The Union Cabinet has given in-principle approval to setting up a Rail Tariff Authority (RTA) to suggest tariff levels and has entrusted the law Ministry to work out the details of setting up the body through an executive order.
"Since setting RTA through an Act of Parliament will take some time, the law Ministry and Railways will examine whether it will be set up through an executive order," law Minister Kapil Sibal said.
The RTA, the idea of which was mooted by then Railways Minister Dinesh Trivedi in Railway budget for 20012-13, will periodically suggest tariff levels for both freight and passenger fares taking into account input costs (diesel, electricity) and volatile market conditions. It will be immune from political interference and eliminate uncertainties in tariff formulation. It will be a five-member body headed by a chairman.
Railways had sent the plan for the RTA to different ministries, including Finance, seeking their views on the proposed body before submitting it to the Cabinet for its nod.