In a key rail reform measure, the government on Wednesday approved the formation of an independent rail regulatory authority to determine tariff and ensuring fair play and level playing field for private players keen on investment in the railways.
The setting up of the Rail Development Authority (RDA) will help the government take appropriate decisions on pricing of services commensurate with costs, and suggest measures for enhancement of non-fare revenue. Apart from protection of consumer interests, promotion of competition, market development, it will help create positive environment for investment, promote efficient resource allocation, benchmark service standards, and suggest measures for absorption of new technologies and human resource development and provide framework for non-discriminatory open access to the Dedicated Freight Corridor infrastructure.
The RDA will be formed through an executive order of the government, according to the decision taken at a meeting of Union Cabinet chaired by the PM.
Considered to be the biggest and first-of-its-kind reform in the rail sector, it is targeted at improving the services offered to passengers, provide comfort to investors and enhance transparency and accountability.