Indian Railways Embraces Best Practices for Comprehensive Overhaul

In a bold step towards transforming one of the world’s largest railway networks, Indian Railways is undertaking a comprehensive overhaul of its operations, infrastructure, and service delivery. This ambitious modernization plan centers around two strategic pivots: the adoption of globally benchmarked technologies and a complete shift to the Engineering, Procurement, and Construction (EPC) model for infrastructure development.

To align Indian Railways with global best practices, officials have initiated a deep evaluation of railway systems from Russia, Germany, Switzerland, France, and Spain. This comparative study expected to conclude within the current financial year will guide the adoption of cutting-edge technologies suited for India’s diverse geographic and operational conditions.

Key focus areas include:

1. Real-time railway monitoring and control systems.
2. Advanced rail infrastructure and automation technologies.
3. Protocols to improve the mental health and working conditions of loco pilots and key personnel.

Previously, Indian Railways relied on item rate contracts, where the government provided the designs and estimated quantities for each component of a project. This conventional approach, although familiar in public sector construction, has long faced criticism for chronic time delays, cost overruns and inefficiencies due to scope changes and funding gaps.

In its letter bearing Reference No. 2015/W-I/Genl./ CORR.GM/ dated May 20, 2024, Railway Board announced a major policy shift to move entirely to the EPC model for large-scale railway works including new line construction, gauge conversion, track doubling, bridges, workshops, and residential colonies.

Under the EPC model, the contractors assume responsibility for design, procurement, and execution, with clearly defined deliverables and risk transfer mechanisms. The newly finalized standard EPC agreement mandates that project risks, including those related to soil, weather, design, and construction, be borne by the contractor. This reallocation of risk is expected to drive faster project execution, enhance accountability, and ensure more predictable outcomes in both time and cost.

The shift to EPC tendering aligns with the growing demand for rapid expansion of India’s freight network, a crucial requirement for supporting the country’s economic growth. By embedding these reforms, Indian Railways aims to increase capacity, reduce project bottlenecks, and deliver world-class passenger and freight services.

With a renewed focus on global benchmarking, technological upgradation, and contract efficiency, Indian Railways is positioning itself to become a smarter, safer, and more future-ready transport system. The reforms signal not just infrastructural improvement, but a cultural and procedural transformation within one of the world’s largest railway networks.