Government may go legislative route on Rail Development Authority

Prime Minister Narendra Modi, according to sources, has given his consent for a legislation-backed RDA on the lines of the Telecom Regulatory Authority of India (TRAI).

“A joint presentation by Niti Aayog and Railways were made before the Prime Minister and the PM expressed satisfaction,” he said.

Besides, fixing the fare and freight and fare charges, the authority would also be responsible for protecting the interest of consumers, ensuring quality of service, promoting competition, encouraging market development, efficient allocation of resources, provide non-discriminatory open access specially on DFC and to benchmark service levels for ensuring quality, continuity and reliability of service.

RDA may be also entrusted with the task of regulating private investment in railways and resolving commercial disputes.

National Transport Development Policy Committee (NTDPC) Report of 2014 had recommended that a Rail Tariff Authority should be set up which should become the overall regulator.

Later Bibek Debroy Committee Report had also recommended a regulator with overarching functions.

Many of the countries like the UK, Russia, the US, Australia and Germany have regulatory structure in some form or the other.