Indian Railways at the Crossroads
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Case Details:
Case Code : ECON005
Case Length : 15 Pages
Period : 1990 - 2004
Pub Date : 2004
Teaching Note : Available
Organization : Indian Railways
Industry : -
Countries : India
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ECON005) click on the button below, and select the case from the list of available cases:
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Operations of IR
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IR operated as a department of the government with
the Minister for Railways being the highest authority. The Minister for
Railways held the rank of a Cabinet Minister and was directly answerable
to the Indian Parliament. He was assisted by two Ministers of State, who
formed a part of the Union Council of Ministers.
The general day-to-day administration of IR was taken care of by the
Railway Board which consisted of a chairman of the rank of a Secretary
to the Government of India and six other specialized advisors (Refer
Exhibit-IV for the organization structure of IR). There were also
several specialized directorates, which took care of the implementation
of the board's policies... |
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The Issues
Despite the fact that IR played an indispensable role in the transportation
sector of India, it was generally acknowledged that there was scope for
improvement in its operations. IR suffered from a number of problems, which
complicated operations and kept the organization from moving forward with
changing times. IR was a relic of the socialist era of India and found it
difficult to operate in the changed economic scenario. In the years following
independence, the government of India adopted socialism...
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Towards a Better IR
Considering the importance of IR to the development of India, it was
felt that steps should be taken to improve its operations. Experts
suggested several methods by which the operations of IR could be
improved. Analysts were of the opinion that privatization, either
partial or complete, would be the best solution to the problems of IR.
They believed that privatization would relieve IR of the obligations of
being a government department, as well as gear its operations to market
conditions. They believed that privatization would also ensure greater
transparency and accountability... |
Exhibits
Exhibit I: Recommendations of the Rakesh Mohan Committee
Exhibit II: Indian Railways Zones
Exhibit III: Railway Network of India
Exhibit IV: Organization Structure of IR
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