The proposed Rail Tariff Authority (RTA) will become a reality soon with the law Ministry and Indian Railways reaching a conclusion on powers and functioning of the body, which aims to de-link the process of deciding passenger fare and freight charges from political compulsions of the party in power.
Sources claimed the law Ministry has suggested some minor changes in relation with powers and functioning of the authority and the Indian Railways has accepted it. The RTA would function on the lines of similar authorities already in function.
“We are looking into whether the body should come into force through an Executive Order or through a Bill in Parliament,” Railway Minister Mallikarjun Kharge told The Pioneer.
Sources claimed the RTA could be set up through an Executive Order, as the proposed authority would be an advisory body. The ultimate decision to implement the recommendation of the authority would rest with the ministry. On August 1, the Cabinet had approved the setting up of the RTA with powers to fix and notify rates.
“The Ministry would soon make a move in this regard,” a senior official of the Railway Ministry said.
The authority would have five independent members, including a chairman. While the other members would be Central Government employees, the chairman cannot be from the Central Government unless he has served at the level of a secretary. Railway officers with commercial experience would also be eligible to be members.
A search committee, headed by the Cabinet Secretary and comprising Chairman Railway Board and two more members, will be formed to select the members of the RTA.
It was former Railway Minister Dinesh Trivedi who had proposed a tariff authority for Railways and things moved with Kharge taking charge of the department.
Struggling to meet fund requirements for expansion and renovation works, Railways has also introduced a variable Fuel Adjustment Component (FAC), which is linked to fuel prices. The FAC component in freight and fare would be a regular affair now and would be re-looked into twice every year.
Nearly 30 per cent of passenger fare consists of the fuel component. FAC is a variable component, taking fuel prices into consideration. The Railway expects to raise additional Rs 450 crore from passenger fare and another Rs 750 crore from freight after the FAC was implemented.