Economy News


Written by Talent KAS

Related Topic in KAS Prelims Syllabus:

Economy [Paper-II]: Infrastructure in Indian Economy, Railways


Union Cabinet chaired by PM Modi has approved a transformational organisational restructuring of the Indian Railways.


  • Unification of the existing eight Group A services of the Railways into a Central Service called Indian Railway Management Service (IRMS).
  • The creation of the IRMS will be done in consultation with the Department of Personnel and Training and Union Public Service Commission (UPSC) to facilitate recruitment.
  • All the remaining posts of the Railway Board shall be open to all officers regardless of the service to which they belong, thus ensuring equal opportunity for all.
  • Re-organisation of Railway Board on functional lines headed by CRB with four Members and some Independent Members
  • The existing service of Indian Railway Medical Service (IRMS) to be consequently renamed as Indian Railway Health Service (IRHS)
  • The Railway Board—the apex decision making body of the Indian Railways—will be headed by a chairman, who will be the chief executive officer (CEO). There will be four other members, in charge of infrastructure, rolling stock, finance and operations, and business development.


  • The unification of services will end “departmentalism”, promote smooth working of railways, expedite decisionmaking, create a coherent vision for organisation and promote rational decision making.
  • Departmentalism in Indian Railways has been marked by inefficiency and fighting over control of assets and resources, leading to delays in decisionmaking.
[Source: PIB, Livemint]


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