New Delhi: India is opening its massive railway network to the country’s startup ecosystem, offering to fund up to half of the development costs for new technologies in a bid to modernize the world’s most populous nation’s primary transport system.
The Indian Railways on Thursday unveiled the third and fourth sets of measures under the government’s ‘52 reforms in 52 weeks’ programme, launching a new Rail Tech Policy to promote innovation and announcing complete digitization of the Railway Claims Tribunal (RCT) to speed up case disposal.
The latest measures are part of what Prime Minister Narendra Modi has described as a ‘Reforms Express’ aimed at structural transformation of the national transporter this year.
Announcing the reforms, railway minister Ashwini Vaishnaw said the Rail Tech Policy seeks to build a robust technology ecosystem for the railways by encouraging startups, innovators, industry and academic institutions to develop solutions across safety, security, asset maintenance and grievance redressal.
Under the policy, the railways will fund up to 50% of the project costs proposed by startups. If a project proves successful, the national transporter will place orders for a substantial period to enable scaling up of the technology, Vaishnaw said.
The policy also proposes a simplified process for selecting innovators and creating a dedicated Rail Tech Portal to anchor innovation efforts. Innovation challenges can be initiated either by innovators or by departmental users within the railways, creating a two-way channel for problem-solving.
“The objective is to create a strong startup ecosystem aligned with the operational needs of the railways,” Vaishnaw said, adding that the initiative would help accelerate adoption of emerging technologies, including artificial intelligence-based applications.
In parallel, the railways launched the electronic Railway Claims Tribunal (e-RCT) programme, aimed at fully digitizing the tribunal’s operations within 12 months. The reform is intended to fast-track settlements, reduce pendency and improve transparency.
Digitizing justice
The RCT handles compensation claims arising from railway accidents, untoward incidents, and other passenger-related grievances. According to the minister, the number of pending cases has already declined from about 34,000 a few years ago to around 9,500, reflecting a 60-70% reduction in pendency.
The e-RCT will connect all 23 benches of the tribunal digitally across the country and enable litigants to file cases electronically from anywhere, with round-the-clock access.
The digital platform will have three modules. The first is an e-filing system that will allow 24/7 online submission of claims. The second is a Case Information System (CIS), which will serve as a centralized digital database tracking a case from filing to final judgment, including hearings, evidence submissions and adjournments. The third is a Document Management System (DMS), a central repository of all case-related documents, orders and judgments.
Officials said the system will provide automatic alerts and notifications to users, enable real-time case monitoring and introduce automated document handling. Artificial intelligence tools will be used to assist in case processing and generate insights for benches, with the aim of speeding up resolution.
Vaishnaw described the e-RCT as a citizen-centric reform designed to modernize the tribunal’s functioning and improve accessibility for claimants, particularly those located far from tribunal benches.
“If the model is successful, it can be replicated by other tribunals, including the Central Administrative Tribunal,” he said.
The third and fourth rounds of reforms follow two earlier measures announced under the programme—a long-term, end-to-end cleaning initiative across the rail network and a revamp of Gati Shakti Cargo Terminals to improve freight handling efficiency.
With the latest announcements, the railways is attempting to combine operational reforms with technology-led interventions, even as it pushes for faster project execution and improved passenger services as part of its broader modernization agenda.
Key Takeaways
- Railways is shifting to a co-investor role, funding 50% of startup R&D.
- Successful tech pilots are expected to lead to long-term scale-up orders, a major win for the Indian startup ecosystem.
- The e-RCT aims to eliminate the need for physical presence for claims, using AI to speed up the remaining 9,500 cases.
- The ‘52 reforms in 52 weeks’ indicates a high-velocity policy environment for the sector this year.
- The digital claims model is being positioned as a ‘proof of concept’ for all Indian administrative tribunals.