New Delhi, Feb 26 (IANS): Railway Minister Suresh Prabhu Thursday announced his ministry's plan to set up an innovation council called "Kayakalp" for business re-engineering and introducing a spirit of innovation in the Indian Railways.

The government has also proposed an investment of Rs.393.36 crore for computerisation and Rs.40.44 crore for railway research in the financial year 2015-16, Prabhu said.

"Railways will set up in 2015-16 four Railway Research Centres in select universities for doing fundamental research," the minister said while presenting his maiden Railway Budget in the Lok Sabha.

The railways have also decided to strengthen the Research Design and Standards Organisation into an institute of excellence for applied research.

"A consortium of ministry of railways, ministry of human resource development, ministry of science and technology and industries on an investment sharing model is being set up as part of Technology Mission for Indian Railways to take up identified Railway projects for research," the minister said.

He said the Railways would set up 'Malaviya Chair' for Railway Technology at IIT (BHU), Varanasi. This "chair" will help in development of new materials to be used in all assets of railways.

The minister stressed the need to invest in fundamental and applied research for seeking solutions to rail-specific issues. In this regard, the railways intend to set up a technology portal to invite innovative technological solutions.

In its mission to technological upgradation, the minister said IT vision for the department will be unveiled that will help with information on latest berth availability and station navigation system.