In a major move to depoliticise fixing of passenger tariffs by Indian Railways, the Union Cabinet has given an in-principle approval to the proposal of setting up Rail Tariff Authority (RTA) for fare rationalization. However, the final nod was with held for want of clarifications on various aspects like powers of the new body.
As per the deliberation, though the eventual notification for changes in tariff after the discussions would still be done by the Railways, the authority which is expected to have five independent members, including a chairman, would set strong guiding principles for changes and in that respect and would be more than just a recommending body.
The proposal, which was mooted by former Railway Minister and Trinamool Congress MP Dinesh Trivedi in his Rail Budget 2012-13, was pursued by his successors CP Joshi, Pawan Kumar Bansal and the present occupant Mallikarjun Kharge.
The need for this proposal was largely felt on account of rise in cost of running trains and the need to insulate the Railways from hikes in fuel and electricity and eliminating uncertainties in tariff formulation. Surprisingly, in 1950, railways were earning 47% of its revenue from passengers which has gone down substantially to 27% presently.
Meanwhile, RTA would be one of the first steps towards depoliticisation of Indian Railways, which ended on an operating ratio of 88.8% for the year of 2012-2013. The cross subsidisation for passenger service had gone up to Rs 36,000 crore in 2012 which was reduced to Rs 32,000 crore after the latest hike in passenger fares and cancellation charges.
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