The ministry of railways has removed a significant administrative hurdle in the implementation of works in crucial safety areas including Kavach, signalling, and interlocking after the Balasore train catastrophe highlighted fundamental inadequacies in safety systems.

The Railway Board would no longer need to provide an economic reason before approving funding for these safety improvements.

The "safety exemption" to the Centre's financial regulations will now apply to the Kavach anti-collision system, electronic, panel, and route relay interlocking, block signalling, complete track circuiting, and technological upgrades. This was indicated in a Railway Board order from the 22nd of June. A copy of the order has been examined by Business Standard.

Due to incorrect rate of return (RoR) calculations, several projects would ultimately become stalled at the level of the Railway Board, the finance ministry, or the Cabinet. A top government official suggested that this may have caused certain projects to be delayed.