Resumen
Indian Railways (IR) which is a vertically integrated organization under Ministry of Railways is in urgent need of reforms. It has been discussed since long that the current organizational structure of IR is a major deterrent for its commercial orientation, promoting competition and providing a level playing field to other players in the sector. As a result, private investments in the sector have been negligible in spite of several attempts made by the Ministry of Railways. Indian policy makers have been apprehensive about vertical unbundling citing negative experiences from British Railways. The authors believe that given the framework that vertical unbundling provides for leveraging private investments and operational efficiencies, it should be explored as an option for IR. This paper is an attempt in this direction wherein the unbundling of policy making, infrastructure and services is explored. Authors have studied the German Railway Reform in depth and explored the implications of similar unbundling for IR