merger of these two functions.All files deal

with both policy and executive matters as I have pointed out

earlier.

114

But functionally, starting with the Chairman himself as

a functional member, all others down the hierarchy have spe­

cific technical subjects to deal with and most of their time

is devoted to the technical aspect of Railway working.There­

fore, the functions which have been ascribed to the Railway

Board are to be viewed with both the structural and functio­

nal connotations and these two aspects have a contributory

role to play as far as the flow of functions into the Rail­

way Board are concerned.

Chairman, Railway Board - Among the five functional

Members of the Railway Board,the senior-most amongst them is

normally appointed the Chairman, of the Railway Board. The

Chairman is also in charge of a specific group of portfolio.

Being the Chairman, he is the ex-officio Principal Secretary

in the Ministry of Railways. He is responsible for intra­

Board coordination and overall performance of the Railways.

Thus burdened with the charge of a departmental portfolio,he

is often at times not able to satisfactorily perform his role

as the leader of the team. As a result he is not able to de­

vote adequate time to corporate planning and other important

issues relating to the overall efficiency, economy and deve­

lopment of the system.If the Chairman has to play these rol­

es effectively, he would need to be relieved of his depart­

mental portfolio, so that he can concentrate on the overall

performance of the system andhis corporate responsibilities.

Moreover the Chairman has the power to over-rule other

115

Members of the Board {except the Financial Commissioner who

has ·been given the right to ask for the case to be referred

to the Railway Minister and the Finance .Hinister). In such a·

situation, vesting the Chairman with a departmental portfolio

does sometimes manifest itself as an organisational diffi-

culty when differences of opinion arise between the Chairman

and any other Nember of the Board on any subject falling un-

der the direct charge of the Chairman.

* Therefore it would be better if the pre-1951 arrange-

ment of divesting the Chairman of any departmental portfolio

and making him responsible for the overall performance of

the system, and such other corporate functions as intra-

Board co-ordination,Planning, Research & Development, Public

Relations, Consultancy and Computerisation. That might pave

the way for another Member to be included in the Railway

Board who would handlethe departmental portfolio held by the

Chairman.

This may in turn increase the number of Hembers of the

Railway Board to six.But any further increase(more than six)

in the strength of the Members of the Railway Board would

affect its compactness and efficient functioning.The Railway

Board cannot be enlarged in a manner as to dilute the impor-

tance of the main objective of the Railways, which is to

* Till 1951, the Chief Commissioner of Railways used to head the Railway Board. He was not alloted any specific port­folio but was responsible for the overall performance of the Railways.

116

produce adequate and efficient transportation. Ever since

1950-51, the present volume of passenger and freight traffic

has grown nearly five-fold, the actual increase being as

under :

Passenger kilometres {millions)

Net tonne kilometres (millions)

1950-51

66,517

44,117

1990-91

295,644

242,699

This would suggest that the workload of the Indian Rail-

ways had increased rapidly. The Railway Board, now has to

perform certain new types of functions too, such as dealing

with organisations like the Planning Commission, the Central

Vigilance Commission, numerous Advisory Committees, etc.,

which have come into existence in the post-independence pe­

riod. A reallocation of duties among the members and indue-

tion of Additional Members would do much in relieving the

Board of its enormous functions.

Apart from the Chairman and other Members, there are

five Additional Members on the Board of the rank of the

G 1 Ma f th .1 4 enera nagers o e Ra1 ways. They have been added to

the Board in order to be able to effectively discharge the

additional duties and responsibilities arising from increas-

ed workload. They look after major civil engineering works,

remodelling and expansion of mechanical workshops and pro-

duction units, commercial matters,accounts, with particular

emphasis on expenditure in respect of workers, and recruit-

ment and training of staff. These Additional Members have

117

full authority and power in the field alloted to them by the

Board.

Members of the Board are also assisted by a number of

Technical Directors and each of them is placed in charge of

a Directorate. 5 The Directors are inthe rank of senior Heads

of the Departments dealing with purely technical matters and

are treated as specialists in their respective fields, viz.,

Civil, Mechanical and Electrical Engineering, Signals and

Telecommunications, Health etc., while other Directors are

specialists in Traffic, Commercial issues, Safety, stores

etc.

Appointments - The Chairman, Railway Board and other

Members are required to be men with deep experience and com-

prehensive knowledge of railway working in view of their

high and vital responsibilities. They should be the ones who

have distinguished themselves in their service and known for

their sound judgement and capacity for leadership. Thus the

most important and essential pre-requisite for an appoint­

ment to the Railway Board isthat the person concerned should

have extensive railway experience. The Appointment Committee

of the Cabinet gives weightage to the service record of an

eligible candidate. 6 Seniority is the main consideration for

selection as Chairman and Members of the Board. The Appoint­

ment Committee is the final selecting authority where the

Railway Minister has a major role to play. The selection

118

should also be based en suitability and merit as well as

performance in the rank of General Manager.It is not necess­

ary that a Member of the Board for a particular discipline

should be the senior-most General ~~nager belonging to that

discipline.Only outstanding General Managers who have proved

themselves in that rank and possess the above qualities

should be considered for posting to the Board. The Chairman,

Railway Board should normally be the senior-most amongst the

Board Members, which has been the case in ~he past.

The Financial Commissioner of the Railway Board is a

representative of the Ministry of Finance.This post has been

mostly been held by officials belonging to the Indian

Administrative service(IAS) and Indian Audit & Accounts Ser­

vice(IAAS). Since the creation of the post of Financial

Commissioner in 1923 and the establishment of the Indian

Railway Accounts Service{IRAS) in 1929 only on two occasions

has this post being held by officers belonging to the IRAS.

The Acworth Committee while recommending the establishment

of the IRAS had stated in 1929 that economical railway

management could not be ensured without a proper system of

railway accounting. There had to be a proper tab to see whe­

ther expenditure was being wisely incurred,whether retrench­

ment of habitual expenditure was possible under one head,

whether any large expenditure was likely to be fruitful etc.

The Indian Railway Enquiry Committee (1947) popularly

known as the Kunzru Committee while considering the above

119

matter had stated that the selection for the post of Finan­

cial Commissioner (FC) in the past has been from the ICS or

IAAS. This had been due to the fact that IRAS was compara­

tively young and no officer of this cadre had been suffi­

ciently senior to be considered for the post of FC. But in

future, an Accounts Officer serving on the Indian Railways

with suitable seniority and experience could be considered

along with the officers of the IAAS.

The Railway Reforms Committee (1985) also deliberated

over this matter which suggested that the post of Financial

Commissioner could be placed in the hands of those who by

virtue of their training and experience had acquired detail­

ed knowledge of the railway working.

It seems that while it is not necessary that the post

of Financial Commissioner be filled in only from IRAS cadre,

the best person should be appointed, preference being given

to the IRAS officers when ~erits are comparable.

Additional Members -Due to the enormous increase in the

workload,which was a result of accelerated tempo of develop­

ment and expansion due to the launching of~ive Year Plans',

detailed attention was required to effectively tackle the

additional responsibilities.Thus to cope up with the increa­

sing workload, five 'Additional ~lembers' were added to the

Railway Board in 1956. The subjects alloted to them along

with their designations were as under :

DESIGNATION

1. Additional Member, 'l'lor ks (AMW)

2. Additional Member, Finance (AMF)

3. Additional Member, Commercial (AMC)

4. Additional Member, Mechanical {AMM)

5. Additional Member, staff CAMs)

120

SUBJECTS ALLOTED

Major civil engineering works like new lines, doubli~gs, gauge conversions, yard re­modelling etc., and Annual Works Programme.

Accounts and Financial Matt­ers.

Commercial affairs and Marke­ting matters.

Remodelling and expansion of 'Production Units'and 'Mecha­nical Workshops'.

Staff matters including indus­trial relations.

The Additional Members, exercised the authority in res-

pect of the subjects alloted to them and issued instructions

to the Zonal Railways. They ordinarily dealt with the Minis­

ter (Railways) directly and were invited to attend Board

meetings whenever subjects concerning ther: were discussed.

Thus the induction of Additional Members in the Railway Board

brought considerable relief to the Members and enabled them

to pay greater attention to broader policy issues.

SUbsequently, three more posts of Additional Members

were created viz., Additional Member, Vigilance - Vigilance

Matters: Additional Member,Electrical Engineering- Electri-

cal Engineering SUbjects; Additional Nember, Health - Health

Services.

But the Administrative Reforms Commission(1970) did not

favour the concept of 'Additional Members' and thought it as

121

a misnomer, because these officers had no right to 'vote' in

the meetings of the Board. Instead, the ARC wanted to induct

'Advisers' in place of 'Additional Members•. 7

The Government, accordingly, in 1977 held in abeyance

all the existing posts of the 'Additional Members• and ins­

tead created posts of 'Advisers•, but only in three disci-

plines, viz., 'Finance', 'Industrial Relations•, and 'Elec-

trical Engineering'.

But it seems th~t the concept of having 'Advisers• in

the Railway Board has not been a correct step. The Railway

Board combines both the executive and Ministry's secretariat

functions. The Members of the Board are specialists in their

respective fields and they cannot do justice to all the work

under their control and so they need relief in the shape of

assist1nce by competent professionals, who can dispose of

certain types of cases, handle certain problems and who can

also deal directly with the Minister in respect of subjects

alloted to them, as happens in the case of Additional Secre­

taries in other departments of Central Government.

Apart from this as I have mentioned earlier, the Admi­

nistrative Reforms Commission (ARC) observed that the 'Addi­

tional Hembers' did not have the right to vote.But the func­

tioning of the Board clearly indicate that there is no prac­

tice of voting in the Board's meeting. Decisions are arrived

at by consensus and in case of differences of opinion, the

122

Chairman,Railway 3oard has power to over rule(except in case

of Financial Commissioner). The question of voting rights of

the Additional Members does not arise.

Directorates - The Directorates in the Railway Board

are the next lower level in the hierarchy after the Members

and Additional Members. The Directors are responsible for

carrying out the policy of the Board and submit cases to the

Member concerned. They may issue instructions direct to the

Railway Administration at various other levels. Being the

heads of their respective branches, they are responsible for

liaison work with the various branches of Railway adminis­

tration. Except for important policy issues and other impor­

tant matters, all other matters are generally finalised at

this level.There has been quite a proliferation of Directors

since 1947. These fall into three broad categories. Some

directors look after subjects which represent new responsi­

bilities that the Railways have accepted, namely, Health,

Metropolitan Transport,Tourism,Electrification and Security.

In the second category fall such posts as Directors in charge

of Finance, Stores, Planning, Efficiency Bureau and statis­

tics, which should be considered necessary as modern tools

of management. The post of Director, Safety was created in

1964, in pursuance of the recommendation of the Railway

Accidents Enquiry Committee(1962), so that the prevention of

accidents and investigation, specially in the psychotechni­

cal sphere, could receive greater attention. The remaining

123

posts of Directors,such as Accounts, Electrical Engineering,

Establishment, Mechanical Engineering {Production and Deve­

lopment),Signalling and Telecommunications, Traffic (Commer­

cial) and Tourism were the outcome of the increase in the

volume of work,necessitating the bifurcation of some depart­

ments or because of the need for having specialists to deal

with technical subjects. It would not be possible to discuss

the functions and inadequacies of each of the Directorates.

Instead, only a few of these Directorates whose functioning

brought to focus certain inadequacies would be dealth with.

Directorate of Management Services - The Directorate of

Management Services was set up in the Railway Board in 1977

to deal with the recruitment of Railway Officers, their

training etc. Earlier,these aspects appeared to be neglected

and therefore the necessity to set up this Directorate was

felt. The main functions of this Directorate were to frame

the recruitment rules for gazetted posts on the railways, to

deal with matters of promotion to Grade A,to deal with matt­

ers of direct recruitment to various services and posts in

Grade A and Grade B through UPSC, to deal with matters rela­

ting to training of gazetted staff and the training institu­

tions directly under the Ministry of Railways and creation

of all gazetted posts on Indian Railway.It was believed that

after the setting of this Directorate, rationalised policies

would be evolved and enforced in respect of the matters just

mentioned.

124

Although aboutfifteen years have passed after the sett­

ing of this Directorate, many of the above mentioned problem

continue to afflict the management cadres.There is apparent­

ly an absence of a rational recruitment policy in respect of

officers. The Railway Reforms Committee observed that 'erra­

tic and unplanned' recruitment continued to take place in

entry grades in many of the organised Class I services of

the Railways. 8 For example in 1981, 75,60,55 and 27 officers

were recruited in Civil Engineering, Traffic, Electrical

Engineering and Mechanical Engineering cadres respectively. 9

This was three to four times as high as the average recruit­

ment which took place in the previous years.As a result what

would happen at a particular point of time in future that

there would be a large number of senior officers awaiting

promotion and later when they retire,there would not be eno­

ugh officers with sufficient experience to man the higher

posts, leading to a serious imbalance in the cadre.

In order to equip the Railway Officers with the latest

knowledge in their respective spheres, the need for in­

service training programmes have been always felt. Certain

steps have been taken to putthe traini~g programmes of Offi­

cers on a proper footing,but a lot still remains to be done.

The Railway Board ·receives a large number of offers from

various organisations asking~ deputation of their officers

for training programmes within the country aswell as abroad.

But owing to the delay in processing the cases within the

125

limited time available, these offers become invalid. Thus

there is a need to deal with such cases with due promptitude

so that these offers of training are not lost.

It has also been found that in some cases that an offi­

cer after returning from training, acquiring more knowledge

and skill,is not properly placed.This is not only an anamoly

affecting the officers of the Indian Railways, but also the

officers belonging to the IAS and other Central Services,are

affected by it. In a number of cases, officers having under­

gone training in specialised fields, have been later found

working at posts having no relation with the specialist

training courses undergone by them. Thus the Railways have

not been able to derive the benefit of the expertise acquir­

ed by these officers, in many cases even for a limited pe­

riod.

The Directorate of ~anagement Services is also assigned

with the function of cadre review in respect of officers.Al-

though this cadre review

years, the Railway Board

is to be carried out every three

has defaulted on this repeatedly.

This has lead to heavy stagnations in almost all disciplin­

es. As a result there has been a perceptible sense of frus­

tration among Railway Officers as also pointed out by the

Railway Reforms Committee. Therefore all these malaises need

to be rectified.

126

Mechanical Engineering Directorate - This Directorate

is concerned with the compilation of the rolling stock pro-

. gramme relating to locomotives,wagons and coaches, machinery

and plant, cranes and ferry services, inspection carriages.

The Director, Mechanical Engineering has to look after matt­

ers pertaining to planning for and acquisition or replace­

ment of existing locomotives as also their repairs and main­

tenance. Matters connected with the maintenance of coaches,

wagons, cranes and their running repairs etc. are dealt with

by one of the Additional Directors in the Mechanical Engi­

neering Directorate who has many other functions to perform

such as allotment and inter-Railway transfer of coaches and

wagons, utilisation of rolling stock etc. Thus this Directo­

rate is overburdened and all the matters do not get the

attention they deserve. Thus the creation of carriage and

wagon Directorate in the Railway Board to deal with matters

connected.with the maintenance of carriages and wagons is

desirable as has been suggested by other experts too in the

past.

Traffic Commercial Directorate - This Directorate is

concerned primarily with the fixation of freight rates for

goods, rates for postal and military traffic, rail-road co­

ordination, opening of flag stations, handling of goods and

good-shed facilities, catering arrangements on railways,

claims for compensation arising out of rail accidents etc.

Due to a large number of functions alloted to this

127

Directorate, the costing organisation is weak. One of the

reasons for not much progress inthe development of transport

costing on the Railways is attributable to the poor traffic

costing organisation. Traffic costing has an important role

to play in the formulation of fare and freight structure,

financial appraisal of railway projects and cost control.

These functions cannot be discharged properly if the cost-ing

cells are poorly manned and are lacking in expertise. The

Railway Reforms Committee had observed in its report {Part

XXII) on "Traffic Costing and Railway Statistics" {Chapter

II, para 8.2), that due to large scale investments in the

future Plans,the emphasis was to be placed on self-reliance,

traffic costing was to become a vital and a crucial element

in the hands of management for taking major policy decisions

~n areas which controlled the viability and profitability of

the system such as fi·<ation of fare and freight structure

etc.

There has not been much research activity in the cost­

ing cells either in the Railway Board or on the Zonal Rail-

ways. The Railway Reforms Committee {1984) had therefore

suggested the setting up of a separate Directorate of Traffic

Costing in the Railway Board. This was also a specific reco­

mmendation made by the World Bank Consultants, Messrs Davis

and Robson.

Operation Information Services Directorate- This Direc­

torate is concerned with matters relating to computerisation

128

of freight operations; supervision and control of the compu-

ter section and teleprinter services of the Railway Board's

Office; laying down guidelines for introduction of computer-

ised freight operations services; designing a standard for-

mat for various inputs and output processes and various ad-

ministrative reports in connection with computerisation; co-

ordinating and guiding the process of implementation of

introduction of computerisation in various ZOnal Railways;

coordinating with other Ministries regarding the subject of

computerisation. It would be evident from the above list of

functions that this Directorate has been assigned too many

functions and thus cannot do justice to all. For this very

reason,the Railway Reforms Committee in its Report on'Manage­

ment Information System' had referred to the necessity of

setting up an apex organisation for effective and quick

implementation of computerisation on the Railways. Consider-

ing the scope of the work to be done in the coming years,the

10 RRC had suggested for the sett~ng up an adequate organisa-

tion in the Railway Board headed by an officer with suitable

qualifications and adequate rank supported by a compact

organisation to lay down policies, monitor progress and

arrange necessary assistance to the ~at·ious individual pro-

jects. It also opined that this Directorate was to be multi-

disciplinary and was to include experts from such disciplin-

es as Electronics,Computer Science,Communications and Trans-

portation.

129

Security Directorate - This Directorate deals with the

following matters : all policy matters relating to the RPF

(Railway Protection Force);crime on the Railways and liasion

with the state Governments and the Ministry of Home Affairs:

security of Railway property. But considering the extent of

the menace of ticketless travelling and the difficulties in

tackling it, experts have suggested setting up of a Ticket

Checking Directorate. It would mainly deal with problems

relating to interference in the smooth running of trains,for

spearheading and monitoring field drives and campaigns,per-

taining to ticketless travel,alarm chain pulling, disconnec-

ting of hose-pipes,vandalism and fraudulent practices regar­

* ding printing and sale of tickets.

Signalling and Telecommunication Directorate - This

Directorate deals with matters connected with installation

and modernisation of signalling,provision of new safety de-

vices, interlocking and warning arrangements at level cross-

ings, installation and maintenance of telecommunication ser-

vices for the Railways, cipher operation, procurement of

electrical and signalling materials,and scrutiny of new pro-

jects for signalling and telecommunication works for inclu-

sion in the Annual Budget.There has been phenomenol advances

in the technology relating to above. The Railways are under-

going computerisation of freight and passenger train opera­

tions. This would require setting up of an elaborate network

* For details on this aspect VII Report of the RRC (Chapter­II; Recommendation No.!O) may be consulted.

130

of telecommunication links. It would not be possible for a

single Directorate to cope with the workload of Signalling

as well as Telecommunications to meet the expanding require­

ments both in terms of volume and in terms of advanced tech-

nologies and thus should be separated.

Working of the Railway Board - The Railway Board is a

corporate body and meets twice a week or oftener. 11 All

controversial issues involving policy matters, or a decision

taken at the level of the Minister or the full Board needs

reversal or which needs approval of the full Board or the

Minister,are to be discussed at the Board meetings. All such

matters which are technical in nature and falling solely wi­

thin a Member's jurisdiction or matters which are not impor-

tant enough to justify consideration by the full Board, but

only by one or two Members, are considered to be the deci­

sions of the Board.

The agenda for the Railway Board meetings are prepared

by the Secretary, Railway Board, in consultation with the

Chairman. The minutes of the meeting are drawn up by the

Secretary and are circulated after approval by the Members

and the Chairman,a copy of which is submitted to the Railway

Minister for information. But contrary to the general rule,

the minutes only contain the decisions and do not reflect

the dissensions expressed during the meeting where a consen­

sus could not be reached. To present a complete picture, the

131

minutes of the Board meetings should briefly reflect the

various view-points expressed.

It has been observed that although Board meetings are

to be held twice, the practive of holding meetings of the

Board at prescribed intervals has not been regularly follow­

ed.These meetings are supposed to provide occasions for dis­

cussion of important issues, help in settling out differenc­

es, in keeping Members informed of the important developments

and decisions and in arriving at mature decisions. These

meetings, if not held twice, should meet at least a week.

These meetings promote coordination and homogeneity in the

Railway Board.

As required,the Directorates concern examine any matter

in detail and put up to the Board self-contained memoranda

on these matters with specific recommendations. The full

Board meeting discuss and dispose of these metters and the

Chairman, Railway Board refers it to the Minister for appro­

val. Therefore, the concerned Directorates have to do much

groundwork on any important issue to be examined at the

Board level.

But in spite of this,considerable routine work is find­

ing its way to the Member, the Board or even the Minister

which could be decided at lower levels of Directors, Addi­

tional Directors and Joint Directors abiding by the policy

decisions already existing or taken by the Board. Without

132

proper details regarding these matters, every file has to be

put up before the Nember.

The Chairman and Members of the Railway Board should be

free from routine matters in order to devote their full devo-

tion to broader policy issues and to think and formulate

about future plans. It would be relevant to note what the

Administrative Reforms Commission's Study Team on the Rail­

way opined in this regard : "We cannot help but observing

that the authorities at the higher levels have become too

much engrossed in details of minor importance,with the result

that they do not get enough time to attend to major issues.

Much of it is due to the questions raised by the Members of

12 Parliament mostly on personnel matters".

The Railway Board thus to function effectively has to

stop dealing with routine and minor matters. Instead, these

matters should be dealt with at the Divisional or the Zonal

levels or for that matte~ at the Directorate level of the

Railway Board.

The power of the Chairman, Railway Board (CRB) to over­

rule other Members has been a subject of controversy.The CRB

has the power to over-rule other Members when and as occa­

sions do arise except that of the Financial Commissioner who

has the right to place any matter before the Minister of

Railways.Normally decision making at the Board is by consen­

sus. But, the Railways being a complex and a multi-discipli­

nary organisation, in its functioning, occasions do arise

133

when there are inter-departmental differences,then certainly

the power of the CRB comes handy in resolving conflicts and

in eliminating rivalries, and in bringing about better co­

ordination. To dilute the CRB's leadership role would not be

in the interest of the organisation.As I have mentioned ear­

lier, and has been corroborated earlier by an expert body,

the CRB should not hold any departmental portfolio and should

be in charge of corporate functions only, thus facilitating

to play his leadership role objectively,correctly and in the

interest of the railway system as a whole.The Member as well

as the Financial Commissioner should however be given the

right to get their view point represented tothe Minister for

Railways or Finance through the CRB.

Within the framework of the Board, the Financial Corruni­

ssioner has emerged as the king-pinfur financial management.

The supreme importance enjoyed by him is highlighted by the

fact that he commands the confidence of both the Finance

Minister and the Railway Minister. In fact his position is

unique in so far as he has direct access to the Finance

Minister, which the other Members including the Chairman, do

not usually enjoy.His variegated role as the Financial Poli­

cy Adviser, Budget formulator, Expenditure Controller and

Chief Accounts Officer has enhanced his status and position.

However, there appears to be an anomaly in so far as the

Financial Commissioner is mostly a senior officer drafted

from the Finance Ministry.This appears to be contrary to the

assumption of financial autonomy of the Railway Board.

134

Tenure of the Board Members -Although the Establishment

code of the Railways has laid down a maximum tenure of five

years for the CRB·and the Members of the Railway Board, 13 in

practice the incumbents of these posts have not been able to

occupy their posts for five years.since Independence most of·

the CRBs have occupied their posts for a period ranging bet­

ween one and two years.Only one CRB occupied this office for

a period of four years. The position of the Members in this

regard reflect the same pattern.

Short tenures as we all know, kills both initiative and

instil a sense of complaceney in an individual. To get the

best out of the Members and the CRB, a minimum period of

tenure is a must. Moreover, when senior management positions

are occupied by individuals for short periods, long-term and

corporate planning suffers. There is a tendency to take up

initiatives and tasks which are unavoidable and th,ereby res­

ponsibility and accountability get diffused.

Organisational effectiveness is a perennial problem

with almost all public sector units in India and the Railway

Board is no exception to it.A total overhauling of the Board

is not possible at this juncture but piecemeal reforms may

be worked out forthwith. Throughout the discussion, I have

mentioned a number of gaps in the organisation and function­

ing of the Board and also suggested remedial measures. The

most important functionary is the Chairman and there is no

hard and fast rule about the specific qualifications required

135

of him. In some cases, technical personnel have been chosen

and sometimes more emphasis was laid on the administrative

experience of the incumbent. The Chairman should be selected

on merit from among the Members of the Board and similarly,

the selection of the Members should be made on merit from

among the General Managers of the Zonal Railways.Thereshould

be a minimum tenure, say, three years for the CRB and five

years for the Members so that the incumbent may feel secure

and could oversee all the intricacies that fall under him.

Administrative experts and also theoreticians have always

insisted on having afixed minimum tenure for the top manage­

ment cadre.

The Railway Ministry had laid down in an Administrative

Order in September 1984, certain guidelines for the nomina­

tion of General Managers in different Zones.On a scrutiny of

these conditions, it appears that officers having only a two

year period for superannuation are being debarred from these

top posts. A strong view also exists that this principle

should be extended to officers of the Railway Board having

less than three years to put into service. But I am not in

favour of scuttling opportunities for these senior officers

who can otherwise be considered as the votaries of wisdom.In

such circumstances where an officer superannuates before the

completion of tenure,an extension of service may be granted,

in terms of existing policy,for grant of extension,to enable

a deserving person to complete the tenure.

136

REFERENCES

1 Y. Saraswathy Rao, The Railway Board ; A Study in Admi­

nistration, S.Chand & Co., New Delhi, 1978, p.34.

2 Report of the Administrative Reforms Commission's Study

Team on Railways, Chapter II, paragraph 2.80, 1968.

3 Report of the Railway Reforms Committee, Railway Board,

1985, part XXV, p.68.

~

4 Manual Office Procedure, Ministry of Railways, Railway

Board, New Delhi, para 200.

5 Ibid.

6 Indian Railway Establishment Code, Ministry of Railways,

Railway Board, Vol.I, Section 119.

7 ARC Report on Railways, Chapter II, Paragraph 17, Janu-

ary 1970.

8 IX Report of the Railway Reforms Committee on PersonneL

Chapter VIII, Paragraph 4.1.

9 XXV Report of the Railway ~eforms Committee on structure

and Organisation, Chapter III, para 6.14.

10 XVI Report of the Railway Reforms Committee on Manage-

ment Information System, Chapter VI, paragraph 4.2.

137

11 Manual of Office Procedure,Ministry of Railways,Chapter­

XI, paragraph 1102, Diglot Edition 1970.

12 Report of the ARC's Study Team on Railways, Chapter II,

paragraph 2.17, 1968.

13 Indian Railways Establishment Code, Volume I, paragraph

12.1.