In a bid to take away powers from the political executive to decide on passenger and freight fare, the government on Friday indicated that it will soon move an amendment to the Railways Act to make the proposed Rail Tariff Authority (RTA) independent to decide on the issue.
Prime Minister Manmohan Singh has expedited the setting up of the RTA, with the Railways expecting inputs from the interministerial consultation in a week’s time on the draft Cabinet note on the issue.
“The RTA may be more than just being an advisory body. It could be like a regulator but its final shape will only be known after the Cabinet decision,” said new railway board chairman (CRB) Arunendra Kumar.
He added that if need be the government will move Parliament for an amendment to the Railways Act to constitute the RTA.
The Railways, which is cash-trapped for the lack of funds to execute a number of projects, has been constrained from hiking passenger fare due to political reasons.
Former railway minister Pawan Kumar Bansal was able to bite the bullet and hike the passenger fare after a gap of over a decade.
“There is high cross-subsidisation to keep the passenger fare low. The constitution of the RTA is a step in the direction of eliminating the political role in the fixation of the passenger and freight fare,” said a senior official.
Sources said that the proposed RTA will be a five-member body with its chairman being a retired CRB and four members from outside the railways to ensure that it’s insulated from any interference.
Mr Kumar said that the constitution of the RTA is high priority of the government.