Rail Tariff Authority via executive order?
With the Union Cabinet on Thursday giving an in-principle approval for formation of the Rail Tariff Authority (RTA), the government has begun the exercise of exploring the possibility of expediting the process for setting up the regulatory authority through the executive route.
Informing this, law minister Kapil Sibal said, “RTA has got in-principle approval from the Cabinet. But since setting it up through an Act of Parliament will take some time, the law ministry and the railways will examine whether it will be set up through an executive order.”
The two ministries will work out details for the formation of RTA, the first-of-its-kind for the national transporter, to periodically suggest tariff levels for both freight and passenger fares taking into account input costs (diesel, electricity) and volatile market conditions.
RTA will be a five-member body headed by a chairman. “We need to take it forward through executive action,” Mr Sibal added.
The authority, mooted by former railway minister and Trinamul Congress MP Dinesh Trivedi in his Rail Budget for 2012-13, was pursued by his successors C.P. Joshi, Pawan Kumar Bansal and present incumbent, Mallikarjun Kharge.
The need for setting up the RTA, which is intended to be immune from political interference, has been felt due to a rise in the cost of running trains and the need to insulate the railways from hikes in fuel and electricity prices.
One of its objectives would also be to eliminate uncertainties in tariff formulation.
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