CHAPTER II  

STRUCTURE AND OBJECTIVES OF RAILWAY MANAGEMENT

201.  Under the Constitution of India, the legislative power with respect to Railways vests exclusively in 'Parliament in terms of Article 246 read with Entries 22, 30 and 89 of list I of the Seventh Schedule to the Constitution of India.   The legislative power vesting exclusively in Parliament, the executive power also with respect to Railways which shall be co-extensive with the legislative power of Parliament vests, exclusively in the Government of India.   The subjects, under the Government of India (Allocation of Business) Rules 1961, with reference to which these powers are exercised are as follows .—

(1)  Government Railways.—All matters, including those relating to Railway revenues and expenditure but excluding Railway Inspectorate and Railway Audit.

(2)  Non-Government Railways.—Matters in so far as provision for control by the Ministry of Railways under the Indian Railways Act, or in  the contracts  between the Government and these  Railways, or in any other statutory enactments, namely regulations in respect of safety, maximum and minimum rates and fares, etc.

(3)  Parliament Questions regarding offences relating to pilferage of Railway property other than offences relating to crime on Government Railways and Non-Governmental Railway.

(4)  Administration of pension rules applicable to Railway employees.

202.  The Railway Board which is the chief administrative and executive  body assisting the Minister of Railways in the discharge of his functions was constituted under a resolution of the Government of India dated 18th February, 1905.   Under Section 2 of the Indian Railway Board Act, 1905, the Railway Board has been vested with certain powers of the Central Government under the Indian Railways Act, 1890.    Apart from its functions as the top Railway executive body for the administration, technical supervision and direction of the Railways, the Railway Board function also as a Ministry of the Government of India and  exercises  all  the   powers   of Central Government in relation to the Railways.   As a result of the inclusion of the Financial Commissioner, Railways, as a Member of the Railway Board since 1923 and the separation of the Railway Finance from the General Finance since 1924 (see Chapter VII), the Railway Board also exercises the powers of the Government of India in regard to Railway expenditure subject to the ultimate financial authority of the Minister of Railways and the Union Cabinet.

203.  Co-ordination with other Ministries of the Government of India.—Although the Ministry of Railways (Railway Board) control its own finances, the Railway's budgetary programmes of expenditure are a part of the overall ways and means position of the Government of India. The Ministry of Railways has, therefore, to formulate its budget proposals in close co-ordination with the Ministry of Finance and the Planning Commission. Further, orders issued by other Ministries arc examined and adopted, with suitable modifications, and other Ministries are consulted in case of orders contemplated by the Railway Ministry which might affect them.

204.  The Indian Railway System is at   present divided into nine zones, each Zonal Railway Administration being headed by a General Manager who is responsible to the Railway Board for the operation, maintenance and financial position of the Railway.   The General Managers are assisted by a number of functional heads of departments at the Headquarters.   Apart from the Zonal Railway Administrations, there are six Production -Units, each under a General Manager, and the Research, Designs and Standards Organisation headed by the Director-General in the rank of General Manager.

205.  The  Organisation chart of the  Railway undertaking starting from the  Ministry of Railways (Railway Board) downwards upto the Heads of the Railway Administrations appears on the next page.

ORGANISATION  CHART

Minister for Railways 

Minister of State for Railways—Members,  Advisers and   Directors-General

Railway Board     ..           ..           ..           ..        Chairman.

                                                                        Financial Commissioner. 

                                                                        Member Engineering. 

                                                                        Member Mechanical. 

                                                                        Member Traffic. 

                                                                        Member Staff. 

                                                                        Member Electrical.

'Secretary..         ,.           ..           ..           ..      Secretary, Railway Board.

Advisers                                                          Adviser (Staff).

                                                                        Adviser (Planning).

                                                                        Adviser (Civil Engineering).

                                                                        Adviser (Works).

                                                                        Adviser Mechanical (Production Units).

                                                                         Adviser (Traffic).

                                                                         Adviser (C. & I. S.)

                                                                         Adviser (Finance). 

                                                                         Adviser (Budget)

                                                                         Adviser (Telecom)

                                                                         Adviser (Signal)

                                                                         Adviser (Electrical)

                                                                         Adviser (Stores)

                                                                         Adviser (M. T. P.).

                                                                         Adviser (Mechanical).

                                                                         Adviser (Management Services).

                                                                         Adviser (Vigilance).

                                                                         Director General (R. P. F.).

                                                                         Director General (D. G. R. H. S.).

Executive Directors—

(1)  Accounts.

(2)  Civil Engineering

(3)  Coaching.

(4)  Efficiency and Research.

(5)  Electrical Engineering.

(6)  Economic.

(7)  Establishment.

(8)  Finance.

(9) Health.

(10) Information and Publicity IM Legal. 

(12) Land Management.

(13)  Management Services.

(14)  Mechanical Engineering.

(15)  Mechanical Engineering (W).

(16)  Mechanical! engineering (P. U. & W. P.) 

(17) Metropolitan Transport Project.

(18)  Official Language.

(19)  Operation information Services.

(20)  Pay Commission.

(21)  Planning.

(22)  Public Relations.

(23)  Railway Electrification.

(24)  Safety.

(25)  Secretary.

(26)  Security.

(27)  Signaling and Telecommunication.

(28)  Statistics and Economics.

(29)  Stores.

(30)  Traffic Commercial.

(31)  Traffic Tourism.

(32)  Traffic Transportation.

(33)  Telecom Development.

(34)  Track.

(35)  Vigilance.

(36)  Works.

(37)  Administrative Reforms.

Zonal  Railways—                           General Managers

(1)  Central Railway, Bombay.

(2)  Eastern Railway, Calcutta.

(3)  Northern Railway, New Delhi.

(4)  South Central Railway, Secundergbad.

(5)  Western Railway, Bombay.

(6)  North Eastern Railway, Gorakhpur.

(7)  Northeast Frontier Railway, Maligaon (Assam).

(8)  Southern Railway, Madras.

(9)  South Eastern Railway, Calcutta.

                                                          Manufacturing Units

1)  Chittaranjan Locomotive Works      ..           ..                         Chittaranjan.

(2)  Integral Coach Fatory         ..           ..           ...                   Madras.

(3) Diesel Component Works ..           ..           ..                         Patiala.

(4)  Rail Coach Factory             ..           ..           ..                    Kapurthala.

(5)  Diesel Locomotive Works                ..           ..                      Varanasi.

(6)  Wheel and Axle Plant        ..           ..           ..                      Bangalore.

(7) Central   Organisation   for   Modernisation    of Workshops.       New Delhi.

R. D. S. O.

Director-General, Research, Designs and Standards Organisation, Lucknow.                                                              

206.  The Railway Board as at present constituted, consists of— (I) The Chairman, Railway Board;

(2) The Financial Commissioner, Railways ; and 

(3) Five Members each in-charge of Traffic, Staff, Engineering, Mechanical and Electrical.

(i) Chairman, Railway Board.—The Chairman, Railway Board is ex-officio Principal Secretary to the Government of India in 'he Ministry of Railways. He is responsible to the Minister of Railways (or as delegated by him) for arriving at decisions on technical and non-technical questions and advising the Government of India on matters of Railway policy. He deals with Corporate Co-ordination and other corporate functions as well as any other subject as laid down from time-to-time. He does not function as a Member in-charge of any particular discipline but he may, at his discretion, deal with any matter pertaining to any discipline or other subject. All policy and other important matters are put up to the Ministers through him. He has the power to over-rule the other Members of the Board, except that if the Financial Commissioner does not agree with the Chairman, Railway Board en any matter of finance, the Financial Commissioner may ask it to be referred to the Railway Minister and in case he is unable to agree with the Railway Minister, he has the right to refer it direct to the Finance Minister.

(ii) All cases, in which there is a difference of opinion between two Members of the Beard, would be referred to the Chairman, Railway Board, who will try to arrive at a jointly agreed proposal, if necessary, after discussions. The Chairman, Railway Board may also take final decisions in regard to inter-departmental differences (subject to the approval of the Ministers being obtained, where necessary) except when there is a differences of opinion between the Financial Commissioner and Chairman, Railway Board on a financial issue in which even, if so asked by the Financial Commissioner, the case would be put up by the Chairman, Railway Beard to the Minister of Railways bringing out both points of view. In those cases where the Financial Commissioner is unable to agree with the Minister of Railways on a financial issues, the Financial Commissioner may, if he so desires, refer the matter direct to the Finance Minister.

207.  Financial Commissioner for Railways.—The Financial Commissioner for Railways is vested with full powers of the Government of India to sanction Railway expenditure and is ex-officio Secretary to the Government of India in the Ministry of Railways in financial matters.    No proposals involving expenditure affecting Railway Revenues can b2 sanctioned without his prior concurrence.    He has the right to refer direct to the Finances Minister any financial issues on which he finds himself unable to agree with the views of the Minister in charge of the Railway Ministry.

208.  Other Members of the Railway Board.—The   Members   of the   Railway Board are separately in-charge of matters relating to Staff, Civil Engineering, Traffic and Mechanical Engineering.   They function as ex-officio Secretaries to the Government of India in their respective spheres.    Each of the Members is responsible for dealing with all aspects of the technical subject or subjects of which  he is  in-charge.     Where a question impinges on the function   of another Member, his concurrence is to be obtained and in case of any persisting difference, the issue is to be referred to the Chairman, Railway Board for a decision.

209.  (i) Adviser (Metropolitan  Transport Project).—There is an Adviser   (Metropolitan   Transport Project) in-charge of the Metropolitan Transport Project on Railways.

(ii) Directors-General—There are Directors General Security and Railway Health Services in-charge of Railway Protection Force and Railway Health Services respectively.

(iii) Advisers.—To enable the Board to effectively tackle the additional duties and responsibilities arising from the increased tempo of work, there are 17 Advisers, as given in Organisation Chart.

(iv) Although the Advisers do not form part of the Board, yet' they have been authorised to pass final orders on behalf of the Board except with regard to those matters which require formal approval of the Board and Ministers. These Officers while not b-3ing Members of the Board as such, are invited to attend Board meetings, when necessary.

210. Technical Directorates.- The  Board are assisted by a technical staff of Executive Directors,  Joint Directors and Deputy Directors who are in direct charge of the work of various branches of the Ministry and are responsible for disposal of all work except major technical questions and questions of policy. The Executive Directors are responsible for issuing instructions direct to the Railway Administrations and receive and deal with references from them direct. They are the heads of their respective branches and keep liaison with the Railway Administrations, the general public and other Ministries of the Government of India within their spheres.

211. At present the Railway Board has the following Directorates :—

(i) Accounts 

(ii) Civil Engineering

(iii) Coaching 

(iv) Economic Ce I

(v) Efficiency and Research 

(vi) Electrical

(vii) Establishment 

(viii) Finance

(ix) Health 

(x) Legal

(xi) Land Development 

(xii) Management Services

(xiii) Mechanical Engineering 

(xiv) Mechanical Engineering (W)

(xv) Mechanical Engineering (PU) 

(xvi) M. T. P.

(xvii) Official Language.

(xviii) Computer and Information Services 

(xix) Pay Commission

(xx) Planning

(xxi) Public Grievances

(xxii) Public Relations 

(xxiii) Railway Electrification

(xxiv) Safety

(xxv) Secretary's Directorate

(xxvi) Security 

(xxvii) Signal

(xxviii) Statistics and Economics 

(xxix) Stores 

(xxx) Track

(xxxi) Traffic Commercial and General

(xxxii) Traffic Transportation

(xxxiii) Telecom

(xxxiv) Vigilance

(xxxv) Works.

212. The Railway Board has the following attached and Subordinate Offices :—

(a)  Attached Offices:

(1) The Research, Designs and Standards Organisation.

(2) Office of the Railway Liaison Officer with the Directorate General of Supplies and Disposals.

(b)  Subordinate Offices—

(1)  Railway Recruitment Boards.

(2)  Railway Staff College.

(3)  Indian Railway Engineering Institute, Pune.

(4)  The Indian Railway Institute of Signal Engineering and Telecommunications, Secunderabad.

213. Attached Offices—(I) Research, Designs and Standards Organisation.—The Central! Standards Office and the Railway Testing and Research Centre were merged in March, 1957 to form the integrated Research, Designs and Standards Organisation. This Organisation is an attached office of the Railway Ministry. Its principal aim is to promote progressively standardisation of Rolling Stock, track, bridges and structures and all equipment commonly used on Indian Railways in accordance with the changing conditions and as a result of practical experience. A major responsibility which evolves on this Organisation is the Engineering and to fulfill the need to achieve self sufficiency in the design and manufacture of Railway equipment. This Organisation also publishes- the Indian Railway Technical papers. It is headed by an officer of the rank and status of a General Manager of the Indian Railways, who is designated as Director-General. The Organisation has taken over all the functions of the Foreign Consulting Engineering earlier employed by Railways as Experts and Specialists for designs, etc., in the various branches of Railway Engineering.

(2) Office of the Railway Liaison Officer with the Directorate-General of Supplies and Disposals—This Organisation is functioning as an attached office of the Railway Ministry, intended for keeping liaison with the Directorate-General of Supplies and Disposals in respect of the indents placed on them by the Railways.

214. Subordinate Offices.—The Railway recruitment Boards (previously known as Railway Service Commissions) conduct recruitment for non-artisan posts in Group ' C ' for both technical and non-technical categories. There are at present 19 Railway Recruitment Beards functioning ail over the Indian Railways. The location and jurisdiction of these Railway Recruitment Boards is as under—

Location of the Railway Recruitment Board Railway/Jurisdiction
1.  Ahmedabad Western   Railway.—Vadodara,   Rajkot   and   Bhavnagar, Divisions.
2.  Ajmer Western   Railway.—Ratlam,  Kota,   Jaipur   and   Ajmer Northern Railway. —Jodhpur and Bikaner Divisions.
3.  Allahabad Diesel Locomotive Works, Varanasi. Northern    Railway—Allahabad, Lucknow and Moradabad Divisions.
4.  Bangalore Southern Railway. —Bangalore and Mysore Divisions. 

South Central Railway.—Hubli Divisions Wheel & Axle Plant—Bangalore.

5. Bhopal Central Railway.—Jabalpur and Jhansi Divisions. South Eastern Railway.-Bilaspur and Nagpur Divisions
6.  Bhaubaneswar South Eastern    Railway—Khurda   Road, Waltair   and Chakradharpur Divisions.
7.  Bombay Central Railway—Headquarters Office, Bombay, Bhusaval, Nagpur and Sholapur Divisions. Western Railway— Headquarters Office, Bombay Division.
8. Calcutta Eastern Railway. —Headquarters Office, Howrah, Asansol and Sealdah Divisions. 

South Eastern   Railway. —'Headquarters   Office,    Adra and Kharagpur Divisions. 

Chittaranjan Locomotive Works. Chittaranjan.

9. Chandigarh. Northern     Railway. —Headquarters      Office, Delhi Division. 

Rail Coach Factory. —Kapurthaia.

10. Gwahati Northeast Frontier Railway. —Headquarters Office, Aiipurduar, Lumding and Tinsukia Divisions.
11. Gorakhpur North Eastern Railway. —. Headquarters Office, Varanasi, Izatnagar and Lucknow Divisions.
12. Jamrnu and Srinagar Northern Railway. —. Ferozepur Division. Biesel Component Works. —Patiala. Rail Coach Factory
13. Madras Southern Railway.—Headquarters Office, Madras, Tiruchchirappalli and Madurai Divisions. Integral Coach Factory.—Madras.
14. Malda Eastern Railway.—Malda Division. 

Northeast Frontier  Railway.—Kathihar (except D. H. Railway) Division.

15. Muzaffarpur. North Eastern Railway. —Samasthipur     and     Sonepur Divisions.
16. Patna Eastern Railway.—Dhanbad, Danapur and Mughalsarai Divisions. Northeast Frontier Railway.—Katihar (except D. H. Railway) Division.
17. Ranchi Northeast Frontier Railway.—Katihar Division. Eastern Railway.—'Dhanbad, Danapur and Mughalsarai Divisions.
18. Secunderabad South Central Railway.—Headquarters Office Secun-derabad, B. G., Hyderabad M. G., Vijayawada and Guntakal Divisions-
19. Trivandrum Southern Railway. —Palghat and Trivandrum Divisions.

(2)  Railway Staff College, Vadodara.—Established in  1952 conducts courses in inter-disciplinary subjects for officers.   It caters to Foundation and Induction Training of newly appointed probationary officers and also to developmental training of middle and higher level managers.   The recently set up Management Development Faculty conducts management courses for senior officers.   It also arranges special courses for officers of the Administrative Grades and invites eminent educationists and other persons who have specialised in subjects useful to the Railways to deliver lectures to the officers attending the courses.    Training facilities available in the colleges are also extended to foreign nationals.

(3)  Indian Railways   institute of Civil Engineering, Pune.—Established in  1959 for conducting specialised courses on permanent way, now also conducts courses on bridge technology and work for officers of Civil   Engineering Department.   It provides initial course of training to probationers of the Indian Railway Service of Engineers and Assistant Engineers and also refresher courses to Class II and Senior Officers of  Civil Engineering Department.

 (4)  Indian Railways Institute of Signal Engineering and Telecommunications, Secunderabad.—This institution  came into being in 1957.    In the first year of its existence it was concerned only with imparting training to Apprentices Signal and Apprentice Telecommunication Inspectors, but subsequently in view of the rapid developments in the field of Signaling and Telecommunication, several specialised technical training needs of Officers and Staff of Signal and Telecommunication Department in Signal Engineering, Telecommunications Technology and Electronics Training have also been introduced.   Facilities available in this Institute are also extended to foreign nationals..

(5) Indian Railways Institute of Mechanical and Electrical Engineering, Jamalpur.—This Institution was established in 1927. It conducts special courses in diesel technology and workshop technology etc., for Officers and senior Supervisors of Mechanical Engineering Department. It also imparts class room and practical training for four years to Special Class Railway Apprentices recruited through U. P. S. C.

215.  Railway Rates Tribunal.—A Railway Rates Tribunal with mandatory powers, in place of the   old Railway Rates Advisory Committee, was set up under the Indian Railways (Second Amendment) Act, 1948.    It has been further reconstituted under the Indian Railways (Amendment) Act, 1957 (53 of 1957), and is functioning at Madras.   Any complaint against Railway Administration, for showing undue or unreasonable preference in favour of any particular person or any particular description of traffic in any respect whatsoever for quotation of unreasonable charge, may   be made to the Tribunal who will hear and decide complaints in accordance with the relevant previsions of Chapter V of Indian Railway Act, 1890.   The Tribunal, has no jurisdiction in respect of—

(a) Increase or reduction in the level of class rates and other charges

(b)  classification or classification of any commodity ;

(c)  fixation of wharfage and demurrage charges; and

(d)  scales of charges levied by a Railway Administration for the carriage of passengers and their luggage parcels, Military traffic and traffic in Railway materials and stores.

The Central Government, may however, make a reference to the Tribunal for enquiry and report in respect of items (b) to (d) above.

In addition, the Tribunal has been given work in connection with exercise of revisionary powers of General Managers in regard to cases of dismissal, removal or compulsory retirement from service of Class III employees (including skilled Artisans).

216.  Railway Inspection Branch at London.—This  is a departmental   inspecting  Agency  under   the administrative control of the Ministry of Railways.   The organisation is under the charge of the Railway Adviser to the Indian High Commission in U. K.   Primarily it is concerned with the inspection of Rolling Stock  and equipment ordered in the U. K. and the Continent and also maintains liaison with the Director General,   India Stores Department, London, and Research, Designs and Standards Organisation of the Indian Railways.

217.  The Railway Adviser to the High Commissioner for India in the United  Kingdom.—'The Railway Adviser renders technical advice and information en Railway designs, specifications, and stores to the High Commissioner and also acts as the Railway Consultant to the Director General, India Stores Department.

218.  Commissione of Railway Safety.—An  Independent Organisation called   the ' Commission of Railway Safety ' functions under the   administrative control of the Ministry of Tourism  and Civil   Aviation. The principal functions of the Commission of Railway Safety are as follows :—

(i) Inspection of new Railway Lines prior to authorisation for passenger traffic, (ii) Periodical Inspection of Open Lines. (iii) Approval of new works and renewals affecting passenger carrying lines.

(iv) Investigations into accidents, including inquiries into such accidents to trains as are considered to be of a serious nature.

(v) Genera! advice on matters concerning safety of train operation.

The head of this Organisation is designated as Commissioner of Railway Safety under whose control there are Additional Commissioners of Railway Safety having jurisdiction generally coterminus with the Zonal Railways.

219.  Objectives of    Railway Management.—The Corporate Management objectives of the Railway undertaking are as given below :—

(i) To provide rail transport for both passenger and goods adequate to meet demand in areas where Railway operation confers optimum benefit to the economy having due regard to the Government's policy of development  of  backward   areas ;                  (ii) To provide such rail transport at the lowest cost consistent with

(a) requirements of the Railway users and safety operations, 

(b) adequate provision for replacement of assets and some provision for development  of business, and 

(c) the least amount of pollution of the environment ;

(iii) To work in association with or utilize other modes of transportation, such as pipelines and read transport, and to engage in ancillary activities necessary to subserve the above two objectives ;

(iv) To establish a corporate image of the Railways as being an up-to-date business Organisation With the interest of the public and of the nation as its prime objectives ; and  

(v) To develop Organisationally effective personnel with pride in their work and faith in the management.

220. Delegation of Powers.—It is inevitable that the vast network of the Indian Railway System should operate through well defined delegation of authority flowing from the President through the Ministry of Railways (Railway Board) to the General Managers and further down the line to Executive authorities in the lower formations.

221. The power to incur expenditure in Railway matters vests in the Central Government unless— 

(i) if it is " Votable ", it is covered by a vote of Parliament ; and 

(ii) if it is " Charged " , the appropriation has been sanctioned by the President. The Budget grants as voted by Parliament, and the appropriations as sanctioned by the President as thus the limited within which expenditure may be incurred by the Central Government during a financial year for the specific purpose for which the grants have been made.

(See Chapter III of the Indian Railway Financial Code)

Note - Under Article 267 of Constitution, unforeseen expenditure, on expenditure on "New services" not contemplated in the budget can, however be authorised by the Government by sanctioning advances from the Contingency Fund, pending authorisation by the President.                                     

222. For speedy disposal of public business, the Central Government have delegated most of the ir powers In financial matters to authorities subordinate to them with a provision for redelegation to lower authorities.

(For details, please see Annexure I & II to Chapter V of the Indian Railway Financial Code).