Beyond Fifty-Two Headlines: The Reforms That Matter

 

Dr. Sudhanshu Mani

I recently wrote in The Hindu BusinessLine on the much-touted “52 Reforms in 52 Weeks” announcement by the Ministry of Railways in March 2026. The article is referenced at the end. The essence of what I wrote was this:

Many of the so-called reforms of Indian Railways (IR), viz., cleaner general coaches, streamlined linen management, revised ticketing and boarding rules, specialised freight wagons, cargo terminals, startup innovation portals, AI applications for non-core activities, digitisation of claims, etc., are useful initiatives but largely incremental improvements rather than transformative changes.

The promise of bringing cleanliness in general coaches on par with higher classes is welcome, though it raises the awkward question of why basic hygiene was ever treated as a class privilege. Freight reforms similarly arrive with fanfare, yet rail’s modal share remains stubbornly low despite years of policy tinkering. Technology initiatives, startup funding, and AI-driven monitoring sound modern, but innovation succeeds not through portals and announcements alone; it requires institutional willingness to adopt, scale, and take risks.

The programme’s central weakness is its tendency to label ongoing operational changes as “reforms”. Genuine reform demands deeper shifts: assured time-tabled freight services, dignified travel for millions in non-AC classes (and perhaps a switch to AC trains for all, which I frequently talk about), greater private-sector participation, governance reforms to replace feudal hierarchies with accountability, and leadership in at least one railway technology domain.

Until such structural changes occur, the “Reform Express” risks looking less like a high-speed transformation and more like a slow passenger train wearing a new nameplate.

Reforms have to be transformational, and there is much that needs to be transformed in IR. If one thinks that this talk of reforms is mere homily, let me give just two examples of what reforms can achieve. When Mr. Suresh Prabhu was the Minister and Mr. A.K. Mital, Chairman, Railway Board, two circulars were issued: one empowered General Managers to finalise all contracts at the Zonal/Production Unit level without the need to transfer cases to the Board, and the other explicitly authorised them to have the final say in the event of a disagreement between the Executive and Finance. This empowerment alone, especially the first measure, was a major reason why Train 18/Vande Bharat could be designed and built in such a short span. Later, when Ashwani Lohani was Chairman, a Transformation Cell was set up, and many process reforms were introduced that removed numerous day-to-day irritants in working.

For a vast organisation like IR, which is neither a pure government department nor a purely commercial enterprise, reforms can be grouped into broad categories. This framework also helps distinguish between routine improvements and truly transformational changes. In this blog, let me dilate on the subject: what are the measures that IR must undertake for these to qualify as transformational reforms?

1. Operational, Structural and Business Reforms

These alter how the organisation conducts its business, delivers its services, and utilises its assets. The “reforms” mentioned earlier are necessary and often yield visible results, but they are essentially process improvements. A measure deserves to be called a reform when it changes the way the railway functions, competes, and creates value.

Examples include time-tabled freight trains with assured delivery, private participation in freight and higher-end passenger operations, flexible pricing and logistics models, stations functioning as business units with commercial exploitation opportunities, a modified rolling-stock maintenance philosophy, dignified travel for all, and a distinct separation of infrastructure and operations where beneficial.

Such reforms directly affect revenue, market share, competitiveness, and customer behaviour.

2. Technological Reforms

These involve adopting new technologies to improve performance, safety, productivity, or customer experience.

Examples include AI-based safety monitoring, modern rolling stock matching global standards, automation in track maintenance, meaningful expansion of Kavach or advanced signalling systems, more efficient freight-management platforms, and predictive maintenance.

A caveat, of course, is that technology can be transformative only when accompanied by organisational change.

3. Governance and Institutional Reforms

These are often the most difficult and the most consequential because they change how decisions are made. Many successful railway transformations worldwide have been driven more by governance reforms than by technology alone.

Examples include:

• Decentralisation of powers, which in the case of IR would mean a leaner Railway Board and Headquarters, coupled with far greater empowerment at the Divisional level. The Divisional Railway Manager, elevated to the position to lead a division after nearly three decades of experience, should be a master and not a vassal, as they often are today.
• Clear accountability for outcomes.
• Performance-based management.
• Faster procurement and adoption of innovation.
• Breaking feudal, hierarchical, and silo-based decision-making.
• Organisational restructuring to enhance delivery and eliminate the prevalent silo-working: essential, but unfortunately, a bad word following the IRMS fiasco.

The thumb rule for IR would be this: operational and structural reforms make the existing machine run better, redesigning the machine wherever necessary. Technological reforms give the machine better tools. Governance reforms change how the machine is controlled and why it behaves as it does.

The real test of reform lies in these broad categories because they alter incentives, accountability, competitiveness, and long-term outcomes rather than merely improving day-to-day functioning.

As Shakespeare might have said, had he been asked to audit a railway reform programme:

“Count not thy reforms by number writ upon the scroll, but by the journeys shortened, the burdens lightened, and the future thereby changed.”

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Reference:

Will Railways’ reform push deliver? The Hindu BL 20^th June 26

https://www.thehindubusinessline.com/opinion/will-railways-reform-push-deliver/article71123129.ece

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