After the end of the Emergency and the 1977 elections, Dandavate served as the Minister of Railways in the Morarji Desai ministry. He initiated a number of improvements in the country's rail infrastructure. These included the computerization of railway reservations, which reduced corruption among booking clerks and uncertainty among passengers; sanctioning the first phase of the Konkan Railway in 1978-79, with a line from Apta to Roha; and the repair or replacement of 5000 kilometres of worn-out tracks. Most notably, he introduced cushioned berths for passengers of second-class sleeper coaches, replacing the existing wooden berths, to provide for a more comfortable journey. While initially implemented in the major trunk lines, all trains had these padded berths in their second-class compartments by the end of the 1980s.