Uchit Singhal
18th October 2022 sounded the death bell to one more PSU of Indian Railways. Central Organization for Modernization of Workshops was established in 1979 for modernising the Indian Railway Workshops and Production units. The modernization project was funded through World Bank credits. This also involved purchasing over 22020 machines valued at Rs.6274 Crores. It had thus emerged as a leading specialized organization in the fields of manufacturing and maintenance technologies. The percentage of over aged machines over IR had increased from 47% in 1952 to 77% in 1979. This was an obstacle to meet the production and maintenance services for a growing economy like India. However, this also entailed a massive investment; hence an agreement was negotiated with the International Development Association of the World Bank for providing a credit of $95M for the first phase of workshop modernisation programme that was envisaged to be completed during 80s. The unprecedented magnitude of this effort prompted the Government of India to set up a special organisation dedicated to these endeavours, leading to establishment of Central Organisation for Modernisation of Workshops (COFMOW) in 1979. This was followed by second and third phases of modernization for another 7 years with IDA credits of Rs.400 crores.
The organization evolved from a humble beginning from merely procurement of machines and plants to providing turnkey solutions for installation and commissioning. It developed a niche in its area of operation and management services encompassing not only Ministry of Railways but other ministries and departments and acquired unmatched expertise in developing specifications for machine, plants and equipment meeting client needs. Being a pioneer in the field, COFMOW offered its services to those needing modernization or up gradation of their manufacturing/maintenance activities. Then why closure? Indian Railways is undertaking a massive restructuring plan based on the recommendations of Sanjeev Sanyal, former Principal Economic Advisor, who submitted his report in 2021. IRSDC (Indian Railways Station Development Corporation) and IRFOA (Indian Railways Organization for Alternative Fuels) have already been shut down following this major exercise. He, in his report, has also suggested winding up of CORE (Central Organization for Railway Electrification) and CRIS (Centre for Railway Information Systems) along with merger of RVNL with IRCON and RailTel with IRCTC. The report sought to make Indian Railways a lean organization with focus on more private participation and more Governance. As per the report, both IRCON and RVNL have similar business functions i.e. construction of Railway Infrastructure. While IRCON bids for private contracts and has significant International presence, RVNL functions as a subcontractor of IR by getting works on a nomination basis from Railways with no borrowing power of its own. Where IRFOA was recommended for closure due to no need of alternative fuels in wake of full swing focus on Railway Electrification, CORE was recommended for closure due to its tendering out the works with respect to Railway Electrification on EPC basis which can be done by Zonal Railways also. Committee suggested the need to close down the COFMOW as the organization which was initially set up for modernization of workshops has lost its relevance in todays world. An organization meant for modernization transformed itself into a white elephant for Indian Railways over period of time with less to offer and more to consume. The technical expertise over any matter wherever required can always be brought by the private sector by studying the best practices available across the Globe. When Railways is already progressing on a path of streamlining its procedures and rationalising the methods on the lines of private sector, it made little sense to keep continuing with an age-old organization like COFMOW.
All works have been transferred to the concerned Zonal Railways vide this order and all staff will be repatriated/redeployed elsewhere where they will be able to contribute more efficiently and meaningfully to the Indian Railways.
(The author is an IRTS Officer serving in J&K in capacity of Station Director, Jammu)
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