Section 71: Power to give direction in regard to carriage of certain goods

(1) The Central Government may, if it is of the opinion that it is necessary in the public interest so to do, by general or special order, direct any railway administration–

(a) to give special facilities for, or preference to, the carriage of such goods or class of goods consigned by or to the Central Government or the Government of any State or of such other goods or class of goods;

(b) to carry any goods or class of goods by such route or routes and at such rates;

(c) to restrict or refuse acceptance of such goods or class of goods at or to such station for carriage, as may be specified in the order.

(2) Any order made under sub-section (1) shall cease to have effect after the expiration of a period of one year from the date of such order, but may, by a like order, be renewed from time to time for such period not exceeding one year at a time as may be specified in the order.

(3) Notwithstanding anything contained in this Act, every railway administration shall be bound to comply with any order given under sub-section (1) and any action taken by a railway administration in pursuance of any such order shall not be deemed to be a contravention of section 70.

Simplified Explanation

Section 71 of the Railways Act, 1989, empowers the Central Government to issue directions to railway administrations regarding the carriage of specific goods in certain circumstances, typically when it is in the public interest. This section allows the government to prioritize or regulate the transport of goods by rail for various reasons, including government needs or national security.

Key Provisions:

1. Central Government’s Power to Issue Directions (Sub-section 1):
   • The Central Government may, if it believes it is necessary for public interest, direct a railway administration by general or special order to take specific actions with regard to the transport of goods. The orders can include:
     • Special facilities or preference for certain goods. For example, goods consigned by or to the government, or any other class of goods that the government deems important.
     • Directing the railway to carry specific goods or classes of goods via particular routes or at certain rates.
     • Restriction or refusal of acceptance of goods at specified stations, or refusal to transport certain goods for particular destinations.
2. Time Limitation for Orders (Sub-section 2):
   • Any order issued under sub-section (1) will have a time limit of one year from the date it is issued. After one year, the order will cease to have effect unless it is renewed.
   • The order can be renewed by the Central Government for a period of up to one year at a time.
3. Mandatory Compliance by Railway Administration (Sub-section 3):
   • Railway administrations are legally required to comply with any order issued under this section.
   • Even if the railway administration takes actions in compliance with such orders, it will not be considered a violation of Section 70 (which prohibits undue preference). This ensures that the actions taken in compliance with government orders are legal and not seen as preferential treatment in breach of fair practices.

Practical Implications:

• Government Priorities: The government can use this section to prioritize the transport of goods that are deemed necessary for public interest, national security, or emergency situations. For instance, if the government needs to transport goods critical to defense or disaster relief efforts, it can direct the railway to provide preferential treatment for those goods.
• Regulation of Transport Routes and Rates: The government has the authority to direct railway administrations to use specific routes or set special rates for certain goods. This can be crucial for managing supply chains, ensuring critical goods are transported efficiently, or avoiding congestion on important railway routes.
• Time-bound Orders: The orders issued under this section are temporary, with a maximum validity of one year. This ensures that such powers are not used indefinitely and that the government must periodically review the necessity of continuing such special measures.
• No Breach of Fairness: While this section allows preferential treatment or restrictions on certain goods, any action taken by the railway in compliance with these government orders will not violate the anti-preference provision under Section 70. This ensures that the railways can follow government directions without facing legal challenges for discrimination.

Example:

• Example 1: In the event of a national emergency, such as a war or natural disaster, the government may direct the railway to prioritize the transport of military supplies or relief goods. It may also set specific routes or rates for such goods to ensure that the most urgent deliveries are made quickly and efficiently.
• Example 2: If there is a need to restrict the movement of certain hazardous goods due to safety concerns, the Central Government might direct the railway administration to refuse acceptance of such goods at particular stations or even re-route them to avoid populated areas.

Conclusion:

Section 71 of the Railways Act, 1989, grants the Central Government the authority to issue directives to railway administrations regarding the carriage of specific goods for public interest purposes. This includes offering preferential treatment, regulating routes and rates, or refusing certain goods. While these measures are temporary and must be renewed periodically, they provide the government with the flexibility to prioritize critical goods, especially in times of national need or emergency, without violating fairness in transport operations.