New Delhi: The Rajya Sabha on Monday passed the much-anticipated Railways (Amendment) Bill, 2025, marking a significant step towards modernising railway governance in India by repealing outdated colonial-era laws. The new legislation consolidates provisions related to the Railway Board within the Railways Act, 1989, streamlining legal references and eliminating the need to rely on two separate acts.
Indian Railways has undergone a long evolutionary process since its inception as a branch of the Public Works Department during British rule. As railway operations expanded, the Indian Railways Act, 1890, was introduced to regulate the network. However, the growing significance of railways necessitated a shift from the Public Works Department due to its operational flexibility requirements and the need for uniformity in standards across the network. This led to the establishment of the Railway Board through the Indian Railway Board Act, 1905, creating an independent governing body for policy decisions.
In 1989, the Government introduced a contemporary legal framework through the Railways Act, 1989, repealing the Indian Railways Act, 1890. However, the Indian Railway Board Act, 1905, remained in force. The new amendment seeks to rectify this by incorporating all relevant provisions of the Railway Board into the Railways Act, 1989, thereby reducing legal complexities and enhancing administrative efficiency.
While presenting the Bill in the Rajya Sabha, Union Railway Minister Ashwini Vaishnaw emphasised the importance of modernising railway governance, stating, “This amendment is a step towards simplifying our legal framework and enhancing the efficiency of railway administration. By merging the provisions of the Railway Board Act, 1905, into the Railways Act, 1989, we are ensuring greater coherence and reducing unnecessary complexities. This move will benefit railway operations while maintaining the autonomy and flexibility required for the sector’s growth.”
The process of enacting the Railways (Amendment) Bill, 2025, began with its introduction in the Lok Sabha on August 9, 2024, during the first session of the 18th Lok Sabha. It was subsequently passed by the lower house on December 11, 2024. The bill was listed as Item No. 10 in the Rajya Sabha’s business agenda on March 10, 2025, where it was approved, completing the legislative process.
Under the new amendment, the Railway Board’s nature, scope, and functioning remain unchanged. However, the law now explicitly defines its constitution and composition within the Railways Act, 1989, ensuring a comprehensive legal structure. The functioning of zones, divisions, and production units within Indian Railways will continue as before, ensuring no disruption in day-to-day operations.
The Government believes that the amendment will enhance efficiency in railway administration and policy-making by consolidating legal provisions into a single act. Officials assert that the change is a step towards simplifying governance structures while retaining the operational autonomy and flexibility necessary for the efficient functioning of Indian Railways.
By repealing the colonial-era Railway Board Act, 1905, the legislation represents a move towards legal modernisation, aligning the railway administration with contemporary needs. With this amendment, policymakers aim to ensure a more cohesive and streamlined approach to railway governance, reflecting India’s evolving infrastructure requirements and administrative reforms.