Merger of railway public sector undertakings
The Indian government has proposed the merger of various Railway Public Sector Undertakings (PSUs) to enhance operational efficiency and streamline services within the railway sector. This initiative aims to consolidate resources, reduce redundancy, and improve financial performance across these entities.
By merging PSUs, the government seeks to create a more robust framework for managing railway operations, which can lead to better coordination in project execution and service delivery. The move is expected to facilitate investment in infrastructure, improve technology integration, and ultimately lead to enhanced passenger and freight services.
Stakeholders, including employees and industry experts, are encouraged to provide feedback on this initiative, as it may impact job roles and organizational structures within the merged entities. Further details will be outlined in official communications as the process unfolds.
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
LOK SABHA
UNSTARRED QUESTION NO. 2186
TO BE ANSWERED ON 12.03.2025
MERGER OF RAILWAY PUBLIC SECTOR UNDERTAKINGS
2186. SHRI PUTTA MAHESH KUMAR:
Will the Minister of RAILWAYS be pleased to state:
(a) whether the Government is contemplating to merge the RVNL, IRCON, Rail Tel and IRCTC as a one entity and if so, the details thereof;
(b) the challenges associated with the implementation of reforms and merger and the manner in which these are likely to be mitigated;
(c) whether the merger will impact the workforce and management structure of these PSUs and if so, the details thereof;
(d) the measures to be taken to address the potential redundancies and job losses in the PSUs; and
(e) whether the railway reforms will address the long-standing issues of inefficiency corruption and lack of accountability in these PSUs?
ANSWER
MINISTER OF RAILWAYS, INFORMATION & BROADCASTING AND ELECTRONICS
& INFORMATION TECHNOLOGY
(SHRI ASHWINI VAISHNAW)
(a) to (e): Rail Vikas Nigam Ltd (RVNL), IRCON International Ltd. (IRCON), Rail Tel Corporation of India Ltd (RCIL) and Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) are Central Public Sector Enterprises (CPSEs) under the administrative control of the Ministry of Railways and these are listed on Stock Exchanges. Any move of their merger is based on the synergies, market forces and likely effect on market capitalization. Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance is mandated for any such move.
Presently, no proposal for merger of these CPSEs is under consideration.
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