Less powers for new railways body

A year after it was approved by Cabinet, the proposal for an independent authority for India’s rail sector got a boost in a new avatar on Monday, albeit with somewhat less teeth in terms of fixing tariffs.

Earlier named Rail Tariff Authority, the newly proposed ‘Rail Development Authority’, will not be able to compel the Railways to revise fares or freight but can only “recommend” passenger and freight tariffs considering the cost structure.

“In cases where the government does not accept the suggested tariffs, Indian Railways would need to be compensated appropriately perhaps through increased allocations in the Gross Budgetary Support or through a suitable mechanism,” says the concept note on the Authority released on Monday for public comments. The Authority, a statutory body to be set up by amending Railways Act, will also not deal with setting technical standards.