Corporatisation of production units of the Railways – Rajyasabha Q&A

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAJYA SABHA
QUESTION NO 3951
ANSWERED ON 26.07.2019

Corporatisation of production units of the Railways

3951 Ch. Sukhram Singh Yadav
Shri Vishambhar Prasad Nishad
Smt. Chhaya Verma

Will the Minister of RAILWAYS be pleased to state :-

(a) whether it is a fact that the Ministry is considering to make some of the railway production
units as corporations;

(b) if so, the objectives thereof;

(c) whether these units are not working as per their capacity at present;

(d) whether there would be any change in the service conditions of the employees of the said
units if they are rechristened as corporations;

(e) the details of units which are being considered to be made corporations; and

(f) whether these units are in profit or loss making?

ANSWER
MINISTER OF RAILWAYS AND COMMERCE & INDUSTRY

( SHRI PIYUSH GOYAL)

(a) & (b) Government has envisaged preparation of an action plan for corporatization of the Rolling Stock Production Units. This is expected to be attended with the following benefits:
(i) State-of-the-art technology and modernization
(ii) Managerial autonomy
(iii) Superior operational efficiency due to better management practices
(iv) Export capability
(v) Increase MSME business
(vi) Employment generation
(vii) Better benefits to employees
(viii) Making India an international hub for rolling stock manufacturing.
(ix) Attract investments.
(c) All Production Units are generally functioning well and achieving annual targets. As against total production capacity of 4200 coaches and 500 locomotives, Indian Railways manufactured 6076 coaches and 734 locomotives in the year 2018-19.
(d) Such issues will be decided in consultation with stakeholders at appropriate stage. Generally, service conditions of corporations / PSUs are better than that of Government Departments.
(e) The existing Production Units are expected to be corporatised in a phased manner.
(f) The question of profit or loss does not arise as Railway Production Units almost entirely work for Railways’ internal requirement on transfer cost basis.