Railway Minister Suresh Prabhu in a follow up action to the Budget announcement has constituted the 'Kayakulp' Council and has appointed former Tata Group chairman, Ratan Tata to head its council.

The primary aim of this council is to recommend changes, innovative methods and new practices for the improvement, betterment and transformation of the ailing Organization of Railways in India.

Prabhu is looking for innovative suggestions from these committees. "It will be easier for him to implement these ideas if they come as suggestions. If they come from within the railways, they are bound to get stuck in bureaucratic processes," an official said.

The Council is likely to be a standing committee and would interact with all its stakeholders. It would initially have Shiv Gopal Mishra, General Secretary of All Indian Railwaymen's Federation (AIRF) and Dr. M. Raghavaiah, General Secretary, National Federation of Indian Railwaymen (NFIR), the two recognized federations representing the railway employees as members.

Suresh Prabhu in the budget speech had said –"Every dynamic and thriving organization needs to innovate and re-invent its practices. In accordance with the vision of Prime Minister for Innovation, Technology Development and Manufacturing, the Indian Railways intend to set up an innovation council called "Kayakalp" for the purpose of business re-engineering and introducing a spirit of innovative in Railways."

The setting up of this committee with immediate effect is the fulfillment of Prabhu's promise as stated in his Railways Budget speech.